Latrobe Magnesium Ltd (ASX:LMG, OTC:LTRBF) has made strong progress during the construction of its 1,000-tonne-per-annum magnesium demonstration plant in Victoria’s Latrobe Valley - targeting first magnesium production in March 2024.
The company’s magnesium oxide (MgO) production strategy is on track with construction labour expanded to more than 40, with local trade contractors engaged onsite,
LMG is developing a magnesium production plant 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.
MgO strategy
The project is currently focused on fast-tracking the construction of key areas, including ash handling, leaching, pyrohydrolysis, and magnesite, to produce one-ton bulk bags of MgO, an intermediate product for customer sales, prior to the production of magnesium metal.
The purchase of the MgO bagging plant and other essential components for pneumatic piping delivery is now complete, with this equipment being expedited through to fabrication.
This strategy is devised to generate both earlier revenue and familiarise the operations teams with the patented hydromet process.
This approach will validate LMG’s intellectual property, particularly in extracting magnesium metal from brown coal fly ash and creating saleable byproducts, reinforcing the company’s value to all shareholders, investors, the community, the government and all stakeholders.
Spray roaster reactor vessel installation
The primary structural mechanical piping (SMP) focus of the work fronts has been the completion of the steel erection for the spray roaster, a critical path of the project.
The erection has proven to be intricate with the SMP team erecting preassembled platforms and stair tower modules lifted into place as larger segments to expedite installation time.
The structural steelwork erection has been successfully completed, allowing for the positioning and installation of the spray roaster reactor vessel in its designated location.
Subsequently, additional preassembled platforms will be installed on top of the vessel.
This progress has now paved the way for the commencement of piping and electrical work, commencing with the installation of pipe and cable tray supports and concluding with pipe installation and equipment termination.
Concurrently, the installation of mechanical equipment, including tanks, pumps, blowers, fans, absorber towers, and stack, is in progress.
Schedule
The schedule, as reported in last month’s update, remains on course.
The company says that persistent challenges have arisen but are actively addressed to maintain the schedule.
The emphasis on interim MgO production, prioritising the installation of the spray roaster, remains the focus and is the critical path to the schedule.
Despite this shift, the company's target for first magnesium production in March 2024 remains unchanged.