2015 September – Presentation at the European User and Automotive Seminar 2015

On the occasion of this year’s European User and Automotive Seminar, Christoph Klein-Schmeink, in charge of Magontec activity in Europe and North America took the opportunity to report on the current stage of development of the company’s forward-looking project in the Chinese province of Qinghai.

Under the heading ‘General Trends’, Christoph Klein-Schmeink gave a detailed overview of the situation of the cast house currently under construction for the production of magnesium alloys. With a capacity of 56 000 mtpa of high quality alloys, it offers supply security which is vital to volume customers in particular. «It is important to us to bring great stability and predictability into the global market for magnesium alloys», stated Klein-Schmeink.

Innovative, globally relevant developments

The first phase of plant installation has been running since spring this year. Further phases are to follow. They are synchronized with the efforts of the Chinese partners, the Qinghai Salt Lake Magnesium Co. Ltd (QSLM). QSLM is a subsidiary of the Qinghai Salt Lake Industries Co. Ltd, the largest stakeholder of Magontec Limited, Sydney, and is responsible for the development of the whole industrial complex in Golmud, Qinghai Province.

The Magontec magnesium cast house is the first, and to date only plant in China for the production of magnesium alloys on the basis of electrolytically produced pure magnesium. It is situated next to the QSLM operated electrolytic cell-house. It has upstream dehydration units which process magnesium chloride extracted from the salt lake in Golmud, Qinghai Province. Four billion tons of magnesium chloride are on hand in Golmud which works out at roughly one billion tons of pure magnesium.

Thanks to the mostly hydro power based energy concept of pure magnesium production, CO2 emissions will be the lowest worldwide in this segment at around 6.5 kg per kilogram of magnesium produced. CO2 emissions from the production of magnesium alloys at Golmud is almost half (49%) that of the average emission value for aluminum production. The plan is that the QSLM dehydration units and electrolysis cell house will become commercially operative in August 2016. Following this, the first of the four production lines for Magontec alloys will go into operation.

There has been great support from both the Provincial and PRC governments. It is based on not only the environmentally friendly production process but also the large growth potential of the industrial plants currently being developed in Golmud. Upcoming long-term contracts, in connection with the company’s comprehensive and growing global logistics and recycling network, allow the high demands of one of the largest magnesium alloy manufacturers and recyclers in the world to be met.

Christoph Klein-Schmeink spoke in Stuttgart, Germany on 16 September 2015 at the invitation of the European Research Association for Magnesium, to a number of attendees from the fields of research and application.

Photo:Presentation on 16 September 2015 at the European User and Automotive Seminar, Stuttgart, Germany.
Photo: ©Magontec 2015