New Magnesium Primary Production Outside of China

Chong, Project Manager of CVM Minerals Magnesium facility in northern Malaysia, projected the facility would be up and running in June of this year. It will be the first facility of its find in Malyasia and the first primary producer of magnesium in South East Asia. Malaysia has a large reserve of dolomites and CVM has mining rights for 20 years. There is an estimated 20 million tons of materials.

CVM expects 15,000 tpa in material for Phase I and an additional 15,000 tpa for Phase II. The dolomite conveying system is automated and the facility include a 2 rotary kilns, 2 waste heat boilers, calcination plant, 2 jaw crushers, 2 dolomite elevator buckets, and filter pack system.

CVM is currently doing production test runs at the facility. Future plans include 15,000 tpa smelting facility.

Gossan Resources is listed on the Venture exchange and the Frankfurt Exchange. Gossan is a small exploration company, established in 1980 and based in Manitoba. There is an abundance of hydro-electricity in the region making Gossan competitive in production costs. Alberta is also a strategic locations for logistics with access to rail lines throughout North America.

The dolomite reserve in the region is of high purity and there is an estimate of 25 years of material at 80,000 tpa and another 100 years beyond that. Gossan intends to develop the Zuliani Magnesium Process. Full production is expected by 2014 – 2015 with 10,000 to 20,000 tpa capacity.

SilMag is utilizing the previously mothballed Hydro facility at Porsgrunn, Norway. Silmag is developing two industrial partners, innovating the partnership of magnesium and precipitated silica for tire applications.

The process is effective, environmentally friendly and energy efficient. It is mandatory in Europe to have these processes proven before the facility can start production.

The magnesium will be pure metal perfect for aluminum alloys and alloying for component applications. The silica will be used as filler for tire and rubber goods, polymers and paper. The project will be complete in 2010. The pilot plant for silica is in continuous operation.

There is currently no magnesium production in Europe. Silmag maintains magnesium competence in Europe, the former Hydro facility, and has access to human and natural resources advantageous to production. Silmag possess the competence, experience and innovation for success. Olivine will be the main resource. Large deposits of olivine are readily available on the west coast of Norway.

Silmag is expected to be up and running by 2013 with 150 – 160 employees and processing 111,000 tpa of olivine, 50,000 tpa of silica, 43,000 tpa of primary magnesium and 15,000 tpa of recycled magnesium.

These three facilities will change the dynamics of production and materials sourcing not only in North America and Europe but worldwide.