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Utah Moves to Buy U.S. Magnesium for $30 Million to Lock In Great Salt Lake Water Rights

The bankruptcy acquisition secures roughly 144,000 acre-feet for the lake, transferring pollution cleanup oversight to state agencies.

Overview

  • The Utah House voted unanimously to authorize the $30 million purchase, drawing on a previously established rainy-day account for water acquisitions.
  • State officials say closing is expected early next week after Utah won the Delaware bankruptcy auction, outbidding LiMag interests tied to the plant’s owner.
  • Assets include about 4,500 acres on the lake’s southwest shore and water rights roughly equal to the volume of Deer Creek Reservoir.
  • Regulators now take on remediation at a site flagged in a 2023 study for chlorine and bromine emissions and targeted in a 2024 state lawsuit over a potentially leaking waste pond.
  • Leaders indicate they may permit mineral extraction only with non‑depletive technologies as they align the site with broader lake-restoration efforts, including prior water-lease deals and the Compass Minerals agreement.