Restructuring Negotiations Document date: Thu 12 Jun 2003...

Restructuring Negotiations

Document date: Thu 12 Jun 2003 Published: Thu 12 Jun 2003 17:38:21
Document No: 153279 Document part: A
Market Flag: N
Classification: Progress Report
AUSTRALIAN MAGNESIUM CORPORATION LIMITED 2003-06-12 ASX-SIGNAL-G

HOMEX - Brisbane

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Australian Magnesium Corporation Limited (ASX codes: ANM, ANMNA,
ANMO) remains in discussions with its major stakeholders.

These discussions are aimed at reaching an agreement, which preserves
value for shareholders and stakeholders by restructuring the
activities of the Company and the Stanwell Magnesium Project.

The proposed restructure includes halting work on the Stanwell
Magnesium Project in central Queensland and placing the site on care
and maintenance.

An agreement to restructure would enable AMC to regroup, assess
Stanwell development options and continue the search for a new
corporate or project partner.

It would include a significant reduction in AMC staff and Board and
management changes.

The Company would continue to operate its QMAG magnesia products
business at Rockhampton.

AMC shareholders would retain ownership of the Company and the
magnesium industry expertise and technology interests held within the
Group.

AMC's Distribution Entitled Security (DES) holders will continue to
receive distribution payments, with the remaining three payments each
of 3.2 cents per security to be paid over the next 18 months

AMC is awaiting finalisation of the proposed agreement being
negotiated with the project's key stakeholders - the Queensland
Government, the Commonwealth Government, Newmont Australia, and
Leighton Contractors.

The aim is to conclude the agreement shortly.

For further comment contact
Joel Forwood
MANAGER - Investor Relations

Simon Jemison
GENERAL MANAGER - Public Affairs
Tel: +61 7 3837 3400 Fax: +61 7 3837 3423