Ragnhild Kjetland is a documentary photographer and writer with 11 years experience as a financial news reporter for Bloomberg, Dow Jones International and AFX News in Frankfurt, London and Oslo. Ragnhild has covered the technology, banking, pharmaceutical and chemical industries, as well as the Norwegian economy and oil industry. She has also worked as a freelance reporter for Norwegian radio and print press in Japan, South Africa, Zimbabwe, Switzerland and Uzbekistan. Ragnhild writes about the copper and magnesium markets for the Investing News Network. She has a Master’s degree in international journalism from City University in London and most recently studied photography at the New York Film Academy. She currently resides in Haugesund, Norway.
Magnesium has been an essential component in making cars lighter for nearly a hundred years. Now General Motors is patenting a new process that will make it an alternative to parts previously made with heavier metals like aluminum, titanium and steel. The result will be a significant reduction in fuel costs.
China’s removal of its export tax on magnesium may be good news for some customers — such as car makers looking to improve fuel efficiency — but it has thrown the economic viability of Gossan Resources’ magnesium project into question.
Magnesium consumption slumped in Europe last year, largely due to automotive industry plant closures and a precipitous drop in car sales. But while the European economy is still struggling, there are hopes that it may start recovering in the second half of 2013. China’s removal of its magnesium export tax should also help demand.
China has dropped its export tax on magnesium, spurring optimism that demand from car makers, the consumer electronics industry and steelmakers will increase. Such demand could in turn push producers of the metal to ramp up production.