The proposed idling of the Noranda magnesium plant, Metallurgie Magnola Inc in Danville, Quebec, Canada has been confirmed. The period for which the plant will be idle is at this stage indefinite.
Noranda has taken the decision as it is no longer economically viable to continue operation. This has been brought about by the large amount of cheap material emanating from China.
China now supplies 50% of the worlds requirements. This is in contract to the 1990’s where they exported almost no magnesium. The increased availability of cheap materials from China have driven world magnesium prices down, making the plant uneconomical to run.
The shutdown of the plant will begin in later April and will be performed in such a way that the quality of the equipment will be maintained. Noranda do intend to re-start the operation some time in the future when it becomes economically viable.
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