NEW YORK — M&K Chemical Engineering Consultants Inc. filed a motion to dismiss a lawsuit from Molycorp Minerals LLC last week, claiming that Molycorp broke the terms of its contract with M&K by withholding payment from the engineering company that was helping to develop Molycorp’s flagship production facility.

Granite City, Ill.-based M&K’s motion to dismiss also alleges that Molycorp filed its lawsuit fewer than 30 days after mediation between the two companies, a breach of the companies’ contract.

"Molycorp has failed to allege, and cannot allege, that it has performed the contract on its part," Granite City, Ill.-based M&K said in the motion.

Greenwood Village, Colo.–based Molycorp filed the original lawsuit against M&K on Oct. 31, claiming that M&K broke its contract to expand Molycorp’s "Project Phoenix" rare earths facility by providing incomplete specifications, designing non-functioning plans and drafting unsafe designs (amm.com, Nov. 6).

M&K disputed the negligence charges in its motion to dismiss, arguing that it is not liable for damages unless its designs could have caused physical injury or "significant" damage to property.

Attorneys for M&K could not be reached for comment.

The parties are scheduled to meet to discuss the claims and a possible resolution on Jan. 4 in Denver.

Project Phoenix will produce heavy rare earth concentrates, including dysprosium, terbium and europium and process them for use in hybrid electric vehicles, wind turbines and electronics.