Latrobe Magnesium’s Victorian demonstration plant draws near to initial production

Latrobe Magnesium (ASX: LMG) has confirmed that its Stage 1 demonstration plant project in Victoria’s Latrobe Valley continues to progress with no reportable health, safety or environmental incidents to date.

The project’s magnesium oxide production strategy is on track for first production in March, allowing Latrobe to initially prove its patented process and generate early revenue.

The onsite labour force has been maintained at more than 70 workers from local contracting companies Mechanical Maintenance Services (responsible for structural and mechanical installation), Operations and Maintenance (electrical and instrumentation) and GEM Industrial Services (piping fabrication).

Major structural steel and mechanical equipment deliverables have been completed, with installation of piping and electrical equipment well advanced.

Overall construction progress is reported to be 90% complete.

Latrobe’s site team has continued to fast-track the construction of the plant areas required to produce bulk bags of intermediate product magnesium oxide for customer sales prior to the production of magnesium metal.

A recently-added bagging plant was received at the site earlier this month and has been installed in position.

Latrobe is now awaiting ancillary piping, mechanical and electrical equipment to be installed over the next two weeks and handed over for commissioning.

The construction and commissioning of the remaining plant areas — including briquetting system, reduction furnace area, the furnace automation and vacuum system — will be the second phase of the plant to be fully commissioned.

The company said this strategy would demonstrate that its patented, world-first hydromet process can be operated successfully and prove the true value of its intellectual property to all stakeholders.

Spray roaster

The spray roaster remains one of the areas on the project’s critical path.

Latrobe said most of the mechanical and piping items — such as tanks, burners, stacks, pumps, fans, blowers and transmitters — had been installed and the focus was now on the installation of local junction boxes, control stations, electrical and instrumentation cables, along with terminations for the area.

Spray roaster supplier Tenova has three supervisors onsite to assist Latrobe’s team in expediting final construction works and begin commissioning of the system.

Other equipment

The plant’s filter area, where saleable by-products will be processed and stored, is due for completion and commissioning by month-end.

The steam boiler, air compressor and acid area scrubber have been completed and are ready for commissioning within the next week.

Pipe welding, spooling and installation for piping and valves in the plant’s hydromet area are all reported to be progressing steadily.

The protection of piping and tanks for operator safety has been awarded to Latrobe Valley company Traralgon Industries, which specialises in the installation of insulation and cladding.

Magnesium project

Latrobe’s magnesium production project aims to sell magnesium metal and cementitious material from industrial fly ash, currently a waste resource from Yallourn brown coal power generation.

The company’s demonstration plant is expected to start producing magnesium oxide next month with full plant commissioning by mid-year.

A commercial plant with a capacity of more than 10,000 tonnes per annum of magnesium will be developed by the end of 2025.

The plant will be in the heart of Victoria’s coal power generation precinct, providing immediate access to feedstock, infrastructure and labour.

Latrobe plans to sell all magnesium under long-term contracts to US customers.