A major U.S. chemical manufacturer responsible for supplying materials crucial to United States defense efforts has filed for Chapter 11 bankruptcy following several environmental pollution disputes.
US Magnesium, North America’s largest producer of primary magnesium, filed for Chapter 11 bankruptcy protection Sept. 10, after Utah’s Division of Forestry, Fire & State Lands said it was seeking to terminate the company’s leases to operate along Salt Lake, Fox 13 reports.
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The move comes after the Utah Division of Forestry, Fire & State Lands raised concerns about how the company’s Rowley site is maintained and pointed out that hazardous materials could leak into the Great Salt Lake.
According to Fox 13, the state of Utah “engaged in settlement talks” with US Magnesium in late 2024 after FFSL filed a lawsuit accusing the company of putting the public and environment at risk from an “acid pond.”
The company entered Chapter 11 with about $200 million in liabilities, The Wall Street Journal reports.
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Environmental pollution red flags have plagued the company for years.
A 2023 study from the Cooperative Institute for Research in Environment Studies revealed the US Magnesium refinery along the Great Salt Lake produced “emissions of chlorine and bromine,” and a “significant” contributor to persistent “winter brown clouds.”
In a statement issued by US Magnesium last week, the company said it hopes the Chapter 11 filing will “[provide] a framework to preserve the value of our business, honor our commitments to employees and partners, and continue our longstanding commitment to environmental stewardship while being a key domestic supplier of critical minerals for many years to come.”