- Latrobe Magnesium (LMG) spent the December quarter progressing the development of its magnesium production plant in Victoria’s Latrobe Valley
- Forced plant closures and reduced capacity in Shaanxi, who produces 65 per cent of the world’s magnesium, led LMG to accelerate the development of its 100,000tpa plant
- Contracted company Mincore continued design and engineering of LMG’s demo plant and commenced tendering smelter equipment and early site works were completed
- The company raised about $14.5 million over two placements during the quarter and ended the period with $9.7 million in cash
- Latrobe ended Monday’s session 8.33 per cent in the red to close at 11 cents
Latrobe Magnesium (LMG) progressed its namesake magnesium project in the December quarter.
The company is developing a magnesium production plant in Victoria’s Latrobe Valley using its patented extraction process. LMG’s plan is to extract and sell magnesium metal and cementitious material from Yallourn ash which is currently a waste stream from brown coal power generation.
Just before the December quarter China closed 18 magnesium plants in Shaanxi and 30 other plants’ capacity was reduced to 50 per cent capacity from September 17 to the end of December 2021. Shaanxi produces about 65 per cent of the world’s magnesium which meant supply was very restricted.
Consequently, the magnesium price trebled and magnesium users have been looking for
alternative major suppliers. This led to the company bringing forward the development of its 100,000 tonnes per annum (tpa) plant using ferro nickel slag as its feedstock.
Latrobe and contracted company Mincore awarded early site works, the reinstatement of electrical works and the refurbishment of an admin building at 320 Tramway Road which it acquired in early December. These works have now been completed.
During the quarter, Mincore progressed the design and engineering activities and the detailed process and flowsheet work. In the last week, it has gone to the market and is tendering the smelter works to five pre-approved companies.
Mincore has also been supporting LMG as it tests new technologies to improve existing processes, build prototypes and complete plant trial runs in varying parameters and conditions.
LMG reduced the capital cost estimate of its demonstration plant to $39 million with only about $4.2 million spent in the December quarter. The extra funds will be used for working capital and to assist with the financing of the studies required for the 10,000tpa and 100,000tpa plants.
The company also completed two placements during the quarter with the first raising $3 million in October and the second raising about $11.5 million in November. By the end of the quarter, Latrobe had a cash balance of $9.7 million which was a significant increase from having just $169,000 in cash at the start of the period.
Latrobe ended Monday’s session 8.33 per cent in the red to close at 11 cents.