With support from the Victorian Government, critical minerals startup Magnium Australia is conducting a feasibility study that could lead to the world’s first net-zero magnesium foundry being built in Victoria with CSIRO’s MagSonic technology.
The CSIRO’s MagSonic technology uses carbothermal reduction and a supersonic nozzle to produce high-quality magnesium metal directly. If the MagSonic proves commercially viable, the state government said it would enable Victoria and Australia to be significant players in a $7 billion global market and set new standards for clean production.
During his visit to the CSIRO’s base in Clayton, Minister for Economic Development Tim Pallas, alongside leaders of Magnium, announced the Victorian Government was co-funding the feasibility study.
“We’re backing this study because the science is exciting and so is the potential for jobs and investment,” Minister Pallas said.
Magnesium is used sparingly to strengthen the aluminium alloys used in laptops, other electronic devices, aerospace manufacturing, and parts casting for automobiles, gearboxes, and seat frames.
Using labour and energy-intensive processes, China produces 85 per cent of the world’s magnesium, importing magnesite ore from places like Australia. With the help of Magnium’s clean, environmentally-friendly strategy, Australian ore could be processed locally, eliminating the need to ship it overseas and back.
With the use of CSIRO’s MagSonic, Magnum will use the study to investigate how to scale up the technology and erect a refinery for magnesium in Victoria.
“We are grateful for the ongoing support and foresight from the Victorian Government which enables the creation of companies like ours, building on local research to create new future industries here in Australia,” Magnium Chief Executive Officer Shilow Shaffier said.
Magnium forecasts a Victorian foundry could produce up to 120 kilotons of magnesium annually for export, accounting for over 10 per cent of the world’s supply and generating $1 billion in revenue at the current price.
The Victorian Government said the investment would generate hundreds of construction jobs and involve a capital investment of hundreds of millions of dollars while around 350 ongoing jobs would be supported.
By decreasing Australia’s reliance on the global supply chain for mineral processing, the state government stated that a new sovereign manufacturing process would also increase certainty for nearby manufacturers.
“Net zero, large-scale production of magnesium would make Victoria a global export leader, secure supply of a critical mineral for Australian manufacturers and create hundreds of jobs,” Minister Pallas said.
The feasibility study is expected to be completed early in the new year. It will consider site locations, infrastructure planning, renewable energy usage, environmental and community impact, community engagement, engineering process flows, and planning permit requirements.
Magnium does not anticipate conducting new mining exploration in Victoria, given its secured magnesite tenements in South Australia and the potential for the method to refine high purity magnesium from brine.
