Latrobe Magnesium receives $12.5m R&D tax rebate for innovative extraction technology
The Australian government has officially recognised Latrobe Magnesium’s (ASX: LMG) significant breakthroughs in magnesium extraction technology with a new approval for up to $12.5 million in tax rebates.
The company has received notice from AusIndustry, the government’s business support programme, that it is fully eligible for a research and development (R & D) tax rebate for its work at the company’s demonstration plant in Victoria.
In mid-May, Latrobe received correspondence from the Australian Tax Office confirming that its R & D tax rebate for the 2023 financial year had been approved.
Debt repayment
With this payment and other expected rebates on the horizon, the company states it is now on track to completely pay off its debt of around $26m owed through prepayment of the 2023 and 2024 tax rebates.
The debt repayment will be supported by the company’s estimate that it is in line for a further rebate of around $16m for the 2024 financial year.
The company says its R & D activities outside those involved with the demonstration plant will earn a rebate in the order of $1.2m, while equipment leasing as of November 2023 is expected to contribute some $2m.
Production milestone
Earlier this week, Latrobe successfully produced a world-first batch of magnesium oxide (MgO) from fly ash, a waste resource from local brown coal power generation in Victoria.
The successful commissioning of the first phase of its demonstration plant and the MgO production have demonstrated Latrobe’s unique technology, while also generating capital through the sale of the environmentally-friendly product.
Latrobe is now focused on undertaking a bankable feasibility study and financing discussions in relation to a Stage 2 commercial plant with a production target of 10,000 tonnes per annum.
Cutting-edge technology
Latrobe’s hydromet technology extracts magnesium from brown coal fly ash and ferro-nickel slag tailings and converts the unwanted waste resource into saleable products.
The company is able to produce magnesium while emitting 60% less carbon dioxide than the industry average.