Jun 5 2003
Australia’s two major magnesium projects are in danger with one needing more money to be completed despite having been funded in part by state and federal governments and the other one under review.
The Australian Magnesium Corp who are building the worlds largest magnesium smelter in Queensland, are seeking another partner to come on board with the $200 million required to complete the project. State and federal governments have already contributed $300 million and were seen as unlikely to tip in more funds to complete the project despite their commitment.
Following a public announcement being made, stating their intention to find such a partner, share prices have plummeted and stocks have been suspended from trading on the Australian Stock Exchange. The suspension is expected to remain in place until Thursday when they are due to make a public statement.
The second magnesium plant (SAMAG), being constructed in South Australia by Magnesium International is also under review on advice from the South Australian Economic Development Board. The review has disrupted a planned rights issue worth $8.3 million.
Magnesium International are co-operating with the review which they are keen to see completed as quickly as possible and are confident will have a positive outcome.
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