Western Mines Group has signed a Memorandum of Understanding with Magnium Australia to explore supplying magnesite from the Mulga Tank Project for low-carbon magnesium metal production. This collaboration could add a new revenue stream by monetising a previously overlooked magnesite cap.
- MoU signed between Western Mines Group and Magnium Australia
- Mulga Tank’s magnesite cap contains up to 48% magnesite
- Magnesite currently classified as waste in resource estimates
- Magnium’s proprietary Magsonic process targets low-carbon magnesium metal
- Potential to transform Mulga Tank Project economics through magnesite supply
Strategic Partnership for Critical Minerals
Western Mines Group Ltd (ASX:WMG) has taken a significant step towards diversifying the value proposition of its flagship Mulga Tank Ni-Cu-Co-PGE Project in Western Australia. The company announced a Memorandum of Understanding (MoU) with Magnium Australia Pty Ltd, a mineral technology firm developing a low-carbon magnesium metal production process. This collaboration aims to explore the potential supply of magnesite, a magnesium carbonate mineral, from Mulga Tank’s extensive ultramafic complex.
Unlocking Value from the Magnesite Cap
The Mulga Tank Ultramafic Complex is notable for its high magnesium oxide (MgO) content, with the upper weathered portion forming a distinct “magnesite cap.” Recent X-ray diffraction (XRD) analyses revealed that parts of this oxidised zone contain up to 48% magnesite. Currently, this magnesite-rich layer is treated as overburden or waste in Western Mines’ mineral resource model, which focuses primarily on nickel sulphide mineralisation. The MoU sets out plans to delineate the extent of this magnesite resource and provide bulk samples for Magnium’s proprietary Magsonic process test work.
Magnium’s Innovative Low-Carbon Magnesium Production
Magnium is advancing a proprietary Carbothermic Reduction process with supersonic quenching, developed in collaboration with CSIRO, to produce high-purity magnesium metal with lower energy consumption and carbon emissions compared to traditional methods. Their pilot plant is planned for Collie, Western Australia, positioning them well to leverage local magnesite feedstocks. Magnesium is a critical metal with growing demand in defence, aerospace, and the energy transition, especially for lightweighting applications that improve fuel efficiency.
Potential Economic and Strategic Implications
Western Mines Managing Director Dr Caedmon Marriott highlighted the transformative potential of monetising the magnesite cap, which could enhance the overall project economics by generating revenue from material previously considered waste. Magnium CEO Shilow Shaffier emphasised the strategic importance of establishing a sovereign Australian magnesium supply chain, reducing reliance on imports and supporting critical mineral security.
Next Steps and Market Outlook
Under the MoU, the companies will collaborate on resource definition and test work to confirm the suitability of Mulga Tank magnesite for Magnium’s process. Should these efforts prove successful, they intend to negotiate a formal supply agreement. This partnership aligns with broader industry trends prioritising sustainable and domestic sources of critical minerals, potentially positioning Western Mines and Magnium at the forefront of Australia’s emerging magnesium sector.
Bottom Line?
If successful, this collaboration could redefine Mulga Tank’s value by turning waste into a critical mineral revenue stream.
Questions in the middle?
- What is the timeline for completing magnesite resource delineation and test work?
- How will the integration of magnesite supply impact the overall Mulga Tank project development schedule?
- What are the potential challenges in scaling Magnium’s Magsonic process for commercial production?