2.4. Molycorp is under pressure from its shareholders. Management must show it can (i) efficiently operate Mountain Pass at capacity; and (ii), demonstrate a long term strategy for growth. It must also re-finance its existing $1.6bn of debt with longer term, cheaper funding. Co-operation with Shenghe could be of considerable benefit to Molycorp. However, what structure and terms will be best for Shenghe? What is required to meet the demands of the two governments and any third-party financiers? Identifying the optimal structure and implementing a plan to achieve it will be challenging.