The Economics of Magnesium Compounds and Chemicals

SUMMARY

The new 2005 Roskill report on the magnesium compounds and chemicals industry will be publishedin March 2005. It will provide up-to-date market analysis of resources, production, consumption,trade and prices. More than 100 detailed tables and figures give you access to all the data you needat a glance. The world refractory magnesia market continues to be in a state of over supply but hasbeen moving back closer to balance for a number of years as companies in Italy, the UK and the USAexit from the market. The majority of global magnesia is located in China, North Korea and Russia,accounting for around 75% of global dead burned magnesia capacity based on magnesite. In developedeconomies, such as Japan, the USA and Western Europe, total capacity for production of magnesia isjust 0.7Mtpy out of a world total of around 10Mtpy. World consumption of magnesium compounds isdominated by the refractories industry, which accounts for around 70-80% of global usage. Magnesiteand magnesia producers have experienced very little growth in this market for many years as advancesin refractory technology continue to design out their products. However, over the next few yearsworldwide consumption of dead burned and fused magnesia is expected to increase slightly in responseto strong growth in the Chinese steel and non-ferrous metals industries. European and North Americandemand for caustic calcined magnesia is rising, especially for use in agriculture. However, demandfor caustic calcined magnesia, fused magnesia and magnesium chemicals (magnesium hydroxide,magnesium chloride and magnesium sulphate) is small compared to that of dead burned magnesia inrefractories. Roskill forecasts that overall consumption of dead burned magnesia, caustic calcinedmagnesia and fused magnesia will rise to around 8Mtpy in 2008, compared to 7.6Mt in 2005. While asignificant increase, this rise would only take consumption back to 2001 levels and will be highlydependent on a sustained price rise in Chinese consumption of dead burned magnesia in refractories.The price of dead burned magnesia rose by over 25% in 2004, which was the first increase since thelate 1990s. However, the increase in published Chinese magnesia prices was caused by sharp rises incosts of production such as power, transport and raw material costs, not by producers takingadvantage of supply shortages. The long term price of dead burned magnesia and fused magnesia willlargely be determined by rising Chinese consumption in refractories and the amount of materialexported from China. Chinese magnesia producers have formed four export associations since 2000 inan attempt to regulate exports and maintain prices. The China Magnesite Self-Disciplined Association(CSMA) was formed in 2004 and its effectiveness in helping to regulate exports will be of greatimportance in determining future dead burned and fused magnesia prices. In its latest report on themagnesium compounds and chemicals industry, Roskill examines the implications of each of thesemarket developments and provides a reliable forecast for the future.

The key trends, issues and developments in the market are now analysed in this major new reportfrom Roskill. It provides a clear insight into all areas of the industry and an authoritativeanalysis of the prospects for the future.

TABLE OF CONTENTS

1 Summary

2 Occurrence and properties of magnesium raw materials

• 2.1 Dolomite
• 2.2 Magnesite
• 2.3 Seawater and brines
• 2.4 Other magnesium minerals

3 Processing of magnesium compounds

• 3.1 Refractory dolomite
• 3.2 Magnesia
• 3.2.1 Caustic calcined magnesia (CCM)
• 3.2.2 Dead burned magnesia (DBM)
• 3.2.2.1 DBM produced from crystalline magnesite
• 3.2.2.2 DBM produced from cryptocrystalline magnesite
• 3.2.3 Fused magnesia (FM)
• 3.2.4 Seawater magnesia
• 3.3 Production costs of magnesia

4 Processing of magnesium chemicals

• 4.1 Magnesium carbonate (MgCO3)
• 4.2 Magnesium chloride (MgCl2)
• 4.3 Magnesium hydroxide (Mg(OH)2)
• 4.4 Magnesium sulphate (MgSO4)
• 4.5 Other magnesium chemicals

5 Reserves of magnesium raw materials

• 5.1 Reserves of dolomite
• 5.2 Reserves of magnesite

6 World production of magnesium compounds

• 6.1 World production of dolomite
• 6.2 World production of natural magnesite
• 6.3 World production and capacity of magnesia
• 6.4 Production of synthetic magnesia

