Potassium-Magnesium Mine Project in Canada Secures 70-Year Output, Magnesium-Based Hydrogen Storage Technology Opens New Chapter in Metallurgical Applications [SMM Survey]

Published: Dec 2, 2025 09:57

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[SMM Survey: Canadian Potash-Magnesium Mine Project Secures 70-Year Output, Magnesium-Based Hydrogen Storage Technology Opens New Chapter in Metallurgical Applications] Canadian mining company Karnalyte Resources recently updated the feasibility study report for its Saskatchewan potash-magnesium mine project, confirming a mine life of 70 years and an after-tax net present value exceeding CAD 2 billion. Leveraging unique carnallite resources, the project can simultaneously produce potash fertilizer and magnesium products such as magnesium hydroxide, and has signed a long-term offtake agreement with an Indian enterprise. Meanwhile, magnesium-based solid-state hydrogen storage technology has achieved its first large-scale application in the metallurgical industry. A demonstration project jointly launched by Chinese enterprises employs proprietary intellectual property technology, providing a safe and efficient hydrogen energy solution for traditional high-carbon industries such as steel. These two developments, from both resource development and high-end application perspectives, demonstrate the diversified development pathways of the magnesium industry in the green transition.

Karnalyte Resources Updates Feasibility Study for Canadian Potash-Magnesium Mine Project, 70-Year Mine Life Secures Long-Term Returns

Canadian mining company Karnalyte Resources recently released an updated feasibility study report for the Wynyard Potash-Magnesium Mine Project in Saskatchewan, confirming a mine life of 70 years and an after-tax net present value of 2.04 billion Canadian dollars, with an internal rate of return of 12.5%. Leveraging a unique carnallite deposit, the project can simultaneously produce potash fertilizer and magnesium products such as magnesium hydroxide. The initial investment for the magnesium product production facility is 231 million Canadian dollars, with an operating cost of approximately 318 yuan/mt. The report notes that the project has signed a long-term offtake agreement with Gujarat State Fertilizers & Chemicals Ltd. of India, ensuring stable potash supply. Meanwhile, the company plans to capitalize on cost advantages and a scalable project design to capture market share amid constrained global magnesium hydroxide supply. The company's stock price rose 35.7% in a single day, reflecting market recognition of its dual-strategy focusing on both potash and magnesium products. The project received environmental assessment approval in 2013 and will further evaluate the feasibility of expanding the magnesium compound product line based on potash market trends and funding availability.

Magnesium-Based Solid-State Hydrogen Storage Technology Enters Large-Scale Application in Metallurgical Industry for First Time

Heddlisen Company, in collaboration with Sinopec Research Institute and Baowu Clean Energy, successfully launched the world's first ton-scale demonstration project of magnesium-based solid-state hydrogen storage equipment for the metallurgical industry. This demonstration utilizes proprietary magnesium-based solid-state metal hydride hydrogen storage technology, aiming to provide an efficient and safe hydrogen energy solution for traditional high-carbon metallurgical industries such as steel, supporting deep industrial decarbonization.

As a special project under the National Key R&D Program of the Ministry of Science and Technology, this project marks a key breakthrough in the transition of magnesium-based hydrogen storage materials from laboratory to industrial application. Compared with traditional hydrogen storage methods, magnesium-based solid-state technology offers advantages such as high hydrogen storage density, good safety, and controllable costs, having previously completed commercial validation in cross-regional maritime shipping scenarios.

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