In my own risk assessment I identified the risk of an alternative production process.
Now I am not saying at all that the process below matches LMG's recycling of environmental waste, massive reduction in CO2 or significant reduction in energy requirements. In fact LMG has a very unique place within the sector. I am not alarmed.
Nevertheless, it is wise to look out for competition and its potential impact upon the market.
Western Magnesium Announces Commercial Pilot Plant Construction Nearing Completion
March 30, 2022, 12:01 am
Vancouver, British Columbia --News Direct-- Western Magnesium Corporation
WASHINGTON, D.C. – TheNewswire - March 29, 2022 - Western Magnesium Corporation (TSXV:WMG) (Frankfurt:3WM) (OTC:MLYF) (“Western Magnesium” or the “Company”) "Western Magnesium Corporation (WMC) is pleased to announce the majority of equipment has been delivered and multiple trades are on site installing and testing the equipment as the Company’s commercial pilot plant is nearing completion."
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There are currently two final pieces of equipment to be delivered which are on schedule and will be accepted shortly. This is a major step as the Company works to produce 99.8% pure magnesium metal in the United States through a highly advanced technological process that continuously removes harmful byproducts before they are released into the. environment."
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"To streamline the construction process, WMC is commissioning each piece of equipment as it is installed which requires significant coordination to ensure that all necessary equipment operates as anticipated and that all safety interlocks function properly."
" Additionally, WMC has successfully passed acceptance testing for purchased equipment to date, demonstrating that the Company’s engineering design and procurement process have been followed with appropriate and diligent action. Furthering the successful engineering, reactor heating testing is now underway."
" Executive Chairman Ed Lee, states, “I am pleased that we are in the final stage of the commercialized pilot plant build out, this undertaking has required a methodical approach to ensure a safe and successful operation of our proprietary technology.”Western Magnesium’s goal is to be a low-cost producer of green, primary magnesium metal, a strategic commodity prized for its strength and light weight. Unlike outdated and costly production processes, Western Magnesium looks to use a continuous silicothermic process to produce magnesium in the United States, which significantly reduces labor and energy costs relative to current methods and processes, while being environmentally friendly."
https://www.google.com/amp/s/finance.yahoo.com/amphtml/news/western-magnesium-announces-commercial-pilot-130117321.html
Very interesting and ahead of LMG in progress in plant establishment, I will be watching and researching this competition as we go forward. I do like their website and enthusiasm in their presentations.
Business Overview
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"We are a reporting issuer in Canada listed for trading on the TSX Venture Exchange (the “TSX-V”) under the symbol “WMG.V”. Our common stock is also traded in the United States on the OTCQB tier of the OTC Markets (the “OTCQB”) under the symbol “MLYF” and in Germany on the Frankfurt Stock Exchange under the symbol “3WM”.
"We have developed proprietary magnesium production technology with the aim of becoming a premier low-cost producer of green primary magnesium metal."
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"We are in the final stages of construction and commencing test production of magnesium at a research and development pilot plant in metropolitan Vancouver, British Columbia, Canada. We have commenced test production at this facility in the last calendar quarter of 2021with full pilot facility operations expected to commence in the second calendar quarter of 2022 after all safety testing is complete."
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'Our proprietary technology utilizes a continuous silicothermic process that is expected to produce high grade magnesium with low labor and energy costs while generating minimal waste and toxic by-product."
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"Following completion of our magnesium research and development pilot plant, we intend to construct a full-scale magnesium production facility with expected capacity to produce 100,000 metric tons per year that will be scalable for greater production levels located on 122 acre property located in Harrison County, Ohio."
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" The proposed plant will be adjacent to the future home of a modern mixed fuels power plant which is expected to provide power to our planned magnesium production plant. The proposed Harrison County, Ohio location is close to a dolomite supply and has an infrastructure of rail and highway that is capable of transporting our magnesium finished product to industries across the United States. Our plans will require a significant amount of additional capital."
https://www.westernmagnesium.com/about-us
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So, still mining dolomite, not recycling waste environmental toxic by-product. Still using greater energy than LMG and still having a environmental waste as an output from their production.
It is still interesting to understand up and coming potential competitors, though I believe based upon LMG reports, we are way ahead of the pack...
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Regards
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Ken
