Latrobe Magnesium Launches Hazelwood North Plant Amid Weather Delays
Latrobe Magnesium has commenced start-up operations at its Hazelwood North Demonstration Plant following EPA licence renewal, overcoming recent weather-related supply setbacks. The company aims to begin magnesium oxide production within the week as it advances toward full commissioning.
- EPA Victoria reissues Pilot Project Licence enabling plant start-up
- Heavy rainfall causes short-term ash supply delays
- Operational start-up underway with magnesium oxide production imminent
- Demonstration Plant uses patented process to extract magnesium from industrial ash
- Plans for full commissioning in 2025 and commercial production by 2027
Operational Progress Despite Weather Challenges
Latrobe Magnesium Limited (ASX – LMG) has announced the commencement of operational start-up at its Hazelwood North Demonstration Plant in Victoria's Latrobe Valley. This milestone follows the reissuance of the company’s Pilot Project Licence by the Environment Protection Authority (EPA) Victoria, which confirms regulatory approval to proceed with commissioning and operations of Stage 1.
Recent heavy rainfall and storm conditions in the region temporarily disrupted the supply of screened ash; a critical feedstock sourced from local mining partners. These weather-related delays have been actively managed, with ash deliveries rescheduled to allow the material to dry sufficiently for productive screening. Despite these setbacks, Latrobe Magnesium remains on track to begin magnesium oxide production within the coming week.
Innovative Extraction from Industrial Waste
The Hazelwood North Demonstration Plant employs a world-first patented hydrometallurgical and thermal reduction process to extract magnesium metal and cementitious materials from industrial ash, a waste product of brown coal power generation. This approach not only taps into a previously underutilized resource but also aligns with environmental, social, and governance (ESG) principles by promoting circular economy practices and reducing landfill waste.
Latrobe Magnesium has completed feasibility studies validating the technology and expects full plant commissioning within 2025. The company targets commercial production of 10,000 tonnes per annum of refined magnesium metal by the second half of 2027, with long-term sales contracts already in place through its US-based distributors.
Global Ambitions and ESG Leadership
Beyond Australia, Latrobe Magnesium is advancing plans for a significantly larger International ‘Mega’ Plant in Sarawak, Malaysia, which aims to produce 100,000 tonnes per annum of magnesium metal. This expansion underscores the company’s ambition to become a global leader in magnesium production using sustainable feedstocks.
Magnesium’s exceptional strength-to-weight ratio makes it increasingly valuable across automotive, aerospace, medical, and electronics industries. Latrobe Magnesium’s innovative process not only addresses supply chain sustainability but also positions the company at the forefront of low-carbon metal production.
CEO David Paterson emphasized the company’s commitment to transparency and operational excellence, thanking stakeholders for their support amid the commissioning phase’s inevitable challenges.
Bottom Line?
Latrobe Magnesium’s progress signals a promising step toward sustainable magnesium production, but weather and operational risks remain key factors to watch.
Questions in the middle?
- How quickly can Latrobe Magnesium achieve steady-state operations and full commissioning?
- What impact will weather-related supply disruptions have on production timelines?
- How will the planned Malaysian Mega Plant influence Latrobe Magnesium’s global market position?