7 Production of magnesium compounds by country and company

• 7.1 Production of magnesium compounds in Argentina
• 7.2 Production of magnesium compounds in Australia
• 7.2.1 Producers of magnesium compounds in Australia
• 7.2.1.1 Causmag International
• 7.2.1.2 Queensland Magnesia (QMAG)
• 7.2.1.3 Onesteel Limited
• 7.2.1.4 Unimin Australia
• 7.2.1.5 Other producers of magnesium compounds in Australia
• 7.2.2 Potential magnesite and serpentine operations in Australia
• 7.2.2.1 Indcor Limited
• 7.2.2.2 Magnesium International Limited (MIL)
• 7.2.3 Australian trade in magnesite and magnesia
• 7.3 Production of magnesium compounds in Austria
• 7.3.1 Producers of magnesium compounds in Austria
• 7.3.1.1 Magnifin Magnesiaprodukte GmbH & Company KG
• 7.3.1.2 RHI AG (Veitsch-Radex-Didier division)
• 7.3.1.3 Styromagnesit Steirische Magnesitindustrie GmbH (Styromag)
• 7.3.2 Austrian trade in magnesite and magnesia
• 7.4 Production of magnesium compounds in Belgium
• 7.4.1 Producers of magnesium compounds in Belgium
• 7.4.1.1 Carmeuse Group
• 7.4.1.2 Lhoist Group
• 7.4.2 Belgium trade in magnesite and magnesia
• 7.5 Production of magnesium compounds in Brazil
• 7.5.1 Producers of magnesium compounds in Brazil
• 7.5.1.1 Magnesita SA
• 7.5.1.2 Other producers of magnesium compounds in Brazil
• 7.5.2 Brazilian trade in magnesite and magnesia
• 7.6 Production of magnesium compounds in Canada
• 7.6.1 Producers of magnesium compounds in Canada
• 7.6.1.1 Atlantic Minerals Limited (AML)
• 7.6.1.2 Baymag
• 7.6.1.3 Carmeuse North America
• 7.6.1.4 Hedman Resources Limited
• 7.6.1.5 Other producers of magnesium compounds in Canada
• 7.6.2 Potential dolomite and olivine projects in Canada
• 7.6.3 Canadian trade in magnesite and magnesia
• 7.7 Production of magnesium compounds in Chile
• 7.8 Production of magnesium compounds in China
• 7.8.1 Producers of magnesium compounds in China
• 7.8.1.1 China Metallurgical Import & Export Liaoning Magnesite Company
• 7.8.1.2 China Haicheng City Pin Yang Talc Mining Company Limited
• 7.8.1.3 Dalian Fanglin Refractories Company Limited
• 7.8.1.4 Dashiqiao City New Type Refractories Company Limited
• 7.8.1.5 Dashiqiao Tangchi Mining Industry Company Limited
• 7.8.1.6 Fengchi Mining Company limited
• 7.8.1.7 Haicheng Houyin Magnesite Products Company
• 7.8.1.8 Haicheng Hualin Mining Industry Group Company Limited
• 7.8.1.9 Haicheng Huyu Group Import and Export Limited Company
• 7.8.1.10 Haicheng Sanyou New Material Corporation
• 7.8.1.11 Haichen Talc Company Limited
• 7.8.1.12 Haicheng Xiyang Refractories Materials Corporation
• 7.8.1.13 Liaonan Magnesite Refractory Factory
• 7.8.1.14 Liaoning Jia Yi Xiuyan Magnesite Company Limited
• 7.8.1.15 Liaoning Jinding Magnesite Group
• 7.8.1.16 Liaoning Qunyi Group
• 7.8.1.17 Liaoning Xinrong Mining Group Limited
• 7.8.1.18 Shandong Hengxin Magnesite Industry Company Limited
• 7.8.1.19 Shandong Refractories Corporation
