Latrobe Magnesium Ltd has received approval for its request for a 250-megawatt (MW) hydropower allocation for its proposed 100,000-tonne-per-annum magnesium production facility in Sarawak, Malaysia. The approval is contingent on finalising a Terms Sheet, executing a Power Purchase Agreement with Sarawak Energy, and meeting additional conditions set by the Sarawak Government.
“This is a major milestone for our Sarawak project as demand for power in Sarawak far exceeds supply. Without this allocation, our project would not be able to proceed,” LMG stated.
The company can now advance discussions with potential joint venture partners.
Australian Federal Government funding
LMG has also secured funding from the Southeast Asia Investment Deal Team’s Project Development Support (PDS) Program to assist with advisory work for the Sarawak project.
The PDS Program is part of the Australian Government’s A$2 billion Southeast Asia Investment Financing Facility, designed to support Australian trade and investment in the region. LMG noted that the Program was highly competitive, with funding requests exceeding available resources by a factor of four.
These developments mark significant progress for LMG as it moves towards establishing its Stage 3 Project at Samalaju.