top of page

Exploring the Potential of Magnesium

pr_minagro_03.png

A CRITICAL MINERAL FROM WASTE ROCK


The Minago Ni/PGM deposit sits under about 60 m of dolomite (a type of limestone) cover-rock. Development of the Ni/PGM deposit will first require quarrying 111 million tonnes of dolomite.  Previous feasibility studies have treated the dolomite as a waste rock, and therefore as a cost to the project. But the dolomite (a type of limestone) has a significant magnesium (Mg) content (10.5 to 12%) that can potentially be extracted, turning a waste material into an economic commodity.

​

Used in the aerospace, automotive, electronics, and other industries to manufacture light/strong alloys and products and for military applications, The majority (93%) of current global Mg production originates from China (85%) and Russia (8%). Cabada has not produced Mg for decades.

​

Mg is one of 31 critical minerals identified by Canada for domestic exploration and development, and all of Canada, United States, and the EU are looking for Mg supplies secure from geopolitical tension, and manipulation.

​

NHCN is assessing the feasibility of Mg extraction from the Minago dolomite. Successful implementation would result in an additional significant revenue stream from the same mineral deposit, removing the cost of cover rock removal from the Ni/PGM project by turning it into an economic product.

pr_minagro_03.png

New Low Emission Technology

​

The vast majority of the world’s Mg supply is produced using very old, inefficient, highly polluting processes like the Pidgeon process used in China. 

​

NHCN is collaborating with a Canadian company that has developed a new, efficient, continuous flow, low atmospheric emission Mg extraction process that does not produce any harmful residues. Its application at Minago would operate on renewable energy.

​

Mg production from the Minago dolomite would be one of the very first commercial applications of this technology in the world.

Preliminary Mg Economics

 

  • Pilot plant testing and a subsequent Minago dolomite bankable feasibility study will cost approximately $30 million CAD. The pilot plant study ($10 million) will provide the project specific information on Mg recovery and costs. The bankable feasibility study ($20 million) will use the results of the pilot plant study to develop the site-specific engineering design, costs, and overall economic model. The following economic analysis is based on typical costs and revenues to provide an overall approximate indication of project economics. All are subject to refinement through the course of the FS.

  • Typical initial capital cost of a 25,000 tonne per year Mg production plant – approx.$500 million USD.

  • Typical feasibility study metal pricing for the industry is $4.50 USD/lb (well below the recent spot price of $7.72/lb) at 80% Mg recovery from the dolomite.

  • Annual EBITDA (pre-tax) for the typical plant is approximately $230 million USD

  • NPV (50 year, pre-tax, 8% discount rate) is approximately $2.3 billion USD

  • IRR approximately 44%.

  • This is a very economic project with a fast, 2.3-year payback of the initial capital investment.

  • The base case plant Mg production rate consumes about 300,000 tonnes of dolomite per year, indicating approximately 370 years of dolomite resource.

  • This is an intergenerational project.

  • A much higher throughput, subject to plant expansion and market demand could be achieved and sustained with the Minago dolomite without having to plan additional dolomite quarrying beyond the Ni/PGM project.

bottom of page