APMC seeks partner for magnesium

Asean Potash Mining Co (APMC), which was granted a licence to operate a potash mine in Chaiyaphum province earlier this year, is conducting a feasibility study of a possible joint venture to create other valueadded products from potash byproducts, says chief executive Smai Leesakul.

APMC is seeking a foreign partner to help muster the large-scale capital needed to make magnesium-related items.

“The company is studying a project using magnesium, a byproduct of potash mining, to create value,” Mr Smai said.

Magnesium is used as a gilded cover on several types of auto parts and medical components.

“But APMC cannot do it alone, as it is a large investment needing huge capital of 30 to 40 billion baht, so we need a partner,” Mr Smai said, adding that Japanese and Chinese investors have expressed interest in the joint venture.

APMC was founded in 1991 with Asean members holding 29% of the ownership and Thailand’s Finance Ministry holding 20%. The remaining 51% is held by the private sector.

After getting a licence to start its potash project, APMC will hold a second public hearing on the environmental impact assessment of a 50-megawatt coal-fired plant to supply power to the potash mine, said company director Mongkol Jivasantikarn.

The second hearing is to be held this month after the first took place in May.

“Then the company will submit a report containing villager opinions for the approval of the Natural Resources and Environment Ministry,” Lt Gen Mongkol said.

The potash mine in Chaiyaphum spans 9,700 rai and contains potash reserves estimated at 430 million tonnes. The project has faced opposition from local villagers and activist groups for more than two decades.

APMC plans to build a mineral separation plant, drill two underground tunnels and perform general maintenance at a cost of 10 billion baht.

The company expects to produce 300,000 tonnes of potassium fertiliser in 2018, 800,000 tonnes in 2019 and a fullcapacity 1.1 million tonnes in 2020.