No. 9112 
 
 Set 2 
 

 o* t ,t».. 
 
 W 
 
 A v . « 
 
 g°\C^^o 
 
 
 r.\/ A"; \S .M*v \/ #k <W* .•»*•- \/ 
 
 A 
 
 
 V*- T V %*-^V v^>* %'*???-- #> v^ f V V 
 
 A°* 
 
 ;- 
 
 
 
 ."leu 
 
 
 
 
 A 
 
 
 
 '^V 
 
 <^ *^7.s* G^ *CL 
 
 
 
 "o V 
 
 O * ON o- .o 
 
 -^ -.-e-^"V V v V 
 
 .*3ta \/ .-^r. %,♦♦ .^--. \/ .•^^•. %,** 
 
 <5y 
 
 
 ^ V <<* 
 
 ♦'♦. -.soiiiif; ^'"^ o o' t ow ) * tt a^'^u J »^Hier»° ^"^ °,w\¥; a^'^ -. 5^111^ *° ^"^ °< 
 
 i~ .r 
 
 »r •% 
 
 
 ^\. 
 
 •^ *o 
 
 
 ^o* 
 
 ^^ 
 
 *4°* 
 
 ^..V^-fO' X^'/ V^V %*^V V'^^ 
 
 
 
 
 %/ 
 
 A G ^ v °« iVl V s <U *^ s ^ G^ ^> 'o.T* A <. *7TVT* ,G^ 'o, *••** A 
 
 *6? 
 
 4° ^ '~<em#? & 
 
 i~ .r 
 
 \V^ 
 
 a\ V -"T^T* ,G^ ^ *» • » * a a <a *■> 
 
 *bY 
 
 
 b V . 
 
 .4- 
 
 ^ ^. V 
 
 "Pj. 4 
 
 "O *o . » " A 
 
 g° *^m^:, o s ' 
 
n*V 1 ^* ^o -J 
 
 <<* 
 
 
 ,f u 
 
 ^ *•'• A V» •" X 
 
 ^r^ / \^.'\/ V-^V V^ f \/ v-^v v^- </ 
 
 - "*w > : '&M° ***** -MM;- ^ ; ^&°° ***<** -*^fe- ^^ : ^fe° *w* -^ 
 ^\ ''Wg?s J*\ °Wws^% *-i5P^ ^^% a -w^s ****** ^1§R ; «/\ °*y 
 
 *^W$ A? ^V^^VcP \,^^^*\^ °o/%^ , \o' 5 *%,^^^* J^ °o.*^^ # \o ' 
 
 
 
 
 *^T* .G v w "o. '".T* A <r ♦/f^T* G* "o 
 
 <\ *^.« 4 .0* \b^ -o.»* A <\ *7T.« 4 «G^ ^ -•.»• A ^ *^ 
 
 fi^ c) *o . t * A 
 
 \C> ^>, *o . » * A ^ 
 
 .. ^ ' ^ G ... °v 
 
 
 
 < v p 
 
 
 
 ^°^ 
 
 tP-^ 
 
Bureau of Mines Information Circular/1986 
 
 Magnesium Availability — Market 
 Economy Countries 
 
 A Minerals Availability Appraisal 
 
 By D. R. Wilburn 
 
 UNITED STATES DEPARTMENT OF THE INTERIOR 
 

Information Circular 9112 
 
 l\ 
 
 Magnesium Availability — Market 
 Economy Countries 
 
 A Minerals Availability Appraisal 
 
 By D. R. Wilburn 
 
 UNITED STATES DEPARTMENT OF THE INTERIOR 
 Donald Paul Hodel, Secretary 
 
 BUREAU OF MINES 
 Robert C. Horton, Director 
 
As the Nation's principal conservation agency, the Department of the Interior 
 has responsibility for most of our nationally owned public lands and natural 
 resources. This includes fostering the wisest use of our land and water 
 resources, protecting our fish and wildlife, preserving the environment and 
 cultural values of our national parks and historical places, and providing for 
 the enjoyment of life through outdoor recreation. The Department assesses our 
 energy and mineral resources and works to assure that their development is in 
 the best interests of all our people. The Department also has a major 
 responsibility for American Indian reservation communities and for people 
 who live in island territories under U.S. administration. 
 
 \& 
 
 >* ^ 
 
 f'J 
 
 t 
 
 / 
 
 Library of Congress Cataloging-in-Publication Data 
 
 Wilburn, D. R. (David R.) 
 
 Magnesium availability — market economy countries. 
 
 (Information circular; 9112) 
 
 Bibliography: p. 23 
 
 Supt. of Docs, no.: I 28.27:9112 
 
 1. Magnesium industry and trade. I. Title. II. Series: Information circular (United 
 States Bureau of Mines); 9112. 
 
 TN295.U4 [HD9539.M25] 622 s [553.4'9291 86-600289 
 
Ill 
 
 PREFACE 
 
 The Bureau of Mines is assessing the worldwide availability of selected minerals 
 of economic significance, most of which are also critical minerals. The Bureau 
 identifies, collects, compiles, and evaluates information on producing, developing, and 
 explored deposits, and mineral processing plants worldwide. Objectives are to classify 
 both domestic and foreign resources, to identify by cost evaluation those demonstrated 
 resources that are reserves, and to prepare analyses of mineral availability. 
 
 This report is one of a continuing series of reports that analyze the availability of 
 minerals from domestic and foreign sources. Questions about, or comment on, these 
 reports should be addressed to Chief, Division of Minerals Availability, Bureau of 
 Mines, 2401 E St., NW„ Washington, DC 20241. 
 
CONTENTS 
 
 Page 
 
 Preface iii 
 
 Abstract 1 
 
 Introduction 2 
 
 Commodity overview 2 
 
 Background 2 
 
 Use 2 
 
 Marketing and pricing structure 4 
 
 World magnesium production, consumption, and 
 
 trade 4 
 
 Identification and selection of deposits 7 
 
 Methodology 9 
 
 Geology 10 
 
 Dolomite 10 
 
 Magnesite and brucite 10 
 
 Seawater 10 
 
 Lake brines 10 
 
 Well brines 11 
 
 Magnesium resources 11 
 
 Extraction and processing technology 13 
 
 Page 
 
 Seawater and brines 13 
 
 Extraction 13 
 
 Processing 13 
 
 Magnesite, brucite, dolomite, and olivine 13 
 
 Extraction 13 
 
 Nonmetallic magnesia processing 13 
 
 Magnesium metal processing 14 
 
 Electrolytic processing 14 
 
 Thermic processing 14 
 
 Production costs 14 
 
 Capital investments 15 
 
 Operating costs 15 
 
 Magnesium availability 16 
 
 Total availability 17 
 
 Annual availability 20 
 
 Factors affecting availability 21 
 
 Conclusions 22 
 
 References 23 
 
 Appendix. — Areas and source materials excluded 
 
 from this study 24 
 
 ILLUSTRATIONS 
 
 Page 
 
 1. Domestic magnesium metal end use pattern, 1984 3 
 
 2. Domestic magnesium compound consumption pattern, 1984 3 
 
 3. Minerals Availability program deposit evaluation procedure 9 
 
 4. Mineral resource classification categories 11 
 
 5. Total potential magnesium metal availability from evaluated MEC properties 18 
 
 6. Total potential deadburned and caustic calcined MgO availability from evaluated MEC properties 19 
 
 7. Total potential domestic availability of deadburned MgO from evaluated properties 20 
 
 8. Annual availability of magnesium metal, deadburned MgO, and caustic calcined MgO at various prices ... 21 
 
 9. Energy costs as a percentage of total operating costs 22 
 
 TABLES 
 
 Page 
 
 1. Industrial uses of magnesium compounds 3 
 
 2. Market prices for selected magnesium products, January 1982 to January 1985 . 4 
 
 3. Production statistics for metallic and nonmetallic magnesium products, 1970-84 5 
 
 4. Principal magnesium producing, exporting, and importing countries 6 
 
 5. U.S. import duties for selected magnesium products 7 
 
 6. Deposits selected for evaluation 8 
 
 7. Demonstrated MEC magnesium resources, January 1985 12 
 
 8. Production costs for selected producing operations from various source materials 16 
 
 9. Operating cost breakdown for producing magnesium operations 16 
 
 10. Total production cost summary for selected magnesium products from producing operations and various 
 
 source materials 16 
 
 11. Byproduct commodity prices, January 1984 16 
 
 12. Availability of magnesium metal and MgO compounds from selected MEC properties including a 15-pct 
 
 DCFROR at selected cost ranges 18 
 
 13. Summary of domestic and foreign magnesium demand forecasts 21 
 
 14. Energy requirements for magnesium metal production 21 
 
UNIT OF MEASURE ABBREVIATIONS USED IN THIS REPORT 
 
 op 
 
 degree Fahrenheit 
 
 MMst 
 
 million short tons 
 
 ft 
 
 foot 
 
 pet 
 
 percent 
 
 gal/min 
 
 gallon per minute 
 
 St 
 
 short ton 
 
 in 
 
 inch 
 
 st/yr 
 
 short ton per year 
 
 in/yr 
 
 inch per year 
 
 wt pet 
 
 weight percent 
 
 kW-h/lb 
 
 kilowatt hour per pound 
 
 wtd av 
 
 weighted average 
 
 lb 
 
 pound 
 
 yr 
 
 year 
 
MAGNESIUM AVAILABILITY— MARKET ECONOMY COUNTRIES 
 A Minerals Availability Appraisal 
 
 By D. R. Wilburn 1 
 
 ABSTRACT 
 
 The Bureau of Mines investigated the potential availability of magnesium from 45 
 properties in market economy countries (MEC's). The 38 significant deposits evaluated 
 have demonstrated resources of approximately 29 billion short tons (st) magnesium- 
 bearing material containing 416 million short tons (MMst) magnesium oxide (MgO). 
 Using data it gathered, the Bureau determined the magnesium production potential 
 for each property including a 15-pct rate of return on invested capital. 
 
 Total and annual availability assessments for the next 30 yr were completed for 
 magnesium (Mg) metal, deadburned MgO, and caustic calcined MgO. At a January 
 1984 market price of $1.34/lb Mg metal, the properties evaluated could economically 
 produce an estimated 13 MMst Mg metal. At a market price of $400/st nonmetal 
 magnesium product, these properties could economically produce 109 MMst 
 deadburned MgO and 43 MMst caustic MgO. These properties could produce 
 approximately 301,000 st Mg metal, 3.0 MMst deadburned MgO, and 430,000 st 
 caustic MgO annually at current full production levels and 1984 market prices until at 
 least the year 2000. Total 1984 MEC production assessed in this study was 153,000 st 
 Mg metal and 4.3 MMst nonmetallic MgO products. 
 
 'Physical scientist, Minerals Availability Field Office, Bureau of Mines, Denver, CO. 
 
INTRODUCTION 
 
 Magnesium is considered by the Bureau of Mines to 
 be a critical commodity for the United States because of its 
 extensive use in a variety of industrial and military 
 applications. Its low density has encouraged its use in 
 structural applications where it competes with aluminum. 
 Refractory applications, particularly by the iron and steel 
 industry, represent the largest tonnage use of magnesium 
 in compounds. Magnesium as a mineral commodity is 
 marketed in manj r product forms; availability estimates 
 in this study are restricted to magnesium metal and 
 nonmetallic magnesium in the forms of deadburned 
 (refractory grade) and caustic calcined (chemical-grade) 
 magnesia (MgO). 
 
 Magnesium can be recovered from ores, seawater, or 
 naturally occurring brines that are found in numerous 
 countries. The high energy cost associated with magne- 
 sium recovery has limited its past availability and 
 encouraged the magnesium industry to increase research 
 efforts to reduce processing costs. Recent reductions in 
 energy-related processing costs are discussed in this 
 study. 
 
 This study presents an analysis of the resources, 
 engineering, economics, and other factors that influence 
 the availability of magnesium. Because of the number and 
 diversity of occurrences and the lack of reliable data in 
 some countries, only the most significant potential sources 
 in market economy countries (MEC's) 2 were evaluated; 
 
 other areas with future potential are discussed in the 
 appendix. 
 
 The resource and cost data presented in this report 
 can be used in the development or modification of a 
 domestic minerals policy and can be of direct benefit to 
 programs concerned with mineral stockpile assessment, 
 minerals exploration, extraction technology research, tax 
 restructuring, substitute mineral studies, and land uti- 
 lization. No comprehensive world magnesium resource 
 data have been reported since 1960. This study updates 
 past work (4f with more recent data and summarizes 
 available industry data on magnesium and magnesium 
 compounds as of January 1984. Current and potential 
 availability data for magnesium are presented with 
 explanatory text in a series of curves that relate resources 
 to total production cost. 
 
 Domestic property information was provided by 
 personnel at Bureau field operations centers, foreign data 
 collection was performed under contract. Personnel of the 
 Bureau's Minerals Availability Field Office evaluated the 
 data, aggregated it, and performed the economic evalua- 
 tion analyses. Technical assistance was provided by Jack 
 T. Elmer, Manager — Magnesia Operations, National 
 Refractories and Minerals Corp., Moss Landing, CA. 
 Selected production data were provided by Deborah A. 
 Kramer, Bureau commodity specialist, Washington, DC. 
 
 COMMODITY OVERVIEW 
 
 BACKGROUND 
 
 Magnesium, the eighth most abundant element in the 
 earth's crust, is recovered from numerous sources in both 
 metallic and nonmetallic forms. Magnesium metal or 
 compounds are extracted from such diverse sources as 
 magnesium-bearing ores, seawater, and well and lake 
 brines. The most common ores in which magnesium occurs 
 contain magnesite, brucite, dolomite, and olivine. Use of 
 magnesium ores and compounds began in the early 18th 
 century during the early development of the ferrous 
 metals and chemicals industries in Europe. 
 
 By the early 1940's, mining and processing of 
 domestic magnesium ores had been expanded to supply 
 material for the production of refractories, chemicals, and 
 magnesium metal. Development of technology to produce 
 magnesium compounds other than magnesia progressed 
 slowly until the outbreak of World War II, when demand 
 increased rapidly. Technology to recover magnesium from 
 brines, seawater, and dolomite had been developed after 
 World War I. Consequently, when imports were inter- 
 rupted by the beginning of World War II, the domestic 
 magnesium industry was able to meet the demands for 
 magnesium products. 
 
 2 Market economy countries, as defined by the Bureau of Mines, include 
 all countries except the centrally planned economy countries (CPEC'sl of 
 Albania, Bulgaria, China, Cuba, Czechoslovakia, the German Democratic 
 Republic, Hungary, Kampuchea, North Korea, Laos, Mongolia, Poland, 
 Romania, the U.S.S.R., and Vietnam. 
 
