Winchester magnesite deposit is located within the Batchelor project, 70km south from Darwin in the Northern Territory. The project has been taken through the feasibility study stage including mine planning and design, preparation of environment impact statement, design of process flow chart, design of the processing and crushing plant, test mining, construction of pilot processing plant and production of magnesium. Feasibility study indicated that the optimal size for Stage 1 of the plant was a 14MW furnace with an annual capacity of 12,500 tonnes. The estimated capital cost of Stage 1 including mine infrastructure, calciner, 14MW furnace, condenser and necessary ancillaries was $76M. Stage 2 would increase annual capacity to 25,000 tonnes and Stage 3 would further increase annual capacity to 50,000 tonnes.

Drilling at Batchelor to a depth of 100m outlined a high grade zone of magnesium mineralisation 7.5km long and 0.5km wide.. Mineralisation is open at depth. Close spaced drilling over the area 550m by 300m which forms part of the high grade zone outlined an indicated resource of 12.2Mt at 43.1% MgO and an inferred resource of 4.4Mt at 43.6% MgO.

Project is located just 30 minutes from the suburbs of Darwin. Rail line, gas pipeline, sealed transcontinental highway and high voltage power lines cross the project area providing the project with excellent basic infrastructure and logistics.

Winchester magnesite project - feasibility study smelter layout (click to enlarge)

Project layout - end of year 5 - URS (click to enlarge)

Plant and crusher layout - Golder Associates (click to enlarge)

Winchester magnesite project - Pilot plant in operation (click to enlarge)

Aluminium is 50% heavier than magnesium and steel is 400% heavier than magnesium. Magnesium is the lightest of all metals used as the basis for constructional alloys. It is this property which entices automobile manufacturers to replace denser materials, not only steels, cast irons and copper base alloys but even aluminium alloys by magnesium based alloys. The requirement to reduce the weight of car components as a result in part of the introduction of legislation limiting emission has triggered renewed interest in magnesium. The growth rate over the next 10 years has been forecast to be 7% per annum.

Magnesium alloy BMW high performance engine (click to enlarge)

Anodized magnesium Bugatti Veyron body

Another new area of magnesium use is the rapidly developing field of superconductivity. Magnesium is a key element in magnesium diboride MgB2 which becomes superconductive at a temperature of 39K.

Magnesium Diboride Superconductor Naval Propulsion Test
(Click link to view video)
50% more power at 1/3 the size of conventional motor

BATCHELOR WINCHESTER PROJECT ECONOMICS

Source: Salomon Smith Barney

Magnesium prices in $/tonne FOB China (click to enlarge)

Magnesium production by country - China dominates the market (click to enlarge)

NanoMag is a patented environmentally friendly process for the production and marketing of high strength, light weight magnesium sheet with nanometer microstructures for automotive, aerospace, military, biomedical and other applications. The process, developed in conjunction with the Department of Material Science & Engineering at the University of Michigan and under the sponsorship of the National Science Foundation, offers numerous advantages in material integrity and cost savings over any other product now available. The key to the NanoMag technology is its ability to create fine-grained strengthening of magnesium alloys at low cost. The net result is a stronger, more reliable, more formable and lighter weight magnesium sheet with properties similar to steel and with a comparable strength to density ratio as that of steel but at one-fourth the weight. Because of its lighter weight, substituting magnesium sheet for aluminum and other materials reduces vehicle fuel consumption. It also offers greater personal protection in military applications.

Ultra-strong and ultra-light nano-magnesium

In addition to military, automotive, aviation and aerospace applications NanoMag can be used as a base material for the manufacture of fuel cells and electronic products. It is widely believed this new process will gain wide acceptance in the biomedical industry to produce temporary connecting pins and plates since magnesium dissolves in the body with no adverse effects. The density and strength of NanoMag material is more like human bone than virtually any other currently popular implant materials. Because of this, the process can be used to produce biodegradable implants for hard tissue.

Prefabricated MgO building

Another rapidly growing sector where magnesium is becoming preferred material is building and construction industry where magnesium oxide is becoming a material of choice for structural applications, internal and external finishes, decorative applications and furniture. Magnesium oxide (MgO) board has a density of around 0.8-1.1g/cm3 is easy to transport and install. It has intensity of impact resistance 2-3 times greater than wall of gypsum board and is about 10 times stronger than gyprock. MgO board can be glued-on, cut down, nailed, veneered, painted, sawn, planed, thin panels of the board can be easily cut by knife. Most importantly, it is flexible, fireproof, weather proof and breathable. It remains flameless at 1,200 degrees (non-flammability: GB8624 grade A), resistant to deformation in wet, and dry, hot and cold conditions. MgO board is also a great sound insulator - sound loss through a 6mm board is - 29dB.

MgO boards, tiles, veneered products

MgO injection formed and extruded products