LMG appoints distributor for sale of magnesium in the USA

0
955

Latrobe Magnesium Limited (LMG) has signed a Memorandum of Understanding to appoint an exclusive USA distributor to sell its magnesium into North, Central and South America and the Caribbean in the aluminium market.

Image credit: latrobemagnesium.com
Image credit: latrobemagnesium.com

Under the agreement, US-based distributor Metal Exchange Corporation (MEC) will purchase a minimum of 2,000 tonnes of magnesium a year from LMG’s planned production facility in Morwell Victoria.

CEO David Paterson pointed out that unlike Chinese magnesium – which is subject to anti-dumping duties – magnesium produced in Australia is exempt from paying such duties under the USA-Australia free trade agreement (FTA).

He said that the company proposes to sell at least 50% of its production into the US market at a premium price enabled by the FTA.

“This second offtake agreement means that we have effectively sold the initial plant’s magnesium production and a substantial part of the expanded plant’s production,” Mr Paterson explained.

“The offtake agreements form the basis for funding the initial plant.”

North and Central America currently uses 160,000 tonnes of magnesium a year and this is projected to increase with greater use of magnesium by the motor vehicle industry. There is only one magnesium producer in North and Central America, with most magnesium imported from China.