Magnium Australia’s hopes of building decarbonised magnesium refinery near Rockhampton denied as Stanwell Corporation prioritises ‘future energy’
A proposal to build a world-first decarbonised magnesium refinery in Central Queensland has been stopped in its tracks as a Queensland Government corporation seeks to reserve their land for other “future energy” resources.
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Hopes of sovereign magnesium production in Queensland have been crushed once more after a state government corporation moved to reserve land for “future energy initiatives”.
A proposal by Melbourne-based firm Magnium Australia to use CSIRO-patented technology to build a world-first decarbonised magnesium metal plant at the Stanwell Power Station west of Rockhampton has been denied, despite late-stage negotiations and a $25m funding commitment from the previous federal government.
Stanwell Energy has formally withdrawn from negotiations with Magnium Australia, telling the company in July the site was too strategically important due to its proximity to the power station and the government-owned corporation’s intentions to prioritise other future energy projects, such as hydrogen and battery-storage.
The proposed site would have been fast-tracked, according to Magnium, as it already had environmental approval from the “dated and toxic process” of Australian Magnesium Corp’s failed plant project on the same land in 2003.
It comes after this publication revealed Chinese investors offered to pay for the plant and it’s patented technology to be built offshore instead.
About 90 per cent of the world’s magnesium is currently produced in China, where plants are seeking to upgrade from their toxic and carbon intensive process.
Magnium Australia chief operating officer Clayton Cross said onshoring and decarbonising a critical mineral would have created thousands of advanced and highly paid manufacturing jobs in regional Queensland.
“The Stanwell site offered the world an opportunity to fast-track by 12-18 months the development of the world’s cleanest technology for a magnesium metal refinery and help solve the magnesium supply chains issues that permeate the globe,” Mr Cross said.
“It is disappointing, as it would have been great to believe Australia is stepping up to be part of the global solution.”
Stanwell corporate affairs manager Karen Cottier confirmed the company was no longer pursuing the project and said they would not discuss commercial negotiations further.
“Stanwell intends to use this site for a number of future energy initiatives as part of our transformation to a lower carbon future,” Ms Cottier said.
Magnium will now look to the west, where the Western Australian state government is providing funding for a feasibility study to explore the option of building a magnesium plant there.
It is understood the Melbourne-firm will seek to meet with the new federal government’s Regional Development Minister, Catherine King, to clarify whether the new government would support such a project.
A spokeswoman for the Department of Infrastructure said the Australian Government would continue to meet with stakeholders to discuss future priorities.
“The Australian Government is committed to developing Australia’s regions, including by delivering projects that create jobs, build opportunity and unlock economic growth and productivity,” the spokeswoman said.
Earlier this year, Stanwell lodged a material change of use with Rockhampton Regional Council for a new 150MW battery energy storage system.
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