【Ferro-alloys.com】：Latrobe Magnesium (LMG) has achieved sustained magnesium oxide (MgO) production at its Hazelwood North demonstration plant in Victoria’s Latrobe Valley, marking a key milestone as the company advances toward first magnesium metal output later this year.

The company confirmed it produced approximately 20 tonnes of MgO from brown coal ash over a sustained two-week operating period, validating the stability and reliability of its proprietary hydrometallurgical process.

The MgO meets the required quality specifications and has already been sold to a customer, with additional assay results pending.

LMG chief operating officer Ronan Gillen said the milestone significantly de-risks the project ahead of commercialisation.

“We are very pleased that our world-first magnesium demonstration plant has been able to successfully produce MgO from brown coal ash over a sustained period, as intended,” Gillen said.

“Through the lessons learnt in achieving MgO production, the team has implemented significant enhancements to process performance, operability, and reliability that will be carried forward into the stage 2 commercial plant.

“Identifying and resolving issues at the demonstration stage substantially reduces risk ahead of full-scale production.”

LMG chief executive officer (CEO) David Paterson said the steady production run validates the proprietary components of the company’s patented process.

“It is highly encouraging to achieve steady production of MgO at our demonstration plant,” he said.

“This milestone represents a significant step forward for the company and validates the proprietary components of our patented magnesium production process.”

The next phase will see the installation of on-site horizontal retorts targeting 500 tonnes per annum (tpa) of magnesium metal, followed by vertical retorts expected to add a further 600tpa, with first metal production anticipated in the second half of 2026.

The achievement builds on growing international recognition for LMG, including a Letter of Interest from the Export–Import Bank of the United States (EXIM) under the US–Australia critical minerals framework.

The backing positions LMG alongside a select group of Australian critical minerals developers identified as strategically important to US-aligned supply chains.

With China dominating global magnesium supply, LMG’s low-emissions process, which extracts magnesium from brown coal fly ash and converts nearly all waste into saleable by-products, is attracting attention from Western governments and manufacturers seeking secure alternatives.

As the Latrobe Valley transitions from coal-fired power generation toward critical minerals processing, LMG’s demonstration plant milestone not only advances its commercial ambitions but also reinforces the region’s emergence as a new hub for value-added mineral production.
 

• [Editor:Alakay]