Latrobe Magnesium (
LMG) is working to develop a magnesium production plant in
Victoria's
Latrobe
Valley using a world-first process of combined hydromet / thermal reduction. Using a patented extraction process the magnesium plant will harvest magnesium metal from industrial fly ash – a waste stream from brown coal power generation.
A pre-feasibility study has been successfully completed and a bankable feasibility study to commercially justify the new technology will soon commence. Construction of the plant is due to start in March 2013, with first magnesium production due in 2014.
The plant will be located at the centre of
Victoria’s coal power generation precinct providing direct and constant access to feedstock.
Latrobe Magnesium will sell the refined magnesium product under long-term contracts to Australian users. Demand for magnesium worldwide is strong. It has the best strength-to-weight ratio of all common structural metals and is increasingly used in the manufacture of car parts, laptop computers, mobile phones and power tools.
Australia
imports 100% of the 10,000 tonnes it consumes and Latrobe Magnesium will sell into the 750,000 tonnes annual global market, which offers a 10% premium to non-China suppliers. The project is at the forefront of environmental sustainability as it converts power plant waste into valuable commodities.
INVESTMENT HIGHLIGHTS
·
Hazelwood Power Station:
10 million tonnes fly ash inventory +140k tonnes annual supply.
·
Yallourn Power Station agreement signed 2011.
·
Minimum 20 year plant life at full production.
·
750k tonne annual worldwide magnesium consumption & 10% premium for non-China suppliers.
·
World-first magnesium extraction process.
·
Soon to begin bankable feasibility study.
·
Production facility due for completion by March 2014.
·
Increased demand for magnesium in manufacturing: light weight and strong.
·
Environmentally sustainable venture:
low CO
² emitter/
recycling an industrial waste product.
