LATROBE MAGNESIUM LIMITED - ASX: LMG

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Description

Latrobe Magnesium Limited is developing a hydromet process and adopting the thermal reduction process to produce magnesium metal from fly ash, a power plant waste product and environmental pollutant. Magnesium is becoming increasingly popular for use in automobiles as it is a light weight metal and significantly reduces the weight of the vehicle which in turn lowers carbon emissions. Over the next year, Latrobe Magnesium Limited is looking to progress the project through a Pre-feasibility Study to a Bankable Feasibility Study to establish its economic viability.

Latrobe Magnesium Limited (LMG) is intending to build a Magnesium Plant in Victoria's Latrobe Valley. LMG is investigating using a hydromet process combined with the thermal reduction process. The hydromet process was developed by Ecoengineers Pty Ltd. LMG has entered into an agreement to acquire a 50% interest in the intellectual property and secure the worldwide marketing rights.

This process, in conjunction with LMG's low-cost feedstock, efficient materials handling and location close to existing power and infrastructure, will enable LMG to operate at globally competitive costs.

The Latrobe Magnesium Project is strategically placed in Victoria's Latrobe Valley. The Latrobe Valley is home to Victoria's major power plants: Hazelwood, Yallourn and Loy Yang. These plants account for 85% of Victoria' s power using brown coal. The process results in large quantities of industrial 'fly ash' being discarded in waste ponds. Currently the Latrobe Valley contains a 12 million tonne inventory of fly ash, to which a further 500,000 tonnes of ash is added annually.

The fly ash in the Latrobe Valley is unusually high in magnesium and LMG has recognised an opportunity to recover magnesium metal and other products from this material.

Because the LMG production plant will be located beside an existing power station, the feedstock can be transported directly into the LMG magnesium plant via a slurry pipeline. This reduces the expense and detrimental environmental impacts associated with truck transportation. Building beside an existing power plant eliminates the need to acquire new land and gives the enormous advantage of electricity supplied without distribution and transmission charges. The Latrobe Valley location provides access to a skilled workforce and existing infrastructure.

The LMG plant is expected to produce initially approximately 5,000 tonnes of magnesium metal per year. A pre-feasibility study is currently underway to test the economic viability of the LMG magnesium processing facility in the Latrobe Valley.

Mine For

magnesite

Location of operation(s)

Victoria

Address

Suite 601, Level 6, 20 Barrack St
SYDNEY, NSW, AUSTRALIA

Phone

(61 2) 9251 0400

Email

Website

http://www.latrobemagnesium.com

Last Updated

23/03/2011