Media Release
Dated: 14 August 2003

MIL appoints ABN-AMRO to co-ordinate expressions of interest for development of a power station at Port Pirie

Magnesium International Limited (MIL) is pleased to announce the appointment of ABN-AMRO to assist in the collection and review of expressions of interest (EOI) from parties for the development of a power station at Port Pirie in South Australia.

MIL was granted a Development Approval for its SAMAG magnesium smelter in 2001,. Under the terms of the Development Approval, SAMAG is permitted to construct a 400MW gas fired base load power station. The Port Pirie site is one of only a few sites in South Australia with a development approval in place for the construction of a power station.

Current projections indicate that there will be insufficient power generation capacity within South Australia by 2006/7, unless some new capacity is commissioned. Power requirements are currently rising in South Australia by over 60MW per year.

In the absence of an existing development approval, any company intending to construct a new power station would incur significant cost and time delays in obtaining a new development approval. MIL considers that the provision of a fully approved site for a base load power station is an extremely valuable asset.

MIL’s intention in issuing this invitation to submit EOI is to obtain an equity contribution towards its SAMAG magnesium project.

Formal documentation inviting submission of EOI have been sent to a number of pre-registered companies. EOI will continue to be sought as widely as possible. The deadline for submission of EOI is 27 August 2003.

A copy of the formal document inviting EOI can be found on MIL’s web-site: www.mgil.com.au or by contacting:

Darryl Smith
Magnesium International Limited
General Manager, Marketing & Commercial
Tel: 61 2 9252 1505
Fax: 61 2 9252 1507
Email: dsmith@mgil.com.au

or

Stephen Krust
ABN-AMRO Australia
Associate Director, Power & Utilities Group
Tel: 61 2 8259 5160
Fax: 61 2 8259 5411
Email: stephen.krust@au.abnamro.com