press release

Molycorp to reduce workforce in New Mexico and Pennsylvania

The following news release was issued by Molycorp, Inc., a wholly owned subsidiary of Unocal.

Brea, Calif., Dec. 3, 2001 - Molycorp, Inc., today said that the prolonged depressed market for molybdenum will require the company to reduce its workforce at company facilities in New Mexico and Pennsylvania.

At its Questa, N.M., mine, the company will lay off 67 employees and eliminate 35 contractor positions, effective Feb. 1, 2002. The remaining workforce of approximately 112 employees will continue mining and milling of the initial block on the D-ore body, which was developed this year, and work on other site environmental and reclamation activities.

"This was a particularly difficult decision, but prolonged low prices for molybdenum required us to take this step," said Robert M. Hinkel, president of Molycorp. "We have a very dedicated and productive group of people in both Questa and Washington, Pa., and we regret having to eliminate jobs. However, we are doing all that we can to utilize as many workers as possible on the remaining mining, environmental and reclamation projects at Questa."

Molycorp is permanently discontinuing its molybdenum roasting operations at Washington, Pa. This will result in the layoff of approximately 10 employees.

Molycorp has committed to providing an enhanced layoff benefits package for both hourly and staff employees.

Molycorp has been mining and milling molybdenum in Questa for nearly 80 years.

Updated: December 2001