| Australian Magnesium Corporation (AMC) reported that its two operations had record magnesite production for the final quarter in 2001. The Kunwarra operation’s magnesite production was up 21.2% on the September quarter to 190590 tonnes, with an export shipment due to leave in March. More exploration at this site was scheduled for this month. The production from the Peakhurst operation increased by 2.5% over the September quarter, continuing record trends. Trials to operate this plant at a further 15% above current levels were successfully completed also. Demand for calcined magnesia remained high with plant capacity the major obstacle to increased sales. Contracts for supply of this material were renewed with increased demand leading to slightly higher prices. Similarly contract for deadburned magnesia were also renewed in the US and Europe, but slightly lower demand and increased supply lead to a reduction in the price. A slowing in the US steel industry has also lead to a lower price for electrofused magnesia. The board at AMC has also approved the Stanwell Magnesium Project on November 22, 2001. The engineering design and support services contract was awarded to Egis, in Queensland, with an estimated value of AU$50million. Preliminary work on the site will begin in January 2002. The contract for engineering and construction worth approximately AU$800 million is expected to be awarded in the first half of this year. |