Latrobe Magnesium Limited (ASX:LMG) (LMG) has started a pre-feasibility study (PFS) for its 100,000 tonnes per annum 'green magnesium' plant, awarding the project to global engineering, construction and project management company, Bechtel.
Bechtel will support a two-part study to evaluate strategic investment options to maximise the project’s value as well as to further define the selected option to assist LMG in developing a business case and forward work plan for the feasibility study phase.
“We look forward to working with Bechtel and continuing to update the market on the progress of this project with the view of opening opportunities across the globe,” said LMG CEO David Paterson.
Net-zero emission plant
The net-zero carbon emission plant, which will use ferronickel slag as its feedstock, will be located overseas.
LMG has finalised discussions with a ferro-nickel producer to supply 12 million tonnes of ferronickel slag over 20 years to feed the plant, and expects to sign a binding MoU with the supplier later this month.
The PFS is expected to be completed later this year, following which LMG will seek potential joint venture partners to participate in the project.
Jasper Consult DMMC, an international consulting firm based in London and Dubai, has been appointed to help identify and approach the potential partners.
The project is expected to generate A$1 billion in revenue and an EBITDA of A$600 million.
LMG shares have been as much as 11.48% higher intraday to A$0.068.