Critics blast $3M mining handout to Goldman Sachs
source: http://www.politico.com/news/stories/1009/27947.html
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A mining company owned by Goldman Sachs and two private equity funds is in line to get a $3 million earmark for work at a rare earth elements mine in Mountain Pass, Calif. — raising questions as to why Congress would take on some of the risk for a bailed-out investment giant that’s already making a profit.
Molycorp Minerals’s open-pit mine is one of the world’s richest sources of elements that are used in the production of powerful magnets for precision-guided missiles and smart bombs, handheld communication devices, wind turbines and hybrid cars.
Rep. Jerry Lewis (R-Calif.) inserted the earmark for the mine into the House Defense appropriations bill, and backers say it’s a legitimate national security concern. The military needs rare earth elements, and China — which is rich in them — has threatened to cut off exports.
But some government watchdogs question whether taxpayers should be asked to prop up a project that is already funded by wealthy investors who expect to make a profit.
“It’s probably good business, and we probably don’t need to subsidize it,” said Ryan Alexander, president of the nonpartisan Taxpayers for Common Sense.
Molycorp Minerals’s open-pit mine is one of the world’s richest sources of elements that are used in the production of powerful magnets for precision-guided missiles and smart bombs, handheld communication devices, wind turbines and hybrid cars.
Rep. Jerry Lewis (R-Calif.) inserted the earmark for the mine into the House Defense appropriations bill, and backers say it’s a legitimate national security concern. The military needs rare earth elements, and China — which is rich in them — has threatened to cut off exports.
But some government watchdogs question whether taxpayers should be asked to prop up a project that is already funded by wealthy investors who expect to make a profit.
“It’s probably good business, and we probably don’t need to subsidize it,” said Ryan Alexander, president of the nonpartisan Taxpayers for Common Sense.
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RFIDemocracy
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Corporate welfare redux
- 2 years ago
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RFIDemocracy
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neocongo
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The US government clearly should demand a return on its investment.
- 2 years ago
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neocongo
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maof4brats [removed]
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WTF! We gave them a handout for them to start a new venture to grab whatever they find. Why are we allowing these Co.to pilege our earth.
- 2 years ago
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maof4brats [removed]
