Proximity to large clients (mainly for the by-products with a limited catchment area).<\/li>\n<\/ul>\nBosnia-Herzegovina (BiH) is part of the Western Balkans and strategically well positioned with its proximity to the EU and the Adriatic Sea. In December 2022, the EU unanimously granted BiH EU candidate status. Since 2013, duties, visas, and trade restrictions for industrial products have largely disappeared between BiH and the EU. MFE\u2019s raw material, the production site, and all relevant utilities are located in Kanton 10, the very Western and Croatian-speaking part of BiH, and less than 150km away from the industrial port of Ploce, the major deep-water gateway for goods shipped to and from the Balkans.<\/p>\n
The Grguljaca mine from which MFE will source its raw material covers an area of ~9.5 ha (23.5 acres) with ~11 million MT of mineable dolomite, sufficient to feed a 15kt p.a. Mg production for over 50 years. An additional adjacent deposit s.t. exploration covers a further ~47.5 ha with enough raw material to run a 50 kt p.a. Mg production for over 75 years. DMT (T\u00dcV Nord) has audited the deposit twice (PERC resource and PERC reserve audit report). The deposit in Kupres is one of the highest quality dolomite deposits currently known in Europe.<\/p>\n
Kanton 10 is generating green electricity only (so far mainly hydro and wind power) and is a net exporter of green electricity. The Kanton\u2019s topography and weather are extremely favourable for hydro, wind, and solar power generation. As a result, a substantial ramp-up of further wind farm capacity is planned for the next decade, warranting an ample supply of green electricity for MFE\u2019s production.<\/p>\n
Multi-product output for sustainable competitiveness<\/h3>\n Combining the Al-thermic process and MFE\u2019s specific location advantages will make for a diversified revenue base and improved economics, ensuring MFE can offer Mg, Mg-alloys and the three by-products at competitive prices.<\/p>\n
<\/p>\n
Whilst Mg prices have historically been very volatile, prices for the by-products are much more stable and predictable, particularly if the products are of high quality. At current market prices, the combined sales value of the by-products covers most of MFE\u2019s forecast production cost. Consequently, MFE\u2019s ability to tolerate price fluctuations in the Mg and Mg-alloy markets is expected to be very high.<\/p>\n
In terms of cost control, MFE\u2019s project is also unique. Besides long-term price and supply stability for the raw material, MFE is investigating the possibility of building its own wind and solar park near the production site, thus relying much less on the local grid for its electricity supply. Furthermore, the reductant, the second largest cost item in the production process, can be hedged short- to medium-term. In contrast to ferrosilicon, aluminium is quoted on the LME; therefore, the price of Al (and Al-Scrap) can be much better managed.<\/p>\n
MFE\u2019s project is close to implementation readiness<\/h3>\n MFE is in the final stages of the preparation and planning phase, with only three tasks left to finalise:<\/p>\n
\nCompletion of the industrial scale pilot test to optimise industrial design and equipment specification;<\/li>\n Receipt of a local permit comprising of general construction approval and environmental permit; and<\/li>\n Organisation of ~$80m-$200m capital expenditure funding, subject to the degree of backward integration, consisting of equity and debt.<\/li>\n<\/ul>\n <\/p>\n
Following the successful completion of the above, MFE will proceed with general contracting, equipment order, and construction in Q3 2024. MFE is in the process of signing a letter of intent with an experienced contractor and operator who will also commission MFE\u2019s Mg production facility.<\/p>\n
MFE is grateful for the support that it has and will receive from numerous stakeholders and is looking forward to a cleaner, greener, and more competitive European magnesium production future.<\/p>\n
Please note, this article will also appear in the seventeenth edition of our\u00a0quarterly publication<\/a>.<\/em><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"MFE Magnesium For Europe GmbH was founded in 2021 to establish a clean, green and competitive magnesium production in Kupres, Bosnia-Herzegovina, Europe.<\/p>\n","protected":false},"author":18,"featured_media":43268,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[24502],"tags":[529,24552,24546],"acf":[],"yoast_head":"\n
Establishing sustainable magnesium production in Europe<\/title>\n \n \n \n \n \n \n \n \n \n \n \n \n\t \n\t \n\t \n \n \n \n \n \n\t \n\t \n\t \n