Latrobe Magnesium - turning residual ash into useful magnesium metal

Smart Efficient and Environmentally Responsible

COMPANY SUMMARY

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 feasibility study has been successfully completed which commercially justifies developing the project.  Ordering of the plant is due to start in August 2020, with first magnesium production due eighteen 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 has entered into an MOU with a Japanese company and an offtake agreement with a United States distributor to sell the initial plant 3,000 tpa production and a significant part of its 40,000 tpa expanded plant’s production. The United States magnesium price is approximately twice the China price mainly due to an anti dumping duty.

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 8,000 tonnes it consumes.

The project is at the forefront of environmental sustainability as it converts 100% of the power plant waste into valuable commodities.  The CO2 emissions are some 50% less than comparable plants.

INVESTMENT HIGHLIGHTS

  • Minimum 20 year plant life at full production available from Latrobe Valley fly ash.
  • RWE fly ash bigger than the Latrobe Valley fly ash.
  • 1,000k tonne annual worldwide magnesium consumption.
  • World-first magnesium extraction process from fly ash.
  • Production facility due for completion in third quarter of 2021.
  • 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: 07/06/2017