Latrobe Magnesium to send all initial product to high-value US market
Latrobe Magnesium Ltd (ASX:LMG) CEO David Paterson tells Proactive that under an amended contract with Metal Exchange Corporation (MEC) LMG will now provide all magnesium from its 1,000 tonnes per annum demonstration plant and its subsequent 10,000 tonnes commercial plant for markets in North, Central and South America and the Caribbean. Further to this, MECs offtake of magnesium will increase by 20% from both of Latrobes plants, a move the company estimates will increase revenue of its demonstration plant by $1 million. The amendment could work in LMGs favour to the estimated tune of an incremental A$10 million in sales revenue. This in turn should increase EBITDA for the 10,000 tonnes per annum plant to in excess of $50 million.
Latrobe Magnesium is constructing a 1,000 tonne per annum (tpa) demonstration production plant in Victorias Latrobe Valley using a proprietary patented combined hydromet / thermal reduction process. Using this world-first, low cost, low emission process, the plant will harvest magnesium metal and other valuable by-products from a fly ash resource a waste stream from brown coal power generation.Following a successful feasibility study and project financing, development of the demonstration plant at LMG's Hazelwood North site is well underway including engineering, purchasing of equipment and construction works.
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Latrobe Magnesium Limited
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