Romania grants mining concession to Verde Magnesium

News Analysis




Romania grants mining concession to Verde Magnesium

Verde Magnesium aims to restart magnesium metal production in Europe and is now one step closer to reaching this goal. 

Verde Magnesium has been granted a mining concession by the National Agency for Mineral Resources of Romania (NAMR) which will allow the company to continue with its strategy to invest US$1B to develop a mine and processing plant to produce magnesium metal. The company plans to utilise renewable energy sources along with recycled aluminium in its production process and will develop the project over the next 4 to 5 years.

Owing to its application in the aluminium, die-casting, and titanium reduction industries, magnesium metal has been listed by many government agencies as a critical mineral. Demand is estimated to increase from 1,270k in 2023 to 1,700kt by 2034, representing a CAGR of 3%. Additionally, its critical nature is also underpinned by a high supply risk since magnesium metal production is dominated by China that produces almost 90% of the global supply.

After the closure of its last magnesium metal operations in the early 2000’s, Europe has been reliant on importing magnesium metal, mainly from China.  In an effort to reduce its reliance on the import of critical minerals, the EU has implemented the Critical Raw Materials Act (CMRA) to stimulate and diversify domestic supply chains, including magnesium. In line with the EU’s CRMA, Verde Magnesium aims to bring magnesium metal production back to Europe and is positioning itself as a key player in the European magnesium metal supply chain.