Abstract: In a process for producing anhydrous magnesium chloride, the following combination of steps: drying impure salt containing hydrated magnesium chloride; establishing a solution of the hydrated magnesium chloride; removing insoluble impurities; reacting the solution of hydrated magnesium chloride at substantially ambient temperature and pressure by feeding it into an ammonia saturated very low boiling point alcohol solution and in the presence of ammonium chloride while maintaining the last-mentioned solution saturated in ammonia thereby to form a precipitate of ammoniated magnesium chloride; separating the precipitate and heating it to obtain anhydrous MgCl.sub.2 and ammonia for recycling.