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Trainhead,
I use a material that the building supply house calls concrete sand. I've always called it screenings or moon dust. I use gray and red. I have a framed window screen about 7 or 8 inches square. I just placed a magnet in the container, and there is no evidence of any magnetic metal. I would say it is safe for ballasting where magna-traction locos would be used. As I mentioned before, I don't screen out the powder when making my ballast loads, but for ballasting purposes, I would recommend it. Anyone planning on using a similar material and have magna-traction locos, a simple test with a magnet will determine if the product is suitable. One can be taken to the supply house before purchasing. 
Don
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