[Federal Register Volume 82, Number 237 (Tuesday, December 12, 2017)]
[Notices]
[Pages 58455-58456]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-26748]


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NUCLEAR REGULATORY COMMISSION

[License Nos. XSOU8707 and XSOU8827; Docket Nos. 11004455 and 11005966; 
Docket ID; NRC-2017-0230]


In the Matter of MP Mine Operations LLC; Order Approving Direct 
Transfers of Control of Licenses

AGENCY: Nuclear Regulatory Commission.

ACTION: Order; issuance.

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SUMMARY: The U.S. Nuclear Regulatory Commission (NRC) is issuing an 
Order approving a request, submitted by Molycorp Minerals LLC 
(Molycorp), seeking the NRC's consent to the direct transfers of 
control of Export Licenses XSOU8707 and XSOU8827. In addition, Molycorp 
requested approval of conforming license amendments to reflect the new 
name of the holder of the license from Molycorp Minerals LLC, to MP 
Mine Operations (MPMO).

DATES: The Order was issued on November 27, 2017.

ADDRESSES: Please refer to Docket IDs 11004455 and 11005966 when 
contacting the NRC about the availability of information for this 
action. You may obtain publicly-available information related to this 
document using any of the following methods:
     Federal Rulemaking website: Go to http://www.regulations.gov and search for Docket ID NRC-2017-0230. Address 
questions about NRC dockets to Carol Gallagher; telephone: 301-415-
3463; email: [email protected]. For questions about the Order, 
contact the individual listed in the FOR FURTHER INFORMATION CONTACT 
section of this document.
     NRC's Agencywide Documents Access and Management System: 
You may obtain publicly-available documents online in the Agencywide 
Documents Access and Management System (ADAMS) Public Documents 
collection at http://www.nrc.gov/reading-rm/adams.html. To begin the 
search, select ``ADAMS Public Documents'' and then select ``Begin Web-
based ADAMS Search.'' For problems with ADAMS, please contact the NRC's 
Public Document Room (PDR) reference staff at 1-800-397-4209, 301-415-
4737, or by email to [email protected]. The ADAMS accession number 
for each document referenced (if it available in ADAMS) is provided the 
first time that a document is referenced in this document.
     NRC's PDR: You may examine and purchase copies of public 
documents at the NRC's PDR, Room O1-F21, One White Flint North, 11555 
Rockville Pike, Rockville, Maryland 20852.

FOR FURTHER INFORMATION CONTACT: Andrea R. Jones, Office of 
International Programs, telephone: 301-287-9072, email: 
[email protected]; Nuclear Regulatory Commission, Washington, DC 
20555-0001.

SUPPLEMENTARY INFORMATION: The text of the Order is attached.

    Dated at Rockville, Maryland, this 7th day of December 2017.

    For the Nuclear Regulatory Commission.
David L. Skeen,
Deputy Director, Office of International Programs.

I.

    Molycorp, the original Licensee, previously held export licenses 
nos. XSOU8707 and XSOU8827. The Licensee address included on these 
export licenses was the Mountain Pass rare earth mine and processing 
facility. After Molycorp filed for bankruptcy, MP Mine Operations LLC 
(MPMO) purchased the Mountain Pass rare earth mine and processing 
facility from Molycorp pursuant to an asset purchase agreement dated 
June 19, 2017, (Agencywide Documents Access and Management System 
[ADAMS] Accession No. ML17297B230). Although the ``purchased assets'' 
covered by this agreement included ``all Permits . . . to the extent 
transferable,'' the export licenses held by Molycorp were not 
transferred to MPMO at that time (see sections 2.1(b)(viii) and 2.7(a) 
of the asset purchase agreement). MPMO, a Delaware limited liability 
company, is controlled by two U.S. investment funds, JHL Capital Group 
Holdings Fund Two and QVT Financial LP, which combined have a 90.01 
percent economic stake and own 100 percent of the voting common units 
for MPMO. Shenghe Resources Holding Co., Ltd., through its subsidiary 
Leshan Shenghe Rare Earth Co., Ltd., owns a 9.99 percent non-voting 
preferred stake for MPMO, and has no voting rights in MPMO. Both 
Shenghe Resources Holding Co., Ltd. and Leshan Shenghe Rare Earth Co., 
Ltd. are foreign companies.

