Latrobe Magnesium remains on track for Victorian pilot plant start-up in early 2024

Latrobe Magnesium (ASX: LMG) is accelerating development of its magnesium oxide (MgO) producing pilot plant in Victoria with a recent significant boost to its workforce.

Despite the ongoing pressure on labour availability being felt around Australia, the project’s site team has been increased to more than 40 local trade workers.

The additions to the development team include fitters, welders, riggers, scaffolders, electricians, instrument technicians, supervisors, technical assistants, completions work pack engineers, and quality assurance / quality control inspectors from two major local contractors.

Latrobe Magnesium is developing a unique magnesium production plant in the Latrobe Valley which will utilise a world-first patented extraction process.

The plant will feature the extraction and sale of magnesium metal and cementitious material created from an industrial fly-ash waste resource obtained from the nearby Yallourn brown coal power-generation facility.

Fast-tracking construction

After some recent delays largely related to labour shortage issues, the project is now focused on fast-tracking the construction of key areas within the plant, including ash handling, leaching, pyrohydrolysis, and magnesite, to produce one-ton bulk bags of MgO.

The company recently purchased an MgO bagging plant and other essential components for pneumatic piping delivery, with the equipment being expedited through to fabrication.

The new equipment purchase follows the recent decision to create an early cash-earning option to on-sell magnesium oxide.

Revenue benefits

The strategy will allow Latrobe to generate earlier than expected revenue with the added benefit of familiarising the operations teams with the company’s patented hydrometallurgical / thermal reduction process.

Latrobe’s chief executive officer David Paterson said this approach will also validate the company’s intellectual property, particularly in extracting magnesium metal from brown coal fly ash and creating saleable by-products.

Mr. Paterson says Latrobe’s target for the first magnesium production in March 2024 remains unchanged.

Project development breakthroughs

The project’s core engineering team, comprising four to six personnel, continues to support the construction team and has overseen a number of key development breakthroughs.

Latrobe has made significant recent progress in a number of areas including the completion of the primary civil and concrete works, with only localised miscellaneous concrete foundations and pedestals remaining.

Civil work for the LPG tank and gases (oxygen, carbon dioxide, and argon) installation has also been completed, with final concrete pours undertaken at the end of October.

A local contractor has completed the fabrication and assembly of the project’s spray roaster reactor vessel, which has now been transported to the project site for final installation.

Elsewhere, the fabrication of the oxide bin is expected to be completed by the end of November.

Spray roaster the current focus

Meanwhile, there has been a focus on the completion of the steel erection for the spray roaster, a critical path of the project.

This intricate stage involved erecting preassembled platforms and stair tower modules lifted into place as larger segments to expedite installation time.

Structural steelwork erection has been successfully completed, allowing for the positioning and installation of the spray roaster reactor vessel in its designated location.

This progress has now paved the way for the commencement of piping and electrical work, commencing with the installation of pipe and cable tray supports and concluding with pipe installation and equipment termination.

Concurrently, the installation of mechanical equipment, including tanks, pumps, blowers, fans, absorber towers and stacks is in progress.