Japan Magnesium Association decided to launch special committee of magnesium refinery to secure ingot supply stably when Japan depends on the supply from China heavily. The association eyes potential refining joint venture in other country than China through joint investment by Japanese companies.
The committee members include rolled magnesium makers, light metal rerollers and automakers. Nonferrous metals division of Ministry of Economy, Trade and Industry participates in the committee as observer member. The committee holds first meeting as early as in March. The committee researches magnesium ingot supply situation and Chinese magnesium refinery strategy and studies potential offshore magnesium refinery business and refining technology. Chinese magnesium ingot production represents more than 80% of world production. Japanese ingot import from China represents more than 90% of the total import. The import from China was 34,501 tonnes in 2011 compared with total import of 35,114 tonnes. Chinese government tries to reduce magnesium ingot export and shift to higher valued magnesium products export. Japanese users anticipate potential price surge and shortage under the export policy of China. European Union already started study to diversify the magnesium ingot source from current dependence on China. SilMag of Norway tries to restart magnesium refinery at old plant of Norsk Hydro. POSCO starts magnesium refinery in July. CVM Minerals started Malaysian refinery in 2011.
