To produce magnesium with proven players who have first class scientific and business credentials. The Company seeks strategic alliances in Asia and the EU and because it will produce Australian product, the Company due to the Australia / USA Free Trade Agreement (“FTA”) will be able to export to the USA duty free unlike its main competitor and world supplier, China . The FTA gives Australian product a significant competitive advantage because China faces anti dumping duties of 108%.

The Company has developed a new thermal process route to produce low cost magnesium metal. The magnesium metal ingots produced by The Company are of high quality, and are suitable for use in the automotive industry.

The company has developed new technology that is a world first process, which utilises waste saline water, and through a series of steps, extracts high quality magnesium metal. The Company's process allows magnesium to be produced in a continuous production mode, which does not exist anywhere else in the world. The process which The Company has developed enables it to produce magnesium metal in a way which is more cost effective and more profitable than any other process currently in use anywhere else in the western world. The process is unique and provides significant savings in infrastructure and process costs, when compared to current magnesium metal processes in use worldwide. The capital cost is only 1/3rd of existing western magnesium operations, and the process has been ranked independently as world competitive in terms of operating costs and production.

No other thermal process of magnesium production enables continuous condensing. All other thermal commercial processes require a stop start approach, where the melted feedstock is required to be cooled, then remelted into magnesium ingots in batches, which is labour intensive. For this reason, currently most magnesium production occurs in low labour cost countries, such as China .

Conventional western electrolytic processing involves converting magnesium oxide to magnesium chloride adding significant capital costs to the processing by creating chlorine plants, which is costly and environmentally damaging. The Company uses a thermal process that directly converts magnesium oxide in a two stage process to liquid magnesium, cast to ingot.

Initial funding for the Project will come from the Australian Commonwealth Government in the form of a Commercial Ready Grant with the balance coming from the private sector. It is anticipated that by mid 2006 the company will be ready to commence commercial production, via both licensing of the intellectual property, and by operating of company owned plant.

After the establishment of the initial plant The Company intends to expand the business, both via construction of plant in Australia , and licensing of the technology to overseas operators. Over a 10 year period The Company is forecasting 6 plants in Australia , and license 8 plants overseas.

For further information please contact kristjan@ipbank.net.au