Latrobe Magnesium Ltd remains on course to start operations at its Stage 1 Demonstration Plant in the Latrobe Valley by late May 2025. The company is targeting steady state magnesium oxide (MgO) production, having largely completed engineering and procurement activities for Phase 1A. Key enabling tasks include finalising labour recruitment, ash stockpile preparation, and EPA (Environmental Protection Authority) permitting.
The EPA has conducted site visits and discussions are progressing positively, with no anticipated delays.
For Phase 1B—magnesium metal production—re-baselining of the project has concluded with revised capital cost estimates and schedule updates. Installation of Structural, Mechanical & Piping (SMP) and Electrical & Instrumentation components is ready to begin, pending funding approval.
Once operational, the Demonstration Plant will serve as a cornerstone for LMG’s commercialisation strategy.
Feasibility and funding progress for 10,000 tonne commercial plant
LMG has completed the scope and cost proposal for a Feasibility Study (FS) for its Stage 2 10,000 tonnes per annum (tpa) Commercial Plant, in collaboration with Bechtel Australia. Site analysis by SMEC identified that the existing Tramway Road location is unsuitable due to space and utility constraints.
Alternate locations are under confidential evaluation. To support this development, LMG secured A$3.5 million in new funding via a placement and Share Purchase Plan (SPP), with Directors contributing A$550,000.
It also advanced strategic positioning with the United States Department of Defense by registering with the Defence Industrial Base Consortium and preparing a Whitepaper to explore grant opportunities. Separately, LMG entered the Commonwealth Industry Growth Program and engaged with a business advisor to pursue up to A$5 million in grant funding.
The company is also working with Jones Lang LaSalle to sell surplus land at Tramway Road, targeting up to A$5 million to bolster working capital and support Stage 2 development.
Sarawak mega plant secures critical hydropower allocation
Significant momentum was achieved in the March quarter for LMG’s Stage 3 international expansion, a proposed 100,000 tpa magnesium facility in Sarawak, Malaysia. Subsidiary Latrobe Magnesium Sarawak Sdn. Bhd. secured approval for a 250 megawatt (MW) hydropower allocation from the Sarawak Power Planning and Coordination Committee.
This allocation, critical to the project's viability, is contingent on entering into a Power Purchase Agreement (PPA) with Sarawak Energy and satisfying additional governmental conditions.
LMG is now advancing joint venture partner discussions to enable finalisation of the PPA. Separately, the Environmental Management Plan (EMP) for initial site clearing works was approved by the local Department of Environment, allowing environmental permitting to progress.
Australian Government boosts support for Sarawak project
In support of its Malaysian development, LMG received Project Development Support (PDS) funding from the Australian Department of Foreign Affairs and Trade (DFAT). The funding, facilitated through the Southeast Asia Investment Deal Team, will assist with preparatory advisory work for the Samalaju-based project.
The initiative aligns with Australia’s strategic goals to deepen trade and investment ties with Southeast Asia and provides vital early-stage assistance to advance LMG’s international operations.
Counterclaim progresses in legal proceedings against Mincore
LMG continued its legal dispute with Mincore Pty Ltd, progressing a counterclaim valued at A$19.39 million for breach of contract and negligence.
The proceedings, lodged with the Supreme Court of Victoria, are advancing through the court’s procedural stages.
The Court has mandated mediation by 27 June 2025, with Mincore’s insurers now engaged and required to respond formally. Mincore’s original claim of A$1.37 million is under challenge and may be reduced to A$914,390. Depending on mediation outcomes, a directions hearing is scheduled for July 11, 2025.