Magnesium International Secure Power Supply for Plant in Egypt

The Directors of Magnesium International Limited (“MIL”) advise that the Egyptian Magnesium Company S.A.E. (“EMAG”) has completed arrangements for the supply of power for its proposed Egyptian magnesium smelter. The Egyptian Electricity transmission Company has formally advised that it has agreed to enter into the power supply agreement with EMAG.

This agreement will give EMAG guaranteed access to grid electricity at below US 2 cents/KWh. Low cost power in a reliable environment was one of the major factors for choosing Egypt as the site for the Dow technology magnesium smelter. Electricity is the primary cost item for operation of the smelter comprising around 25% of the estimated operating costs. Securing agreement to low cost power confirms the EMAG smelter as a low cost magnesium producer sitting at the bottom of the lowest quartile cost producers.

This agreement is another major milestone for the EMAG project. It follows the recent announcement of granting of environmental approval for the smelter site.