 Immediately following World War II, production of 
 magnesium products decreased significantly in MEC's. 
 The Germans, having made many contributions to 
 magnesium's early development, became dependent upon 
 imports after the war, and neither Germany has produced 
 significant magnesium since that time. High electrical 
 costs and large postwar inventories resulted in the 
 reduction of Mg production in France and the United 
 Kingdom and increased import reliance. Dow Chemical 
 Co. plants at Freeport, TX, were the only domestic Mg 
 metal producers to survive the war, although production 
 of magnesium compounds continued at foreign locations. 
 Technological advances have resulted in increased de- 
 mand for metal and nonmetal magnesium products in 
 recent years. 
 
 USE 
 
 In its pure state, magnesium is the lightest of the 
 structural metals, with a density approximately 63 pet 
 that of aluminum. This low density is a key factor in its 
 use as a structural metal where weight is an important 
 consideration; however, given the low mechanical 
 strength of pure magnesium, it is commonly alloyed with 
 other materials. Magnesium is used in structural alumi- 
 
 3 Italic numbers in parentheses refer to items in the list of references 
 preceding the appendix. 
 
num-based alloys, in castings and wrought products 
 (machinery, tools, and other consumer products), as a 
 reducing agent, for cathodic corrosion protection, and in 
 the manufacture of nodular cast iron. Other applications 
 include chemicals, alloys other than aluminum, and 
 graphic arts. Figure 1 illustrates the 1984 domestic end 
 use pattern of Mg metal. 
 
 Magnesium compounds are used in a wide variety of 
 industries, as illustrated in table 1. The most important 
 magnesium compound is magnesium oxide (MgO), which 
 is commonly referred to as magnesia. Deadburned MgO, 
 used in the manufacture of metallurgical furnace refrac- 
 tory products, represents the largest tonnage use of 
 magnesium in compounds. Other forms of recoverable 
 magnesium include magnesium hydroxide [Mg(OH) 2 ]; 
 caustic-calcined and specified (United States Pharmaco- 
 poeia [USP] and technical-grade) magnesias; magnesium 
 sulfate (MgS0 4 ); and precipitated magnesium carbonate 
 (MgC0 3 «nH 2 0). Deadburned MgO is a granular MgO 
 product obtained by calcining Mg(OH) 2 above 2,640° F to 
 form a high-grade refractory product. Caustic calcined 
 MgO is a reactive MgO product formed at calcination 
 temperatures less than 1,650° F and can be used in lower 
 grade refractories and in numerous other chemical and 
 industrial uses. The domestic consumption pattern of 
 magnesium compounds in 1984 is illustrated in figure 2. 
 
 The iron and steel industry is the largest consumer of 
 magnesium products; approximately 11 lb of refractory 
 MgO is used for each short ton of steel ingot produced. 
 MgO is also used as a stabilizing or vulcanizing agent in 
 rubber and for other chemical products. The high 
 electrical resistance of fused and boron- free MgO or 
 periclase makes these products useful as insulators in 
 electric furnaces and appliances. Magnesia serves as an 
 
 wrought products 
 16 pet 
 
 Reducing 
 agents 
 
 Cathodic 
 
 protection 
 
 5 pet 
 
 ■Manufacture of 
 nodular cast iron 
 3 pet 
 
 absorbent and catalyst in carbonate leach circuits for the 
 recovery of uranium oxide (U 3 8 ) from uranium ores. An 
 essential element in plant and animal metabolism, 
 magnesium is added to fertilizers and animal feed in the 
 form of caustic calcined MgO (11). MgS0 4 is used in 
 pharmaceuticals, dyes, sizing, paper manufacture, fertiliz- 
 ers, and explosives. MgC0 3 is used as a thermal insulator 
 for boilers and pipes, in table salt to prevent caking, and 
 in the preparation of pharmaceuticals and cosmetics. 
 MgCl 2 is used in the production of Mg metal, industrial 
 chemicals, and cement. 
 
 There is a sharp distinction between markets for 
 natural calcined magnesia and products of seawater or 
 brine operations. Caustic calcined natural magnesites are 
 
 TABLE 1. — Industrial uses of magnesium compounds {,11) 
 
 Compound and grade 
 
 Use 
 
 MgO: 
 
 Deadburned (refractory grades) 
 
 Caustic calcined 
 
 USP and technical grades 
 
 Precipitated magnesium carbonate 
 (MgC0 3 ) 
 
 Magnesium hydroxide [Mg(OH 2 )] 
 Magnesium chloride (MgCI 2 ) 
 
 Basic refractories (bricks, furnace 
 
 linings, etc.). 
 Cement, rayon, fertilizer, insulation, 
 
 magnesium metal, rubber, fluxes, 
 
 refractories, chemical processing 
 
 and manufacturing, and uranium 
 
 and paper processing. 
 Rayon, rubber, refractories, 
 
 medicines, uranium processing, 
 
 fertilizer, electrical insulation, 
 
 neoprene compounds and other 
 
 chemicals, cement. 
 Insulation, rubber, pigments and 
 
 paints, glass, ink, ceramics, 
 
 chemicals, fertilizer. 
 Sugar refining, MgO, and 
 
 pharmaceuticals. 
 Mg metal, cement, ceramics, 
 
 textiles, paper, chemicals. 
 
 (Total primary U.S. consumption, 
 1984 : 90,000 st) 
 
 Other 
 1.5 pet 
 
 (Total U.S. consumption, 1984 
 779,000 st contained MgO) 
 
 FIGURE 1.— Domestic magnesium metal end use pattern, 
 1984. 
 
 FIGURE 2. — Domestic magnesium compound consumption 
 pattern, 1984 
 
generally used for agricultural or construction markets, 
 while the higher purity seawater and/or brine (synthetic) 
 product tends to be used for refractory or industrial uses 
 (5). Synthetic magnesite, however, requires up to four 
 times more energy to produce than natural magnesite. 
 Both natural and synthetic MgO products are used in the 
 paper industry and in some agricultural markets. 
 
 MARKETING AND PRICING STRUCTURE 
 
 Magnesium metal is marketed in both wrought metal 
 and cast metal forms, and market price varies with end 
 product and alloy type. American Society for Testing and 
 Materials (ASTM) standard designations have been 
 adopted for 26 magnesium alloys (11). Magnesium alloys 
 and aluminum alloys requiring magnesium (used in 
 special applications) are custom manufactured and priced 
 accordingly. Prices vary with specifications, including the 
 amount of contained magnesium and allowable levels of 
 impurities. 
 
 Standards for refractories containing MgO are set by 
 the consumer to meet various furnace conditions. Repre- 
 sentative prices for Mg metal and selected magnesium 
 compounds for the period 1982-1985 are given in table 2. 
 
 Following the 1973 oil crisis, the energy intensive 
 magnesium industry entered a period of rapidly increas- 
 ing power costs. Magnesium metal prices had been stable 
 at $0.35/lb to $0.38/lb for the period 1963-73, but they 
 more than doubled to $0.82/lb by 1975. During the period 
 1975-83, the Mg metal price rose at an average annual 
 rate of 6 pet (11). Expanded markets during the 
 mid-1970's caused the magnesium industry to increase 
 plant capacity to the point where present capacity exceeds 
 demand. While the rate of growth in demand for 
 magnesium products has declined since 1980, metal 
 production capacity will most likely exceed demand for 
 several years to come. As a result, some properties may 
 operate below full capacity levels. 
 
 The magnesium compounds industry appears to be 
 stabilizing after a period of gradually increasing consump- 
 tion. Since 1980, demand has showed only a slight 
 increase and prices for magnesium products have re- 
 mained stable. Plants are either operating at reduced 
 rates or are gradually resuming full production rates. 
 
 Exploration or development work, halted for the past 
 several years by the sluggish economy, is gradually being 
 resumed at some locations. 
 
 The concern of major refractory producers to reduce 
 energy consumption could lead to increased consumption 
 of natural magnesites at the expense of the energy- 
 intensive synthetic magnesites. Such a change would 
 require that comparable, high-quality deadburned 
 magnesite be obtained in large quantities as it could from 
 seawater and brine sources. Since known natural magne- 
 site deposits meeting these specifications are relatively 
 rare, it is likely that current consumption trends will 
 continue in the near future. 
 
 WORLD MAGNESIUM PRODUCTION, 
 CONSUMPTION, AND TRADE 
 
 The United States leads the world in producing 
 refined Mg metal, but it is a relatively minor producer of 
 raw materials for magnesium compound production. 
 Production figures for Mg metal and magnesite for the 
 period 1970-84 are reported in table 3. In 1970, world 
 primary Mg metal production was 242,000 st. By 1980, 
 production had climbed to 348,000 st. Primary Mg 
 production in 1984 was estimated to be 358,000 st. Since 
 the 1960's, the United States has assumed an increasingly 
 dominant role in primary Mg metal production. By 1980, 
 the United States produced approximately 49 pet of the 
 world's primary Mg metal. Production from CPEC's 
 including China and the U.S.S.R., has remained stable at 
 approximately 26 pet of world primary Mg metal. 
 
 The world magnesite production was 7,521,000 st in 
 1960, 9,743,000 st in 1970, and 13,293,000 st in 1980. 
 Current world magnesite production (1984) was 
 12,249,000 st. Domestic magnesite production has in- 
 creased significantly from the 7 pet of world production 
 reported in 1960, but falls short of the 55 pet level of world 
 magnesite production achieved by the CPEC's (Czechoslo- 
 vakia, Poland, the U.S.S.R., China, and North Korea) for 
 1980. Production from MEC's in 1980 was 45 pet of world 
 production. Allegations that China and North Koreallave 
 been dumping magnesite on world markets are being 
 investigated, and an antidumping duty has been levied by 
 a European Economic Community (EEC) commission on 
 magnesium products from these countries. 
 
 TABLE 2.— Market prices for selected magnesium products, January 1982 to January 1985 (2) 
 
 (Dollars per short ton, except as indicated) 
 
 Product 
 
 Description 
 
 Price (January') 
 
 1982 
 
 1983 
 
 1984 
 
 1985 
 
 $1.16 
 1.14 
 
 $1.34 
 1.32 
 
 2 $1 .34 
 1.32 
 
 $1.34 
 1.32 
 
 285 
 296 
 392 
 409 
 
 315 
 350 
 392 
 409 
 
 2 315 
 350 
 
 2 392 
 409 
 
 330 
 365 
 392 
 409 
 
 200 
 
 230 
 
 1,080 
 
 222 
 
 255 
 
 1,560 
 
 222 
 
 255 
 
 1,560 
 
 232 
 
 265 
 
 1,560 
 
 1,040 
 
 1,080 
 
 NA 
 
 1,460 
 1,480 
 1,660 
 
 1,460 
 1,480 
 1,660 
 
 1,460 
 1,480 
 1,660 
 
 10,000-lb lots, f.o.b. Freeport, TX. 
 . . do 
 
 Mg metal, $/lb: 
 
 Ingots 
 
 Diecasting alloys 
 
 MgO, synthetic: 
 
 Technical, chemical (92-95 pet MgO) Bulk lots, works 
 
 Bagged, works 
 
 Deadburned (94-96 pet MgO) Bulk lots, works 
 
 Bagged, works 
 
 MgO, natural: 
 
 Technical, heavy (85 pet MgO) 150-mesh, bulk lots f.o.b. Nevada . 
 
 Technical, heavy (90 pet MgO) 325-mesh, bulk lots, f.o.b. Nevada 
 
 Mg (OH) 2 National Formula, powdered 
 
 MgC0 3 : 
 
 Technical, light Bagged, works, car or truck lots, freight equalized 
 
 USP, light Bagged, works, truck lot, freight equalized 
 
 USP, heavy do 
 
 NA Not available. 
 
 1 price quoted from first week of January for each year reported. 
 
 2 Price used in this study for economic evaluation. 
 
r-cocooor-»co»-inio 
 
 eo co r- co «- in i 
 
 CM 
 CM 
 
 CO 
 
 6 
 
 r*. 
 
 o 
 
 3 
 "O 
 O 
 
 E 
 
 3 
 CO 
 
 o 
 c 
 
 O) 
 
 a 
 E 
 
 E I 
 
 c t- 
 
 I * 
 
 <8 CO 
 
 « s 
 
 — o 
 
 "to £ 
 
 s 
 
 M 
 
 c 
 o 
 33 
 u 
 
 3 
 "O 
 O 
 w 
 
 a. 
 
 I 
 
 pi 
 
 UJ 
 
 _j 
 CO 
 
 < 
 
 sooioNnoioo m 
 '-'-^■(ocm r» 
 
 y- CM 
 
 r- »- co oo »- o r» co o <o 
 
 *-^- WCM 
 
 i- CM 
 
 (OlDrr 
 
 cm" 
 
 Ot-iDUIO CMCOCO 
 CMCO CM t-» I- t 
 
 T-" CM •r-" 
 
 i- CM «- 
 
 cm" 
 
 COi-tncOOCMT-COCOCOOCOOi 
 i-CMr-CMO CMt-CO CM 
 
 ©t i- r«->»co 
 
 OOin-O-OOi-Oi-COCOO'3-O-i 
 
 «-o»co o coot »- •» 
 
 CO'* i- I^COCO 
 
 '-r~-cooocMO)o>cocO'-tO' 
 
 CMO)CJ> O OIOO)>-r-N 
 
 inco i- co in cm 
 
 (OTCOOOCM'S-CO-i-COCMCMO-' 
 CM1DO O tt^OT- CO 
 
 inco *- iD'-co 
 
 CMCDmoOCMCOh-i-i-i-COO' 
 CMf>-0 O OICMO-- CM 
 inCO »- (DOCO 
 
 oioNoootMOxonovO' 
 
 CM'-IO O CDtCMCM i- 
 
 f^CM »- (Don 
 
 mtoioooioNincMooO' 
 
 CMr^CO O OCOOOCM 
 
 r^ cm i- co co co 
 
 0'»0)0)'*'-0>'-SO 
 
 in cm co co in co > co r~- 
 to m-t o> ■* 
 
 cmcoco in 
 
 cm com in 
 
 ..TJ 
 CD CO 
 
 CO 
 
 «5.5 
 
 2 if &o»l? •- 
 
 Ou.roZDD> 
 
 "O "> 
 
 CD — 
 
 ■S o 
 
 CO 
 
 co 
 
 ,c 
 
 n 
 
 s 
 
 1 
 
 o 
 
 £> S 
 
 cl di 
 o c 
 
 Q.TJ 
 Q 
 
 E « 
 
 85 
 
 5 J 
 
 c.g 
 
 <n -= — 
 ° o !2 
 
 ° " s 
 
 CM TJ C 3 
 
 g" 1§" 
 
 > U) CO 
 
 CO cog 
 
 oi o 
 9 s?* 
 
 s. £?-§ 
 
 Ol Ttg 
 
 § E -S 
 
 * •> 5 
 
 u O (6 
 ^ m -S "O 
 
 «T5n OT 
 
 IgcS 
 
 2 = co 
 
 i-lll 
 
 ■=5 N 
 co o c 
 
 > Q« 
 
 ■cj"° r 1- 
 
 CO 0>_S> (/) 
 ••=.□ CO-^ 
 
 v> co > k 
 
It should be noted, however, that much of the 
 domestic magnesium compound production is derived 
 from sources other than magnesite. At present, magnesite 
 makes up only 44 pet of the total domestic magnesium 
 resources, a percentage much smaller than many other 
 producing countries. 
 