• 7.8.1.20 Shanghai SIIC Zhentai Chemical General Factory
• 7.8.1.21 Tateho Chemical Dalian (TCI)
• 7.8.1.22 Yingkou Magnesite Chemical Industrial (Group) Company Limited
• 7.8.1.23 Yingkou Qinghua Group
• 7.8.2 Chinese trade in magnesite and magnesia
• 7.9 Production of magnesium compounds in Czech Republic
• 7.10 Production of magnesium compounds in Finland
• 7.11 Production of magnesium compounds in France
• 7.11.1 Producers of magnesium compounds in France
• 7.11.1.1 Garrot-Chaillac SA
• 7.11.1.2 Guyon Groupe
• 7.11.1.3 Scora SA
• 7.11.2 French trade in magnesite and magnesia
• 7.12 Production of magnesium compounds in Germany
• 7.12.1 Producers of magnesium compounds in Germany
• 7.12.1.1 Chemische Fabrik Lehrte
• 7.12.1.2 DEUSA International GmbH
• 7.12.1.3 Dr. Paul Lohmann GmbH KG
• 7.12.1.4 K+S Kali GmbH
• 7.12.1.5 LWB Refractories
• 7.12.1.6 Magnesia GmbH
• 7.12.2 Processors and traders in magnesium compounds in Germany
• 7.12.2.1 Lehmann & Voss & Company (Lehvoss)
• 7.12.2.2 Minelco GmbH
• 7.12.2.3 Mineralmahlwerk Hamm Limited
• 7.12.2.4 Mineralmahlwerk Rhein Rhur GmbH (MMRR)
• 7.12.2.5 Possehl Erzkontor GmbH
• 7.12.3 German trade in magnesite and magnesia
• 7.13 Production of magnesium compounds in Greece
• 7.13.1 Producers of magnesium compounds in Greece
• 7.13.1.1 Grecian Magnesite SA
• 7.13.1.2 Minelco Hellas AME
• 7.13.1.3 White Minerals SA
• 7.13.2 Greek trade in magnesite and magnesia
• 7.14 Production of magnesium compounds in Greenland
• 7.15 Production of magnesium compounds in Hungary
• 7.16 Production of magnesium compounds in India
• 7.16.1 Producers of magnesium compounds in India
• 7.16.1.1 Almora Magnesite Limited
• 7.16.1.2 Burn Standard Company Limited (BSCL)
• 7.16.1.3 Dalmia Cement (Bharat) Limited
• 7.16.1.4 Dalmia Magnesite Corporation Limited
• 7.16.1.5 Tamil Nadu Magnesite Limited (Tanmag)
• 7.16.1.6 Tata Refractories Limited (TRL)
• 7.16.1.7 White Circle Oxides Limited
• 7.16.2 Consumption of dolomite in India
• 7.16.3 Consumption of magnesite in India
• 7.17 Production of magnesium compounds in Iran
• 7.17.1 Producers of magnesium compounds in Iran
• 7.18 Production of magnesium compounds in Ireland
• 7.18.1 Producers of magnesium compounds in Ireland
• 7.18.1.1 Premier Periclase
• 7.19 Production of magnesium compounds in Israel
• 7.19.1 Producers of magnesium compounds in Israel
• 7.19.1.1 Dead Sea Periclase (DSP)
• 7.19.1.2 Dead Sea Works Limited (DSW)
• 7.19.1.3 Other producers of magnesium compounds in Israel
• 7.20 Production of magnesium compounds in Italy
• 7.20.1 Producers of magnesium compounds in Italy
• 7.20.1.1 Dolomite Franchi SpA
• 7.20.1.2 Eraclit Venier SpA
• 7.20.1.3 Nuova Cives
• 7.20.1.4 Societ? Generale per lIndustria della Magnesia (SGIM)
• 7.20.2 Italian trade in magnesite and magnesia
• 7.21 Production of magnesium compounds in Japan
• 7.21.1 Producers of magnesium compounds in Japan
• 7.21.1.1 Asahi Glass Company
• 7.21.1.2 Daicel Chemical
