Projects

III. Mg Metal

Five Critical Elements for Success

  1. Best-in-Class Proprietary Patents-Pending Technology
  2. Abundant Supply (100+ years) of ‘Free’ Ore
  3. Modular Plant Design (Low CAPEX) Rapid Expansion and Commercialization Strategy
  4. Optimal Site Location with skilled labour and all infrastructure
  5. Experienced Management Team and Excellent Technology and Science Team

Our Strategy

Magnesium (“Mg”) is recognized as a metal of the future with demand projected to increase by 5% each year for the next five years.   Currently, China produces more than 80% of the world’s supply using an environmentally unfriendly and labour-intensive technology (the Pidgeon Process).  High countervailing duties have restricted the use of Chinese magnesium in the U.S.  Therefore, with only one active magnesium manufacturer in North America (US Magnesium in Salt Lake City, Utah), and with a growing U.S. demand, there is a need for a stable, efficient and high-capacity North American magnesium producer.

Because electrolytic methods for magnesium production typically require capital expenditures (CAPEX) in excess of US$1 billion to achieve a 100,000 tonnes/year (t/y) capacity, Mag One’s strategy is to use its proprietary, modular thermal technology  to initially produce 5,000-10,000 t/y for an estimated CAPEX of US$20-35 Million, and then ramp up production to 100,000 t/y with a CAPEX target of no more than US$400M.

This approach is designed to rapidly secure offtake agreements and bring revenues and profits into the company as quickly as possible so that these funds can be re-invested in the operation and future expansion of production to the target level of 100,000 t/y.  

In addition to a high CAPEX, conventional electrolytic processes have difficulty achieving greater than 99.8% magnesium purity,  operating costs less than US$2200/tonne (even in low-cost electrical energy jurisdictions).  In contrast, Mag One’s target is to produce magnesium thermally at a cost less than US$1400/tonne.  Moreover, because the Mag One process has a low carbon footprint, produces very little nonhazardous waste material, and yields very sellable byproducts/compounds.

Mag One’s ultimate aim is to produce magnesium at a cost that is close to the cost of producing aluminum and produce its commercially viable compounds (such as MgO for the Company’s Magboards, and essential first ingredient for Mg Metal processing).  This would expand markets for magnesium not only in North America, but also across the world. .

Why Invest?

  • Mag One is a processing and refining company with proprietary manufacturing technology that will allow it to become the world’s lowest-cost producer of 99.9% pure magnesium (Mg) metal ingots and ultra-pure magnesium compounds. 
  • With a target operating cost of $1,400/ tonne and a magnesium sale price ranging from $2,400-$3,250/tonne, the annual profitability of each 5,000 tonne/year module is projected to be in excess of $5M.  A 100,000 per year production facility is therefore expected to generate profits in excess of $100M each year.
  • This low cost production and high profitability is achievable due to four critical factors:
     
    1. A Large Supply of Low-Cost Ore:

      Mag One has secured access to 50 million tonnes of serpentinite ore that contains ~23 wt. % Mg (as well as 18% Silicon and 0.23% Nickel).  This rock has already been mined and is sitting ongrade in large terraces. It is estimated that approximately ~US$7.50 of ore is needed to produce one tonne of magnesium.

    2. Site Location

      The Mag One plant will be located at the most optimum possible location in North America (Danville, Quebec).  The site is on road, on rail, fully-serviced, and surrounded by an experienced and available workforce.  Electricity rates are among the lowest in North America, and most importantly, the plant site is situated adjacent to the tailings.

    3. Technology:

      The innovative patented technologies and trade secrets to process Mg ore have resulted from a decade-long research program undertaken by James G. Blencoe, Ph.D., and employees of his company, Orion Laboratories, located near the Oak Ridge National Laboratory in east Tennessee.  The ore from the Danville site has been successfully tested and shown that it will produce high-purity Mg metal.  

    4. Expansion Strategy → Modular Units:

      The first phase of the Business Plan is to construct a full-scale, 5,000 tonne/year modular plant that will be used as the ”unit model” for expansion.  As sales grow, additional 5,000 tonne/year modules will be built (adjoining each other).  The targeted CAPEX of each 5,000 tonne/year module is $20 million.

  • The magnesium market is expected to grow by 5% per year over the next five years due to increased demand from the automobile industry (due to new EPA/CAFE rules) and the U.S. military, both of which are seeking to produce lighter-weight, fuel efficient vehicles that will emit smaller amounts of CO2. Tesla, BMW, etc. are already using Mg and alloys in their vehicles. It is further expected that a stable, constant ‘local’ production of Mg will accelerate the transition from lithium-ion batteries to more powerful and less expensive magnesium-ion batteries as well as enable new refinements and uses of Magnesium in a number of industries

Mag One Products Inc. is a technology, processing and production company, concentrating on three initial projects, (all based on a site in Quebec, next to the serpentinite tailings):

  1. Magnesium-based structural panels/insulated sheathing
  2. Production of MgO, Mg(OH)2 (and other saleable byproducts and compounds and Silica and       Nickel) and
  3. Production of ultrapure Magnesium Metal

Mag One’s mission is to become the lowest cost and most environmentally friendly producer of magnesium (Mg) metal ingots and ultra-pure magnesium compounds.

  • The Mag One acquired technologies will be used to produce magnesium at costs estimated to be 30-50% lower than incumbent technologies:
    • 99.9% pure magnesium metal ingots and magnesium/aluminum alloys
    • ≥99.5% pure and “properly sized” magnesium hydroxide, Mg(OH)2
    • additional ultra-pure magnesium compounds
  • Mag One has acquired a 50 million tonne stockpile of magnesium ore (serpentinite) containing ~23% magnesium (and Si and Ni) in Quebec, Canada.
  • This above-ground ore is paid for $1.00/tonne as it is used.    There are enough tailings to produce 100,000 tonnes of magnesium per year for at least 100 years. This relates to 11 million tonnes of Mg metal (equivalent to 22 million ounces of Au (gold).
  • Test results have shown that the Mag One production technology can successfully transform the serpentine ore into magnesium and other Mg-based byproducts and compounds which in their own right are valuable commodities.  The ability to generate byproducts results in an essentially a zero waste-effluent facility, making it the most GREEN magnesium production operation in the world.
  • The technology takes advantage of a modular plant and expansion method for magnesium production that allows capacity to be scaled with market conditions.
  • The site near Danville, Quebec, has the advantage of being in one of the lowest-cost electricity and natural gas jurisdictions in the world.  The site has easy access to rail and road infrastructure as well as a skilled labour force.  The modular production facility will be located adjacent to the above-ground, low-cost serpentinite ore, near the Company’s Magboard and Magnesium Oxide (MgO) operations.