The Potential for a Magnesium Industry in Australia

Magnesium is the lightest metal used in structural applications but these are only a small part of magnesium usage, with the use in aluminium alloys consuming half the magnesium produced. Other applications include steel desulphurisation, nodular iron manufacture and metal reduction. Demand for magnesium is expected to increase towards the end of the decade because of a requirement to lighten the weight of automobiles. The current western world plant capacity and production rate is 250 000 tpa. The CIS and PRC also have production capacity but shipments from these countries have been limited in the last half of 1994. The price for magnesium has followed trends similar to aluminium with recent recovery from US$1500 per tonne in 1992 and 1993 to US$4000 per tonne in 1995. The major magnesium producers all use different production methods and the potential exists to establish a large-scale magnesium industry with operating and capital costs comparable to aluminium. The Australian Magnesium Research and Development Project has been established to develop a low cost method of production using the magnesite and infrastructure resources in Central Queensland.