Platts reported that Norsk Hydro and AMG Advanced Metallurgical Group of the Netherlands have entered into an agreement to develop new technology for the production of silica and magnesium.

As per report, AMG and Hydro have formed a 50:50 JV called SilMag DA to further develop technology for the low cost production of magnesium and silica. SilMag plans to establish a pilot plant in Porsgrunn in early 2009 and upon completion of the pilot program, AMG and Hydro will jointly evaluate the decision to invest in a commercial scale production facility.

Mr Svein Richard Brandtzaeg executive VP responsible for technology development Hydro said that "This new technology may make it possible to produce magnesium at a significantly lower cost than current production methods and may limit the environmental issues associated with conventional production processes. In addition, this technology will also produce silica for various markets."

Mr Eric Jackson president of AMG's advanced materials division said that "Development of this specialty metals technology is consistent with AMG's strategy to focus on metallurgical innovations related to energy conservation."

AMG's advanced materials division develops and produces niche specialty metals and complex metals products, such as ferrovanadium, ferronickel molybdenum, aluminium master alloys and additives, chromium metal and ferrotitanium, used by steel, aluminium, chemical and super alloy producers for aerospace, automotive, energy, electronics, optics, chemicals, construction and other applications.