Saturday, June 23, 2018

Sverdlovsk region could launch second magnesium project

Authorities in the Sverdlovsk region have not ruled out the possibility that a new Russian Magnesium project could be launched if OJSC Russian Magnesium, the first project, goes bankrupt.

Alexander Petrov, the deputy chairman of the regional government, would not completely rule out the chance of a fresh start on the project, Interfax reports.

"I don't rule out that we'll have to start everything from the beginning, because the objective exists, the problem exists, there is interest, potential investors are emerging," Petrov said, according to Interfax. "I think that everything is not lost, even if Minmet and Solimag (the shareholders of the magnesium plant being built) pull out of the project. I think that the technology (to mine and process magnesium) can be bought."

The technology of magnesium recovery technology patented by the under-construction plant, is worth approximately $27.78 million, Interfax reports.

Petrov said that since the project began in 2006, there have been some ideas and developments that could make the project better.

The statements about a potential second magnesium recovery project came about after a dispute occurred between the shareholders of Russian Magnesium. The Sverdlovsk region government and OJSC Uralasbest, which each own 25 percent of the plant, blocked a decision in July to issue new shares. Petrov said the new shares would not have solved the company's problems.

"The ($1.54 million) that were to be invested in the project in the form of cash do not solve the current problem," Petrov said, according to Interfax. "This would keep the company going, perhaps, to the end of the year, taking into account the need to even just pay wages, taxes, not to mention payment of the debt to Uralgipromez."