general discussion, page-1585

Just a few thoughts and a little light reading hahaha

The following articles were found when I was searching for the status of American imports of magnesium over the last few years.
Key topics/thoughts I picked up where:

1. The % of Mg imported from China has decreased
2. The % of Mg imported from Russia has drastically decreased
3. The % of Mg imported from Israel has drastically increased
4. The volume of Mg imported to America has continued to grow
5. The production of Mg in America is extremely low
6. The export of Mg from America is extremely low
7. The volume of LMG Mg oftake of 10,000tpa PLUS from the first production plant

Sources:

Mineral Industry Surveys - USGS January 2023

" In the third quarter of 2022, magnesium metal accounted for 33% of the imports (All forms of magnesium), with Israel (41%), China (32%), and Turkey (31%) being the leading sources." (Numbers don't add up but the point is made)

"Total magnesium metal exports in the third quarter of 2022 were 53% less than exports in the second quarter of 2022, 49% less than those in the third quarter of 2021, and 77% less than those in the third quarter of 2020 .Exports of metal, alloys, semifabricated products, and scrap decreased by 79%, 6%, 51%,

"Concerns about deliveries from US Magnesium LLC’s smelter in Rowley, UT, have been cited for increased imports since it declared force
majeure on September 29, 2021. The 63,500-metric-ton-per year smelter experienced an equipment failure and some customers stated that they were forced to obtain magnesium from other sources."

https://d9-wret.s3.us-west-2.amazonaws.com/assets/palladium/production/s3fs-public/media/files/mis-2022q3-mgmet.pdf

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Tight Mg supplies ease, market remains uneasy - 29 September 2022

"The US imported 2,084t of primary magnesium from Russia in the first quarter of 2022, up from 1,576t a year earlier but only 236t in the second quarter, down from 1,177t in the same quarter of 2021, according to Commerce Department data. Still, there are some signs that the widespread tightness has pushed importers to return to Russian suppliers as inbound volumes into the US from the country rose to 661t in July, up widely from 189t in July 2021."

https://www.argusmedia.com/en/news/2375893-tight-mg-supplies-ease-market-remains-uneasy#:~:text=The%20US%20imported%202%2C084t,according%20to%20Commerce%20Department%20data.

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U.S. Geological Survey, Mineral Commodity Summaries, January 2023

"One company planned to build a pilot plant in Ohio to test magnesium production from dolomite. A company in Quebec, Canada, planned to construct a primary magnesium smelter to produce magnesium from serpentine-bearing asbestos tailings. In Australia, a company started construction of a 1,000-ton-per-year demonstration plant to recover magnesium from coal fly ash, with production scheduled to start by the end of June 2023."

"The shutdown of capacity in Utah (US Magnesium) was cited as the reason why the average annual U.S. spot Western price nearly doubled from the annual average price in 2021. In August, the producer applied for a permit to extend the brine intake canals on the Great Salt MAGNESIUM METAL U.S. Geological Survey, Mineral Commodity Summaries, January 2023 Lake into deeper water, but in December the permit was denied by State regulators."

https://pubs.usgs.gov/periodicals/mcs2023/mcs2023-magnesium-metal.pdf

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US Mag (Home)
"US Magnesium is the largest producer of primary magnesium in North America, operating facilities on the Great Salt Lake where magnesium has been produced since 1972."

https://usmagnesium.com/..................................................................

America’s Import Reliance of Key Minerals - August 4, 2023



https://www.visualcapitalist.com/charted-americas-import-reliance-of-key-minerals/

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LMG AMENDS USA DISTRIBUTION AGREEMENT FOR SALE OF ALL ITS LATROBE VALLEY MAGNESIUM TO USA MARKET

"Under the amended contract LMG will deliver all its production from its 1,000 tpa demonstration plant and its 10,000tpa from its Stage 2 commercial. The demonstration plant will therefore send an extra 200 tpa ) to the USA market. LMG’s commercial plant will sell an additional 2,000 tonnes per annum of magnesium." (8,000tpa prior to amendment, now 10,000+tpa)

https://www.latrobemagnesium.com/investor-center/announcements

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Lots of food for thought.

• Limitations of Israel exporting Mg during an escalating war and tensions mounting within the Mediterranean sea.
• The reduction of imports from Russia
• America's hesitance to import Mg from China. (Unless absolutely necessary)
• Growing demand for Mg in America
• The search for Co2 reduction and ESG's
• Highly advantageous America and Australia trade agreement

Happy munching for those inclined to read.


Kind regards
Ken


P.s LMG Monthly Report due soon