We present ab initio calculations of the formation of magnetic moments in a
large approximant to icosahedral Al-Pd-Mn quasicrystals. It is shown that
large magnetic moments can form on a small number of Mn sites characterized
by a loose coordination by Al atoms and some close Pd neighbors. d-d hybri
dization is shown to play an important role. [S0163-1829(98)04046-6].