ASX RELEASE26 April 2007 ASX Code: QMGQUAY MAGNESIUM LIMITEDNEW...

ASX RELEASE
26 April 2007 ASX Code: QMG
QUAY MAGNESIUM LIMITED
NEW CAPACITY COMMISSIONED AND OPERATIONAL
Quay Magnesium Limited (Quay) produces high quality magnesium alloys for die casting
customers at its Nanjing China plant.
As previously reported, over the past 6 months, Quay has been installing an additional furnace
and a second casting line. These additions to the alloy ingot manufacturing process increase
the Nanjing plant’s capacity from 15,000 tonne p.a. to 25,000 tonne p.a. This expansion also
improves the plant’s flexibility to meet customer requirements for various alloy specifications
and ingot sizes.
All engineering work has now been completed on schedule and hot commissioning of the
expansion equipment was successfully achieved this week.
Quay’s Nanjing plant nameplate capacity is 25,000 tonne.
OUTLOOK
In March Quay reported that the existing 15,000 tonne capacity was sold out from June 2007.
With 25,000 tonne capacity now available, Quay will work on securing sales that were on hold
pending this increase in capacity.
Quay expects to able to fill the 25,000 tonne capacity in the coming months at which time the
Nanjing plant’s output will be sold out.
Quay will now begin discussions with major customers with the aim of securing longer term
supply agreements that underwrite the expansion of the plant to a capacity of 50,000 tonne p.a.
For further information contact:
Mr Peter Stuntz
Chairman
Tel: 02 8274 0900
Quay Magnesium Limited
www.quaymagnesium.com