China Magnesium Corporation
Owns a 91.25% interest in CMC China which owns a 100% interest in a magnesium ingot production operation and a 60% economic interest in Pingyao County Fengyan Mineral Wool Co. Ltd. (FMW) in the Shanxi province of north eastern China.
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 February 2015, CMC executed and commenced a Co-operation Agreement with Pingyao County Fengyan Mineral Wool Co. Ltd. (FMW) under which CMC has a 60% economic interest in the business of FMW; controls a majority of the FMW board seats; and is responsible for the management of FMW’s business, including any improvements to it.