Latrobe Magnesium Ltd (ASX:LMG, OTC:LTRBF) continues to make progress in constructing its 1,000 tonnes per annum magnesium demonstration plant in Victoria’s Latrobe Valley, with the focus currently on fast-tracking areas required to produce one-tonne bulk bags of magnesium oxide (MgO) for sale to customers.
The MgO bagging plant is scheduled to be completely fabricated and ready for delivery to the site next month.
In a project update, LMG chief executive officer David Paterson said its MgO production strategy was on track, with construction labour expanded to more than 50 local trade contractors engaged onsite.
Adding workforce
“Overall, the project strategy remains on track with slight impacts on magnesium metal production timing as a result of ongoing pressure on labour availability,” he said.
“LMG is starting to liaise with government agencies and employment groups to identify workforce opportunities for workers from downsizing industries such as paper manufacturing and power generation.
“LMG is looking to add value to the local region by providing employment opportunities for redundant workers to regain employment and remain in the region they live.
“LMG will be commencing the employment process early next year with more information in next month's project update.”
Steady progress
The primary civil and concrete works have been completed with only localised miscellaneous concrete foundations and pedestals remaining.
Meanwhile, the engineering and procurement team is actively involved in supporting the construction team to complete vendor closeout and commissioning handover documentation.
The procurement team will also support the construction phase by procuring necessary site consumables and mobile equipment as required.
Miscellaneous concrete footings in progress.
Structural, mechanical and piping
The installation of mechanical equipment is progressing well, with the erection of the steelwork for the spray roaster completed and the ferrosilicon and magnesite hopper and bag breaker units nearly finished.
Installation of the exhaust stacks in the hydromet area has also been completed while the installation of pipes is progressing well.
The Coregas team has completed the installation of the equipment required for the supply of industrial gases for the plant, which includes the oxygen and carbon dioxide tanks, along with Argon cylinder man-pack facility, ready for commissioning.
The Origin team has completed the LPG storage facility, including the installation of the 120,000 litre LPG bullet, designated fill point and underground portion of the LPG pipeline.
Coregas oxygen and carbon dioxide system installed.
Electrical and instrumentation
Work here has reached an advanced stage, with cabling completed for all three main switchrooms and the main switchboard.
The team is engaged in constructing local junction boxes, local control stations and progressing with instrumentation cable pulls.
The removal and installation of the new main switchboard are scheduled for completion later this month.
Innovative extraction process
LMG is developing a magnesium production plant in Victoria's Latrobe Valley using its world-first patented extraction process.
The company intends to extract and sell magnesium metal and cementitious material from industrial fly ash, which is currently a waste resource from Yallourn brown coal power generation.
Its low CO2 process can address potentially hazardous waste stockpiles and produce valuable products with downstream environmental benefits.
LMG has completed a feasibility study validating its combined hydrometallurgical/thermal reduction process that extracts the metal.
Construction has commenced on the Stage 1, initial 1,000 tonne per annum magnesium plant with commissioning targeted to commence end of the first quarter of next year.
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