Natural Resources, Mines and Water

mines series

Managing Queenslands natural resources ... for today and tomorrow

Magnesite
Magnesite (MgCO3) is a magnesium carbonate mineral, usually white, yellow, or grey in colour. It originates through the alteration of olivine or serpentine by waters carrying carbon dioxide; through the replacement of calcium by magnesium in calcareous rocks, sometimes limestone but more often dolomite; and through precipitation from waters rich in magnesium that have undergone reaction with sodium carbonate. Magnesite is the most important source mineral for producing magnesia. To form magnesia, magnesite is crushed, screened, washed and sorted before being heated to 700 to 1000C. At this temperature, the magnesite is converted to calcined magnesia. Calcined magnesia is then briquetted and heated to 1500 to 2000C, forming dead-burned magnesia. Electrofused magnesia is produced by heating calcined magnesia to 2750 to 3000C. Raw magnesite and calcined (or caustic) magnesia are used in the manufacture of paints, paper, plastics, rubber, oil, pharmaceuticals, fertiliser, animal feed, building materials and as a fire retardant. Dead-burned magnesia, also known as sintered magnesia or clinker, is used for refractory bricks. Electro-fused magnesia has higher strength, abrasion resistance, and chemical inertness than dead-burned magnesia. It is used for premium grade refractory bricks, high temperature insulators, and ceramics. Electro-fused magnesia is also used in nuclear reactors and rocket engine nozzles. Magnesium is a lightweight metal that can be readily formed into cast metal products. Magnesium car parts have recently become an important ingredient in making cars lighter, more fuel-efficient and less polluting. It is this new automotive market for die cast magnesium alloys that could provide the greatest potential for growth in future magnesium demand.
A sample of magnesite (MgCO3) used for producing magnesia (MgO)

Currently, more than 50% of the world production of magnesium is used in aluminium alloying. Almost 20% is used in castings, and about 10% is used to de-sulphur iron and steel. Magnesium is also used in iron wire production, and for cast or extruded anodes.

Related commodities
Dolomite is an alternative source of magnesia. Synthetic magnesia is produced from seawater, brines and salt beds. Magnesia has the highest melting point of all refractory oxides and so is the preferred material for high temperature refractory applications. Other refractories are made from alumina, silica, and chromite compounds. Aluminium is the major alternative to magnesium for cast metal products.

M13

March 2006

Produced by: Mining and Petroleum

Authors: F Bruvel and C Sandford

QNRM05072

Queensland the Smart State

Natural Resources, Mines and Water

Loading magnesite at Kunwarara mine, north-west of Rockhampton

Occurrence and resources

Kunwarara, located 70 km north-west of Rockhampton, is the second largest deposit of very fine grained (cryptocrystalline) magnesite in Australia and the largest in Queensland with an economic demonstrated resource of 78 Mt. Magnesite occurs as vein deposits or as nodules that may range in size from 1mm to 100 cm. Magnesite is commonly associated with serpentinite (spotted green rock), either as a secondary mineral or as a sedimentary deposit in a nearby basin. Other substantial magnesite deposits in the area include Yaamba, Marlborough and Herbert Creek. Smaller deposits of magnesite are associated with outcropping serpentinites at Kunwarara and in other parts of Queensland, usually as veins along joints and fracture planes. The Kunwarara deposits are flat lying, and vary in thickness from 1m to 26 m, with an average thickness of 10.9 m. In the Marlborough area, the magnesite occurs in concealed channel deposits, and as nodules, veins and stockworks in weathered basement rocks.

Production
The Kunwarara deposit is the main magnesite deposit currently mined in Queensland. The mine is operated by Queensland Magnesia (Operations) Pty Ltd (QMAG), a wholly owned subsidiary of Queensland Metals Corporation Limited. QMAGs magnesia production is at Parkhurst in Central Queensland. QMAG is a leading supplier of high grade electrofused and deadburned magnesia to the global refractory market, and is expanding production of calcined magnesia for a wide range of applications.

Potential and outlook

Queenslands advantage in the world market is due to the high quality of its deposits together with efficient modern processing facilities capable of producing a premium magnesia product.

The ore body occurs just below the surface

Kunwarara is close to existing infrastructure including gas and electricity supplies, and road and rail links to an export facility at Gladstone. However, an imbalance in the worlds magnesia supply has resulted in strong competition between world magnesia producers and a weakness in price that is likely for the foreseeable future. Australian Magnesium Corporation (AMC) sold its Queensland Magnesium Corporation (QMAG) subsidiary on December 1, 2004. QMAG and all remaining rights to magnesite deposits were sold to Resource Capital Fund III L.P. (RCF) for $5.8 million and assumption of the $42.5 million debt to ANZ Banking Group Ltd. Newmont Mining Corporation will provide a loan of $21.8 million to RCF and forgive AMCs debts of $5.6 million, in return for being released by ANZ as a guarantor of the facility. Some more web sites that give information on magnesite:

View of Kunwarara working from the air

RCF was expected to invest in QMAG to increase production capacity to 100 000 t/yr and improve the efficiency at the companys Kunwarara mine beginning in 2005. QMAGs short term goals are to: retain category 1 environmental standard expand Kunwarara mine revenues will increase to > $100 M pa employee numbers > 300 announce 7 year gas contract announce $200 M contract with BHP increase QMAG resources to > 30 years.

http://www.nationalminesatlas.gov.au/info/aimr/magnesite.jsp http://mineral.galleries.com/minerals/carbonat/magnesit/magnesit.htm http://www.minerals.net/mineral/carbonat/magnesit/magnesit.htm http://www.mindat.org/min-2482.html http://www.ga.gov.au/rural/projects/ajagg_17_4/S_Wilcock_ajagg174.jsp www.am-technologies.com.au http://www.resourcecapitalfunds.com/rcf_abou0.html http://www.qmag.com.au/ http://www.cqris.com.au/opencms/export/sites/default/resources/documents/files/05_QMAG.pdf

Fact sheets are available from NRMW service centres and the NRMW Information Centre phone (07 3237 1435). Check our web site <www.nrm.qld.gov.au> to ensure you have the latest version of this fact sheet. While every care is taken to ensure the accuracy of this information, the Department of Natural Resources, Mines and Water does not invite reliance upon it, nor accept responsibility for any loss or damage caused by actions based on it.
The State of Queensland (Department of Natural Resources, Mines and Water) 2006