Sydney - Quay Magnesium has signed a second Heads of Agreement with a major Chinese magnesium products producer to form a new Foreign Joint Venture (JV) company.
The Chinese partner company is a long established manufacturer of pure magnesium and produces a range of magnesium products including magnesium automotive die castings and extrusions.
Initial plans for the JV are for the re-development of an existing pure magnesium plant to 20,000 tpa capacity.
The expansion has approval and construction will commence on the establishment of the JV, with an expectation of taking seven months to complete.
The energy efficient technology employed for this facility will be the latest for magnesium production and the plant will meet all environmental operating regulations.
If it proceeds, the JV will supply Quay with approximately 10,000 tpa of pure magnesium for its Nanjing alloy plant. The agreement gives Quay first option on any excess magnesium from the partner's volume of their shareholding.