 The recent recession in the Western World, particu- 
 larly in the domestic iron and steel industry, has affected 
 the magnesium industry as well. World production of Mg 
 metal has increased a slight 2.6 pet between 1980 and 
 1984 while domestic production has decreased 5.9 pet; 
 world magnesite production has decreased 7.3 pet during 
 this period, while U.S. production has decreased even 
 more (11). Similar trends can be seen for other industri- 
 alized MEC's. The production picture for CPEC's is 
 healthy. The iron and steel industries in these countries 
 are still developing, and the closely allied magnesium 
 industry has either maintained production or increased 
 production capacity. The CPEC share of world markets in 
 1984 was 28 pet for Mg metal and 63 pet for magnesite. 
 
 Worldwide consumption data by end use are not 
 available. However, it is estimated that approximately 
 268,000 st primary Mg metal, 25,000 st secondary Mg 
 metal, and 5,562,000 st nonmetal magnesium compounds 
 
 were consumed in 1983 (11). Consumption patterns for 
 MgO vary widely from country to country. In the United 
 States, approximately 60 pet of total consumption is for 
 industrial or chemical uses, while in the United Kingdom 
 the bulk of consumption is for agricultural use; in Austria 
 construction use predominates; in Norway paper 
 manufacturing is the dominant consumer of MgO (5). 
 
 Approximately 20 pet of the domestic Mg metal 
 consumption in 1984 was recovered from scrap. There is 
 no significant recycling of nonmetal magnesium com- 
 pounds. 
 
 Magnesite, magnesia, and magnesium products are 
 traded extensively internationally. In an average year 
 over 2 MMst MgO is shipped across international 
 boundaries. As a result of the wide variety of products on 
 the market, a number of countries are both large 
 exporters and importers; among them are Austria, Italy, 
 the United Kingdom, Japan, and the United States. 
 Principal producers, exporters, and importers of magne- 
 sium products are listed in table 4. 
 
 In order to protect domestic producers, tariffs on most 
 magnesium products have been imposed by the United 
 States. Tariff rates for Most Favored Nation (MFN) 
 countries are gradually being reduced over a 7-yr period 
 
 
 TABLE 4. — Principal magnesium producing, exporting, and importing countries (22) 
 
 (Short tons) 
 
 Production Exports Imports 
 
 Country' 
 
 1980 1981" 1982 e 1980 1981 1980 1981 
 
 Brazil: 
 
 Crude magnesite 788,000 618,000 505,000 
 
 Beneficiated magnesite ". 31 6,000 286,000 226,000 89,000 1 06,000 400 400 
 
 Canada: 
 
 Mg metal (primary) 10,000 9,000 9,000 5,000 6,000 4,000 500 
 
 Magnesite-dolomite-brucite 69,000 76,000 75,000 
 
 France: Mg metal 9,000 7,000 10,000 4,000 5,000 4,000 4,000 
 
 Gf66C6! 
 
 Crude magnesite 1 ,287,000 910,000 882,000 
 
 Deadburned MgO 439,000 303,000 298,000 467,000 310,000 1,000 300 
 
 Caustic calcined MgO 126,000 90,000 88.000 
 
 India: 
 
 Mg metal 500 400 
 
 Magnesite 419,000 510,000 449,000 5,000 2,000 2,000 2,000 
 
 Ireland: Magnesium compounds NA NA NA 81 ,000 85,000 35,000 22,000 
 
 Italy: 
 
 Mg metal (primary) 9,000 9,000 8,000 5,000 8,000 5,000 3,000 
 
 Magnesite 133,000 100,000 120,000 79,000 
 
 Japan: 
 
 Mg metal (primary) 10,000 6,000 6,000 100 80 14,000 12,000 
 
 Mg metal (secondary) 26,000 31 ,000 24,000 
 
 Magnesite 125,000 98,000 199,000 220,000 
 
 Mexico: 
 
 Magnesite 18,000 13,000 25,000 100 40 90 220 
 
 MgO products 78,000 76,000 71,000 NA NA 
 
 Netherlands: 
 
 Mg metal 5,000 5,000 6,000 6,000 
 
 Magnesite 4,000 2,000 17,000 20,000 
 
 Oxides and hydroxides 300 700 900 900 
 
 Other 30,000 29,000 61 ,000 44,000 
 
 Norway: 
 
 Mg metal 44,000 47,000 36,000 42,000 44,000 400 400 
 
 Magnesite NA NA NA 17,000 19,000 5,000 4,000 
 
 Spain: 
 
 Mg metal 1 ,000 1 ,000 
 
 Caustic calcined MgO 170,000 149,000 170,000 NA 102,000 NA 35,000 
 
 Crude magnesite 557,000 525,000 588,000 
 
 Tunisia: Magnesite NA NA NA NA NA 70 100 
 
 Turkey: Crude magnesite 910,000 864,000 998,000 NA NA NA NA 
 
 United Kingdom: 
 
 Mg metal (secondary) 3,000 2,000 2,000 1 ,000 800 5,000 5,000 
 
 Magnesium compounds NA NA NA 80,000 72,000 94,000 96,000 
 
 United States: 
 
 Mg metal (primary) 169,000 154,000 102,000 57,000 35,000 4,000 7,000 
 
 Mg metal (secondary) 40,000 46,000 43,000 
 
 Caustic and specified MgO 157,000 160,000 148,000 52,000 37,000 12,000 12,000 
 
 Refractory MgO 731 ,000 616,000 453,000 56.000 21 ,000 73,000 77,000 
 
 Deadburned dolomite 494,000 435,000 337,000 NA NA NA NA 
 
 "Estimated "Preliminary NA Not available. 
 
 'Countries that import or export magnesium products but do not produce significant amounts of magnesium or magnesium products have not been included here. 
 
ending in 1987. Non-Most Favored Nation (NMFN) tariffs 
 remain unchanged. Tariffs for selected products are 
 presented in table 5. 
 
 Five of the 14 foreign nations included in this 
 evaluation qualify for the U.S. Generalized System of 
 Preference (GSP), which allows duty-free entry of imports 
 into the' United States. The GSP was established as a 
 temporary 10-yr program under the Trade Act of 1974, 
 
 then was renewed until 1993 under the Trade and Tariff 
 Act of 1985. 
 
 Depletion allowances for selected magnesium ores are 
 as follows: 14 pet for dolomite and magnesium carbonate 
 (domestic and foreign); 5 pet for magnesium chloride 
 (domestic and foreign); 10 pet for brucite (domestic and 
 foreign); and 22 pet (domestic) and 14 pet (foreign) for 
 olivine. 
 
 TABLE 5. — U.S. import duties for selected magnesium products (11) 
 
 Tariff item' 
 
 MFN 
 
 NMFN 
 
 Jan. 1, 1984 
 
 Jan. 1, 1987 
 
 Jan. 1, 1984 
 
 Crude magnesite $0.98/st 
 
 Caustic calcined MgO $2.10/st 
 
 Deadburned MgO (-4 pet lime) $0.17/lb 
 
 Deadburned MgO ( + 4 pet lime) 6.0 pet ad valorem 
 
 Unwrought Mg metal 13.5 pet ad valorem 
 
 Unwrought Mg alloys 6.8 pet ad valorem 
 
 Wrought Mg metal $0.052/lb on Mg content + 
 
 2.9 pet ad valorem. 
 
 Free 
 
 $2.10/st 
 
 $0.16/lb 
 
 6.0 pet ad valorem 
 
 8.0 pet ad valorem 
 
 6.5 pet ad valorem 
 
 $0.045/lb on Mg content + 
 2.5 pet ad valorem. 
 
 $10.50/st. 
 $21 .00/st. 
 $0.75/lb. 
 
 30.0 pet ad valorem. 
 100 pet ad valorem. 
 60.5 pet ad valorem. 
 $0.40/lb on Mg content + 20 
 pet ad valorem. 
 
 '5 of the 14 foreign nations included in this evaluation qualify for the U.S. Generalized System of Preference, which allows duty-free entry of imports into the 
 United States. This system is in effect until 1993 under the Trade and Tariff Act of 1985. 
 
 IDENTIFICATION AND SELECTION OF DEPOSITS 
 
 Magnesium properties considered in this study are 
 limited to known deposits that have significant demons- 
 trated resources or to those properties that are either 
 producing or that have produced in the recent past. 
 Cumulative magnesium resources from seawater, brines, 
 or dolomite are considered inexhaustible at current 
 production rates; economic evaluation of total resource 
 potential is beyond the scope of this study. Of the 45 
 properties investigated during this study, 38 have been 
 economically evaluated. Properties were selected by the 
 Bureau with the aim of including at least 85 pet of current 
 
 production from MEC's. Seven MEC properties and all 
 CPEC properties were not evaluated since data were 
 either unavailable or unreliable. Table 6 lists the deposits 
 included in this study. 
 
 Magnesium production from olivine is minor and 
 limited to specialized products, therefore it has not been 
 included in this study. Resource potential from olivine 
 sources is discussed in the appendix. Brucite deposits have 
 been included with magnesite deposits because of similar- 
 ity of occurrence, use, and processing technology. 
 
TABLE 6. — Deposits selected for evaluation 
 
 Deposit 
 
 Ownership 
 
 Status 1 
 
 Mining 2 
 type 
 
 Process 3 
 
 Products 4 
 
 Brazil: Magnesita Magnesita S.A. 
 
 Canada: 
 
 Haley Chromasco Ltd 
 
 Mount Brussilof Baymag Mines Ltd 
 
 Timmins Canadian Magnesite Mines Ltd. 
 
 Gr©6c©* 
 
 Fimisco FIMISCO 
 
 Larco Larco S.A 
 
 India: 
 
 Almora Almora Magnesite S.A. 
 
 Tamilnadu TamilNadu Magnesite 5 
 
 Burn Standard Burn Standard Co. 5 . . 
 
 Dalmia Dalmia Cement Co. 
 
 Ireland: 
 
 Drogheda Premier Periclase Ltd. 
 
 Quigley Quigley Magnesite Co. 
 
 Italy: Cogema COGEMA 
 
 Japan: 
 
 Ube 
 
 Onahama 
 
 Minamata 
 
 Ube Industries Ltd 
 
 Asahi Chemical Industries 
 . . do 
 
 Mexico: 
 
 Quimica del Rey 
 Quimica del Mar 
 
 Industries Penoles S.A. de C.V. 
 . . do 
 
 Netherlands: Veendam 
 Norway: Norsk Hydro . 
 
 Billiton International Metals B.V. 
 
 Norsk Hydro A.S. 
 
 Spain: Zubiri Magnesitas Navarras S.A. 
 
 Tunisia: Zarzis 
 
 Government of Tunisia 
 
 Turkey: 
 
 Comag Comag 
 
 Kumas Kumas 
 
 Sumerbank Sumerbank Genel Mudurlugu 
 
 United Kingdom: Hartlepool Steetley Refractories Ltd. 
 
 United States: 
 
 California: Moss Landing National Refractories and Minerals Corp 
 
 Delaware: Barcroft Barcroft Co 
 
 Florida: Basic Magnesia Combustion Engineering 
 
 Michigan: 
 
 Ludington-Harbison Dow Chemical, USA, and Harbison-Walker 
 
 Refractories. 
 
 Midland Magnesia Dow Chemical, USA, and Martin Marietta Basic 
 
 Products. 
 
 M-M Manistee Martin Marietta Basic Products 
 
 Morton Chemical Morton Chemical Corp 
 
 Nevada: Basic, Inc Combustion Engineering 
 
 Texas: Dow Freeport Dow Chemical, USA 
 
 Utah: Amax G.S.L Amax Specialty Metals 
 
 Washington: 
 
 Northwest Alloys Northwest Alloys Inc 
 
 Stevens County Deposits Harbison-Walker Inc 
 
 W 
 W 
 
 DB.LB.MT 
 
 DB.CC 
 
 S 
 S 
 S 
 
 PI 
 
 LB 
 DB 
 
 MG 
 CC 
 DB 
 
 S 
 
 s 
 
 DB 
 DB 
 
 DB 
 DB 
 
 s 
 s 
 s 
 s 
 
 DB.LB 
 DB.LB 
 DB.LB 
 DB 
 
 DB.CC 
 DB.CC 
 DB.CC 
 DB 
 
 sw 
 sw.s 
 
 DB 
 DB 
 
 DB 
 DB 
 
 sw 
 
 DB 
 
 DB 
 
 sw 
 sw 
 sw 
 
 DB.LB.PI 
 
 DB.LB 
 
 DB 
 
 DB.CC 
 DB.CC 
 DB 
 
 S.B 
 
 sw 
 
 DB.LB 
 DB 
 
 DB.CC 
 DB 
 
 SB 
 
 DB 
 
 DB 
 
 SW.B.S 
 
 NH 
 
 MG 
 
 S 
 
 DB.LB 
 
 DB.CC 
 
 B 
 
 DB 
 
 DB 
 
 S 
 S 
 S 
 
 LB 
 DB 
 DB 
 
 CC 
 DB 
 DB 
 
 sw,s 
 
 LB.DB 
 
 CC.DB 
 
 sw.s 
 
 sw 
 
 sw,s 
 
 DB 
 HM 
 DB 
 
 DB 
 DB 
 DB 
 
 DB 
 DB 
 
 DB 
 DB 
 
 p 
 
 W 
 
 DB 
 
 DB 
 
 p 
 
 W 
 
 DB 
 
 DB 
 
 p 
 
 s 
 
 DB 
 
 DB 
 
 p 
 
 sw,s 
 
 DO 
 
 MG 
 
 p 
 
 B 
 
 AM 
 
 MG 
 
 p 
 
 s 
 
 MT 
 
 MG 
 
 N 
 
 s 
 
 DB 
 
 DB 
 
 oces 
 
 s; LB = lightburning process; MT = 
 
 = Magnatherm 
 
 1 N = not producing as of January 1984; P = producing as of January 1984. 
 2 B = sea or lake brines; S = surface; SW = seawater; W = brine wells. 
 
 3 AM = Amax process; DB = deadburning process; DO = Dow process; HM = hydrometallurgical process; LB 
 process; NH = Norsk Hydro process; PI = Pidgeon process. 
 4 CC = caustic calcined MgO; DB = deadburned MgO; MG = Mg metal. 
 
