Latrobe Magnesium - turning residual ash into useful magnesium metal

Smart Efficient and Environmentally Responsible


Latrobe Magnesium ( LMG) is working to develop a magnesium production plant in Victoria’s Latrobe Valley using a world-first process of combined hydromet / thermal reduction. Using a patented extraction process the magnesium plant will harvest magnesium metal from industrial fly ash – a waste stream from brown coal power generation.

A pre-feasibility study and an adjustment study have been successfully completed and a feasibility study to commercially justify the new technology started in September 2015. Ordering of the plant is due to start in the middle of 2016, with first magnesium production due twelve months later.

The plant will be located at the centre of Victoria’s coal power generation precinct providing direct and constant access to feedstock. The Company has secured an 11 hectare site with 14,000 m² of buildings.

Latrobe Magnesium will sell the refined magnesium product under long-term contracts to Australian and American users. Demand for magnesium worldwide is strong. It has the best strength-to-weight ratio of all common structural metals and is increasingly used in the manufacture of car parts, laptop computers, mobile phones and power tools.

Australia imports 100% of the 10,000 tonnes it consumes and Latrobe Magnesium will sell into the 869,000 tonnes annual global market, which offers a 10% premium to non-China suppliers. The project is at the forefront of environmental sustainability as it converts power plant waste into valuable commodities.


  • Minimum 20 year plant life at full production available from Latrobe Valley fly ash.
  • RWE fly ash bigger than the Latrobe Valley fly ash.
  • 869k tonne annual worldwide magnesium consumption & 10% premium for non-China suppliers.
  • World-first magnesium extraction process from fly ash.
  • Soon to begin bankable feasibility study.
  • Production facility due for completion in late 2016.
  • Increased demand for magnesium in car parts manufacturing: light weight and strong.
  • Environmentally sustainable venture: low CO2 emitter/recycling an industrial waste product.

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This page updated: 27/07/2015