^ Wiki says it does react to water but not at plasma temperatures:
It tarnishes slightly when exposed to air, although, unlike the heavier alkaline earth metals, an oxygen-free environment is unnecessary for storage because magnesium is protected by a thin layer of oxide that is fairly impermeable and difficult to remove.
Magnesium reacts with water at room temperature, though it reacts much more slowly than calcium, a similar group 2 metal. When submerged in water, hydrogen bubbles form slowly on the surface of the metal – though, if powdered, it reacts much more rapidly. The reaction occurs faster with higher temperatures (see safety precautions). Magnesium's reversible reaction with water can be harnessed to store energy and run a magnesium-based engine. Magnesium also reacts exothermically with most acids such as hydrochloric acid (HCl), producing the metal chloride and hydrogen gas, similar to the HCl reaction with aluminium, zinc, and many other metals.
Magnesium is highly flammable, especially when powdered or shaved into thin strips, though it is difficult to ignite in mass or bulk. Flame temperatures of magnesium and magnesium alloys can reach 3,100 °C (5,610 °F), although flame height above the burning metal is usually less than 300 mm (12 in). Once ignited, such fires are difficult to extinguish, because combustion continues in nitrogen (forming magnesium nitride), carbon dioxide (forming magnesium oxide and carbon), and water (forming magnesium oxide and hydrogen). This property was used in incendiary weapons during the firebombing of cities in World War II, where the only practical civil defense was to smother a burning flare under dry sand to exclude atmosphere from the combustion.
Magnesium may also be used as an igniter for thermite, a mixture of aluminium and iron oxide powder that ignites only at a very high temperature.
In general, you shouldn't reply to old threads. This one's two weeks old and, judging by the user's activity, I doubt they'll respond.
But on the off chance...
What would be the element's purpose? We already have elements that ignite by contact with water and elements that burn with plasma. The developers are quite critical when it comes to adding new elements, especially when their purposes can be replicated through existing ones or when they don't have much foundation.
If you want to play with magnesium, there are many existing Lua scripts that have it. If none satisfy you, you could even write your own! The Wiki has a tutorial on how to do that, and other users are likely to help you.