 This study assumes recovery of principal products only — other products may be recovered in limited quantities 
 Government owned. 
 
METHODOLOGY 
 
 Figure 3 is a flowsheet of the Bureau's Minerals 
 Availability program (MAP) evaluation process, from 
 deposit identification to the development of availability 
 curves. The flowsheet shows the various evaluation stages 
 used in* this study to assess the availability of magnesium 
 from individual domestic and foreign properties. 
 
 After a deposit was selected for analysis, a compre- 
 hensive evaluation of the property was performed. 
 Production and cost data for domestic properties were 
 estimated by personnel at the Minerals Availability Field 
 Office (MAFO) in Denver, CO, and the Bureau's field 
 operations centers in Denver, CO, and Spokane, WA. 
 Foreign data were collected by Raymond Kaiser En- 
 gineers Inc. of Oakland, CA, under contract JO225016 
 U9). 
 
 Design capacities were used for producing properties. 
 For deposits not currently in production, mining, concen- 
 trating, smelting, refining, and transportation methods 
 were chosen based on applicable engineering principles, 
 available deposit data, and current technology. Where 
 possible, actual company cost data were used. In other 
 cases, capital and operating costs were estimated from 
 various sources. A cost estimating system (CES) de- 
 veloped for the Bureau (3) was used for selected domestic 
 deposits. Use of this costing system produces estimates 
 that historically have fallen within 25 pet of actual costs. 
 
 Capital expenditures were estimated for exploration, 
 development, and mine and mill plant and equipment 
 which include costs for mobile and stationary equipment; 
 construction; engineering; support facilities and utilities 
 (infrastructure); and working capital. Infrastructure 
 includes all necessary costs for access roads, water 
 facilities, power supply, port facilities, and personnel 
 accommodations. Working capital is a revolving cash fund 
 for operating expenses such as labor, supplies, taxes, and 
 insurance. A working capital based on three months or 90 
 days of operating cost was used in evaluations. 
 
 All capital investments incurred prior to 1970 (15 yr 
 before the study date of January 1984) were assumed to be 
 fully depreciated or written off. Capital costs incurred 
 after 1969 were reported in dollar values of the year in 
 which they occurred; however, these costs were adjusted to 
 reflect the remaining book value of the investment as of 
 January 1984. All capital investments subsequent to 
 January 1984 were reported in constant January 1984 
 dollars. 
 
 Mine and mill operating costs were developed for each 
 deposit. The total operating cost is the sum of direct and 
 indirect costs. Direct operating costs include production 
 and maintenance labor, materials, payroll overhead, and 
 utilities. Indirect operating costs include administrative 
 costs, facilities' maintenance and supplies, and research 
 
 Identification 
 
 and 
 
 selection 
 
 of deposits 
 
 Tonnage 
 
 and 
 
 grade 
 
 determination 
 
 Engineering 
 
 and 
 
 cost 
 
 evaluation 
 
 Deposit 
 
 report 
 
 preparation 
 
 I 
 
 Mineral I 
 
 Industries ' 
 
 Location I 
 
 System I 
 
 (MILS) | 
 
 data • 
 
 MAP 
 
 computer 
 
 data 
 
 base 
 
 Taxes, 
 royalties, 
 
 cost 
 
 indexes, 
 
 prices, etc 
 
 MAP 
 
 permanent 
 
 deposit 
 
 files 
 
 Data 
 selection 
 
 and 
 validation 
 
 Variable 
 
 and 
 
 parameter 
 
 adjustments 
 
 Economic 
 analysis 
 
 Data 
 
 Availability 
 curves 
 
 Analytical 
 reports 
 
 Sensitivity 
 analysis 
 
 u 
 
 Data 
 
 Availability 
 curves 
 
 Analytical 
 reports 
 
 i_r 
 
 FIGURE 3.— Minerals Availability program (MAP) deposit evaluation procedure. 
 
10 
 
 and development. Costs not considered as operating costs 
 but used in the analyses include transportation costs and 
 fixed charges, including taxes, insurance, depreciation, 
 deferred expenses, and royalties. 
 
 After capital and operating costs were determined, 
 data were entered into the Bureau's supply analysis model 
 (SAM) (6). The Bureau developed SAM to perform an 
 economic analysis that either presents the results as the 
 primary commodity price (average total cost of produc- 
 tion) needed to provide a stipulated rate of return or, for a 
 given price, determines the expected rate of return on 
 investment. The rate of return used in this study is the 
 discounted-cash-flow rate of return (DCFROR), most 
 commonly defined as the rate of return that makes the 
 present worth of cash flows from an investment equal to 
 the present worth of all after-tax investment. For this 
 study, a 15-pct DCFROR was considered necessary to 
 cover the opportunity cost of capital. Rates of return 
 (profit) required for continued production differ from 
 
 operation to operation. However, for comparison purposes, 
 each operation was analyzed at a 15-pct DCFROR. 
 Analyses were also performed at a 0-pct DCFROR, which 
 includes the return of invested capital but provides no 
 additional profit. Total production cost at a 0-pct DCFROR 
 is equivalent to a breakeven production cost. 
 
 Detailed cash-flow analyses were generated for each 
 deposit in this study. After each deposit's total cost of 
 production was determined, individual deposit tonnages 
 were aggregated at increasing production costs to deter- 
 mine magnesium availability from all deposits evaluated. 
 The results of these analyses are presented as availability 
 curves discussed later in this report. Total and annual 
 availability curves were generated for Mg metal, dead- 
 burned MgO, and caustic calcined MgO. 
 
 Sensitivity analyses showing effects of source mate- 
 rial, energy costs, processing technology, and product type 
 were also performed. 
 
 GEOLOGY 
 
 Magnesium occurs in a variety of rock types, sea 
 water, bitterns, and brines. Although magnesium is found 
 in over 60 minerals, only dolomite, magnesite, brucite, 
 and olivine are magnesium minerals of commercial 
 importance. Together, these varied sources form a 
 potential resource base for magnesium that is for all 
 practical purposes inexhaustible. 
 
 DOLOMITE 
 
 Sources of high-purity dolomite [CaMg(C0 3 ) 2 ], a 
 sedimentary rock commonly interbedded with limestone, 
 are enormous and contribute significantly to Mg metal 
 and magnesium compound production. Dolomite occurs as 
 massive or bedded deposits many meters in thickness. In 
 the United States alone, dolomite deposits containing at 
 least 37.5 pet MgC0 3 occur in at least a dozen States. 
 World dolomite resources are sufficient to meet the 
 expected demand for dolomite products well beyond the 
 year 2000. 
 
 SEAWATER 
 
 Magnesium occurs within seawater as the cation of 
 various magnesium salts (MgCl 2 , MgS0 4 , and MgBr 2 ). 
 The magnesium content of seawater averages 0.13 wt pet. 
 Concentrations in specific areas vary widely due to 
 geomorphic, climatic, and seasonal conditions and to other 
 variables such as water depth. Seawater plants are 
 located at sites of relatively high salinity, reflecting 
 higher than average concentrations of dissolved salts. 
 U.S. operations extract MgO from sea brines that range 
 from 0.13 to 0.22 pet Mg. The oceans are estimated to 
 contain 17.8 billion st of pure magnesium; rivers have the 
 potential to contribute an additional 30 MMst Mg (9). 
 
 LAKE BRINES 
 
 MAGNESITE AND BRUCITE 
 
 Magnesite (MgC0 3 ), the natural form of magnesium 
 carbonate, has been a traditional source of magnesium 
 and magnesium compounds since the 1880's. Magnesite 
 occurs in four types of deposits: As crystalline masses 
 replacing dolomite, as impure crystalline masses replac- 
 ing ultramafic rocks, as cryptocrystalline masses in 
 ultramafic rocks, and as sedimentary beds and lenses. In 
 recent years, only deposits of crystalline magnesite 
 replacing dolomite have been mined. These crystalline 
 magnesite deposits occur as lenses, stockworks, or 
 disseminations within massive dolomite deposits. 
 
 Brucite [Mg(OH) 2 ], the natural form of magnesium 
 hydroxide, is a magnesium mineral of secondary origin 
 that usually is found in association with other magnesium 
 minerals, particularly magnesite. It is usually associated 
 with carbonate rocks and serpentine. 
 
 Lake brines commonly occur in enclosed drainage 
 basins. Salt concentrations are controlled by several 
 climactic factors. Abundant solar radiation, low humidity, 
 and low rainfall result in more concentrated brines. In 
 these areas, water loss through evaporation exceeds water 
 gained through precipitation. The Dead Sea brines in 
 Israel and the Great Salt Lake brines in the United States 
 illustrate two types of natural brines. Rainfall in the Dead 
 Sea area averages 33 in/yr and has been relatively stable 
 for several years. Magnesium concentration is approx- 
 imately 4.1 pet. The Great Salt Lake region has an 
 average rainfall between 12 to 19 in/yr; rainfall distribu- 
 tion has been variable. Both regions, however, have 
 higher than average magnesium salt concentrations. 
 Higher rainfall in the Great Salt Lake area, in combina- 
 tion with flooding of the drainage basin as a result of a 
 breeched causeway, has resulted in magnesium concen- 
 trations that have fallen below an average level of 3.8 pet 
 Mg, requiring processing technology modifications. 
 
11 
 
 WELL BRINES 
 
 Well brines are extracted from two sources. Wells are 
 used to extract seawater that has invaded near-shore 
 aquifers. An example of this is Quimica del Rey in Mexico. 
 Production facilities of this type are very similar to typical 
 seawate/ plants. The second source is naturally concen- 
 trated interstitial brines. Two major theories are pre- 
 
 sented for the origins of interstitial brines. The first 
 explanation proposes that these brines are the residium of 
 the formation of evaporite deposits. The second attributes 
 brine concentration to the downward percolation of 
 meteoric waters that take minerals into solution until 
 saturation levels are reached (19). Magnesium concentra- 
 tions in interstitial brines are higher than those of 
 seawater, but lower than the best lake brines. 
 
 MAGNESIUM RESOURCES 
 
 Magnesium and magnesium compounds can be 
 produced (if economics are not considered) from numerous 
 sources in virtually unlimited quantities from many 
 countries. Seawater, which averages 0.13 wt pet Mg, is 
 virtually an inexhaustible source of magnesium. Conse- 
 quently, it is not the purpose of this study to estimate the 
 total resource potential of this abundant material, but 
 rather to present the availability of magnesium and 
 magnesium compounds in terms of the most readily 
 available sources (e.g., those currently producing, those 
 with recent production, and those not yet producing but 
 with significant production potential) in MEC's. Resources 
 have been classified into four primary sources: seawater, 
 brines, magnesite, and dolomite. Discussion of dolomite 
 sources is limited to those properties producing dolomite 
 solely for its magnesium content, rather than for its 
 numerous other uses. 
 
 Resource estimates were made at the demonstrated 
 level according to the mineral resource classification 
 system developed by the Bureau of Mines and U.S. 
 Geological Survey (fig. 4) (23). Using this classification 
 system, demonstrated resources are defined as the in situ 
 
 measured plus indicated tonnages that make up the 
 reserve base. The reserve base includes resources that are 
 currently economic (reserves) or marginally economic 
 (marginal reserves) and some that are currently subeco- 
 nomic (subeconomic resources). Resource quantity and 
 grade were determined from site inspections, deposit 
 geology, drilling data, mine workings, and sampling. 
 
 Demonstrated resources from 38 properties with 
 significant potential for recovery of magnesium or 
 magnesium compounds from MEC's were evaluated in 
 this study. Total demonstrated resources from these 
 deposits are estimated at 29,407 MMst of source material 
 containing 416 MMst MgO, of which 74 pet is recoverable 
 as either MgO compounds or Mg metal. 
 
 Table 7 reports magnesium resource potential from 
 evaluated MEC's. The nature of the seawater and brine 
 sources made it impossible to estimate resources attribut- 
 able to individual properties in a conventional manner. 
 Resources from properties recovering magnesium prod- 
 ucts from brine or seawater sources were reported in 
 terms of a 30-yr production life for the purpose of economic 
 analysis. 
 
 Cumulative 
 production 
 
 IDENTIFIED RESOURCES 
 
 Demonstrated 
 
 Measured 
 
 Indicated 
 
 Inferred 
 
 ECONOMIC 
 
 MARGINALLY 
 ECONOMIC 
 
 SUBECONOMIC 
 
 Reserve 
 
 base 
 
 Inferred 
 
 reserve 
 
 base 
 
 UNDISCOVERED RESOURCES 
 
 Probability range 
 (or) 
 
 Hypothetical 
 
 Speculative 
 
 + 
 + 
 
 Other 
 occurrences 
 
 Includes nonconventional and low-grade materials 
 
 FIGURE 4.— Mineral resource classification categories. 
 
12 
 
 TABLE 7.— Demonstrated MEC magnesium resources, January 1985 
 
 Demonstrated Identified 2 
 
 Country and primary e . , , ln sit 3 u M 9° MgO, MMst ln situ MgO Contained 
 
 cn,,rra Status 1 ore 3 , grade, ore, grade, MgO, 
 
 source MMst pet Contained" Recoverable 5 MMst pet MMst 
 
 Brazil: Magnesite P W 46 W W W 46 W 
 
 Canada: 
 
 Dolomite P 11 21 2.4 2.4 11 21 2.4 
 
 Magnesite N 136 30 41 41 176 30 53 
 
 Greece: Magnesite C W 6.4 W W W 6.4 W 
 
 India: Magnesite P 334 9.5 32 2.2 1,583 9.8 155 
 
 Ireland: Seawater C 2,473 .19 4.7 4.7 ( 7 ) .19 ( 7 ) 
 
 Italy: Seawater P 1,031 .23 2.4 2.4 ( 7 ) 0.23 ( 7 ) 
 
 Japan: Seawater P 17,007 .20 31 18 ( 7 ) 0.20 ( 7 ) 
 
 Mexico: 
 
 Seawater P 1,012 .20 2.0 2.0 ( 7 ) 4.5 ( 7 ) 
 
 Brine P 1,128 4.5 51 51 ( 7 ) 4.5 ( 7 ) 
 
 Netherlands: Brine P 29 9.0 2.6 2.6 59 9.0 5.3 
 
 Norway: Seawater P 1,356 .20 2.7 2.7 ( 7 ) .20 ( 7 ) 
 
 Spain: Magnesite P W 32 W W W 32 W 
 
 Tunisia: Brine N 59 6.8 4.0 4.0 1,102 6.8 75 
 
 Turkey: Magnesite P 437 27 118 49 1,105 26 287 
 
 United Kingdom: Seawater P 1,936 0.21 4.0 4.0 3,287 .21 6.9 
 
 United States: 
 
 Seawater P 3,636 .21 7.6 5.1 ( 7 ) .21 ( 7 ) 
 
 Brine P 1,880 1.2 23 23 ( 7 ) 1.2 ( 7 ) 
 
 Magnesite C W 26 W W W 26 W 
 
 Dolomite C W 39 W W W 39 W 
 
 Total or average: 
 
 Seawater NAp 28,451 .19-.23 54.4 38.9 ( 7 ) NAp ( 7 ) 
 
 Brine NAp 3,096 1.2-9.0 80.6 80.6 ( 7 ) NAp ( 7 ) 
 
 Magnesite NAp 1,499 6.4-46 285.0 165.7 3,600 NAp 636 
 
 Dolomite NAp 24 21-39 7.5 7.5 24 NAp 7.5 
 
 All sources NAp 33,070 NAp 427.5 292.7 ( 7 ) NAp ( 7 ) 
 
 NAp Not applicable. 
 
