About Alliance Magnesium
Alliance Magnesium Inc. (“Alliance”) is a privately-owned Canadian company incorporated in 2003 under the Canada Business Corporations Act. Alliance has developed and patented a breakthrough technology based on an electrolytic clean-tech approach to the processing of magnesium contained in serpentine rock. Its approach innovates on current methods used worldwide by magnesium producers essentially located in China, using an archaic energy intensive process which is no longer acceptable from an environmental and economic standpoint.
This revolutionary process will bring a worldwide paradigm shift in magnesium production, turning international environmental issues into economic successes
Alliance Magnesium is looking to capitalize on increasing demand for metallic magnesium (Mg) and alloys, especially in the automotive and aerospace industries. These industries face significant challenges in terms of reducing the weight of vehicles and equipment covered by mandatory goals for the reduction of greenhouse gas emissions. “Alliance”plans to produce Mg metal using hydroelectricity as a clean energy source to recover metal from tailings. Western world automakers and the aerospace industry are adversely affected by high Mg prices in the context of increasing demand and constrained supply from China. In addition, magnesium resources outside of China are becoming amenable to development. Alliance Magnesium’s source of raw material is located near existing infrastructure in the Province of Quebec, within a safe jurisdiction with relatively inexpensive energy supply and therefore a potential key global source of magnesium production by 2015 – 2016.
Alliance plans to invest a total of $535 million to build a full-scale magnesium metal production plant with a production capacity of 50,000 tons/year. The project calls for the commissioning of a pre-commercial plant in 2014 and a full commercial-sized plant in late 2016.
Financing is to be secured in three phases corresponding to the three phases of development. Alliance Magnesium will first operate a pilot unit, followed by a pre-commercial plant in order to scale and adjust all the technical aspects of the project, and finally a robust, innovative commercial-scale plant.
Alliance strongly believes this is the right time for such a project, for the right type of investors, strategic partners and clients.