Australian Magnesium Corp have secured an order for 15,000 tons of pure magnesium for its Stanwell project, which is still under construction. The new supply contract with an unnamed , major European metal group, will run for 3 years, supplying them with 5,000 tons annually.
This adds to the 45,000 tons of magnesium alloy that they will be supplying to Ford Motor company each year after the plant ramps up production in 2005. Thus far, Australian Magnesium has committed 50,000 tons per year of it 97,000 yearly capacity.
The bulk of the magnesium produced from the Stanwell project will be destined for the automotive industry, while approximately ten per cent will be pure magnesium for use in alloys, such as aluminium alloys.
Australian Magnesium also intend to firm up more supply contracts with automotive manufacturers over the next two years. Further sales are likely to follow on the back of a number of research and development programmes that Australian Magnesium are commercialising.
One such development is the magnesium car engine developed in conjunction with other partners. The patented design is 25% lighter then aluminium engines, with a prototype three cylinder engine currently on display in a Volkswagen Lupo at an engine development conference, Aachen, Germany.
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