 W Withheld to avoid disclosing company proprietary data; included in totals. 
 'C = combined producer and nonproducer; N = nonproducer: P = producer. 
 
 identified resources include inferred resources; seawater and some brine resources are considered virtually unlimited. 
 3 Resources for seawater and brines are effectively inexhaustible; for the purpose of this study a property life of 30 yr was assumed 
 from these sources. 
 "Figures report total MgO content of in situ ore. 
 
 5 Figures report MgO recoverable from deposits in country assuming current recovery rates. 
 6 CC = caustic calcined MgO; DB = deadburned MgO; MG = Mg metal. 
 Principal products only, other products may be recovered in limited quantities. 
 Unlimited resources. 
 
 Annual 
 production 
 
 capacity, 
 st product 
 
 Product 
 type 6 
 
 330,000 
 
 DB.CC 
 
 11,000 
 205,000 
 
 MG 
 DB.CC 
 
 410,000 
 
 DB 
 
 133,000 
 
 DB.CC 
 
 200,000 
 
 DB 
 
 72,000 
 
 DB 
 
 691,000 
 
 DB.CCMG 
 
 77,000 
 110,000 
 
 DB 
 DB.CC 
 
 110,000 
 
 DB 
 
 55,000 
 
 MG 
 
 105,000 
 
 DB.CC 
 
 110,000 
 
 DB 
 
 205,000 
 
 DB.CC 
 
 193,000 
 
 CC.DB 
 
 468,000 
 
 580,000 
 
 123,000 
 
 27,000 
 
 DB 
 DB 
 
 DB.MG 
 DB 
 
 1 ,756,000 
 
 910,000 
 
 1,511,000 
 
 38,000 
 
 4,215,000 
 
 NAp 
 NAp 
 NAp 
 NAp 
 NAp 
 
 for estimates of resources 
 
 Of the 38 properties evaluated, 13 properties recover 
 magnesium primarily from seawater, 8 from well or lake 
 brines, 15 from magnesite or brucite, and 2 from dolomite. 
 Over the next 30 yr, demonstrated recoverable MgO from 
 seawater sources evaluated in this study are estimated to 
 be 46.9 MMst, or 15 pet of the total recoverable MgO 
 evaluated in this study. Approximately 76.4 MMst (25 pet) 
 MgO are recoverable from brines during this period. The 
 
 MgO content of magnesite or brucite sources amount to 
 175.2 MMst, or 57 pet of the total available MgO. 
 
 Most of the countries of the world have the potential 
 to recover magnesium from either seawater, brine, or 
 dolomite. The principal magnesite-rich regions are in- 
 cluded in table 6. Areas with magnesium recovery 
 potential not included in this study are discussed in the 
 appendix. 
 
13 
 
 EXTRACTION AND PROCESSING TECHNOLOGY 
 
 Magnesium and magnesium products are recovered 
 from a variety of sources. Each source requires specialized 
 mining tend processing methods, with method selection 
 dependent upon the desired marketable form. 
 
 SEAWATER AND BRINES 
 Extraction 
 
 The simplest source of magnesium to recover is 
 seawater or magnesium-rich lake brines. Water is simply 
 pumped from the shallow source area by means of 
 centrifugal pumps. Pump intake is arranged in a series of 
 weirs or sumps in order to prevent the pumps from being 
 clogged with fish or other contaminants. 
 
 The Barcroft operation in Delaware uses a slight 
 variation of this method. Water is pumped by means of 
 submersible well pumps with pump intakes located 3 in 
 below the sediment surface. Sediment in this case acts as 
 the filtering mechanism. 
 
 Magnesium-rich natural brines such as those recov- 
 ered from the Michigan Basin are extracted by means of 
 deep wells. Extraction methods and equipment are similar 
 to that used in the oil industry. Well fields are usually put 
 into production by contract drilling firms on a "turnkey" 
 basis. 
 
 Michigan brine wells are sunk to depths ranging from 
 4,000 to 5,200 ft. Well castings are cement-sealed from the 
 surface to the top of the brine producing aquifer. Pumping 
 rates range from 20 to 120 gal/min. Brines are transported 
 to processing facilities by a network of steel or fiberglass 
 pipelines. Similar brine recovery techniques are employed 
 worldwide. 
 
 The main consideration in selecting reactants for this 
 process are their purity and economic availability. After 
 the reactants have been selected, the limitations of 
 pumping and thickening equipment prevent switching to 
 more dilute reactants without loss of capacity. A plant 
 using dolomite, for example, cannot change to limestone 
 without suffering a production loss. Changing to a more 
 concentrated reactant, however, may be possible. 
 
 When dolomite is used as a reactant, approximately 
 half of the resulting magnesium in the MgO product 
 comes from the dolomite; when limestone is used, all the 
 product MgO comes from the seawater or brine. In order to 
 obtain an equivalent production rate in terms of market- 
 able product, twice the volume of liquid must be processed 
 when limestone is used than when dolomite is used. 
 
 If a MgO product is desired, the filter cake is treated 
 in either a multiple-hearth furnace or a rotary kiln and 
 fired to a temperature of approximately 1,640° F (11). At 
 this temperature, the water is driven from the Mg(OH) 2 , 
 leaving caustic calcined MgO. This form of magnesia can 
 be marketed or can be pelletized and refired in a rotary 
 kiln. The kiln is fired up to a temperature above 2,640° F 
 (11); the crystalline makeup of the MgO changes and 
 deadburned MgO is formed. 
 
 MgS0 4 (epsom salts) can be produced by dissolving 
 MgO in H 2 S0 4 with subsequent crystallization, or by 
 reacting Mg(OH) 2 with S0 2 . Various grades of MgC0 3 can 
 be produced by combining solutions of MgS0 4 and Na 2 C0 3 
 followed by precipitation, filtration, and drying (11). 
 
 MAGNESITE, BRUCITE, DOLOMITE, AND OLIVINE 
 
 Extraction 
 
 Processing 
 
 Processing methods employed are selected based upon 
 source material type and product forms desired. Methods 
 employed at specific operations are reported in table 6. 
 
 Seawater or well-brines are processed similarly, but 
 minor differences occur at the initial stages of processing. 
 If the solutions are used as feed for producing caustic 
 calcined or deadburned MgO, carbonate levels are first 
 reduced so insoluble calcium compounds do not precipitate 
 with Mg(OH) 2 in the subsequent reaction process. 
 
 Brines are first combined with slaked lime to 
 precipitate soluble bicarbonates as CaC0 3 , while seawa- 
 ter is commonly treated with H 2 S0 4 to liberate C0 2 . 
 Subsequent processing steps for these two sources are 
 identical. The treated solution is then heated to approx- 
 imately 131° F and placed into reaction vessels where 
 calcined oyster shells, limestone, or dolomite are added. 
 Magnesium ions in the water react with the slaked 
 carbonates to produce a Mg(OH) 2 precipitate. This 
 Mg(OH) 2 slurry is concentrated in thickeners, washed 
 with fresh water in a countercurrent system, and then 
 filtered. The resulting filter cake can either be dried and 
 marketed at this point as Mg(OH) 2 or it can undergo 
 further processing to attain another magnesium product. 
 
 Magnesite, brucite, dolomite, and olivine are the 
 principal rock sources of magnesium. Open pit mining 
 methods are most commonly used. Mining consists of 
 stripping overburden and drilling, blasting, loading, and 
 hauling ore. Pit design is based on surface mapping and 
 assay information derived from exploratory drilling. 
 
 Waste and ore are commonly drilled by percussion or 
 rotary drills. Holes are loaded with ANFO and primed 
 with dynamite. Shovels and front-end loaders transport 
 the broken ore to trucks for shipment to processing 
 facilities. Hand cobbing of broken material is employed at 
 some locations, primarily in India and Turkey. Crushers 
 located in the pit are utilized at other locations. 
 
 Overburden and waste removal varies significantly 
 for each operation. Waste-to-ore ratios range from zero to 
 as much as 3:1. Pit slopes for domestic operations are 
 generally maintained at 60°. Pit benches can vary from 10 
 to 40 ft. 
 
 Nonmetallic MgO Processing 
 
 Magnesium is recovered from mineralized areas 
 containing magnesite, brucite, or dolomite. The first step 
 in processing these ores is to crush either run-of-mine or 
 hand-cobbed ore in multiple stages at either the mine site 
 or the processing facilities. Dolomite at this point is 
 
14 
 
 simply directed to rotary or shaft kilns where it is calcined 
 to a temperature of 1,640° F. If deadburned dolomite is 
 desired, the kilns are heated to temperatures up to 3,450° 
 F (11). Magnesite and brucite ores undergo more rigorous 
 beneficiation before calcination. After undergoing a series 
 of crushing stages, ore is screened, washed, and classified 
 to remove slimes. Depending upon ore quality, flotation or 
 heavy-media separation may be required to prepare the 
 feed for calcination. 
 
 Two forms of magnesia are commonly produced, 
 caustic calcined MgO or deadburned MgO. Caustic 
 calcined MgO is obtained by heating the feed material in 
 either rotary or shaft kilns to above 1,640° F. Deadburned 
 material is produced by pelletizing and additional kilning 
 at temperatures up to 3,450° F. In some cases, raw feed is 
 mixed with flue dust and briquetted prior to deadburning. 
 Both brick and maintenance grade refractory MgO 
 products can be produced (11). 
 
 Magnesium Metal Processing 
 
 Two principal processes are currently utilized for Mg 
 metal recovery: electrolytic reduction of MgCl 2 and 
 thermic (silicothermic) reduction of MgO. Exact process 
 methodology varies from operation to operation. 
 
 Electrolytic Processing 
 
 Several basic electrolytic cell designs are in use today; 
 the three main cells currently employed are the Dow cell, 
 the I.G. cell, and the diaphragmless cell. Detailed 
 descriptions of cell design have been published (8). Cell 
 design differs in electrode positioning and utilization of a 
 diaphragm for separating the electrodes. In each cell 
 direct current breaks down the MgCl 2 into chlorine gas 
 and molten magnesium. The metal is formed at the 
 cathode and rises to the surface of the bath where it is 
 guided into storage wells. Metal is cast into desired forms. 
 Chlorine and HC1 gases generated at the anodes are 
 collected and pumped to other facilities for further 
 treatment and use (10). 
 
 Dow Process 
 
 Raw materials for this process consist of seawater and 
 dolomite. In this process, calcined dolomite is reacted with 
 seawater to precipitate Mg(OH) 2 . The precipitate is 
 neutralized with HC1 to produce MgCl 2 . This solution is 
 partially dewatered to approximately 25 pet water and fed 
 directly into Dow electrolytic cells. 
 
 Norsk Hydro Process 
 
 Raw materials for this process are also seawater and 
 dolomite, or brines with a high MgCl 2 content. Norsk 
 Hydro A/S employs two different preparation processes. In 
 the original Norsk Hydro process, seawater and calcined 
 dolomite are combined and the resultant Mg(OH) 2 
 is precipitated and chlorinated as with the Dow process. In 
 the revised Norsk Hydro process, MgCl 2 brine is totally 
 dehydrated and chlorinated in fluidized beds. The Norsk 
 Hydro process differs from the Dow process in that only 
 fully dehydrated MgCl 2 is fed into the electrolytic cells, 
 whereas the Dow process feed is MgCl 2 with a H 2 
 content of 25 pet (10). Norsk Hydro A/S has until recently 
 employed modified I.G. electrolytic cells, but is currently 
 replacing them with diaphragmless cells of its own design. 
 
 AMAX Process 
 
 This process makes extensive use of solar evaporation 
 to concentrate MgCl 2 from brine. The brines are pumped 
 to a series of solar evaporation ponds where a 7.5 pet Mg 
 concentrated brine is obtained. CaCl 2 is used to remove 
 various sulfates from the brine, which is further concen- 
 trated and dehydrated in a spray dryer. Anhydrous MgCl 2 
 is melted and Mg metal separated in an I.G. electrolytic 
 cell. 
 
 Thermic Processing 
 
 Magnetherm Process 
 
 This process uses dolomite for the magnesium source 
 and ferrosilicon as a reducing agent. It is the most widely 
 used of the thermic processes. Calcined dolomite, ferrosili- 
 con, and alumina are ground, heated, and briquetted, then 
 fed into an electric furnace, which is operated under a 
 vacuum at a temperature of 2,900° F. The alumina serves 
 as a fluidizing agent in the process and reduces the 
 melting point of the slag produced as the result of the 
 dolomite-silicon reaction. Magnesium vapors are conden- 
 sed, and Mg metal is then cast in desired forms. 
 
 Pigeon Process 
 
 Raw material used in this process is dolomite. 
 Ferrosilicon is also used as a reducing agent. Dolomite 
 and ferrosilicon are mixed, briquetted, and heated in a 
 retort under vacuum to 2,000° F. The resulting chemical 
 reaction produces magnesium vapor, which is condensed 
 in a water-cooled condensing section of the retort. 
 
 PRODUCTION COSTS 
 
 Capital investments and operating costs for mining, 
 milling, processing, and transportation were developed 
 based on actual data or estimated from best available 
 sources. Based upon this economic data, costs at 0- and 
 15-pct DCFROR were generated for each property. The 
 0-pct DCFROR cost estimate includes applicable mining, 
 concentrating, and processing costs; transportation costs 
 to the processing facility; capital recovery and taxes. The 
 
 15-pct DCFROR cost also includes profit. Post-processing- 
 plant transportation costs have been included as separate 
 costs. 
 
 Magnesium production costs vary greatly depending 
 upon such factors as source material, processing metho- 
 dology, size of operation, deposit location, ore characteris- 
 tics, energy and labor costs, tax structure, and degree of 
 product integration and diversification. The diversity of 
 
15 
 
 source materials and marketed products available make 
 economic comparisons between properties difficult. In this 
 study, properties were grouped in terms of primary 
 product and source material. 
 