II.

    By letter dated August 14, 2017 (ADAMS Accession Nos. ML17236A034 
and ML17236A039), as supplemented by letter dated October 5, 2017, 
(ADAMS Accession No. ML17297A131) and revised applications dated 
October 19, 2017, (ADAMS Accession Nos. ML17296A544 and ML17296A693), 
MPMO requested approval from the U.S. Nuclear Regulatory Commission 
(NRC) to transfer control of export licenses nos. XSOU8707 and XSOU8827 
from Molycorp to MPMO. This request was made pursuant to Section 184 of 
the Atomic Energy Act of 1954, as amended (AEA) (42 U.S.C. 2234) and 
Title 10 of the Code of Federal Regulations (10 CFR) 110.50(d). In 
association with the proposed direct transfer, MPMO has requested that 
both licenses be amended to change the Licensee from Molycorp to MPMO, 
and that the expiration date for XSOU8827 be extended by one month (to 
December 31, 2021). In addition, as part of the amendment applications, 
MPMO provided updated contact information for the Licensee contact 
(John Benfield, who is currently listed as the Licensee contact on both 
licenses and is now working for MPMO).
    The revised applications dated October 19, 2017, were made publicly 
available in ADAMS on October 23, 2017. No requests for hearing or 
comments were received.

[[Page 58456]]

    Pursuant to Section 184 of the AEA, no license granted under 10 CFR 
part 110 shall be transferred, assigned, or in any manner disposed of, 
directly or indirectly, through transfer of control of any license to 
any person unless the NRC, after securing full information, finds that 
the transfer is in accordance with the provisions of the AEA, and gives 
its consent in writing. Pursuant to 10 CFR 110.50(d), a specific 
license granted under 10 CFR part 110 may be transferred, disposed of, 
or assigned to another person only with the approval of the NRC by 
license amendment.
    After review of the information in the revised applications dated 
October 19, 2017, and relying on statements and representations 
contained in the supplemental information dated October 5, 2017, the 
NRC staff has determined that the proposed transferee is qualified to 
hold the licenses and that the direct transfers of control are 
consistent with the applicable provisions of the AEA, regulations, and 
orders issued by the Commission. MPMO stated that (1) there will be no 
change in personnel, duties, or location; (2) all manufacturing data 
and information, operating instructions, documentation, operating 
records, files, and data were included in the asset purchase agreement 
and have been maintained; and (3) MPMO will abide by all constraints, 
conditions, and requirements of the licensed program, including the 
regulations in 10 CFR 110.53. The NRC staff has further determined that 
the request for the proposed conforming license amendments complies 
with the standards and requirements of the AEA, and the NRC regulations 
in 10 CFR part 110. The transfers of control of the licenses and 
issuance of the conforming license amendments will not be inimical to 
the common defense and security, or to the health and safety of the 
public, and all applicable requirements have been satisfied.

III.

    Accordingly, pursuant to Section 184 of the AEA and 10 CFR 
110.50(d), IT IS HEREBY ORDERED that the direct transfer of the 
licenses from Molycorp to MPMO, as described herein, is approved.
    It is further ordered that the conforming license amendments 
associated with the direct transfer shall be issued.
    This Order is effective upon issuance.
    For further details with respect to this Order, see the revised 
applications dated October 19, 2017, and associated supplemental 
materials dated October 5, 2017. These documents are available for 
public inspection at the Commission Public Document Room (PDR), located 
at One White Flint North, Room O1-F21, 1155 Rockville Pike (first 
floor), Rockville, MD 20852, and available online in the ADAMS Public 
Documents collection at http://www.nrc.gov/reading-rm/adams.html. 
Persons who do not have access to ADAMS or who encounter problems in 
accessing the documents located in ADAMS should contact the NRC Public 
Document Room (PDR) Reference staff by telephone at 1-800-397-4209, or 
301-415-4737 or by email to

    Dated at Rockville, Maryland, this 27th day of November 2017.

    For the Nuclear Regulatory Commission.
Nader L. Mamish,
Director, Office of International Programs.
[FR Doc. 2017-26748 Filed 12-11-17; 8:45 am]
 BILLING CODE 7590-01-P