• 7.21.1.3 Kyowa Chemical Industry Company Limited
• 7.21.1.4 Sumitomo Cement Limited
• 7.21.1.5 Tateho Chemical Industries Company
• 7.21.1.6 TMG Corporation
• 7.21.1.7 Ube Material Industries Company
• 7.21.2 Japanese trade in magnesite and magnesia
• 7.22 Production of magnesium compounds in Jordan
• 7.22.1 Producers of magnesium compounds in Jordan
• 7.23 Production of magnesium compounds in North Korea
• 7.23.1 Producers of magnesium compounds in North Korea
• 7.24 Production of magnesium compounds in South Korea
• 7.25 7.24.1 Producers of magnesium compounds in South Korea
• 7.25 Production of magnesium compounds in FYR Macedonia
• 7.26 Production of magnesium compounds in Mexico
• 7.26.1 Producers of magnesium compounds in Mexico
• 7.26.1.1 Industriales Pe?oles
• 7.26.1.2 Refractaricos Basicos SA (REBASA)
• 7.26.1.3 Regio Cal SA de CV
• 7.26.2 Mexican trade in magnesite and magnesia
• 7.27 Production of magnesium compounds in Netherlands
• 7.27.1 Producers of magnesium compounds in the Netherlands
• 7.27.1.1 Kisuma Chemicals BV
• 7.27.1.2 Nedmag Industries Mining and Manufacturing BV
• 7.27.2 Processors and traders of magnesium compounds in the Netherlands
• 7.27.2.1 Europe Minerals BV
• 7.27.2.2 Grecian Magnesite
• 7.27.2.3 MAF Magnesite BV
• 7.27.2.4 Van Mannekus and Company BV
• 7.27.3 Dutch trade in magnesite and magnesia
• 7.28 Production of magnesium compounds in Nigeria
• 7.29 Production of magnesium compounds in Norway
• 7.29.1 Producers of magnesium compounds in Norway
• 7.29.1.1 Franzefoss Bruk A/S
• 7.29.1.2 OMYA
• 7.29.1.3 Umimin
• 7.30 Production of magnesium compounds in Pakistan
• 7.31 Production of magnesium compounds in Philippines
• 7.32 Production of magnesium compounds in Poland
• 7.32.1 Producers of magnesium compounds in Poland
• 7.32.1.1 Lhoist
• 7.32.1.2 Mining Dolomite Works (GZD)
• 7.32.1.3 Zaklad Magnezytowy "Groch?w"
• 7.32.1.4 Zelatowa Dolomite Mining and Roasting Plant
• 7.32.2 Polish trade in magnesia
• 7.33 Production of magnesium compounds in Russia
• 7.33.1 Producers of magnesium compounds in Russia
• 7.33.1.1 CJSC Bischofite Avangard
• 7.33.1.2 JSC Kaustik
• 7.33.1.3 Kuldur Brucite Mine
• 7.33.1.4 JSC Magnesite
• 7.33.1.5 JSC Northangarsky Mining and Smelting Complex (SAGMK)
• 7.33.1.6 JSC Sylvinit
• 7.33.1.7 JSC Uralkaly
• 7.33.2 Past magnesite operations in Russia
• 7.33.2.1 CJSC Magnesite Irkutsky
• 7.33.2.2 JSC Stalmag
• 7.33.3 Russian trade in magnesite and magnesia
• 7.34 Production of magnesium compounds in Saudi Arabia
• 7.35 Production of magnesium compounds in Serbia
• 7.35.1 Producers of magnesium compounds in Serbia
• 7.36 Production of magnesium compounds in Slovakia
• 7.36.1 Producers of magnesium compounds in Slovakia
• 7.36.1.1 Duslo a.s.
• 7.36.1.2 Intocast Magnezit Hacava a.s
• 7.36.1.3 Slovensk? Magnezitov? Z?vody a.s Jel?ava (SMZ)
• 7.36.1.4 Slovmag a.s. Luben?k
• 7.36.2 Slovakian trade in magnesite and magnesia
