Feb 16 2004
Australian Magnesium Corp have submitted their proposed business plan to the Queensland State and Australian Commonwealth governments, in accordance with the Heads of Agreement (HOA) negotiated between AMC, the two governments and other stakeholders.
The business plan outlines future objectives for the project beyond June 2004 when the funding under the HOA runs out.
AMC intend to continue running independently as three business units:
- To finance and develop an Advanced Magnesium Technologies (AMT) business as a profitable producer of proprietary alloys and products.
- To refinance the QMAG magnesia business and to implement its business plan to ensure its continued operation and growth
- To maintain an option for primary magnesium production at Stanwell when market and economic conditions are more suitable, by financing the continued development of the AM process.
They also intend to continue alliances with organisations such as CSIRO and CAST, to maximize commercial returns from ongoing technology development.
The basis of AMT’s business growth and development is the commercialisation of AMC’s proprietary alloys, metal handling technologies and casting expertise, in particular for the automotive industry. With the development of commercial relationships with automotive companies, it is their aim to have AMT as a self sustaining business by the end of 2006, producing and re-selling proprietary alloys.
They will also continue research work that has indicated that they can simplify the AM magnesium production process. Results indicate that there is the potential to reduce capital intensity by 25%. These steps are being carried out to ensure that it is the most competitive electrolytic production method as well as being the most environmentally responsible electrolytic method for producing magnesium.
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