- Latrobe Magnesium (LMG) has received the final approval to develop its magnesium production plant in Victoria’s Latrobe Valley
- The approval was granted by the Environmental Protection Authority, which assessed the company’s research and demonstration of the site, as well as its development to-date
- As part of the approval Latrobe Magnesium is authorised to operate the plant for up to 18 months, beginning once the site is commissioned
- Once complete, the site could produce up to 3,000 tonnes per annum from reprocessed coal waste, and the company hopes to eventually expand production to up to 40,000 tonnes per annum
- Latrobe Magnesium closed 27.3 per cent in the green for 2.8 cents per share
Latrobe Magnesium (LMG) has received its final approval to develop its magnesium production plant in Victoria’s Latrobe Valley.
The approval was granted by the Environmental Protection Authority, which assessed the company’s research and demonstration of the site, as well as its development thus far.
As part of the approval Latrobe Magnesium is authorised to operate the plant for up to 18 months, beginning once the site is commissioned.
However, the approval arrives with a series of conditions, which will need to be met before construction and commissions of the plant can commence.
If all conditions are met, the company plans to begin construction in October this year, with production expected by 16 months later.
Latrobe Magnesium hopes to expand production to 40,000 tonne per annum after a year of successful operations.
Currently, Australia imports all of its magnesium and Latrobe hopes to benefit from producing a home-grown product to compete with overseas suppliers. Beyond Australia, Latrobe Magnesium also hopes to sell refined magnesium through long-term contracts in the U.S. and Japan.
Once complete, the site could produce up to 3,000 tonnes per annum from reprocessed mining waste, which the company hopes will generate new jobs in the region.
The plant would use Latrobe Magnesium’s patented extraction process, transforming industrial fly ash, produced from coal power stations, into sellable magnesium metal and cementitious material.
In an effort to source its fly ash from Latrobe’s long-running coal industry, the company successfully struck a 10-year supply agreement from the nearby EnergyAustralia Yallourn facility.
Latrobe Magnesium closed 27.3 per cent in the green for 2.8 cents per share.