Molycorp, Lynas May Add to Gains as China Restricts Rare Earths

China’s clampdown on exports of rare earths essential for the electronics and new-energy industries may create a windfall for a handful of Western companies seeking to benefit from surging global demand.

Molycorp Inc., owner of the world’s largest non-Chinese deposit of rare-earth metals, and Lynas Corp. both plan to open mines in the next two years to meet the demand, forecast by the Chinese Rare Earths Industry Association to gain by almost two-thirds by 2015. Their shares have more than doubled this half, tracking gains in prices for rare earths that are used in the manufacture of disk drives, wind turbines and smart bombs.