Sorry. I have no direct experience except knowing that it is sold as a fuel additive. Apparently it complexes with vanadium and other low melting poing slag forming materials, providing a high melting point, and hence dry ash.
I have been involved, some years ago now, in some demonstration work on roasting a waste material where sodium content was high. To prevent lumping due to viscous slags we added kaolin with some good results. Kaolin was cheap. We didn't consider refined MgOH. The source of the kaolin was important and I guess this will be true with the coal in your case. The minor impurities, in the kaolin, coal or MgOH, will have a big effect on the success of any additive. Also how/where it is injected.