LaTrobe Magnesium (ASX:LMG) has increased the net present value of its LaTrobe Valley magnesium plant to $120 million from $83 million following test work and optimisation of its hydromet process.
The reductions are part of the company’s adjustment study in which it has refined costings from its prefeasibility study done in 2011.
With significant design changes to the retort furnaces increasing reliance on robots and automation, the capital and labour costs of the thermal reduction process have also been reduced.
The result of these savings substantially improves the value of the project from $83 million to $120 million for the 40,000 tonnes per annum magnesium plant.
It is planning to further increase the value of the project with more detailed work on improving iron removal and the creation of an additional product.
The company is finalising a 500 kilograms bulk fly ash sample for shipment and testing in a commercial operation in China. This work is expected to take up to five months.
It plans to start its bankable feasibility study after finalising the fly ash and property agreements, which are likely to be done by next quarter.
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