Magnesium International Magnesium Company(MIL) said Friday that its joint venture company, the Egyptian Magnesium Company(EMAG), has signed a power supply contract with the Egyptian Electricity Transmission Company(EETC).

    Through this agreement, the Egyptian government has agreed the provision of 128 Megawatt of electricity for the first module of the smelter, increasing to 248 Megawatt in the second phase. The electricity supply is essential to ensure the efficient operation of EMAG's planned world class magnesium smelter, which initially aims to produce 43,000 metric tons per year of pure magnesium metal, rising to 88,000 mt in the future and representing around 17% of world's production of this metal. Most of the pure magnesium will then be transformed into high quality magnesium alloys for use in the automotive industry.

    Commitment to the EMAG project was made by MIL and Amiral following an extensive search by MIL to find a suitable site for a new facility capable of producing pure magnesium metal from magnesite(Magnesium Carbonate). MIL chose Sokhna Port due to its superb location on the Suez Gulf and its duty free status for exports to Europe,which is targeted to receive a large percentage of the finished magnesium alloys.

    The company has confirmed that the smelter project remained on its projected timetable,with work at MAN Ferrostaal,the engineering, procurement and construction contractor for the smelter,progressing well.