Latrobe Magnesium sets 2024 goals with Bechtel-led commercial plant feasibility study
Latrobe Magnesium (ASX: LMG) has initiated discussions with leading international engineering firm Bechtel to conduct a feasibility study for its 10,000 tonnes per annum commercial plant in Victoria’s Latrobe Valley.
Bechtel has been involved in some of the world’s largest projects including a number of major mining, oil and gas developments in Australia.
The feasibility study (FS) for LMG’s stage 2 plant is scheduled to commence in mid-2024 following Bechtel’s successful delivery of the pre-feasibility study phase A (PFS-A) for LMG’s Stage 3 100,000tpa international mega-plant in Malaysia.
Year-end target
Latrobe expects all relevant regulatory approvals and the delivery of the FS to be completed by the end of 2024.
The company has also appointed multinational corporate and investment bank Société Générale as the sole coordinator, structuring bank and mandated lead arranger with respect to the financing of the Latrobe Valley plant.
Run of good news
The latest development follows on from a string of recent good news for Latrobe, including a major milestone with the start-up of early-stage magnesium oxide (MgO) sales from its demonstration plant project.
Latrobe is using the bagging plant to help demonstrate its patented world-first hydromet process to all stakeholders.
The company is selling the MgO produced in the initial phase to Rainstorm Dust Control under an existing memorandum of understanding prior to the production of magnesium metal.
The company has also enjoyed a couple of financial windfalls in recent weeks with the receipt of up to $12.5m in research and development rebates from the federal government’s AusIndustry program and a successful $12m institutional placement.
The company has also announced plans to undertake a fully underwritten, non-renounceable entitlement offer to raise a further $6m.