The United States' largest magnesium producer, US Magnesium, filed for bankruptcy in September, leaving behind over $100 million in environmental cleanup costs at its Rowley plant near Utah's Great Salt Lake. The facility, a Superfund site since 2009, has a history of releasing toxic waste, including acidic wastewater and hazardous chemicals. State and federal regulators are pushing for liquidation to ensure accountability, amid disputes over ongoing remediation efforts.
US Magnesium's Rowley plant, located along the western shore of the Great Salt Lake, ceased magnesium production in late 2021 but continued limited operations producing salts for road ice and dust suppression. The company, owned by New York-based Renco Group, faced repeated citations from the Environmental Protection Agency (EPA) and Utah Department of Environmental Quality for air quality violations, inadequate water monitoring, and failures in environmental cleanup since its operations wound down.
The plant's environmental issues date back to the 1990s under a previous Renco subsidiary, Magnesium Corporation of America (MagCorp). An EPA inspection in January 2001 revealed severe contamination, including an unlined canal dubbed the 'Red River' carrying highly acidic waste, and unpermitted dumping of sludge containing lead, arsenic, and chromium. MagCorp filed for bankruptcy in August 2001, selling assets to US Magnesium despite federal objections. The site was added to the National Priorities List as a Superfund site in 2009, leading to a consent decree in 2021 that required measures like a barrier wall to prevent pollution from reaching the lake.
Geology professor Bill Johnson, who advised on the Superfund cleanup since 2013, described witnessing bubbling acidic wastewater ponds that corroded soil and barriers, spilling onto public lands. He warned of potential acidic groundwater plumes migrating toward the lake, based on limited monitoring wells along the 4-mile waste pond boundary. The EPA estimates cleanup costs exceed $100 million, while the company disputes this and claims significant remediation has occurred.
In December 2023, Utah sued US Magnesium to revoke its mineral lease and appoint a receiver to monitor the site, citing an unfinished berm and unpermitted toxic waste lagoon near the lakebed. US Magnesium president Ron Thayer asserted in an email that discussing legal matters is inappropriate and denied owing unpaid royalties or exaggerated cleanup costs. The company proposed auctioning assets to affiliate LiMag Holdings, LLC, but regulators oppose it, arguing it evades obligations and mirrors a 2001 bankruptcy tactic. They seek Chapter 7 liquidation to prioritize environmental claims over creditors, including $95.4 million in debts and $7 million in unpaid Tooele County taxes.
Lynn de Freitas, executive director of FRIENDS of Great Salt Lake, called the site a 'contaminated blot on the landscape' belonging to all Utahns. Environmental law professor Brigham Daniels noted the conflict between Superfund and bankruptcy laws, leaving the resolution uncertain as proceedings continue in Delaware court.
