Latrobe Magnesium Ltd earlier this week outlined the strategic importance of the US exemption on magnesium tariffs, positioning the company to benefit from improved competitiveness in the American market.
Highlights
- Latrobe Magnesium will benefit from a US presidential exemption on magnesium tariffs.
- CEO David Paterson said magnesium is ranked in the top 11 critical minerals by the US.
- The US Department of Defense is interested in magnesium for use in military flares.
- Latrobe is engaged with the US Defense Production Act and Industrial Base Consortium for potential funding.
- An agreement is in place with Metal Exchange Corporation for US sales.
- Chinese magnesium imports face increased tariffs, improving Latrobe’s competitiveness.
- The company plans to restart its demonstration plant by the end of May.
- The plant will help prove the viability of the process and generate data for Stage 2.
- Once steady state is reached, Latrobe will move to install and commission its mag plant.
- The company aims to produce magnesium ingots for certification by US buyers.
Key advantage
The company said magnesium has been classified among the top 11 critical minerals in a recent US presidential order. It said this classification opens new opportunities for engagement with the US Department of Defense and funding mechanisms under the Defense Production Act.
Chief executive David Paterson said the exemption gives Latrobe a key advantage. “We’re in a much better competitive position,” he told Proactive. He also confirmed that discussions are ongoing with the US Department of Defense, which is interested in magnesium for use in military flares.
The company has an offtake agreement with Metal Exchange Corporation, and Paterson said recent increases in tariffs on Chinese magnesium — now at 104% — further enhance its position in the US market.
Latrobe is preparing to restart operations at its demonstration plant by the end of May. The company said this facility had previously completed its commissioning phase and is designed to run 24/7 with a 25-person workforce. Paterson said steady state operations will generate essential data for Stage 2, including emissions and process performance.
The company said once the demonstration plant achieves steady state, it will proceed to install and commission its mag plant, with all necessary infrastructure already in place. It said magnesium ingots will then be produced and certified by potential US buyers, who have expressed interest in 10,000 tonnes of supply.