 CAPITAL INVESTMENTS 
 
 Where applicable, capital investments include costs 
 for exploration; development; mine, mill, and processing 
 facilities and equipment; working capital; and infrastruc- 
 ture. Because of differences in processing techniques, costs 
 are reported by source material and final product. 
 
 Capital costs reflect either development costs to 
 construct "greenfield" facilities and begin production or 
 the additional capital investment necessary to recondition 
 preexisting facilities and construct any additional facili- 
 ties necessary to enable a property to resume operations. 
 Most of the magnesium operations under consideration 
 have been operating for many years. Many of the original 
 capital investments have been written off or depreciated. 
 Capital investments for these operations are limited to 
 replacement, modifications, or expansions, and do not 
 reflect the total cost required for development of a new or 
 "greenfield" operation. Costs have been reported in terms 
 of investment dollars per short ton of annual product 
 capacity. 
 
 Investments made for producing operations evaluated 
 in this study vary greatly depending on the type and 
 degree of plant modification required. Much of the 
 difference is attributed to the high degree of variation in 
 the infrastructure required from property to property. A 
 property located in a highly industrialized region requires 
 significantly less infrastructure than one located in a 
 remote region, where additional townsite, transportation, 
 and port facilities may be required. Properties with larger 
 production rates generally required larger capital expend- 
 itures but were lower cost operations on a per ton of 
 product basis. 
 
 Capital costs associated with plants producing mag- 
 nesium compounds vary significantly from those produc- 
 ing Mg metal, although they may be of similar capacities 
 and use similar raw materials. It is estimated that initial 
 capital requirements for the production of Mg metal range 
 from $3,175/st to $4,500/st of annual product capacity (15). 
 Data available from this study indicates that initial 
 capital investment for the production of MgO compounds 
 (primarily deadburned MgO and caustic calcined MgO) 
 fall within the range of $864/st to $l,250/st annual MgO 
 production in 1984 dollars. 
 
 As a general rule, seawater magnesia plants cost 
 more to construct per ton of annual product capacity than 
 do brine plants or those using a magnesite feed. Seawater 
 plants generally utilize a more complex recovery process, 
 particularly if multiple feed sources (e.g., seawater and 
 dolomite or brine) are used, and use expensive water 
 preparation equipment that treats huge volumes of 
 relatively dilute seawater. The least costly operations are 
 those using a magnesite feed and a simple process 
 consisting of crushing, sizing, and calcination. This type of 
 plant is also commonly a physically smaller plant for a 
 given product capacity than a plant utilizing a seawater or 
 brine source material. 
 
 Capital costs for "greenfield" plants producing Mg 
 metal vary depending upon local conditions, capacity, and 
 processing technology. Electrolytic plants tend to operate 
 at higher capacities than metallothermic plants with 
 correspondingly higher initial capital investments. Ther- 
 mic processes generally operate at capacities from 5,000 to 
 33,000 st/yr Mg metal and incur slightly lower capital 
 investment. Based upon Bureau data, the capital invest- 
 ment as of 1984 for electrolytic plants with a capacity 
 range of 33,000 to 77,000 st/yr Mg metal is approximately 
 $3,600/st annual capacity; electrolytic plants with capaci- 
 ties exceeding 77,000 st/yr Mg metal have capital 
 investments of about $3,200/st. The capital investment of 
 plants utilizing thermic processing averages $2,700/st 
 annual capacity; capital costs are lower for operations 
 purchasing ferrosilicon. 
 
 OPERATING COSTS 
 
 Operating costs estimated for each of the properties 
 evaluated include all necessary costs for extraction, raw 
 materials, processing, and transportation to processing 
 facilities. Costs for mining, processing, or purchase of 
 necessary raw materials such as dolomite or ferrosilicon 
 have been included in the operating cost. Because of the 
 diverse nature of magnesium recovery technology, costs 
 for mining and beneficiation, if required, have been 
 included in the total processing plant operating cost; only 
 total operating costs are reported. Costs reflect the 
 weighted-average expense of recovering all commodities 
 considered in this study. All costs are as of January 1984. 
 Because of the proprietary nature of the data, detailed cost 
 data for each property could not be reported. 
 
 A summary of estimated operating and total produc- 
 tion costs from operations included in this study are given 
 in table 8. Costs for both Mg metal and MgO compounds 
 are reported in terms of cost per short ton of contained 
 MgO for all magnesium products. Both cost ranges and 
 weighted-average costs are reported. Total production 
 costs include additional costs for capital recovery, taxes, 
 selected byproduct credits, and a 15-pct DCFROR. Table 9 
 gives a breakdown by percentage of total cost for major 
 cost components. Labor costs range from 13 to 31 pet of the 
 total operating cost. Energy costs range from 22 to 71 pet 
 and in general reflect the greatest portion of operating 
 cost. Costs for materials and supplies make up 6 to 49 pet 
 while general-administrative costs range up to 10 pet of 
 the total operating cost. Deadburned MgO recovery 
 appears to be the most energy intensive. 
 
 Operating costs for Mg metal from all sources range 
 from $280/st to $2,07 1/st Mg metal product (wtd av of 
 $l,018/st). While a breakdown of metal costs from various 
 sources was not possible owing to the proprietary nature 
 of the data, operating costs for seawater operations tended 
 to be lower than those from dolomite or brine source 
 material; operating costs from evaluated brine operations 
 were the highest. 
 
 Operating costs from evaluated properties producing 
 magnesium compounds ranged from $22/st to $386/st 
 product (wtd av of $172/st). Costs from seawater and 
 magnesite properties were significantly higher than those 
 from properties processing brines. 
 
16 
 
 TABLE 8. — Production costs for selected producing 
 operations from various source materials 
 
 (Dollars per short ton contained MgO) 
 
 Product and Operating cost 1 Total production cost 2 
 
 source Range Wtd av Range Wtd av 
 
 Mg metal 3 $280-$2,071 $1,018 $760-$2,620 $1,552 
 
 MgO compounds: 
 
 Seawater 129- 386 185 156- 476 276 
 
 Brines 62- 255 131 148- 329 212 
 
 Magnesite and brucite 22- 259 195 109- 451 287 
 
 All sources NAp 172 NAp iiT 
 
 NAp Not applicable. 
 
 'Includes all mining, beneficiation, processing, and internal transportation 
 costs. 
 
 includes additional costs such as capital recovery, taxes, and a 15-pct 
 DCFROR. Costs vary from those reported in table 10, as these costs reflect 
 weighted-average cost in terms of contained MgO from all magnesium 
 products; table 10 costs reflect costs in terms of primary magnesium product 
 adjusted for byproduct credits. 
 
 3 Owing to the proprietary nature of the data, no breakdown of Mg metal 
 costs by source material was made. 
 
 TABLE 9. — Operating cost breakdown for producing 
 magnesium operations 
 
 (Percent) 
 
 Product and source 
 
 Labor Energy 
 
 Materials General 
 
 and and 
 
 supplies administrative 
 
 Mg metal: 
 
 Seawater 29 
 
 Brine 29 
 
 Dolomite 29 
 
 Deadburned MgO: 
 
 Seawater 25 
 
 Brine 13 
 
 Magnesite and brucite 18 
 
 Caustic calcined MgO: 
 
 Seawater 31 
 
 Brine 15 
 
 Magnesite and brucite 25 
 
 39 
 48 
 22 
 
 62 
 58 
 71 
 
 37 
 56 
 59 
 
 29 
 18 
 
 49 
 
 6 
 
 26 
 
 9 
 
 22 
 
 21 
 
 9 
 
 10 
 8 
 
 7 
 
 MAGNESIUM AVAILABILITY 
 
 Capital and operating cost data were aggregated and 
 economic analyses at 0-pct (breakeven) and 15-pct 
 DCFROR were peformed for each of the products (Mg 
 metal, deadburned MgO, and caustic calcined MgO) 
 evaluated in this study. As defined earlier, the DCFROR 
 represents the rate of return that makes the present worth 
 of cash flows from an investment equal to the present 
 worth of all after-tax investment. A summary of the 
 economic findings is presented in table 10. Total produc- 
 tion costs are reported as weighted averages in terms of 
 cost per short ton of marketable product. Cost ranges for 
 each product and source material type are given. All costs 
 discussed here are reported in January 1984 dollars. 
 
 Magnesium operations commonly produce a wide 
 variety of magnesium products; byproduct credits for 
 selected magnesium compounds (e.g., caustic MgO, 
 Mg[OH] 2 , and raw magnesite) and other byproducts were 
 included. Table 11 reports the byproduct prices used in the 
 study. Specialty byproducts such as chlorine from Mg 
 metal recovery were not included as they most commonly 
 were considered a part of a separate recovery circuit in the 
 fully integrated plant. 
 
 For each deposit with multiple magnesium products, 
 price proportions were used to burden costs against total 
 revenues required to meet the target rate of return. The 
 total production cost of the deposit is not allocated to only 
 one product but is allocated among all products, based on 
 relative price proportions of those products. This method 
 is useful for operations for which there is not a clearly 
 defined primary product. 
 
 Nonmagnesium byproducts were given set prices (see 
 table 11) and any byproduct credits were deducted from 
 the total revenues required to cover all costs at 0-pct or 
 15-pct DCFROR. The remaining revenues were then 
 proportioned among all magnesium products recovered. 
 Because of product similarity, the same market price 
 proportions were assumed for all properties. Price 
 
 proportions allow revenues to be divided between products 
 according to their value, rather than establishing a price 
 for one magnesium product and determining a price for 
 another. 
 
 TABLE 10. — Total production cost summary for selected 
 
 magnesium products from producing operations and various 
 
 source materials 
 
 (Dollars per short ton primary product) 
 
 Total production Weighted-average 
 
 cost range total production cost 
 
 Product and - - 
 
 source 0-pct 15-pct 0-pct 15-pct 
 
 DCFROR DCFROR DCFROR DCFROR 
 
 Mg metal:' 400-2,400 760-2,620 1,346 1,552 
 
 Deadburned MgO: 
 
 Seawater 131- 407 156- 580 242 290 
 
 Brines 157- 261 179- 329 178 237 
 
 Magnesite and brucite 98- 339 118- 480 211 246 
 
 Wtd av NAp NAp 213 257 
 
 Caustic calcined MgO: 
 
 Seawater 180- 286 191- 315 219 246 
 
 Brine W W W W 
 
 Magnesite and brucite 83- 285 100- 404 194 238 
 
 Wtd av NAp NAp iijl 240 
 
 NAp Not applicable. W Withheld to avoid disclosing proprietary data: 
 included in totals. 
 
 'The proprietary nature of the data prevents reporting of actual production 
 costs for Mg metal. Weighted-average costs from all source materials are 
 reported. 
 
 TABLE 11.— Byproduct commodity prices, January 1984 
 
 Price, $/st 
 
 Caustic calcined MgO 315.00 
 
 Deadburned MgO 392.00 
 
 Gypsum 20.00 
 
 Magnesite 48.54 
 
 MgCI 2 58.06 
 
 Mg(OH) 2 1 12.12 
 
 Mg metal '1.34 
 
 Talc 19.50 
 
 '$/lb. 
 
17 
 
 The total production cost can be compared to an 
 estimated long-term market price to determine if an 
 operation has sufficient return on investment to justify 
 continuous operation. In the short term, if an operation 
 shows average variable costs that are higher than the 
 market price, the company may cease operations unless 
 the cos£s arising from closure are higher than the cost of 
 continuing production at a loss. State-owned or State- 
 controlled operations may also continue production under 
 a nonprofitable situation if the resulting foreign exchange 
 earnings are more than foreign exchange costs incurred 
 by the operation. A closure may require payment of 
 unemployment, welfare, or loss of training benefits or 
 additional costs to restart an operation. Governments may 
 need sales revenues generated by the operation to import 
 other needed materials into the country. 
 
 The average total cost of production at a 15-pct 
 DCFROR to produce Mg metal ranges from $0.38/lb to 
 $1.31/lb Mg metal product (wtd av $0.78/lb Mg metal) for 
 the properties under consideration. Given the proprietary 
 nature of the data, actual costs could not be reported for 
 each source material. On a relative basis, total production 
 costs from seawater sources were lower than costs from 
 dolomite or brine source materials; brine costs to recover 
 Mg metal were the highest from the properties evaluated. 
 All costs at a specified 15-pct DCFROR for the Mg metal 
 operations under consideration are less than the January 
 1984 market price for 99.8 pet pure Mg metal of $1.34/lb 
 ($2,680/st) Mg. (See table 2.) 
 
 The variation in production costs among properties 
 processing seawater, brines, and dolomite for recovery of 
 Mg metal can be attributed to several factors. In the 
 magnesium industry, the diversity of source material and 
 processing methodology make economic comparisons 
 among operations difficult. Variations in plant design and 
 age, process technology, and capacity are significant. 
 Seawater plants tend to operate at significantly higher 
 capacities, resulting in economy-of-scale effects. The 
 seawater plants also tend to be parts of larger industrial 
 complexes where some cost elements may be absorbed by 
 other parts of the complex. A significant advantage in 
 electrical costs is possible with some large scale opera- 
 tions. This may be reflected in table 9, which shows cost 
 percentages reported for seawater and dolomite opera- 
 tions producing Mg metal to be comparatively lower than 
 those for brine operations. Energy requirements for each 
 type of operation should be comparable (8). 
 
 The average total cost (including a 15-pct DCFROR) 
 to produce deadburned MgO ranges from $156/st to 
 $580/st (wtd av of $290/st) from seawater, $179/st to 
 $329/st (wtd av of $237/st) from brines, and $118/st to 
 $480/st (wtd av of $246/st) from magnesite or brucite. The 
 overall weighted-average production cost for deadburned 
 MgO is $257/st. The January 1984 market price for 
 deadburned MgO was $392/st MgO product. (See table 2.) 
 
 The average total cost at 15-pct DCFROR to recover 
 caustic calcined MgO as a primary product ranges from 
 $191/st to $315/st (wtd av of $246/st) from seawater and 
 $100/st to $404/st (wtd av of $238/st) from magnesite or 
 brucite. The overall weighted-average production cost, 
 including brine sources, is $240/st MgO product, well 
 below the January 1984 market price of $315/st MgO 
 product (table 2) for chemical-grade caustic calcined MgO. 
 
 The wide variation in cost to recover MgO compounds 
 also reflects variations in source material, capacity, plant 
 age, and process technology. Recovery from seawater 
 appears to be the most costly. Magnesium-rich brines are 
 
 already partially concentrated, so preliminary concentra- 
 tion required for seawater is unnecessary; consequently, 
 brine costs are lower. Magnesite deposits require even less 
 concentration owing to their high raw Mg content, but 
 mining and beneficiation costs are higher. 
 
