China Magnesium Corp. Ltd. said March 6 that it secured the rights to use a proprietary technology for the production of high-purity magnesium lithium alloys through a cooperation deal with Xi'an Nonferrous Metallurgical Design and Research Institute.
Under the agreement, Xi'an will provide a turnkey magnesium lithium alloy production facility, covering plant installation and commissioning, as well as the training and technical support.
An initial facility, rated to produce 108 tonnes per annum of magnesium lithium alloy, is under construction at the company's Pingyao plant.
Meanwhile, China Magnesium signed a letter of intent with Jinsheng Industrial Co. Ltd. for the quality testing of the magnesium lithium alloy output from the Pingyao plant.
The deal contemplates a subsequent agreement for both raw material supply and the off-take of processed magnesium lithium alloy.
