Utah Buys U.S. Magnesium Plant to Boost Great Salt Lake Water Levels

State lawmakers approve $30 million to acquire bankrupt mineral extraction company's assets and water rights.

Jan. 28, 2026 at 5:55pm

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In a swift move, the Utah state legislature has approved $30 million to purchase the bankruptcy assets of U.S. Magnesium, a mineral extraction plant located on the shores of the shrinking Great Salt Lake. The acquisition will allow the state to take control of the company's water rights and divert that water back into the lake, which has been experiencing a severe environmental crisis due to declining water levels.

Why it matters

The Great Salt Lake has been steadily drying up in recent years, posing a major threat to the local ecosystem and air quality. By acquiring the U.S. Magnesium plant and its water rights, Utah lawmakers hope to boost the lake's water levels and stave off further environmental damage. This strategic purchase is seen as a significant step in the state's efforts to address the crisis facing the Great Salt Lake.

The details

The $30 million purchase will give the state control over U.S. Magnesium's bankruptcy assets, including its mineral extraction operations and water rights. The company, which went bankrupt last year, had been one of the largest polluters in Utah and the western U.S. The state plans to use the acquired water rights to divert an estimated 144,000-acre feet of water back into the Great Salt Lake, roughly the size of Deer Creek Reservoir. While the state will take on the responsibility of cleaning up the site, it may also allow for continued mineral extraction using new, less-depleting technologies to help fund the cleanup efforts.

  • On Tuesday, the Utah Division of Forestry, Fire & State Lands won a bid for U.S. Magnesium's assets in a federal bankruptcy court in Delaware.
  • By Monday, the state of Utah is expected to officially own the bankruptcy assets of U.S. Magnesium.
  • On Saturday, hundreds are expected to rally at noon on Utah's Capitol Hill in support of the Great Salt Lake.

The players

Utah Division of Forestry, Fire & State Lands

The state agency that won the bid for U.S. Magnesium's bankruptcy assets, paving the way for the state to acquire the company's water rights.

U.S. Magnesium

A mineral extraction company that went bankrupt in 2025, idling its operations on the shores of the Great Salt Lake. The company had been one of the largest polluters in Utah and the western U.S.

Joel Ferry

The executive director of the Utah Department of Natural Resources, who acknowledged the significant environmental obligations associated with the U.S. Magnesium site but saw the state's acquisition as an opportunity to start the cleanup process.

Chandler Rosenberg

An environmental advocate with the group Stewardship Utah, who called the state's purchase of the U.S. Magnesium assets "one of the biggest things the state of Utah has done for air quality and the lake."

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What they’re saying

“Seriously amazing. I was not expecting this at all. If this does happen? I think this will be one of the biggest things the state of Utah has done for air quality and the lake.”

— Chandler Rosenberg, environmental advocate, Stewardship Utah (FOX 13 News)

“This is not a small thing. This is a major thing. We do need to continue to focus on how we're going to get additional water to the lake. The fact that we could see this water protected, remaining in Great Salt Lake for a long time, is fantastic.”

— Chandler Rosenberg, environmental advocate, Stewardship Utah (FOX 13 News)

What’s next

The state's Department of Natural Resources and Department of Environmental Quality must now deal with the cleanup of the U.S. Magnesium site, which has been historically one of the largest polluting companies in Utah and the West. The state could still allow for continued mineral extraction at the site using new, less-depleting technologies to help fund the cleanup efforts.

The takeaway

Utah's swift action to acquire the bankrupt U.S. Magnesium plant and its water rights demonstrates the state's commitment to addressing the environmental crisis facing the Great Salt Lake. By diverting this significant amount of water back into the lake, lawmakers have taken a major step towards preserving this vital natural resource and the surrounding ecosystem.