Western Mines Group Ltd has signed a memorandum of understanding (MoU) with Magnium Australia Pty Ltd. to collaborate on the possible supply of magnesite from the Mulga Tank project.
The collaboration focuses on the potential supply of magnesite from a 20-square-kilometre magnesite cap that sits directly above the company’s existing nickel sulphide deposit in Western Australia’s Eastern Goldfields.
Traditionally, the oxidised upper portion of the Mulga Tank Ultramafic Complex has been treated as overburden or waste in mineral resource estimates. However, recent testing has revealed that this weathered zone contains up to 48 per cent magnesite.
By partnering with Magnium, WMG hopes to convert this waste into a viable revenue stream.
WMG Managing Director Caedmon Marriott noted that the unique geology of the site, a massive dunite body roughly 1,500 metres thick, has created an abundance of high magnesium oxide (MgO) material.
“Assuming successful results from the MoU, it could be transformative for the economics of the project to generate revenue from this waste,” Marriott said.
Magnium Australia is currently working to commercialise its proprietary Magsonic process, a low-carbon method for producing magnesium metal. The private mineral technology company plans to build a pilot plant in Collie in Western Australia, and requires a steady feedstock of magnesite to succeed.
Magnesium is classified as a critical mineral, essential for lightweighting in the energy transition and for high-tech applications in the defence and aerospace sectors. Currently, Australia has no primary magnesium production, leaving the nation and its allies dependent on imports.
Magnium CEO Shilow Shaffier highlighted the importance of the partnership.
“We’re excited to be working with WMG to explore Mulga Tank as a potential domestic source of magnesite feedstock.
“Australia currently has no primary magnesium production, and establishing an auditable, sovereign supply chain – from local feedstock through to finished metal – is central to our mission.
“The scale of the magnesite cap at Mulga Tank, combined with its proximity to our planned Collie commercial plant, makes this a compelling partnership as we move towards full-scale production.”
Under the MoU, WMG will work to define the total extent of the magnesite resource and provide bulk samples to Magnium for technical test work.
Should the results prove successful, both parties intend to negotiate a formal binding supply agreement to support Magnium’s planned commercial operations.