Jun 23 2003
Australian Magnesium Corp have decided to restructure the business plan for the Stanwell Magnesium Project in Queensland Australia.
Under the plan for restructure, they have decided to mothball the $1.7 billion magnesium plant, and try to find a new partner to help fund a revised, smaller version of the plant. By taking this course of action, they have avoided the need to call in an administrator.
This plan of action has been agreed to by all the shareholders including the State and Federal Governments and will allow Australian Magnesium to retain ownership of the technology and expertise developed by the group. They will also be able to maintain relationships with organizations such as CSIRO and CAST who have helped to develop technology and products.
While the existing project will be terminated, Australian Magnesium and Leighton Contractors (one of the shareholders) will form a joint venture to preserve and develop project assets for potential use in a future development.
Australian Magnesium will continue to operate their magnesia plant, although will reduce its workforce from about 350 to 230 as a result of the restructure. They will also reduce their board from ten members to five.
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