Sydney based Latrobe Magnesium (ASX:LMG) has signed a follow up agreement with Beijing Tieforce Engineering Co over its planned magnesium project in the Latrobe Valley, Victoria.
Of note, BTE is the only company in the past 15 years to build a magnesium smelter in the western world.
This follows a site visit to the Latrobe Valley in the first week of November to assess technical and timing aspects and changes to the proposed plant.
LMG believes that the changes should result in both further capital and operating cost savings.
BTE visited the proposed LMG project sites and assessed their suitability to locate both LMG’s 5,000 tonne initial plant and its expanded 40,000 tonne plant.
BTE concluded that all the three sites are suitable. BTE advised LMG that it should be able to apply for an export incentive debt facility from a Chinese bank.
The facility is given where specialised plant and equipment is exported from China. The facility is set at 50% of the value of the contract. LMG estimates that this facility could be up to $12.5M for the initial plant.
Proactive Investors is a market leader in the investment news space, providing ASX “Small and Mid-cap” company news, research reports, StockTube videos and One2One Investor Forums.