Magnium Australia will build a magnesium smelter at Stanwell, near Rockhampton, following a $25m pledge from Coalition despite interest from China
Central Queensland could host a new low emission magnesium smelter boosting Australia’s sovereign resource capacity. It comes amid revelations Chinese investors offered to pay for the plant to be built offshore instead. Full details.
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A new magnesium refinery in Queensland is set for construction despite significant interest from China, following a major commitment by the Coalition.
A re-elected Liberal National government will allocate $25.75m for Magnium Australia to build a magnesium plant in Rockhampton, boosting Australia’s sovereign resources and revitalise the manufacturing industry in Central Queensland.
The CSIRO patented technology, developed in conjunction with Magnium, which enables low emission production of magnesium metal attracted significant interest from China, as the nation seeks to drive down emissions and combat soaring energy prices.
This publication can exclusively reveal Chinese investors offered more than $25m to fund and establish a research and development facility in China, with the first plant to be built at Yulin in the Shaanxi province, instead of Queensland.
Up to 120,000 tonnes of pure magnesium metal could be produced every year when the Stanwell facility is at full capacity, but the first module of the plant will be capable of producing about 3000 tonnes a year.
Magnium Australia founder, Shilow Shaffier, said development of the world-class magnesium smelter would provide about 400 direct jobs and 1100 indirect construction by 2029.
“This facility would see us taking magnesium ore and turning it into metal and producing up to 120,000 tonnes, a process which is currently dominated by a single country (China),” Mr Shaffier said.
“It will give Australia the sovereign capability to deliver magnesium metal which will be used locally for advance manufacturing, creating alloys we’ve not been unable to produce before without importing offshore.”
China almost has a monopoly on magnesium manufacturing, accounting for about 87 per cent of global production.
The pidgeon process, currently used in China, produces about 34 tonnes of CO2 per tonne of magnesium while Magnium sources claim the new CSIRO technology produces between 0-4.8 tonnes per tonne.
LNP candidate for Flynn, Colin Boyce welcomed the “big ticket investment” for new manufacturing plants in the electorate, saying they would create and sustain jobs for locals.
“This is the sort of investment a dynamic and productive region like ours deserves, welcomes and will make the most of – for the benefit of all Australians,” Mr Boyce said.
Deputy Prime Minister Barnaby Joyce said more than 30 per cent of Australia’s manufacturing jobs are in the regions, and that the manufacturing industry is particularly important to regional economies.
“Only the Coalition has a plan to build a strong and sovereign manufacturing sector for Australians to make more of what we need in Australia,” Mr Joyce said.
The announcement was made alongside a $40m commitment for Nufarm to build an inline blending plant in Gladstone.
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