Latrobe Magnesium Limited (ASX:LMG) has made strong progress in the development of its magnesium production plant in the Latrobe Valley of Victoria's Gippsland region.
The company has advanced some of the early plant development with outcomes from 'value engineering' reviews being incorporated into engineering and design work.
Importantly, Latrobe intends to extract and sell magnesium metal and cementitious material from industrial fly ash, which is currently a waste stream from the Yallourn brown coal power generation, using its world-first patented extraction process.
Project update
Latrobe has completed repair works to the existing fencing around the project site, as well as the new fencing in place around the administration building and for RTL’s subdivision.
In addition, the preliminary architectural drawings for the administration building refurbishment were completed and reviewed.
An application for a building permit is to be submitted with a contract to complete the site clean-up works will be awarded to a local contractor imminently.
With the contract for electrical services restoration work issued, Mincore will be working with local contractors, JBI Engineering and Kingy’s Electrical in the coming weeks to complete the electrical restoration and restore power to the site.
Engineering and design
Engineering is ramping up with process engineering focusing on finalising the flowsheet, heat and mass balance and commencing piping and instrumentation diagrams.
Structural engineering is commencing steelwork for the briquette trolley support structure and bunker designs for char and silica products.
Mechanical engineering is undertaking plant layout planning and optimisation has commenced with 3D modelling, equipment datasheets and technical specifications for the ash loading, hydromet and briquetting areas.
Detailed design and modelling of the Reduction Furnace area including briquette loading and product unloading has commenced, supported by test work undertaken in conjunction with the CSIRO.
Interest from suppliers
More than 72 suppliers have registered their interest in supporting the Latrobe Valley Demonstration Plant project, via the website’s supplier’s portal.
Pre-qualification of potential construction works contractors as a prelude to the formal issue to tenders has commenced.
Forward plan
Latrobe’s focus for the coming weeks will be the completion of the electrical restoration works, the commencement of the site clean-up work and the tender of the administration building construction.
The project’s completed risk assessment will be updated, and a Hazard and Operability Analysis (HAZOP) workshop will be undertaken.
Furthermore, engineering will continue to complete the piping and engineering diagrams, finalise the plant layout and update the 3D model with the latest vendor data and specifications for the ash handling and hydromet.