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"LMG has announced that, once it has successfully operated its demonstration plant, it will be expanding the plant to a 10,000tpa capacity."
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First 1000tpa demonstration-scale plant then expanding the same plant in the same location on Tramway Rd.
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"The bulk of the production facility is to be housed within the existing building located at the southern end of the site."
There are multiple buildings on site so it is very conceivable and the purpose of buying the site that the remaining parts of the production facility is planned for elsewhere on the site.
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In addition, I would like to point out "production facility". This plant is for the production of magnesium, so the smelter will be located on site otherwise it would not be an integrated facility. An integrated plant has always been communicated.
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"Then the final size of the Latrobe Plant will be determined."
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This is still consistent with the last "Latrobe Magnesium Presentation" This aspect of the presentation is referring to the final determination of the scale of the 10,000tpa plant. LMG have suggested a number of times the 10,000tpa plant may be increased. LMG are again being conservation.
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“demonstration-scale”
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I like the way that LMG have very purposefully stopped using the word "prove". It gives me the sense that at least someone from LMG are reading HotCopper.
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"The intention is that the facility will operate for about 12 months, in order to demonstrate the production process. Operations beyond that time are possible but LMG has made no decision and any plans to do so would also need further Council and EPA approval."
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The above paragraph is the most strange statement I have read from LMG so far, it simply is contradictory and flying in face of all communications. I believe it is simply tardy and incorrectly written!
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" RnD Equipment Pty Ltd were nominated as the purchaser of the 10 cranes from the Tramway Road’s owners. These cranes were subsequently purchased by the Company at a commercially higher value. These cranes will be used to automate the loading and unloading of the smelters and are eligible for the Company’s Research and Development rebate. "
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As can be seen and understood by the above paragraph, the smelters will certainly be at the Tramway Rd site.
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" The site is close to rail, freeway, gas and water pipelines. In addition, the site is near to a new solar power development which has been permitted by the Latrobe City Council and the Victorian State Government. Given LMG can connect to this solar farm development, its magnesium and other products will produce zero or very little CO2 emissions."
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Again, the paragraph above demonstrates the plant on Tramway Rd will be fully integrated and produce the final magnesium product after smelting on site.
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I hope this assists in overall interpretation of the report. Again, as I have said a few times, LMG need some guidance on presentation and content proofing by a professional marketing person that has technical assistance from David Paterson.
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Regards
Ken
