I suggest that you can consult Prof. Diego Carou on ResearchGate, who is an expert in "Machining of Mg and Mg alloys".
In book ( "Traditional Machining Processes - Research Advances", edited by J. Paulo Davim):- please see Chapter 5:- "Machinability of Magnesium and Its Alloys: A Review", Diego Carou, Eva M. Rubio, J. Paulo Davim, Traditional Machining Processes, (Materials Forming, Machining and Tribology Series), 2015, pp 133-152 (Springer: DOI 10.1007/978-3-662-45088-8).
The physical and chemical reason of ignitability of small metal particles caused by increasing of their reaction ability to oxygen of air in comparison with large particles. The relation of surface area of particles to their volume is dramatically increasing in course of particle size diminishing.