Latrobe Magnesium announces commencement of PFS for its 100,000tpa magnesium plant

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Latrobe Magnesium Limited has announced the commencement of a Pre-Feasibility Study (PFS) for its 100,000tpa magnesium plant using ferronickel slag as its feedstock.

Latrobe Magnesium is developing a magnesium production plant in Victoria’s Latrobe Valley using its world-first patented extraction process.

The company intends 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.

LMG has concluded talks with an unnamed ferro-nickel producer for the supply of 12 million tonnes of ferronickel slag over 20 years to feed this plant and expects to sign a binding MoU with this supplier in July 2022.

Adertisement

“The major terms and conditions have already been agreed between the parties and is now awaiting Board approval,” the company said in a statement.

“The study has been awarded to Bechtel, a noted global engineering, construction and project management company, who will support a two-part study to firstly evaluate strategic investment options to maximise value and then secondly to further define the selected option to assist LMG in developing a business case and forward work plan for the Feasibility Study (FS) phase. “

The PFS study is expected to be completed by the end of the year, after which it will be disclosed to potential joint venture partners to confirm their interest to participate in the project.