Latrobe Magnesium Ltd (ASX:LMG, OTC:LTRBF) is set to begin a feasibility study (FS) for its Stage 2 Commercial Plant, which will produce 10,000 tonnes of magnesium annually in Victoria’s Latrobe Valley.
The FS is scheduled to start in mid-2024, following the successful completion of the pre-feasibility study phase A (PFS-A) by Bechtel for LMG’s Stage 3 International Mega-Plant in Malaysia, which will produce 100,000 tonnes annually.
LMG aims to secure all necessary regulatory approvals and complete the FS by the end of 2024.
The company recently raised $12 million to support the Demonstration Plant in producing magnesium metal and saleable by-products, showcasing the commercial viability of their full flowsheet.
LMG is advancing plans for the 10,000 tonnes per annum Commercial Plant, with a final investment decision expected by the end of the year.
Support for the FS
LMG has approached Bechtel to potentially support the FS for the Stage 2 Commercial Plant. This engagement will build on the relationship established during the PFS-A, where Bechtel and other consultants contributed.
Additionally, LMG has appointed Société Générale as the Sole Coordinator, Structuring Bank and Mandated Lead Arranger for the financing of the Latrobe Valley plant.
Bechtel is an engineering, construction and project management company that has completed more than 25,000 projects in 160 countries since 1898. It serves various sectors including Energy, Infrastructure, Manufacturing & Technology, Mining & Metals and Nuclear, Security & Environmental.
Developing magnesium production plant
Latrobe Magnesium is developing a magnesium production plant in Victoria's Latrobe Valley, employing a world-first patented extraction process.
The company plans to extract and sell magnesium metal and cementitious material from industrial fly ash, a waste product from Yallourn brown coal power generation.
A feasibility study has validated its combined hydrometallurgical and thermal reduction process for metal extraction. The demonstration plant has produced magnesium oxide (MgO), and the full plant is scheduled for commissioning in the third quarter of 2024.
Following this, a commercial plant with a capacity of 10,000 tonnes per annum will be developed, with completion targeted for the first quarter of 2026. This plant will be located in Victoria’s coal power generation precinct, ensuring access to feedstock, infrastructure, and labour.
LMG has secured long-term contracts for its 10,000 tonnes per annum of refined magnesium with its USA distributors. Currently, Australia imports 100% of its 8,000 tonnes annual magnesium consumption.
Magnesium is valued for its excellent strength-to-weight ratio and is used in manufacturing car parts, laptop computers, mobile phones and power tools.
The LMG project supports environmental sustainability by recycling power plant waste, reducing landfill and emitting low CO2, adhering to circular economy principles.