Anshan to Develop Magnesium Industry    

The Anshan government disclosed on December 21st that Hong Kong based Magnesium Resources Corporation Of China Limited plans to invest US$1.5 billion to construct a 200 000 t/a magnesium project in Haicheng of Anshan, Liaoning province, northeastern China. The government has also signed an agreement with China Academic of Science (CAS) to build a magnesium and magnesium alloy research and development base in Haicheng.
   It is reported that Anshan owns around 3 billion tons of proven magnesium reserve, accounting for 80% of the country total, 20% of the world total. The purity of magnesium ore there is above 45%, the best worldwide. Now Anshan magnesium companies are only able to sell primary magnesium products at current price of RMB2 000 per ton. Given the emergency of low carbon economy, the demand for pure magnesium and magnesium alloy recently boosted, with pure magnesium selling at RMB20 000 per ton and magnesium alloy at RMB150 000 t/a, the Anshan government reported.
   Magnesium Resources Corporation Of China Limited has registered two companies in Haicheng for a 200 000 t/ a pure magnesium project and a 50 000 t/a magnesium project respectively. The first phase is scheduled for startup in the summer of 2010. After full operational, the two projects can create 5 000 new jobs.
   According to an insider, China produced 630 000 tons of magnesium metal. Of that, 70% was produced in Shanxi province where has a different reserve variety from that in Anshan.