Latrobe Magnesium (ASX: LMG) has completed the commissioning of...

Latrobe Magnesium (ASX: LMG) has completed the commissioning of the first phase of its 1000 tonne per annum demonstration plant in Victoria. This process has enabled the company to produce the world's first batch of environmentally friendly magnesium oxide from fly ash, a waste product of lignite-fired power generation. All fly ash used as feedstock for the plant will be processed using Latrobe's patented hydrometallurgical extraction process (Hydromet), which produces these valuable by-products with no further waste or residue formation. The magnesium oxide produced from the demonstration plant will be sold under an agreement to WA-based specialist company Rainstorm Dust Control.Latrobe's Managing Director, David Paterson, was encouraged by the first production from the demonstration plant. "We are incredibly proud of the results and the achievement of magnesium oxide production," he said. "The world's first flowsheet utilising a Hydromet process is a testament to our technology, our personnel and the contractors involved in the process to date."He described the end of commissioning as a "significant milestone" in pioneering a sustainable magnesium extraction process on an industrial scale.Latrobe will now undertake a bankable feasibility study and commence funding discussions in relation to a 10,000 tonne per annum commercial plant (Stage 2). This will be built using similar engineering techniques and flowsheets as the demonstration plant, but with larger equipment. The commercial plant is expected to be less capital intensive as its size is not proportional to the annual production of the plant, which is expected to be ten times larger than that of the demonstration plant¹.Latrobe's Hydromet technology is a world-first process for extracting magnesium from lignite fly ash and ferro-nickel slag residue. The company uses this low-emission process to convert the unwanted waste resource into saleable products, including valuable secondary by-products at no additional cost. These by-products are expected to account for approximately 25% of Latrobe's sales and include additional cementitious material, silicon, coal, iron oxide and agricultural lime (calcium carbonate).The Hydromet process is expected to reduce the operating costs of conventional methods of magnesium and cement production and reduce carbon emissions by up to 60% compared to the industry average. It produces no downstream residues, ensuring environmental sustainability throughout its operation. Mr Paterson noted that production of saleable magnesium metal is expected in the coming months¹.Source: Conversation with Bing, 13.5.2024(1) Latrobe Magnesium produces world's first batch of magnesium oxide from .... https://*********.com.au/latrobe-magnesium-produces-worlds-first-batch-magnesium-oxide-fly-ash/.(2) LMG ASX announcement - Magnesium Oxide Production - May 13, 2024. https://www.marketindex.com.au/asx/lmg/announcements/magnesium-oxide-production-2A1522897.(3) Projects - Latrobe Magnesium. https://www.latrobemagnesium.com/projects.(4) LATROBE MAGNESIUM PRODUCES THE WORLD'S FIRST SUSTAINABLE MAGNESIUM OXIDE. https://hotcopper.com.au/data/announcements/ASX/2A1522897_LMG.pdf.