Latrobe Magnesium (ASX: LMG) released the latest progress on Phase 1B. Overall construction of its magnesium metal demonstration plant in the Latrobe Valley, Victoria, was 50% complete. The key milestone this month was the successful high-temperature test of the prototype furnace: the furnace chamber was heated to an operating temperature of 1,180°C, and the rotary kiln support column design was validated with no refractory brick cracking or displacement, marking the formal removal of key technical risks. No further prototype testing is required, and the relevant modification documentation is being expedited.
On-site construction, installation of the briquetting system was largely completed, and Site Acceptance Testing (SAT) commissioning was initiated this week. Vacuum and negative-pressure piping in the reduction furnace area was nearing completion, and electrical pre-energization testing had begun. The fire protection system was being built in parallel in accordance with Fire Rescue Victoria standards. Safety performance remained strong, with weekly HSE compliance sustained above 97% and zero recordable incidents to date. The project maintained unchanged guidance to produce the first batch of magnesium metal in H2 2026.
On the commercialization front, LMG was also planning a commercial plant with annual capacity of 10kt of magnesium metal, with products to be supplied to a US distributor under long-term contracts. Its Malaysia subsidiary was advancing a pre-feasibility study for a 100kt-per-year “Mega” plant, using iron slag as raw material, aiming to replicate its low-carbon magnesium production technology globally. This project portfolio provided North American and global clients with a new option for a low-carbon, traceable magnesium supply chain.
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