 Costs to recover caustic calcined MgO as the primary 
 recoverable MgO product average 93 pet of the costs to 
 recover deadburned MgO as the primary product. This is 
 to be expected where process technology is similar and 
 only an additional processing step is required to produce 
 the higher grade deadburned MgO product. 
 
 Because of proprietary considerations, separate costs 
 for producing and nonproducing properties could not be 
 provided in most cases. Nonproducing properties evalu- 
 ated in this study have costs that average 57 pet more 
 than costs from producing properties recovering from a 
 similar source material. 
 
 Based upon these economic analyses, total and 
 annual availability curves were generated for magnesium 
 metal and selected MgO compounds to indicate magne- 
 sium resource availability. These analyses are based on 
 the following assumptions: 
 
 1. Each operation is assumed to produce at its full 
 design capacity. 
 
 2. Competition and demand conditions are such that 
 each operation will be able to sell all of its output at its 
 anticipated average total cost of production. 
 
 3. For nonproducing operations where no definite 
 startup dates were known, preproduction development 
 work for each property was assumed to begin in 1984. 
 
 4. Time lags related to permitting, environmental 
 impact statements, and other possible delays affecting 
 production were minimized. 
 
 TOTAL AVAILABILITY 
 
 The total potential availability of selected mag- 
 nesium products from properties included in this study is 
 reported in the figures and tables included in this section. 
 Both 0- and 15-pct DCFROR availability curves are 
 reported; discussions are limited to the 15-pct DCFROR 
 analysis. Of the 38 properties evaluated, 5 operations 
 recover magnesium metal, 22 operations recover dead- 
 burned MgO, and 11 operations recover caustic calcined 
 MgO. 
 
 The total availability of Mg metal is shown in figure 
 5. The solid line represents the average total cost required 
 over the assumed life of the operation to meet all costs at a 
 breakeven, or pet, DCFROR. The broken line represents 
 the average total cost of production including a 15-pct 
 DCFROR on invested capital. The same relationship 
 exists on figure 6, which shows the total availability of 
 deadburned MgO and caustic calcined MgO. Similar data 
 are reported for domestic deadburned MgO in figure 7. 
 Tabulated availability data for these products at selected 
 price ranges are reported in table 12. 
 
 The January 1984 market price for Mg metal ingots 
 was approximately $1.34/lb. Approximately 13 MMst Mg 
 metal is potentially available at an average total cost 
 equal to the reported market price. All properties included 
 in this study incurred costs (including a 15-pct DCFROR) 
 below the market price for Mg metal. 
 
 The January 1984 market price for deadburned MgO 
 was $392/st. Approximately 109 MMst deadburned MgO 
 is potentially available from evaluated deposits which 
 
18 
 
 «* 1.2 
 oo 
 
 O) 
 
 *- 1.0 
 
 c 
 
 CO 
 
 CO 
 O 
 O 
 
 O 
 
 .8 
 
 KEY 
 
 0-pctDCFROR 
 
 15-pctDCFROR 
 
 , J" 
 
 ± 
 
 2 4 6 8 10 12 
 RECOVERABLE Mg METAL, MMst 
 
 FIGURE 5.— Total potential magnesium metal availability from evaluated MEC properties. 
 
 14 
 
 have production costs (including a 15-pct DCFROR) at or 
 below this price. An additional 17 MMst would become 
 available if the deadburned MgO price rose to $500/st (at a 
 15-pct DCFROR). 
 
 The January 1984 market price for caustic calcined 
 MgO was $315/st. At that price, approximately 33 MMst 
 MgO is potentially recoverable from evaluated deposits 
 assuming a 15-pct DCFROR. An additional 9 MMst would 
 become available if the caustic MgO price rose to $350/lb 
 (assuming a 15-pct DCFROR). 
 
 The domestic magnesium industry has the capability 
 to produce approximately 9.6 MMst Mg metal and 33 
 MMst deadburned MgO at the January 1984 market price 
 for these products, assuming a 15-pct DCFROR. This 
 equates to 73 pet of the Mg metal and 25 pet of the 
 deadburned MgO potentially available from evaluated 
 world deposits. This is well above the projected domestic 
 consumption level for magnesium products until 2000. 
 At the January 1984 market price, most domestic 
 producers are profitable and achieving at least a 15-pct 
 DCFROR. Resources are enormous so that, assuming no 
 unforeseen changes in the magnesium industry, both 
 domestic and MEC resources should continue to be 
 adequate far into the future. 
 
 Two important aspects of domestic magnesium com- 
 pound availability should be noted. Some domestic 
 properties produce a variety of low-grade magnesium 
 
 compounds in addition to deadburned MgO. This study 
 assumed, however, that all production occurred as 
 deadburned MgO at a January 1984 market price of 
 $392/st product. As a result, the actual margin of profit 
 could be slightly lower than that indicated in the 
 evaluation. Secondly, many of these operations are 
 currently operating below their rated capacities, which 
 would reduce their present profit margins. 
 
 TABLE 12.— Availability of magnesium metal and MgO 
 
 compounds from selected MEC properties including a 15-pct 
 
 DCFROR at selected cost ranges 
 
 (Thousand short tons) 
 
 Total cost, $/st Mg metal 
 
 Under 150 (5 
 
 151 to 300 
 
 301 to 400 
 
 401 to 600 
 
 601 to 1,000 2,523 
 
 1 ,001 to 2,000 8,549 
 
 2,000 to 2,700 2,210 
 
 Total 13,282 
 
 Market price' $/st 2,680 
 
 1 As of January 1984; given for comparison. 
 
 Deadburned Caustic 
 MgO calcined MgO 
 
 20,407 
 
 14,210 
 
 46,791 
 
 18,895 
 
 41 ,968 
 
 9,241 
 
 24,874 
 
 327 
 
 31 
 
 
 
 
 
 
 
 
 
 
 
 134,071 
 
 42,673 
 
 392 
 
 315 
 
19 
 
 CO 
 
 e 
 
 co 
 O 
 a 
 
 < 
 
 O 
 
 800r- 
 
 700- 
 600- 
 500- 
 400- 
 300- 
 200- 
 I0QH 
 
 A, Deadburned MgO 
 
 KEY 
 0-pct DCFROR 
 
 15-pct DCFROR 
 
 80 
 
 ^.j 
 
 r* 
 
 ife" 
 
 120^ 
 
 140 
 
 «wu 
 
 
 
 1 - 
 
 
 1 
 
 
 ~T™ 
 
 
 400 
 
 B, 
 
 Caustic calcined MgO 
 
 
 
 
 f- - 
 
 i 
 i 
 
 350 
 
 
 
 
 
 
 
 
 i 
 I 
 j 
 
 
 i 
 i 
 
 
 
 300 
 250 
 
 1 
 
 . r 1 
 
 — • 
 
 
 
 i 
 
 1 
 
 1 
 
 / 
 
 rJ 
 
 
 - 
 
 200 
 
 
 
 — ^ 
 
 — ^ 
 
 150 
 
 r 
 
 j^ 
 
 ^^ 
 
 4 
 
 19 
 
 24 
 
 29 
 
 34 
 
 
 39 
 
 44 
 
 RECOVERABLE MgO, MMst 
 
 FIGURE 6.— Total potential deadburned and caustic calcined MgO availability from evaluated MEC properties. 
 
20 
 
 oo 
 
 CO 
 O 
 O 
 
 -J 
 < 
 
 o 
 
 800 
 700 
 600 
 500 
 400 
 300 
 200- 
 
 100 
 
 KEY 
 
 0-pct DCFROR 
 
 15-pct DCFROR 
 
 i — - 
 
 -c f 
 
 -P 
 
 ± 
 
 ± 
 
 ± 
 
 10 15 20 25 30 
 RECOVERABLE DEADBURNED MgO, MMst 
 
 FIGURE 7. — Total potential domestic availability of dead burned MgO from evaluated properties. 
 
 35 
 
 ANNUAL AVAILABILITY 
 
 Analyses were also performed to estimate the annual 
 production potential of the magnesium properties evalu- 
 ated in this study. Production potential for currently 
 nonproducing deposits was based upon deposit size 
 (demonstrated resources), past production history, and 
 capacities of similar producing operations. Since the 
 general approach of this study was to evaluate the 
 properties at full production capacity over the next 30 yr, 
 the annual curves present total potential availability for 
 each year shown, rather than an assessment of future 
 production. 
 
 Figure 8 shows the potential annual availability for 
 Mg metal, deadburned MgO, and caustic calcined MgO 
 based on a 15-pct DCFROR. At a production cost of 
 $1.40/lb (the January 1984 market price was $1.34/lb), 
 approximately 301,000 st Mg metal are potentially 
 available annually between the years 1986 to 2014. All of 
 this was available from producing operations and com- 
 pares with 268,000 st primary Mg metal produced in 1983 
 (12). Based upon an anticipated growth in world magne- 
 sium consumption at an annual rate of 3.6 pet for primary 
 Mg metal and 0.95 pet for nonmetal magnesium, the 
 forecasted world demand in 1990 is 350,000 st for primary 
 Mg metal and 5,900,000 st for nonmetal magnesium; 
 demand in 2000 is forecast as 490,000 st for primary Mg 
 metal and 6,550,000 st for nonmetal magnesium products 
 (11). A summary of anticipated demand is given in table 
 13. 
 
 Deposits evaluated in this study are sufficient to 
 supply 80 pet of 1990 and 57 pet of 2000 consumption 
 needs for Mg metal. Assuming no additions to demons- 
 trated resources as defined in this study, requirements not 
 met by the properties evaluated in this study could most 
 likely be met by properties in CPEC's, by secondary 
 magnesium producers, or properties currently being 
 developed but not considered in this study because of the 
 nature of the magnesium source material. 
 
 Figure 8 shows that at a total production cost of 
 $400/st (the January 1984 market price was $392/st, 
 approximately 3.0 MMst deadburned MgO are available 
 annually during the period 1987 to 2002. Approximately 
 85 pet of this is available from current producers. By the 
 end of 2008, production from deposits included in this 
 study would decrease to 2.4 MMst for deadburned MgO 
 annually at a maximum production cost of $400/st. As 
 shown in figure 8, 430,000 st caustic calcined MgO is 
 annually available at total operating costs below the 
 January 1984 market price of $315/st. 
 
 The forecasted world demand for all nonmetal 
 magnesium compounds is 5.9 MMst contained Mg in 1990 
 and 6.6 MMst contained Mg in 2000, based upon an 
 anticipated annual growth rate of 0.95 pet for this period 
 (11). Assuming deadburned and caustic calcined MgO 
 constitute 56 pet of all MgO compounds (see figure 2), 
 operations considered in this study could potentially meet 
 approximately 63 pet of the 1990 and 56 pet of 2000 world 
 consumption needs for total nonmetal magnesium from 
 deadburned and caustic calcined MgO. In 1990, CPEC's 
 
21 
 
 are anticipated to account for 37 pet of total world 
 production (same as in 1984). The deposits considered in 
 this study can supply approximately 102 pet of demand 
 from MEC's in 1990 and 92 pet in 2000. This study only 
 considered deadburned and caustic calcined MgO prod- 
 ucts; a wide variety of other MgO compounds are 
 produced.-' 
 
 o 
 
 2 
 
 < 
 o 
 
 /' 
 
 _ 250 
 (0 
 
 2 
 
 _r 
 
 < 200 
 
 Ul 
 
 2 
 
 1 1 1 i r 
 
 Magnesium price is in Jan. 1984 dollars per pound 
 
 0-$l.40 
 
 0-$l.20 
 
 0-$0.80 
 
 0-$0.40 
 
 3.0 
 2.5 
 2.0 
 
 1 1 1 1 r 
 
 Deadburned MgO price is in Jan 1984 dollars per short ton 
 
 „. \__o-ieoo 
 
 ■ __\ 0-J500 
 
 \ 0-$4O0 
 
 0-$300 
 
 r 
 
 "\ 0-$200 - 
 
 600 
 
 1984 
 
 1989 
 
 1994 
 
 2004 2009 
 
 FIGURE 8.— Annual availability of magnesium metal, dead- 
 burned MgO, and caustic calcined MgO at various prices. 
 
 TABLE 13.— Summary of domestic and foreign magnesium 
 demand forecasts (11) 
 
 (Thousand short tons contained magnesium) 
 
 
 1983: 
 Actual 
 
 1990: 
 Probable 
 
 
 2000 
 
 
 
 Probable 
 
 Low 
 
 High 
 
 Domestic: 
 Metal: 
 
 Primary 
 
 Secondary . . 
 Nonmetal 
 
 92 
 
 25 
 
 675 
 
 120 
 
 30 
 
 700 
 
 170 
 
 40 
 
 750 
 
 90 
 
 20 
 
 500 
 
 270 
 
 70 
 
 1,200 
 
 Foreign: 
 
 Metal 
 
 Nonmetal 
 
 176 
 . 4,887 
 
 230 
 5,200 
 
 320 
 5,800 
 
 180 
 4,000 
 
 600 
 7,500 
 
 World: 
 Metal: 
 
 Primary 
 
 Secondary . . 
 Nonmetal 
 
 268 
 
 25 
 
 . 5,562 
 
 350 
 
 30 
 
 5,900 
 
 490 
 
 40 
 
 6,550 
 
 270 
 
 20 
 
 4,500 
 
 870 
 
 70 
 
 8,700 
 
 Total 
 
 . 5,855 
 
 6,280 
 
 7,080 
 
 4,790 
 
 9.640 
 
 FACTORS AFFECTING AVAILABILITY 
 
 Magnesium availability is significantly affected by 
 energy costs. All magnesium producing processes are 
 energy intensive. Because of rising energy costs in the 
 early 1980's and the need to conserve the world's energy 
 resources, producers in recent years have devoted much 
 research effort to reducing the amount of energy required. 
 These efforts are expected to continue in the near future. 
 A comparison of energy requirements for processes 
 commonly used to recover magnesium today is given in 
 table 14. 
 
 Energy related costs range from 22 to 71 pet of the 
 total direct operating cost, depending upon processing 
 technology and source material. Both metallic and 
 nonmetallic magnesium processing is energy intensive. 
 Figure 9 illustrates the degree to which the total 
 operating cost is influenced by energy costs. Approximate- 
 ly 52 pet of all magnesium plants evaluated have energy 
 costs ranging from 40 to 60 pet of the total production cost. 
 Most producers are striving to reduce energy consumption 
 through technological improvements at every processing 
 stage. 
 
 The principal barrier to more widespread use of 
 magnesium is its high price relative to aluminum, its 
 principal industrial competitor. A magnesium price 
 reduction of 10 pet could be sufficient for a widespread 
 conversion of aluminum die and mold castings to 
 magnesium (7). 
 
