Ann: June 2025 Project Update, page-6

Latrobe Magnesium targets August start for Victorian demonstration plant operations

Last updated: 12:23 24 Jun 2025 AEST, First published: 22:23 23 Jun 2025 AEST
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Latrobe Magnesium Ltd (ASX:LMG, OTC:LTRBF) is targeting an early August 2025 start for operations at its Stage 1 Demonstration Plant in Victoria’s Latrobe Valley, with key approvals, staffing and commissioning activities now advancing in parallel.
Using Latrobe’s world-first patented extraction process, the project will produce magnesium metal and cementitious material from industrial ash — currently a waste resource from brown coal power generation.
Magnesium — with the best strength-to-weight ratio of all common structural metals — is becoming increasingly important in the automotive, aerospace, medical and electronics industries. With the Demonstration Plant, Latrobe aims to further its stated commitment to encouraging a circular economy.
Prioritised EPA application

In a detailed project update, the company said it had submitted all necessary documentation to the Victorian Environmental Protection Authority (EPA) and was advised that a draft amended licence is expected for review by mid-July.
LMG acknowledged delays in the approval timeline, noting that seasonal resourcing pressures at the EPA only became clear after the company’s submission. However, the regulator has reportedly prioritised the application, helping to keep the project on track.
“We appreciate the continued patience and support of our shareholders as we prepare to commence operations at our Demonstration Plant,” said CEO David Paterson.
“LMG has had all of the necessary documentation in place for some weeks to enable EPA approval, and we look forward to receiving the amended permit, so we progress along the company’s critical path towards startup.”
Recruitment progresses amid labour market headwinds

LMG also outlined efforts to resolve workforce arrangements at the plant, where a final Enterprise Agreement with unions could not be reached within the required timeframe.
The company pointed to “a fundamental disconnect” between union expectations and the cost structures typical of mining operations, noting the Latrobe Valley’s labour market is heavily influenced by its proximity to major power stations.
In response, LMG has partnered with a national labour provider to begin hiring operations staff and has seen encouraging interest from local jobseekers. Long-time contractors Mechanical Maintenance Solutions and Operations & Maintenance are also assisting with recruitment.
Ash supply and site reinstatement under way

Another milestone includes the execution of a revised ash supply agreement with EnergyAustralia, enabling the development of an ash feedstock stockpile for the plant. LMG’s contractor RTL Mining and Earthworks is ready to begin preparation activities to align with the planned start date.
On site, LMG has reinstated most of its former management team, with hiring under way for key roles such as process engineer and operations manager. Pre-start checks have been completed across much of the plant, and activities like dry test runs, equipment verifications, and reagent inventories are progressing as part of pre-commissioning.
The company’s digital maintenance systems are now operational, and safety systems are being implemented ahead of staff onboarding and training.
Vendor engagement and forward plans

Technical vendor mobilisation is also moving forward, with commissioning teams from Tenova and Rockwell Automation scheduled to begin site visits this week. Operational procedures are nearing completion and are being finalised in conjunction with health and safety teams.
In parallel, LMG is advancing strategic and non-dilutive funding initiatives to support its transition to magnesium metal production. The company said it remains well-funded for the plant’s start-up phase.
The Demonstration Plant marks a key step in LMG’s broader development pipeline, which includes a proposed 10,000-tonne per annum Commercial Plant in Victoria by late 2027, and a planned 100,000-tonne ‘Mega Plant’ in Sarawak, Malaysia.
These projects support Latrobe’s aim of being a leader on environmental, social and governance (ESG) best practice — by recycling power plant waste tailings, avoiding landfill, encouraging a circular economy and being a low emitter of carbon dioxide.