In a dramatic move, Australian Magnesium Corp. (AMC), the owners of dead burned, fused, and caustic calcined magnesia producer Queensland Magnesia Ltd (QMAG) announced on 13 June 2003 that its flagship Stanwell magnesium metal project is to be mothballed, the debt facilities cancelled, and hundreds of people laid off. In addition, there has been a major overhaul of AMC management with the appointment of an acting CEO. Only 5 percent of the 90,000 tpa Stanwell plant construction had been completed. The development highlights the fact that multimillion dollar projects can still easily fall apart, even after construction has already begun. In this case, the Stanwell costs spiralled out of control, the money ran out and a desperate search for a new partner failed.
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