LMG Feed Stock & Process Advantage

Its significance to Magnesium production costs andcompetition with China.
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There have been a number of posts regarding the feed stock available to LMG and the implications for processing longevity and global competition. The LMG proprietary process‘Alkali hydromet process’ (N.B., The LMG process is the The only process capable of extracting magnesium from fly ash and ferro nickel slag feedstocks), cannot be overstated in its importance for the company and its investors.
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Initially LMG will utilise and recycle fly ash from Yallourn Power Station (Availability @30,000tpa). Yallourn has at least enough supply for the next 20 years. LMG also hope to bring in the Hazelwood Power Station fly ash (5,000,000 tons of fly ash) as the plant production expands up to 40,000tpa Magnesium and then 100,000tpa Magnesium plant. In the Investor presentation by LMG’s CEO David Patterson mentions they have “other product which is not toxic and which could feed a bigger plant”. In fact, the 100,000 tpa Mg plant is forecast to use feed stock of both fly ash AND ferro nickel slag. Ferro nickel slag is a waste product (By-product of Nickel production). LMG were approached by Nickel producers for a solution for recycling their enormous waste problem. David Patterson said, “it gives us a business outside of brown coal”.
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China emits 21 to 22 tons of Co2, per ton of Magnesium, the initial LMG 3000tpa trial plant will emit 10.2 tons of Co2, per ton of Magnesium (50% reduction compared to China). The significance of the ferro nickel slag is that the plant at that 100,000tpa Magnesium stage will be only 0.7 to1.5 tons of Co2, per ton of Magnesium! The goal for the final Co2 is to reduce the emissions even further by greater use of renewable energy as well as carbon offsets. From LMG’s web site: “LMG is targeting net zero emissions by 2050 through the use of renewables and other technology advancements in conjunction with industry and its partners such as CSIRO”.
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China magnesium will stink more and more, due to issues of inconsistency of production, supply, power disruptions, global politics but more importantly, 21+ tons of Co2, per ton of Magnesium. It is LMG’s unique fly ash and the ferro nickel slag recycling via their acid/alkali process that enables LMG to reduce their magnesium production costs by 30% compared to the Chinese. Among others, by-products such as Co2 free cement is attainable by using fly ash and ferro nickel slag give LMG a massive advantage. The ferro nickel slag is the feed stock that makes the greatest difference in LMG’s reduction of production costs and reduction in Co2 emissions.
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LMG’s CO2 emissions estimates for the plant are:

10.2 CO2 t/tMg using Brown coal flyash

0.7 CO2 t/tMg using Ferronickel slag
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What interests me even further into the longer term, is the licencing of the ‘Alkali hydromet process’ established alongside all major nickel plants and mines around the World. It is wonderful to see an Australian company that has worked for so long to have the opportunity to be potentially a World first in a very well defined space.