Leigh Creek Magnesite Pty Ltd

Throughout the 1990s and early 2000s, Magnesium Developments Pty Ltd ('MDL') and associated companies spent many millions of dollars in exploration and study costs to support a bankable feasibility study aimed at establishing a 50,000tpa magnesium metal plant based on extensive magnesite deposits at Leigh Creek.

The plan was not realised for a variety of factors key being falling magnesium metals prices due to Chinese dumping cheap 'Pigeon Process' magnesium onto the market and high projected capital and operating costs. MDL elected to relinquish its exploration licences but retained ownership over the small Myrtle Springs magnesite mine.

During 2011 Leigh Creek Magnesite Pty Ltd identified that the ground formerly owned by MDL had become available for mining and applied for and was eventually granted two exploration licences over the southern portion of MDL's magnesite deposits.