EcoMag is one step closer to developing its initial magnesium plant in Western Australia after the project successfully passed Northern Australia Infrastructure Facility’s (NAIF) strategic investment process.
EcoMag engaged the Federal Government’s financier to fund 60 per cent of its initial $60 million magnesium recovery project in Karratha, Western Australia. The plant will process wastewater from Australia’s largest solar salt producer to manufacture a series of high-purity magnesium salts for use in pharmaceutical, food and manufacturing applications.
The strategic assessment phase involved NAIF reviewing the project’s technology, market, and financial risk profile. These factors were evaluated through third-party assessments, including a red flag engineering study, independent financial modelling and a comprehensive market review.
EcoMag Chief Executive Tony Crimmins said passing NAIF’s strategic investment marked a significant milestone for the Karratha Project that will stimulate private investment discussions with third parties and foster new job opportunities in the Pilbara.
“Magnesium has been identified as an untapped growth opportunity in the Pilbara. Our facility will signify one of the first advanced manufacturing chemical facilities in the region, with an estimated market opportunity beyond $1 billion,” Mr Crimmins said.
“This project will play a vital role in bolstering Western Australia’s economy, with the potential to produce tens of thousands of tonnes of premium quality magnesium salts for products spanning the food, cosmetics, construction, manufacturing and pharmaceutical sectors.”
While the initial Karratha Project will process less than one per cent of the magnesium contained within the waste stream – translating to almost 6,000 tonnes per year of magnesium products – the project is planned for commercial expansion to produce over 36,000 tonnes per year, which will be used in pharmaceutical and fire-resistant construction applications.
This outcome allows NAIF to conduct further due diligence in relation to the Project and is not to be taken as a final investment decision by NAIF to grant financial assistance to the Project. A final investment decision by NAIF can only be made following satisfactory due diligence and further approval by the NAIF Board. As part of the next stage, EcoMag will commence a public benefit study and indigenous engagement report and finalise its front-end engineering design (FEED) study.
EcoMag Limited is an unlisted Australian public company established in 2015. The company recovers magnesium from a wastewater by-product of solar salt production using technology co-invented by EcoMag’s Chief Technology Officer, Professor Tam Tran. EcoMag refines the recovered magnesium into a range of high-purity magnesium products spanning the food, cosmetics, construction, manufacturing and pharmaceutical sectors. For more information, visit EcoMag’s website.
NAIF is a development financier to infrastructure projects in the Northern Territory, Queensland and Western Australia. NAIFs’ mission is to be an innovative financing partner in the growth of northern Australia. A key focus of any financing is to drive public benefit, economic and population growth and indigenous involvement in northern Australia. For more information, visit NAIF’s website.