Latrobe Magnesium Limited has signed an upgraded exclusive distribution agreement with Metal Exchange Corporation to sell the majority of its magnesium into North, Central and South America and the Caribbean markets. The contract will deliver excellent prices to LMG due to a US anti-dumping duty payable on magnesium imports from China. This 2019 initial agreement between the parties has been upgraded because of LMG's current expansion plans to its demonstration plant and expanded 10,000+ tpa capacity.

The agreement now includes: A minimum firm commitment of 8,000 tpa of magnesium; A minimum initial term with a rolling annual renewal; A minimum floor price for the purchase of the magnesium. North and Central America consume 160,000+ tonnes of magnesium per annum and this is projected to increase with greater use of magnesium by the motor vehicle industry. There is only one magnesium producer in the USA, which is currently undergoing a capital refurbishment and has been mostly out of commission since 2021.

Consequently, the majority of magnesium is imported. With exports from China banned for a period in September 2021, USA magnesium users have been searching for alternative magnesium suppliers. Some have moved away from primary high grade magnesium and turned to lower grade magnesium and recycling.

The US anti-dumping duty on imported China magnesium means that the USA magnesium price is frequently twice the FOB China magnesium price, mainly due to the anti-dumping duty placed on most imports from China of 141.49%. Under the US-Australia free trade agreement, magnesium produced in Australia is exempt from any import duty. LMG proposes to sell up to 80% of its production into the Americas.