A US company has said it has signed an agreement with a UAE firm for a feasibility study to set up a magnesium extraction plant in the UAE. Spectrum Technology said a confidentiality agreement had been signed and the process for organising the study had begun.

Officials from the UAE visited a manufacturing facility in Calgary, Canada. Investors in the project will pay for the cost of the study, which is expected to take four months to complete, Spectrum said without naming the UAE partner, according to the Khaleej Times.

"Having quality financial partners starting to invest with us in support of Pima technology is a significant milestone in the development of this technology," chairman Sam Higgins said.

Spectrum owns the rights to Pima (photonic ionisation, manipulation and augmentation) desalination technology that can economically and efficiently convert the salt water of the ocean into usable, pure water.

It said the financial and scientific advisers of the UAE investor group were impressed with the progress of the Pima pilot plant and the detailed scientific information, which was disclosed under the terms of the agreement.

Higgins said the desalination technology had been approved for importation by a Saudi Arabian science and engineering review panel. Negotiations were also being finalised with several Middle East government agencies and water companies.