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POSCO of South Korea plans to start construction of a magnesium refinery in Kangnung City, Kangwon-do, South Korea in May 2010. The refinery is scheduled to complete in December 2011 and start operation in January 2012. The refining capacity will be 10,000 tonnes per annum by the thermal reduction method on a site of 132,000 square meters. POSCO will invest approximately 50 billion won (about 3.8 billion yen) for the refinery. An official person of POSCO spoke to Japan Metal Bulletin by phone.

 

POSCO plans to sell produced magnesium ingot in South Korea as well as consume ingot inside POSCO Group. South Korean demand for magnesium ingot is estimated at 14,000 tonnes per year, more than 90% of which is supplied by Chinese refineries. POSCO expects their magnesium ingot could represent as competitive as Chinese ingot in price.

 

In Kangnung City, it is estimated that there are dolomite reserves as much as 190 million tonnes. Dolomite is a material for magnesium ingot. POSCO's official explained they implemented a research during September-October and started mining of dolomite in the City.

 

POSCO started operation of a magnesium material plate plant in Jeollanam-do, South Korea in August 2007. The firm is trying to increase the sales in South Korea and Japan. POSCO aims to strengthen its cost competitiveness and supply stability by utilization of self-made magnesium ingot. The magnesium refinery will be located 500 kilometers north from the material plate plant.（From the Internet）