In 2006, the global magnesium consumption reaches 726,000 tons. According to some western industry analysts, the growth rate of the global magnesium consumption is expected to reach around 10% in 10 to 15 years. However, from the current development trend, this growth rate will be doubled, namely, 20% or even higher. Based on the growth rate, it is predicted that global magnesium consumption will achieve 1.4 million tons in 2010 and 10 million tons in 2020. But the global magnesium production capacity is only 1 million tons at present. Because of the fear of the low production cost in China, few investment will go to the magnesium smelting industry in the Western world. So the Pidgeon Process is called “Golden Investment Industry of the Third World”.

Dr. Lloyd M.Pidgeon, passed away at the end of 1999, who has invented the silicon thermal process. The world magnesium industry will remember his name for his immeasurable contributions to the magnesium applications in the world. But 10 years ago, many westerners scoffed at the process and believed that compared with the Electrolytic Process, it is difficult to be expanded in capacity, to control the pollution and high energy consumption. After 10 years' development and competition, China magnesium industry attained overall victory. More than 10 western enterprises closed down, and the last western Pidgeon Process plant was also shut down in 2006. And Chinese magnesium industry is creating more and more huge enterprises continually. The biggest Chinese magnesium plant has achieved 130,000 tons per year of smelting capacity. And there will be 20 enterprises with over 10 thousand tons of capacity at the end of 2007. The development and upgrade of the Chinese magnesium industry has proved that the energy consumption of the Pidgeon Process could be largely decreased. There are still spaces for further energy conservation and consumption reduction. What's more, the pollution could be completely controlled.

The Pidgeon Process has been rooted in China since 1970's and rapidly developing in the middle & later half of the 1990's. Now only Zunyi Titanium Co., Ltd., specialized in sponge Titanium production, is still running among the previous 3 domestic Electrolytic magnesium plants. At the same time, the clever Chinese have updated and upgraded the Pidgeon Process and ambient facilities, as enhances its production efficiency and improve the environment performance as well as production cost.

How could the Pidgeon Process develop so successfully in China?

Firstly, it suits the country's actual conditions. Since the end of the 1970's, China experienced stable politic situation and rapid economy development. Before the middle of the 1990's, the lasting high international magnesium price catalyzed investment in the Pidgeon Process magnesium smelting projects in China.

Secondly, there is no patent charge of the Pidgeon Process and the threshold for the industry is much lower compared with other processes.

Thirdly, the short construction and expansion cycle, as well as the easily acquired equipments are advantages of the Pidgeon process. Take a 10,000 tons of a magnesium plant for instance, from the feasibility research, on-site inspection, construction and trial production to commercial production, the period is around 1 year. It is definitely a good project for releasing domestic surplus capitals, which require little investment with short and quick return of the investment.

Moreover, the Pidgeon Process has lower requirements to its raw materials. Unlike the Electrolytic or other processes, the availability and economy of raw materials are big problems, which resulted in additional costs and huge investments. The Pidgeon Process is made from dolomite, which is abundant in China.

So whether the successful experiences of Pidgeon Process in China can be duplicated?

The answer is positive if you have the following advantages. Firstly, you must have low-cost and abundant raw materials sources; On the other hand, coal/coke gas and ferrosilicon shall be easily found or easy to get from close markets.

Secondly, the construction materials include firebricks, earth, cement for rotating and erect kilns. Besides, you have to purchase briquette machines, foundry facilities, protection gas, waste heat boiler and so on. At the very beginning, these facilities could be exported from China.

Thirdly, the labor cost must be cheap. Otherwise, you won't be competitive with Chinese manufacturers. Another point we need to note is that, at present, China's central government is regulating the environment pollution and illegal employment, plus the cancellation of the exports rebates and more stringent bank loans, these measures will absolutely increase the production cost of China magnesium gradually.

Fourthly, an expertise team will be required for your feasibility report and loan application. Theorists of the Pidgeon process, engineers and experienced technicians can help a lot in arranging the schedule of your projects.

Lastly, as magnesium is an active explosive metal, the potential dangers must be kept away. The China's experience in this regard proves that the dangers could be eradicated if employees are trained appropriately and systematically. Besides, in the face-to-face competition with the Chinese manufacturers at each corner of the world, more knowledge you could get about the international magnesium market and international trade, the more successful you will be!

If you are close to dolomite, coal resources, and easily to get ferrosilicon, if the local employee salary is below USD 8 per hour, you are now in the edge of a metal magnesium project! And we are the professional team to provide you with services from feasibility study, market forecast, domestic current production situation and cost analysis reports. we have gained enough experience in over 10 home and two abroad smelting projects. Therefore, we strongly recommend us as the best magnesium project consultant team.
1. Consultant Group
Consisting a total of five professional members but with four different company background.They all have been watching the recent international and Chinese magnesium industry development, involved in the research and analysis work since 1990's, with profound and solid market knowledge and trend prevision.
2. Experts Team
Two senior professionals, really accompanying Chinese magnesium industry development from zero to No. 1 in the world, are founders of the 1st China's electrolytic process magnesium factory in the northeast of China. From 1970's, they were committed to study and extend Pigeon Process on magnesium production. Two other elder consultants who have deep understanding to the Pigeon Process application, energy saving and emission reduction issues.
3. Engineering Team
The team is formed with a chief and two assistant engineers, who led 12 new magnesium factories into being in Shanxi, Henan, and Ningxia provinces, despite several terminated operation due to later stringent environmental protection measures and rising production costs. Meanwhile, they are carrying out pre-stage investigation in Mongolia, who is favorably supported by the Chinese government with preferential loan policies for the time being. And now they are making investigations in North Korea and New Zealand.
4. Successful Projects