...Yet
MAGNESIUM INTERNATIONAL LIMITED 2003-06-06 ASX-SIGNAL-G
HOMEX - Sydney
+++++++++++++++++++++++++
Magnesium International Limited (MIL) has received an expression of
interest from a major Japanese magnesium sheet user to purchase
magnesium sheet metal to be produced by the MIL/CSIRO venture
(MagSheet). This venture was announced on 22 April 2003 with details
also included in MIL's recent prospectus for its current rights
issue. A copy of the prospectus can be found on MIL's website
(www.mgil.com.au).
The company is a major Japanese company specialising in the
production of high quality metal products for the electronics,
automotive and construction industries, with 20,000 employees
worldwide and a turnover in excess of US$3 billion. One of its wholly
owned subsidiaries manufactures magnesium products using its
proprietary process technology. Major customers include Japanese
consumer-electronics giants. The company has recently been awarded
the International Magnesium Association prize for the most innovative
new product, which was produced from magnesium sheet.
The company has advised that it is seeking to develop a long term
supply arrangement with MagSheet, including the purchase of, if
possible, all of the magnesium sheet metal produced by the venture
during Phase 1 (next 12 months). The MagSheet venture is targeting up
to 3 tonnes per month for the last three consecutive months of Phase
1. This expression of interest is subject to quality, price and
supply. The current price of magnesium sheet is US$30-40 per kg and
availability is limited.
In making this expression of interest, the Japanese company notes
that it has already completed extensive testing and prototyping of
MagSheet product over the past six months and believes MagSheet
product has properties at least equivalent to currently available
products. The company has been looking for a new source of supply of
magnesium sheet for some time and estimates it could purchase more
than the quantity discussed in this expression of interest, if more
high quality MagSheet product becomes available at the right price in
the future.
Phase 2 of the MagSheet venture is expected to produce up to 30
tonnes per month during 2004/5 and the Japanese company has indicated
it would attempt to purchase increased quantities at that time.
MIL Managing Director, Mr Gordon Galt said "This is a very positive
endorsement for the new MIL/CSIRO magnesium sheet venture and it
augurs well for the future of this business. There is strong and
increasing market demand for magnesium sheet metal, subject to
quality and pricing. The CSIRO developed technology appears to
produce magnesium sheet metal of a high quality and at a competitive
price. We look forward to converting this expression of interest
into a firm order as soon as the MIL/ CSIRO magnesium sheet venture
is formally established. We expect this milestone to be achieved
within the next four weeks".
MIL is currently undertaking a rights issue to raise $8.3 million to
fund MIL's participation with CSIRO in the magnesium sheet metal
venture and to further the development of the SAMAG magnesium smelter
project in Port Pirie.
For more information please contact Gordon Galt, MANAGING DIRECTOR
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