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Latrobe Magnesium closer to early revenue generation as flagship Stage 1 demonstration plant nears completion

Published 28/02/2024, 10:57 am
Latrobe Magnesium closer to early revenue generation as flagship Stage 1 demonstration plant nears completion
LMRMF
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Latrobe Magnesium Ltd (ASX:LMG, OTC:LTRBF)’s groundbreaking magnesium-producing Stage 1 demonstration plant in Victoria is well underway, with construction now 90% complete and an absence of any health, safety or environmental incidents.

The flagship demonstration plant will showcase the company’s innovation and its safety, and environmental stewardship, and has already set a promising outlook for its future operations.

This project is on track for completion by month’s end and to start magnesium oxide (MgO) production in the near future, which will demonstrate the viability of LMG's patented process and generate early revenue.

Well-advanced

Major structural, mechanical and electrical installations are well advanced, with the recent addition of an MgO Bagging Plant, which is now installed and nearing commissioning.

The project's engineering and procurement sectors report continuous vendor closeout and commissioning handover documentation to LMG.

LMG's focus is now on fast-tracking the construction of plant areas essential for producing bulk bags of MgO for customer sales. This phase precedes the production of magnesium metal – the company’s first aim is to validate its innovative hydromet process and the value of its intellectual property.

Construction efforts have been bolstered by a daily workforce of more than 60 local tradespeople, supported by major local contractors.

The site construction team on the job.

These teams have been instrumental in completing major civil works and installing critical equipment such as tanks, pumps and the spray roaster – key to the project's critical path.

With all three major switch rooms energised and the commissioning of the process control system (PCS) underway, the project's utilities area is poised for 100% completion by the end of February.

Commissioning phase

The commissioning phase is advancing, with efforts on the fly ash handling area and air and water utilities area, ensuring the plant's readiness for Stage 3 wet commissioning.

Despite occasional delays due to hot weather, the project schedule remains on track, with a focus on interim MgO production.

Main image: The demonstration plant's spray roaster, structurally and mechanically installed.

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