• 7.37 Production of magnesium compounds in South Africa
• 7.37.1 Producers of magnesium compounds in South Africa
• 7.37.1.1 Chamotte Holdings
• 7.37.1.2 Kumba Resources Limited
• 7.37.1.3 Syferfontein Magnesite
• 7.37.1.4 Vereeniging Refractories (Pty) Limited
• 7.38 Production of magnesium compounds in Spain
• 7.38.1 Producers of magnesium compounds in Spain
• 7.38.1.1 Calcinor
• 7.38.1.2 Magnesitas de Navarras SA
• 7.38.1.3 Magnesitas de Rubian (MGR)
• 7.38.2 Processors of magnesium compounds in Spain
• 7.38.2.1 Arcillas Refractarias SA (Aciresa)
• 7.38.2.2 Lorda y Roig SA
• 7.38.3 Spanish trade in magnesite and magnesia
• 7.38.4 Apparent consumption of magnesium oxide in Spain
• 7.39 Production of magnesium compounds in Sweden
• 7.40 Production of magnesium compounds in Thailand
• 7.41 Production of magnesium compounds in Turkey
• 7.41.1 Producers of magnesium compounds in Turkey
• 7.41.1.1 Akdeniz Mineral Kaynaklari AS
• 7.41.1.2 Beykrom Mining
• 7.41.1.3 Calmag Kalsine Manyezit Inalat ve Tic. A.?.
• 7.41.1.4 Dumlu Ozcan Madencilik AS
• 7.41.1.5 Konya Selcuklu Krom Magnezit Tudla Sanayi (Konya Krom)
• 7.41.1.6 Kumas Kutahya Manyezit Isletmeleri A.S
• 7.41.1.7 Likya Minelco
• 7.41.1.8 Madkim Maden ve Kimya San ve Tic Limited
• 7.41.1.9 Magnesit AS (MAS)
• 7.41.2 Turkish trade in magnesite and magnesia
• 7.42 Production of magnesium compounds in Turkmenistan
• 7.43 Production of magnesium compounds in Ukraine
• 7.43.1 Producers of magnesium compounds in Ukraine
• 7.43.1.1 JSC Oriana
• 7.43.1.2 Polymetal
• 7.43.2 Ukrainian trade in magnesia
• 7.44 Production of magnesium compounds in United Kingdom
• 7.44.1 Producers of magnesium compounds in the UK
• 7.44.1.1 CJC Chemicals and Magnesia Limited
• 7.44.1.2 Steetley Dolomite Limited
• 7.44.1.3 UCM Group Plc
• 7.44.1.4 WBB Minerals
• 7.44.2 Processors and traders of magnesium compounds in the UK
• 7.44.2.1 Colin Stewart Minechem Limited
• 7.44.2.2 Delamin Limited
• 7.44.2.3 Minelco Minerals
• 7.44.2.4 Omya UK
• 7.44.3 UK trade in magnesite and magnesia
• 7.45 Production of magnesium compounds in USA
• 7.45.1 Producers of magnesium compounds in the USA
• 7.45.1.1 Applied Chemical Magnesias Corporation (ACM)
• 7.45.1.2 Carmeuse North America
• 7.45.1.3 Columbus S.M. LLC
• 7.45.1.4 Great Salt Lake Minerals
• 7.45.1.5 Intrepid Wendover Potash LLC
• 7.45.1.6 LWB Refractories Company
• 7.45.1.7 Martin Marietta Magnesia Specialities Incorporated (MMMS)
• 7.45.1.8 Minco Incorporated
• 7.45.1.9 Minerals Technologies Incorporated (MTI)
• 7.45.1.10 Premier Chemicals LLC
• 7.45.1.11 Rohm and Haas
• 7.45.1.12 SPI Pharma
• 7.45.1.13 UCM Group
• 7.45.1.14 Western Salt
• 7.45.1.15 Other producers of magnesium compounds in the USA
• 7.45.2 Fomer producers of magnesium compounds in the USA
• 7.45.3 Suppliers and processors of magnesium compounds in the USA
• 7.45.4 US trade in magnesite and magnesia
• 7.45.5 US shipments of refractory magnesia and CCM

