Latrobe Magnesium Limited (ASX:LMG) selects Malaysia for its 100,000tpa magnesium plant

• Latrobe Magnesium (LMG) selects Samalaju Industrial Park in Sarawak, Malaysia as the preferred location for its 100,000-tonne-per-annum magnesium plant project
• LMG says the Samalaju Industrial Park will use hydroelectric power generation, allowing the company to operate with 100 per cent renewable energy
• The project is approved for a 40-hectare site, with preparations to commence following land application approvals and pre-feasibility studies
• This opportunity positions the company to become the world’s cleanest and largest magnesium producer by volume
• LMG shares are down 1.64 per cent, and trading at six cents at 1:55 pm AEDT

Latrobe Magnesium (LMG) has selected Samalaju Industrial Park in Sarawak, Malaysia as the preferred location for its 100,000-tonne-per-annum magnesium plant project.

LMG said the Samalaju Industrial Park offered “significant benefits” due to its presence of hydroelectric power generation, allowing LMG to operate with 100 per cent renewable energy.

The company said it plans to operate with net zero emissions once the plant is commissioned.

Following discussions with ministry officials and authorities in the Sarawak Government and the Bintulu Development Authority, the project has been approved for a 40-hectare site location.

The company plans to conduct phase B of its pre-feasibility study to estimate its financial return based on revenue and location cost at the selected location.

The park was chosen for its substantial industrial employment base, paired with high amounts of ferrosilicon producers, which are significant reagent requirements.

The park also contains a substantial modern bulk handling port, which is suitable for importing and exporting up to seven million tonnes per annum of bulk products, with the capacity to expand to 18 million tonnes per annum.

LMG said it plans to commence the land application process to secure the land as soon as possible.

This opportunity positions the company to become the world’s cleanest and largest magnesium producer by volume.

LMG shares were down 1.64 per cent, and trading at six cents at 1:55 pm AEDT.