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Latrobe Magnesium’s site remediated and ready for major construction of its demonstration plant

The company is targeting to complete the construction of the demonstration plant by 2023. 

Latrobe Magnesium’s site remediated and ready for major construction of its demonstration plant
A suppliers’ town hall was held on February 18, 2022, at the Morwell Innovation Centre.

Latrobe Magnesium Ltd has completed site remediation and preparation for the construction of a demonstration plant in Victoria’s Latrobe Valley using its world-first patented extraction process.

Minor construction has commenced with major construction of the plant set to begin in the second quarter of this year.

Mitigation plans are being actioned by the project team to tackle issues such as the impact of COVID-19 and supply chain challenges..

Critical long lead items have been tendered on schedule.  

The company is targeting to complete the construction of the demonstration plant by 2023. 

Works update

The longest lead items - the spray roaster and reduction furnace - have been issued for tender, with the award targeted for next month.

Further, construction activities have started with the security gatehouse, administration building and carpark tendered for construction to allow mobilisation for major construction contractors.

Whilst continuing to tender the remaining equipment required for the demonstration plant, LMG’s coming focus will be on the finalisation of several design and engineering process milestones including 30% design review, critical HAZOP workshops and the preparation of the major construction packages for tendering.

With the process, piping and instrumentation diagrams finalised and the plant layout frozen, Mincore’s mechanical, structural and electrical & instrumentation engineering disciplines are completing the engineering deliverables necessary for procurement and construction.

Mincore will continue to progress the equipment specifications and datasheets for the remaining equipment required in preparation for tender, including the multi-effect evaporator, briquetting, filtration, thickening and other minor equipment.

Mincore has been on-site to evaluate the completed early works and the layout of the site and to begin preparation for the construction of the plant.

LMG has tendered the administration building and mobilisation with the recommended contractor is underway.

Once completed, the LMG and Mincore team will mobilise to site to oversee the remaining construction of the demonstration plant.

Suppliers’ town hall

A suppliers’ town hall was held on February 18, 2022, at the Morwell Innovation Centre to meet several potential contractors and suppliers for the major construction and equipment packages that will need to be issued.

The town hall included many local suppliers and contractors, in line with LMG’s goal to prioritise local suppliers within the Latrobe Valley.

Magnesium production plant

LMG intends to extract and sell magnesium metal and cementitious material from industrial fly ash, which is currently a waste stream from the Yallourn brown coal power generation.

Pre-construction is estimated to start on site on its initial 1,000 tonnes per annum (tpa) magnesium plant in the first quarter of 2022 with production commencing up to 12 months later.

The plant will then be expanded to 10,000 tpa magnesium shortly thereafter.

Further plant capacity expansion will be considered once the 10,000 tpa is operating successfully.

The plant will be in the heart of Victoria’s coal power generation precinct, providing immediate access to feedstock, infrastructure and labour.

Magnesium market

LMG plans to sell the refined magnesium under long-term contracts to the US and Japanese customers.

Currently, Australia imports 100% of the 8,000 tonnes annually consumed.

Magnesium 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.

The LMG project is at the forefront of environmental benefit – by recycling power plant waste, avoiding landfill and is a low CO2 emitter.

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