The agreement includes the construction of a haul road from the South Australian mine site to the Telford rail siding at Leigh Creek, as well as provisions for employment opportunities, administration payments, environmental protection, local business opportunities and a once onlyup-front payment in lieu of ongoing royalty payments.

SAMAG is planning an annual production of 52,000 tonnes per annum of magnesium metal or alloy from a plant to be located at Weeroona, 8km north of Port Pirie. The feedstock is a 516 million tonne magnesite deposit north-west of Leigh Creek.