Latrobe Magnesium Ltd (LMG) is investing $39 million to establish Stage 1 of a magnesium production facility at its Tramway Road facility in Morwell in Victoria's Latrobe Valley which will create 43 new Full-Time Equivalent (FTE) jobs.
The demonstration plant project, which is being supported by the Victorian Government’s Regional Jobs Fund, is expected to be built by June next year.
This initial 1,000 tonnes per annum first-stage facility will treat brown coal fly ash from the Yallourn Power Station, currently a waste resource from power generation.
Demo plant
The plant is intended to be used as a demonstration of LMG’s unique patented hydromet process to extract magnesium and other saleable products from brown coal fly ash, which allows for 100% recycling of the fly ash.
This plant will emit less than half of the average carbon dioxide emissions per tonne of magnesium compared to the rest of the world’s producers.
Commercial production
Upon successful commissioning of the plant, LMG plans to increase the production capacity to 10,000 tonnes of magnesium per annum from feedstock supplied by Yallourn until the landfill closes in 2028.
Mining at Yallourn could increase the size of the expanded plant but LMG will decide on the expansion by the end of 2023.
The refined magnesium will be sold under long-term contracts to the United States and Japan.