Can the imaginary part of permeability be negative?

When new composite optical materials are developed experimentally or studied in numerical simulations, it is essential to have a set of fundamental constraints that the optical constants of such materials must satisfy. In this paper I argue that positivity of the imaginary part of the magnetic permeability may not be one of such constraints, particularly in naturally occurring diamagnetics and in artificial materials that exhibit diamagnetic response to low-frequency or static magnetic fields.