UPDATE 1-Molycorp cuts estimated IPO price to $14/shr

* Sees IPO of 28.1 mln shrs at $14 each

* Expects to raise $394 mln

July 29 (Reuters) - Rare earth oxide producer Molycorp Inc said it now expects to raise about $394 million through its initial public offering.

The company said in a regulatory filing that it expects 28.1 million shares to be priced $14 each, down from an earlier estimated range of $15 to $17 a share.

Molycorp owns land in California where it mines and processes rare earth oxides.

The company estimates it will churn out 19,050 metric tons of rare earth oxides per year from 2012, but it will take about two years and more than half a billion dollars for Molycorp to upgrade its equipment in the Mojave desert in Southern California and ramp up production. [ID: nN23185752]

Underwriters are being led by Morgan Stanley and J.P. Morgan Securities. Shares are expected to trade on the New York Stock Exchange under the symbol "MCP". (Reporting by Suzannah Benjamin in Bangalore; Editing by Don Sebastian)