New World Alloys has confirmed its intention to establish a magnesium smelter in Malaysia, with production expected to begin in October, 2004.
They intend to buy the plant in Washington, USA and relocate it to Malaysia. The plant will be located in the K-Munting Industrial Estate near Tai-Ping. The estimated cost for purchasing, dismantling, relocating and reconstructing the American plant is US$180 million.
The site was chosen for several reasons. The main reason was the availability of a quality dolomite source, with dolomite being the raw material. The dolomite in question is known to have a high MgO content and low levels of other impurities.
the location is also advantageous as the nearby port permits easy importation of other raw materials.
By-products from the plant have already been accounted for as follows:
- Ammonium phosphate to fertilizer industry
- Excess ferrosilicon to be resold
- Slag to local cement industries
- Potassium chloride to fertilizer and chemical industries
- Dolomite fines to agriculture and glass industries
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