Latrobe Magnesium draws $10m funding for demo production plant
Construction of Latrobe’s magnesium plant remain on schedule with over 46% of engineering completed and half of the equipment packages tendered to the market.
Latrobe Magnesium (ASX: LMG) has drawn the first $10 million advance of a $23 million financing facility for its proposed demonstration production facility in Victoria.
The funds will enable the company to enter into agreements for long-lead capital items including a spray roaster and furnace.
These two items represent approximately one third of direct equipment purchases for the plant.
The second $10 million advance is due to be drawn by the company by the start of September.
Construction on schedule
Activities for construction of Latrobe’s magnesium plant remain on schedule with over 46% of engineering completed and half of the equipment packages tendered to the market.
Piping and instrumentation diagrams are being revised to incorporate recent hazard and operability analysis (HAZOP) findings while electrical engineering has commenced with design of a power distribution and control system.
Work is also being done to advance the 3D modelling of piping layouts across the plant.
Construction of the car park is progressing with excavation, crushed rock placement and kerbing completed and final asphalt paving due to be finished later this month.
The plant’s security gatehouse will be installed this month and associated works are being finalised in preparation for contractors to mobilise to site.
Procurement packages
Latrobe’s engineering teams have been focused on developing procurement packages with 13 major equipment tenders already issued including the briquetting plant, filters and pumps, evaporator, thickeners and agitators, non-metallic tanks and a cooling tower.
A further six packages are under development, representing 42% of the equipment packages planned for the project.
Latrobe has supported a strengthened procurement process to include a broader tender list, early supplier engagement, open supplier communication and minor scope package reviews.
The approach will ensure competitive tender packages are received and evaluated and critical equipment is delivered on time.
The company has also started the process of engaging a logistics and freight forwarding partner for the project’s construction and operation phases in an effort to mitigate current global supply chain challenges.