SALT LAKE CITY — Utah leaders announced the state has successfully won the bid to acquire key assets of the defunct US Magnesium facility on the Great Salt Lake, including its associated water rights and property. The winning offer, submitted by the Utah Division of Forestry, Fire and State Lands (FFSL), totals approximately $30 million and includes roughly 4,500 acres and plant infrastructure as the bankruptcy sale moves toward final closing.
Rep. Jason Thompson praised the move as a pivotal step to protect the Great Salt Lake, secure water for Utah’s future, and address long-standing environmental risks at the site.
“This is a huge win for Utah and for the Great Salt Lake,” said Rep. Jason Thompson. “We are taking control of assets that have been tied to major environmental concerns and, most importantly, we are securing water that can help keep the lake alive. This is exactly what responsible stewardship looks like.”
US Magnesium has been largely shut down since a catastrophic failure in 2021, but reporting shows it continued to pump large volumes of brine and groundwater from the lake system, including more than 52,000 acre-feet in 2024. The acquisition is intended to prevent further waste and strengthen Utah’s ability to manage and protect the lake.
As part of the purchase of US Magnesium’s assets, the state of Utah is acquiring up to 144,790 acre-feet of water rights, according to Utah Division of Water Rights records as reported by The Salt Lake Tribune.
“When the Great Salt Lake drops, Utah families feel it in real ways,” Thompson said. “It impacts air quality, wildlife habitat, and the economy along the Wasatch Front. This purchase is about protecting public health, our environment, and making sure these resources don’t end up in the wrong hands.”
State leaders have emphasized that details are still being finalized as the bankruptcy process concludes, including how water is formally dedicated to benefit the lake.
“Utahns have been clear: we want action that makes a measurable difference for the lake,” Thompson added. “This is one of the most meaningful steps we’ve seen, because it puts the state in control and creates a pathway for real restoration work.”