HiTech Minerals produced 93.4% MgO from McDermitt ore, converting a waste stream into a potential by-product. The U.S. lacks domestic magnesium supply; further work will assess viability.
HiTech Minerals, a subsidiary of Jindalee Lithium (ASX: JLL), produced high-purity magnesium oxide from ore at the McDermitt lithium project in Oregon. The testwork converted a magnesium stream previously treated as waste into MgO grading 93.4%, with conversion rates reaching 99.95% in the calciner.
Two processing routes were tested by Kemetco Research. The first added carbonates to precipitate magnesium carbonate, followed by calcination. The second crystallized hydrated magnesium sulphate, then thermally converted it to anhydrous MgSO4 before a reductive calcination stage. Both methods delivered MgO grades above 93%, the company said.
McDermitt holds a substantial magnesium endowment. Earlier pre-feasibility work showed magnesium could be extracted alongside lithium at up to 97.2% recovery using sulphuric-acid leaching. That study assigned no revenue credit to the magnesium stream. The latest results are a proof of concept for turning it into a potential by-product.
The U.S. has no domestic primary magnesium producer. US Magnesium LLC, the last such producer, ceased operations in 2022 and filed for Chapter 11 bankruptcy protection in September 2025. China controls roughly 90% of global magnesium supply, according to the company. Magnesium is used in aluminum alloys, automotive lightweighting, aerospace components, titanium production, steel desulfurization, and military flares. The metal is ranked in the highest risk category on the U.S. Geological Survey's 2025 draft critical minerals list and is also on the Department of Energy's Critical Materials List.
Ian Rodger, chief executive of Jindalee and incoming CEO of US Elemental, said the work shows a pathway to a higher-value product. "It is too early to draw concrete conclusions on commercial viability or Project economics," he said in a statement. The next phase will focus on completing work to decide whether a magnesium by-product will be incorporated into the upcoming McDermitt feasibility study.
Jindalee has commissioned independent market analysis to guide its magnesium product strategy. That work identifies MgO as a logical first target. Magnesia is the largest magnesium compound market by volume, spanning refractory and industrial uses. The U.S. is a net importer, the analysis noted.
The company also sees potential to assess reagent recycling and introduce a material magnesium by-product credit, reducing long-term waste storage requirements and associated costs. No commercial viability or economic benefit has been established, the release cautioned.
US Elemental will hold the McDermitt project and the Clayton North project in Nevada after the proposed business combination between HiTech Minerals and Constellation Acquisition Corp I closes. The combined company expects to list on Nasdaq under the ticker ULIT. Jindalee Lithium (JLL) owns 100% of McDermitt with unencumbered offtake rights.
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