LATROBE MAGNESIUM MAKING PROGESS WITH THREE STAGE DEVELOPMENT PLANT PLANS Latrobe Magnesium (LMG) continues to make great progress on their flagship Magnesium Demonstration Plant in Latrobe Valley, Victoria, Australia. There has been no health, safety, or environmental incidents to date. Project activities remain on budget and all equipment packages fully awarded, with a total of $17.5M committed to over 35 suppliers around the world. Boosted by a recent $4.2 million capital raising, LMG is preparing to use the Company’s patented extraction process, which involves producing Magnesium Metal and Supplementary Cementitious Material (SCM) from industrial fly ash, a waste resource from Energy Australia’s Yallourn W brown coal generation Power Station. All HAZOP’s have been completed for the Demonstration Plant, with engineering nearing completion and focusing on managing vendors and suppliers during fabrication and equipment close-out. 103 Twenty-foot Equivalent Units (TEU) of equipment and 138 tonnes of freight have been delivered to Site, including components related to critical long lead equipment, achieving the targeted delivery schedule. External issues, such as recent changes in construction strategy and contractor negotiations have created risks in delivering the targeted outcomes in the given time. LMG is continuously undertaking project schedule reviews and optimisations, considering factors such as vendors, suppliers, and contractor timelines. Despite these difficulties, LMG is confident that the 1,000 tonne per annum Demonstration Plant will start operating by the end of the year. The next phase of the development involves constructing a Commercial Magnesium Plant in the Latrobe Valley with a capacity of more than 10,000 tonnes per annum, to operate for over 20 years with current fly ash supply, if the Demonstration Plant is proven successful. Stage 3, a Malaysian-based Mega Plant, in LMG’s development plan, is aiming to produce 100,000 tonnes of Magnesium metal using renewable energy to generate net-zero CO2 emissions. LMG anticipates the signing of non-binding memorandums of understanding (MoUs) with various potential international equity partners in Q4 2023. The MoUs will assist in obtaining commitments to help contribute funding in proportion to any new partners equity holdings in the project. Currently, Australia imports 100% of the 8,000 tonnes of magnesium annually disbursed by the industry. With the global magnesium market expected to grow at a Compounded Annual Growth Rate (CAGR) by 5.3% by 2028, these are encouraging signs for Latrobe Magnesium.
ADAA | NOVEMBER 2023 07