- Latrobe Magnesium (LMG) awards a pre-feasibility study (PFS) for its magnesium production plant in Victoria
- Global engineering and project management company, Bechtel, will evaluate investment options and define the selected option to help develop a business case and forward plan for the feasibility study phase
- The company expects the PFS will be completed by the end of this year and will present the study to potential joint venture partners
- Latrobe is also preparing to secure a binding agreement to supply 12 million tonnes of ferro nickel slag over 20 years to feed the plant
- Company shares are up 8.2 per cent to trade at 6.6 cents at 1:09 pm AEST
Latrobe Magnesium (LMG) has awarded a pre-feasibility study (PFS) for its magnesium production plant.
Based in Victoria’s Latrobe Valley, the company is developing a 100,000 tonnes per annum magnesium plant using ferro nickel slag as its feedstock.
Latrobe will do so by using its patented process to extract and sell magnesium metal and cementitious material from industrial fly ash which is currently a waste resource from Yallourn brown coal power generation.
The company awarded the PFS to Bechtel, a global engineering, construction and project
management company that, in the last 10 years alone, has completed over 60 PFS and feasibility studies, as well as over 30 engineering, procurement and construction (EPC) projects.
Bechtel will use its expertise to evaluate investment options and further define the selected option to assist Latrobe in developing a business case and forward work plan for the feasibility study phase.
The company expects the PFS will be completed by the end of this year. Following this, the study will be disclosed to potential joint venture partners to confirm whether they’re interested in participating in the project.
Latrobe Magnesium has also finalised discussions with a ferro-nickel producer to supply 12 million tonnes of ferro nickel slag over 20 years to feed the plant. The company expects to sign a binding memorandum of understanding with this supplier sometime this month and is just waiting on board approval.
Company shares were up 8.2 per cent to trade at 6.6 cents at 1:09 pm AEST.