Magnesium - Raw Materials, Metal Extraction and Economics - Global Picture

Magnesium raw materials are available worldwide. In the free market, the prevailing price of primary magnesium metal determines which combinations of raw material/extraction method are economically viable. Over the last 20 years, China’s exports benefited from favourable currency exchange rates and positive relations with the USA and European countries. Lax environmental regulations, in conjunction with low labour costs, availability of inexpensive energy and a favourable tax regime resulted in China’s domination of the magnesium market. The Pidgeon process (dolomite main ore, ferrosilicon reducing agent and coal energy source) is the main production method in China. It involves lower capital costs but it is less environment-friendly relative to the electrolytic processes favoured in the west. As the magnesium production costs in China are rising and environmental restrictions are being enforced the potential of development of magnesium resources outside of China, especially in North America is increasing.