ASX symbol CMC

China Magnesium Corporation Limited

View current share price
Company information

China Magnesium Corporation

magnesium

Owns a 91.25% interest in CMC China which owns a 100% interest in a magnesium ingot production operation and a 40% interest in a joint venture lithium exploration project located in the world-class Greenbushes area of Western Australia.

The operations are licensed to expand output to 105,000tpa, which would make it one of the world's largest magnesium producers. Studies have been completed which indicate a positive environment for CMC to conduct a major expansion of its magnesium operations.

CMC has converted its existing coal to gas plants to 5 semi-coke crackers (total semi-coke capacity 200,000 tpa) at the site of its existing 20,000 tpa capacity magnesium plant. Waste gas from semi-coke production is now used to provide the energy source required to produce magnesium. Consequently the combined semi-coke and magnesium plants are expected to significantly lower production costs than for magnesium-only production using the coal-to-gas facilities as originally envisaged when the magnesium plant was built.

In September 2016 CMC secured a 40% interest in a joint venture lithium-tantalum exploration project with the remaining 60% held by Shanghai Min Heng Science & Technology Development Company Limited (SMH). The south west corner of E70/4846 is only 2 km from the eastern boundary of one of the mining leases owned by Tianqi/Talison, owners of the world’s largest hard rock lithium mine located 9 km to the south west. E47/4845 is located 13 km to the west of the Talison mine. The Tenements cover approximately 74 km2 in total.