Latrobe Magnesium boosting team numbers to meet updated project plans
Latrobe Magnesium (ASX: LMG) has commenced a recruitment campaign to help meet the requirements of its recently adapted timetable for stage 1 development of its magnesium production plant in Victoria’s Latrobe Valley.
The company recently announced a switch in the magnesium oxide (MgO) schedule to help improve its commissioning progress at the ground-breaking plant.
The Latrobe project team elected to adjust the execution strategy to allow it to focus on the delivery of the areas needed to produce magnesium oxide (MgO) as an initial product, prior to producing magnesium metal.
As a bonus to that change in the development schedule, Latrobe has already signed a Memorandum of Understanding (MoU) with Rainstorm Dust Control for the sale of magnesium oxide in the initial phase, as well as any excess MgO produced.
Fast-tracking magnesium oxide production
Latrobe’s new focus is on the completion of the areas identified as being necessary to produce magnesium oxide as soon as possible, including the ash handling, leaching, spray roasting and magnesite areas.
To help meet the acceleration of work in those areas, the company has contacted a number of recruitment firms, labour providers and government assistance agencies, while the project team is also initiating a recruitment campaign to bring the initial operations work force on board by the end of the year.
The project team is also making slight modifications to the flowsheet to install piping changes and installation of a bagging plant to produce one tonne bulk bags of magnesium oxide that can then be sold to customers.
Furnace commissioning schedule extended
Schedule adjustments made will also see the commissioning of the project’s reduction furnace area, the furnace automation and vacuum system moved to the second phase of the plant commissioning schedule.
This has been designed to allow operations personnel to familiarise themselves with the flowsheet whilst at the same time generating revenue.
The strategy also allows Latrobe to prove its patented hydromet process sooner. The new plant is designed around the company’s primary intellectual property where magnesium is extracted from brown coal fly ash.
The company’s Latrobe facility will recycle ash supply generated at the nearby Yallourn brown coal power generation facility in a major environmental boost for both projects.
Overall plant commissioning progressing
Meanwhile, Latrobe continues to make good progress in its plans to commence final plant commissioning early in the new year.
The company says it remains on target to complete construction by the end of December 2023 with Stage 3 commissioning targeted to commence in January 2024 and first magnesium production to begin in March 2024.
The site team has recently mobilised a workforce totalling 40 local trades comprising of fitters, welders, riggers, electricians, technicians, supervisors, completions workpack engineers and QA/QC inspectors to help with that process.
$12.6M R&D tax rebate
In further good news, the company’s research and development tax rebate has been calculated as being $12.6 million for the year ended 30 June 2023.
Latrobe has its activities registered with AusIndustry and has lodged its 2023 income tax return with the Australian Tax Office.
The rebate will be used to reduce its funding from RnD Funding Pty Ltd, which as at the end of 30 June 2023 was around $19.9 million.
The company has also signed a regional development grant agreement with the State of Victoria was signed for the provision of funding to support the demonstration plant.
A grant of $1 million payable in three instalments has been approved, with the first instalment of $250,000 was paid in late August and the second grant is now being processed and is expected to be received within the next month.