 TABLE 14. — Energy requirements for magnesium metal 
 production (8,15) 
 
 Process KWh/lbMg 
 
 Electrolytic: 
 Dow: 
 
 Old cells 47 
 
 New cells 37 
 
 Norsk Hydro: 
 
 Old I.G. cells 29-31 
 
 New cells 26-29 
 
 AMAX: Modified I.G. cells 33-35 
 
 Thermic: Magnatherm 33-37 
 
22 
 
 20-30 31-40 41-50 51-60 61-70 
 
 ENERGY COST, pet of total operating cost 
 
 70 + 
 
 FIGURE 9.— Energy costs as a percentage of total operating costs. 
 
 CONCLUSIONS 
 
 The magnesium industry appears to be stabilizing 
 after a period of gradually increasing consumption. Since 
 1980, demand has shown only a slight increase and prices 
 for magnesium products have remained stable. Plants are 
 either operating at reduced rates or are gradually 
 resuming full production rates. Exploration or develop- 
 ment work, halted for the past several years by the 
 sluggish economy, is gradually being resumed at some 
 locations. 
 
 Magnesium is in an unusual position in that it has 
 the capability of being recovered from multiple renewable 
 sources from almost any country in the world. High costs 
 and processing technology complexity have historically 
 restricted industrial production to technically advanced 
 areas, although development in less industrialized areas 
 is beginning to occur. Magnesium resources have been 
 denned for the next 30 yr. Over this period, properties 
 considered in this study contain an estimated 416 MMst 
 contained MgO, of which 74 pet is recoverable as either 
 Mg metal or MgO compounds utilizing current technolo- 
 gy. There are sufficient magnesium reserves currently 
 developed to sustain present MEC production levels at 
 least through the end of this century. Domestic reserves 
 are also sufficient to meet anticipated domestic consump- 
 tion needs until 2000. 
 
 Production costs vary greatly depending upon loca- 
 tion, source of raw material, age of property, processing 
 methodology, and marketable product desired. Capital 
 investments for the production of Mg metal range from 
 $3,175/st to $4,500/st annual capacity, while capital 
 requirements for refractory MgO production range from 
 $816/st to $l,180/st annual capacity. Operating costs also 
 vary significantly. Magnesium metal recovery from brines 
 appears to be the most costly on a per ton basis, while costs 
 to recover MgO appear to be highest from seawater 
 operations. Energy costs account for a significant portion 
 
 of processing costs; the magnesium industry is currently 
 striving to reduce energy consumption to improve the 
 market position of magnesium. 
 
 Over 13 MMst Mg metal is available from evaluated 
 MEC properties at or below a total cost of $1.34/lb Mg, the 
 January 1984 market price of Mg metal. Approximately 
 109 MMst deadburned MgO and 33 MMst caustic calcined 
 MgO were available at or below the January 1984 market 
 prices for those products. MEC operations considered in 
 this study are sufficient to supply 80 pet of the projected 
 1990 and 57 pet of 2000 world consumption needs for Mg 
 metal. They could potentially meet approximately 63 pet 
 of the projected 1990 and 56 pet of the 2000 world 
 consumption needs for total nonmetal magnesium from 
 deadburned and caustic MgO sources. 
 
 Domestic operations have the capability to supply 9.6 
 MMst Mg metal and 33 MMst deadburned MgO at the 
 January 1984 market prices of these products, assuming a 
 15-pct DCFROR. The total domestic material available 
 over the next 30 yr is well above the projected cumulative 
 domestic needs for these products. As of January 1984, all 
 domestic producers appear to be profitable. The domestic 
 magnesium resource should continue to be adequate. If 
 energy costs remain a prime consideration, imports from 
 countries with lower energy costs could compete with 
 domestically produced magnesium products. U.S. domi- 
 nance in magnesium markets could well depend on the 
 domestic magnesium industry's ability to reduce energy 
 costs to a competitive level. 
 
 The CPEC's share of world magnesium markets in 
 1984 amounted to 28 pet for magnesium metal and 61 pet 
 for magnesite. These countries remain relatively un- 
 affected by the recent recession in the Western World and 
 have continued to increase magnesium production capa- 
 bility at the expense of MEC production. Should current 
 trends continue, the CPEC's share of world magnesium 
 markets could be even greater in coming years. 
 
REFERENCES 
 
 23 
 
 1. Babitzke, H. R., A. F. Barsotti, J. S. Coffman, J. G. 
 Thompson, and H. J. Bennett. The Bureau of Mines Minerals 
 Availability System: An Update of Information Circular 8654. 
 BuMines JC 8887, 1982, 54 pp. 
 
 2. Chemical Marketing Reporter. Current Prices of Chemicals 
 and Related Materials, v. 221-224, Jan. 1982-Jan. 1985. 
 
 3. Clement, G. K., Jr., R. L. Miller, P. A. Seibert, L. Avery, and 
 H. Bennett. Capital and Operating Cost Estimating System 
 Manual for Mining and Beneficiation of Metallic and Nonmetallic 
 Minerals Except Fossil Fuels in the United States and Canada. 
 BuMines Spec. Publ., 1981, 149 pp. 
 
 4. Comstock, H. B. Magnesium and Magnesium Compounds. 
 BuMines IC 8201, 1963, 128 pp. 
 
 5. Coope, B. M. Magnesia Markets — Refractory Contraction 
 and Caustic Stagnation. Ind. Miner. (London), No. 191, 1983, 
 pp. 57-87. 
 
 6. Davidoff, R. L. Supply Analysis Model (SAM): A Minerals 
 Availability System Methodology. BuMines IC 8820, 1980, 45 pp. 
 
 7. Duncan, L. R., and W. H. McCracken. The Impact of Energy 
 on Refractory Raw Materials. Ind. Miner. (London), No. 160, 
 1981, pp. 19-22. 
 
 8. Flemings, M. C, G. B. Kenney, D. R. Sadoway, J. P. Clark, 
 and J. Szekely. An Assessment of Magnesium Primary Produc- 
 tion Technology (Dep. Energy contract ACO1-76CS40284). MIT 
 Press, 1981, 176 pp. 
 
 9. Hill, M. N. (ed.). The Sea: Ideas and Observations on 
 Progress in the Study of the Seas. Interscience Publ., 1963, p. 10. 
 
 10. King, P. Magnesium, The International Perspective. Fin. 
 Times Bus. Info., Ltd., London, 1983, 156 pp. 
 
 11. Kramer, D. A. Magnesium. Ch. in Mineral Facts and 
 Problems, 1985 Edition. BuMines B 675, 1985, pp. 471-482. 
 
 12. Magnesium. BuMines Minerals Yearbook 
 
 1984, v. 1, pp. 615-620. 
 
 13. Magnesium Compounds. BuMines Minerals 
 
 Yearbook 1984, v. 1, pp. 621-626. 
 
 14. Magnesium Metal Sec. in BuMines Mineral 
 
 Commodity Summaries 1985, pp. 92-93. 
 
 15. Lea, D. Magnesium Extraction Processes Today. Light 
 Met. Age, v. 40, No. 8, 1982, pp. 29-33. 
 
 16. Logerot, J. M., and J. Moyen. Magnesium Production 
 Methods — Raw Materials and Availability. Light Met. Age, v. 40, 
 No. 12, 1982, pp. 27-30. 
 
 17. Metal Bulletin Monthly. Costs of Magnesium vs Alumi- 
 num. No. 97, 1979, pp. 23-26. 
 
 18. Mikami, H. M. Refractory Magnesia. Pres. at Conf. for Raw 
 Materials for Refractories (Tuscaloosa, AL, Feb. 8-9, 1982), 40 
 pp,; available on request from D. R. Wilburn, BuMines, Denver, 
 CO. 
 
 19. Raymond Kaiser Engineers, Inc. Development of En- 
 gineering and Cost Data for Foreign Magnesium Properties 
 (contract JO225016). BuMines OFR 84-86, 1985, 32 pp.; NTIS PB 
 86-236700. 
 
 20. Schmid, I. H. China — the Magnesite Giant. Ind. Miner. 
 (London), No. 203, 1984, pp. 27-45. 
 
 21. Sorenson, H. O., and R. T. Segall. Natural Brines of the 
 Detroit River Group, Michigan Basin. Sec. in Fourth Symposium 
 on Salt, ed. by A. H. Coogan. North. OH Geol. Soc, Inc., 
 Cleveland, OH, v. 1, 1973, pp. 91-99. 
 
 22. U.S. Bureau of Mines. Minerals Yearbooks 1960-83. 
 Chapters on Magnesium and Magnesium Compounds. 
 
 23. U.S. Bureau of Mines and U.S. Geological Survey. 
 Principles of a Resource/Reserve Classification for Minerals. U.S. 
 Geol. Surv. Circ. 831, 1980, 5 pp. 
 
 24. Wicken, O. M., and L. R. Duncan. Magnesite and Related 
 Minerals. Ch. in Industrial Minerals and Rocks, ed. by S. J. 
 Lefond. AIME, 4th ed., 1975, pp. 805-820. 
 
24 
 
 APPENDIX.— AREAS AND SOURCE MATERIALS EXCLUDED FROM THIS STUDY 
 
 Magnesium or magnesium compounds may be recov- 
 ered from numerous sources throughout the world, some 
 of which have not been included in this study owing to 
 lack of available or reliable information. Potential sources 
 excluded from this report are summarized below. Discus- 
 sions include the nature of the source material, production 
 status as of 1984, and any available reserve-resource data. 
 Resource material discussed below would most likely be 
 classified as identified resources. 
 
 Magnesium production from olivine deposits is 
 approximately 440,000 st/yr. The principal producing 
 countries are Norway, Sweden, Australia, and the United 
 States. Domestic olivine reserves are estimated at 230 
 MMst, averaging 48 pet MgO, from North Carolina and 
 Georgia and 55 MMst from Washington. While limited 
 quantities of processed olivine are used in refractories, its 
 principle use is in heat storage blocks (24). 
 
 AUSTRIA 
 
 Austria produces a range of refractory and caustic 
 MgO products from both domestic high-iron breunnerite 
 deposits and imported MgO. The magnesium industry in 
 Austria has two main producers, Magnesia AG (Switzer- 
 land) and Osterreichisch-Amerikanische Magnesit AG 
 (OAMAG). Two other companies produce magnesite, but 
 Magnesia AG owns a majority share of Magindag AG and 
 OAMAG owns Tiroler Magnesit AG. These companies 
 currently operate five mines with a total production of 
 approximately 1,100,000 st/yr raw magnesite. The bulk of 
 magnesite production is destined for export. 
 
 ISRAEL 
 
 Magnesium production from Israel comes mainly 
 from the Dead Sea Periclase Ltd. project, which produces 
 MgO from MgCl 2 -rich brines. At present, a unique 
 thermal decomposition process is employed at this 
 operation to recover both deadburned and calcined MgO 
 products. An expansion from the current 44,000 st/yr 
 product capacity is currently ongoing and scheduled for 
 completion in 1987. 
 
 NEPAL 
 
 The Kharidunga magnesite deposit in Nepal is 
 currently being developed to recover 55,000 st/yr dead- 
 burned MgO. The project is managed by Nepal Orind 
 Magnesite Ltd., a joint venture of the Nepal Government 
 and Orissa Mining Corp. of India. Startup is scheduled for 
 1987 (5). 
 
 NORTH KOREA 
 
 North Korea is reported to have sizable magnesite 
 deposits with demonstrated reserves of over 900 MMst 
 contained Mg (11). Current production is estimated at 2.0 
 MMst/yr raw magnesite, although recent reports suggest 
 that a major expansion program is in progress. North 
 Korea has a present production capacity of 660,000 st/yr 
 deadburned MgO. Detailed economic data are not avail- 
 able. 
 
 REPUBLIC OF SOUTH AFRICA 
 
 CHINA 
 
 China is one of the world's largest producers of 
 natural magnesite, based upon the huge reserves of the 
 Liaoning deposits in northeastern China. Over 2 billion st 
 macrocrystalline magnesite have been defined, and over 
 30 billion st magnesite are possible from the province (20). 
 At present three large open-cast mines are in operation 
 and provide feed for production of 770,000 st/yr dead- 
 burned MgO and 330,000 st/yr caustic calcined MgO. The 
 high-quality magnesite can yield grades of 95 to 98 pet 
 MgO; however, because of inefficient calcining techniques 
 and the use of high-ash coke, production of high-grade 
 products to date has been limited. China is currently 
 developing modern technology to produce a full range of 
 high-quality metal and nonmetallic magnesium products. 
 Lack of detailed data prevented inclusion of this area in 
 this study. 
 
 The Republic of South Africa has produced refractory 
 magnesia products from natural magnesite deposits. At 
 present, the only producing operation is the Vereeniging 
 Refractories Ltd. mine at Burgersfort, Transvaal, which 
 produces 38,000 st/yr deadburned MgO. Future plans call 
 for the development of a seawater magnesia plant by a 
 new processing technique developed by Anglovaal Ltd. 
 Preliminary studies are underway. 
 
 U.S.S.R. 
 
 The U.S.S.R. produces both Mg metal and magnesium 
 compounds from its magnesite deposits and from seawa- 
 ter. The magnesium industry is reported to be expanding 
 rapidly in the U.S.S.R. with current production capacity 
 exceeding 770,000 st/yr deadburned and caustic MgO and 
 91,000 st/yr Mg metal (11). 
 
 *U.S. Government Printing Office : 1986 -168-969/51027 
 
* 29 
 
V 
 
 J- O j * 3 , o 
 
 
 ,f v 
 
 
 ' ^ A^ 
 
 o 
 
 Xp<y 
 
 A 
 
 
 
 ■•- ^/ #& *W • fc V -'Mg', %S :'£&: V :#fc V U 
 
 • : ^ V % ^ a w Aw Aw Aw/ \'* 
 
 ? o J ? % w / Vw /°W/wV 
 
 
 4s %* 
 
 
 
 .v-^. 
 
 
 
 » 1 
 
 .0^. 
 
 
 
 %. 
 
 
 
 iP^K '. tt 
 

 v -ate- \/ #fe *+<«* #K- ^/ 
 
 
 
 
 
 
 • A>-^ : 
 
 4^ 'M"*^ \.0^ t « 1 "* "^O 
 
 
 
 jP^ 
 
 I™ . < * o . *^5. 
 
 
 ^ ^ *l§ll^ , "^ & ♦MA . ^ ** *SbS* ^ <^ 
 
 
 
 <> *'7VV 4 •G' 
 
 
 9 V ^ 
 
 
 
 
 
 
 e n o 
 
 
 
 4CU 
 
 ^ 
 
 
 
 
 > ^ 
 
 
 
 ^0 
 
 
 <Q> o " o * tJ^, 
 A^ * <SSJOT^° "^ 
 
 \/ -^fe*-- X/ .-Mte-, %/ ••»'• X/ .•«£ %^ .-I 
 
 ^" v "^ 
 
 
 
 .Ho* 
 
 
 »• ^"V V