Magnesium is the lightest metal used in structural applications but these
are only a small part of magnesium usage, with the use in aluminium
alloys consuming half the magnesium produced. Other applications
include steel desulphurisation, nodular iron manufacture and metal
reduction. Demand for magnesium is expected to increase towards the
end of the decade because of a requirement to lighten the weight of
automobiles. The current western world plant capacity and production
rate is 250 000 tpa. The CIS and PRC also have production capacity but
shipments from these countries have been limited in the last half of 1994.
The price for magnesium has followed trends similar to aluminium with
recent recovery from US$1500 per tonne in 1992 and 1993 to US$4000
per tonne in 1995. The major magnesium producers all use different
production methods and the potential exists to establish a large-scale
magnesium industry with operating and capital costs comparable to
aluminium. The Australian Magnesium Research and Development
Project has been established to develop a low cost method of production
using the magnesite and infrastructure resources in Central Queensland.