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 industrial ash – a waste stream from brown coal power generation.

Following a successful feasibility study validating its combined hydrometallurgical / thermal reduction process, the Demonstration Plant, at LMG's Hazelwood North site, has now produced magnesium oxide with the full plant being commissioned in the calendar year 2025.

With successful operations, LMG will develop a Commercial Plant, with a capacity of 10,000 tpa of magnesium metal, targeted for completion by the second half of calendar year 2027. LMG will sell the 10,000 tpa of refined magnesium metal under long-term contracts to LMG's US based distributors.

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 has developed an 11-hectare site with 14,000 m² of buildings.

LMG is also developing an International ‘Mega’ Plant in the state of Sarawak, Malaysia, which will produce 100,000 tpa of magnesium metal via its wholly owned subsidiary company Latrobe Magnesium Sarawak Sdn Bhd. LMG has completed the first phase (PFS-A) of a pre-feasibility study using Ferronickel Slag feedstock with global experts Bechtel.

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 in the automotive, aerospace, medical, electronics industries as well as in aluminium alloying and steelmaking. Moreover, the strong, lightweight magnesium produced enables further environmental benefits such as the development of electric vehicles.

LMG's projects are at the forefront of environmental sustainability and ESG best-practice by recycling 100% of power plant waste tailings, avoiding landfill, and encouraging circular economies. The CO₂ emissions are estimated to be 50% less than overseas magnesium production plants.

Australia currently imports all of 8,000 tonnes of magnesium it consumes annually.