Company History
In 1985, Queensland Metals Corporation (QMC) discovered the Kunwarara magnesite deposit and rapidly instigated a series of development options. Several high-grade portions of the resource were evaluated for the production of high-grade refractory magnesia and subsequently incorporated within the QMAG project.
Pancontinental Mining Limited (Pancon) took a 40% interest in the project, to be earned by completing a bankable feasibility study, and Radex Heraklith of Austria (Radex) was brought in as a 10% partner to provide technical expertise.
The feasibility study was completed and the project was given the go-ahead based on producing 100,000tpa of DBM and 15,000tpa of EFM. Construction commenced in 1990 and the first product was produced in November 1991.
QMC acquired the 10% equity portion held by Radex in 1994. Pancon was taken over by Goldfields Limited in 1995, and as part of the rationalisation of the Pancon assets, the QMAG equity was sold to QMC leaving QMC (subsequently Australian Magnesium Corporation - AMC) with 100% ownership.
In 1997, further investment in the mine and plant took place to expand capacity and reduce cost. In addition, QMAG entered the calcined magnesia market to grow and diversify markets which saw magnesia sales reach 200,000tpa and the plant operate at full capacity.
In December 2004, Resource Capital Funds (RCF) completed the purchase of the QMAG business from AMC plus the balance of the Kunwarara deposit QMAG did not own. A new company, QMAG Limited, was formed to be the holding company of the magnesite and magnesia assets.
The RCF purchase of QMAG included an injection of equity into the business and refinancing of existing debt facilities. This recapitalisation has established the business as a stand alone magnesia producer able to pursue growth plans and develop into a major global magnesia supplier. Since the purchase by RCF, QMAG has invested significantly to upgrade the mine operations to reduce cost and to acquire the neighbouring Yaamba magnesite deposit which has increased the resource life to 50 years and provided opportunities to develop new products. Studies are underway to significantly expand capacity at Parkhurst.