Latrobe Magnesium (LMG) is constructing a 1,000 tonne per annum (tpa) demonstration production plant in Victoria’s Latrobe Valley using a proprietary patented combined hydromet / thermal reduction process. Using this world-first, low cost, low emission process, the plant will harvest magnesium metal and other valuable by-products from a fly ash resource – a waste stream from brown coal power generation.

Following a successful feasibility study and project financing, development of the demonstration plant at LMG's Hazelwood North site is well underway including engineering, purchasing of equipment and construction works. The first magnesium production is due 2024.

With successful operation of the demonstration plant, LMG will develop a full-scale commercial 10,000+ tpa plant in the Latrobe Valley. LMG has also awarded a Pre-Feasibility Study (PFS) for a 100,000 tpa international mega plant processing ferronickel slag to global experts Bechtel.

LMG's demonstration and commercial plants are located at the centre of Victoria’s coal power generation region providing direct access to current and historic fly ash feedstock, a skilled workforce and key energy and transport infrastructure. LMG purchased and is developing an an 11-hectare site with 14,000 m² of buildings, and is negotiating with potential local renewable energy providers to power its plants.

Demand for magnesium worldwide is growing. Magnesium has the best strength-to-weight ratio of all common structural metals and is increasingly used in the manufacture of products such as car parts, laptop computers, mobile phones and power tools as well as in the aluminium and steelmaking industries. Australia currently imports all of the 8,000 tonnes of magnesium it consumes annually.

LMG's projects are at the forefront of environmental sustainability as the plants will safely convert almost 100% of the potentially hazardous fly ash waste into valuable commodities. The CO₂ emissions are estimated to be 50% less than overseas magnesium production plants. Moreover, the strong, lightweight magnesium produced enables further environmental benefits such as the development of electric vehicles.