8 World trade in dolomite, magnesite and magnesia

• 8.1 Exports of dolomite
• 8.2 Imports of dolomite
• 8.3 Exports of magnesite
• 8.4 Imports of magnesite
• 8.5 Exports of magnesia
• 8.6 Imports of magnesia
• 8.7 World trade in CCM in 2003
• 8.8 World trade in DBM in 2003
• 8.9 World trade in FM in 2003
• 8.10 Antidumping tariffs on magnesium compounds from China

9 World consumption of dolomite and magnesium compounds

• 9.1 Dolomite
• 9.2 World consumption of magnesia
• 9.2.1 World consumption of CCM
• 9.2.2 World consumption of DBM
• 9.2.3 World consumption of FM
• 9.3 Future demand for magnesium compounds

10 Use of magnesium compounds in refractories

• 10.1 World refractories industry
• 10.1.1 Cookson Group
• 10.1.2 RHI AG
• 10.1.3 Refractory dolomite producers
• 10.2 Basic refractories
• 10.2.1 Dolomite and magnesia dolomite refractories
• 10.2.2 Magnesia-carbon refractories
• 10.2.3 Trade in magnesia refractory bricks
• 10.3 Basic refractories in the iron and steel industry
• 10.3.1 Refractory consumption in basic oxygen steelmaking
• 10.3.2 Refractory consumption in electric arc (EAF) steelmaking
• 10.3.3 Refractory consumption in secondary refining
• 10.3.4 Refractory consumption in continuous casting (concast)
• 10.3.5 Future trends in steelmaking technology
• 10.3.6 Future consumption of magnesia and dolomite in steelmaking refractories
• 10.4 Basic refractories in the cement industry
• 10.4.1 Magnesia-chrome
• 10.4.2 Magnesia-alumina spinel
• 10.4.3 World production of cement
• 10.4.4 Major producers of cement
• 10.5 Basic refractories in the non-ferrous metal industry and other industries
• 10.6 Basic refractories in the glass industry
• 10.7 Production of refractories
• 10.7.1 Production of refractories in China
• 10.7.2 Production of refractories in Japan
• 10.7.3 Production of refractories in the USA
• 10.8 Future demand for magnesium compounds in refractories

11 Use of magnesium compounds in building and construction

12 Use of magnesium compounds in glass

• 12.1 Types of glass
• 12.2 Production of glass
• 12.2.1 Production of glass in the European Union
• 12.2.2 Production of glass in the USA
• 12.2.3 Production of flat glass
• 12.2.3.1 Production of plain glass in China
• 12.2.3.2 Production of flat glass in the EU
• 12.2.3.3 Production of flat glass in the USA
• 12.2.4 Trends in demand for flat glass
• 12.2.5 Production of fibre glass
• 12.2.5.1 Production of textile grade fibre glass
• 12.2.5.2 Production of insulation grade fibre glass
• 12.2.6 Production of fibre glass by region and country
• 12.2.6.1 Production of fibre glass in China
• 12.2.6.2 Production of fibre glass in the EU
• 12.2.6.3 Production of fibre glass in Japan
• 12.2.7 Markets for fibre glass
• 12.2.8 Future demand for magnesium compounds in glass

13 Use of magnesium compounds in agriculture

• 13.1 Animal feedstuffs
• 13.2 Fertilisers and soil improvers
• 13.3 Future consumption of magnesium compounds in agriculture

14 Use of magnesium compounds in alkalis

• 14.1 Aqueous metal effluents
• 14.2 Flue gas desulphurisation
• 14.3 Wastewater neutralisation
• 14.4 Water softening

15 Use of magnesium compounds in ferrous metallurgical flux

• 15.1 Future demand for magnesium compounds in ferrous metallurgical flux

16 Use of magnesium compounds in flame retardants

• 16.1 Future demand for magnesium compounds in flame retardants

17 Use of magnesium compounds in heating elements

• 17.1 Future demand for electrical grade magnesia in heating elements

18 Use of magnesium compounds in magnesium metal

19 Use of magnesium compounds in pharmaceuticals, toothpastes and cosmetics

20 Use of magnesium compounds in pulp and paper

21 Other uses for magnesium compounds

22 Prices of magnesium compounds

• 22.1 Dolomite prices
• 22.2 Magnesia prices
• 22.2.1 Prices of CCM
• 22.2.2 Prices of DBM
• 22.2.3 Prices of FM
• 22.3 Factors affecting magnesia prices