Latrobe Magnesium Limited has extended its Pilot Project Licence with EPA Victoria until February 2027, paving the way to resume magnesium oxide production at its Hazelwood North site in August 2025.
- EPA Victoria extends Latrobe Magnesium’s Pilot Project Licence to February 2027
- Hydrometallurgical operations planned to restart August 4, 2025
- First magnesium oxide and byproducts production to follow operator training
- Licence extension supports demonstration plant and commercial-scale ambitions
- Advances discussions for long-term offtake agreements with potential partners
Licence Extension Secures Operational Continuity
Latrobe Magnesium Limited (ASX – LMG) has announced a significant regulatory milestone with the Environment Protection Authority (EPA) Victoria extending its Pilot Project Licence (PPL000233697) until February 2, 2027. This extension is a critical enabler for the company to resume operations at its Hazelwood North demonstration plant, which focuses on producing magnesium oxide (MgO) and valuable byproducts from beneficiated coal ash.
Restarting Production and Training
With the licence extension secured, Latrobe Magnesium plans to recommence hydrometallurgical operations on August 4, 2025. Operational personnel will begin work with a period of training and familiarisation, after which the company expects to produce its first outputs of magnesium oxide alongside char, silica, agricultural lime, and iron oxide. These outputs are essential steps in validating the company’s patented magnesium metal production process and demonstrating steady-state production capabilities.
Strategic Importance for Commercial Scale Ambitions
CEO David Paterson highlighted the milestone as pivotal for Latrobe Magnesium’s transition from pilot to commercial operations. The demonstration plant’s success will underpin the company’s plans to develop a commercial-scale plant targeting 10,000 tonnes per annum of refined magnesium metal by the end of 2027. Situated in Victoria’s Latrobe Valley, this plant will leverage local coal power generation waste as feedstock, reinforcing the company’s commitment to sustainability and circular economy principles.
Advancing Offtake and Market Positioning
The availability of magnesium oxide and associated byproducts at production scale is expected to accelerate ongoing confidential commercial discussions with potential partners. These discussions aim to secure long-term offtake agreements, critical for underpinning future revenue streams and market penetration. Latrobe Magnesium’s approach aligns with growing demand for lightweight structural metals in automotive, aerospace, and electronics sectors, where magnesium’s strength-to-weight ratio is highly prized.
Environmental and Regulatory Oversight
The company reaffirmed its commitment to operating safely and responsibly under EPA oversight. The licence extension and pending final commissioning permissions reflect a collaborative regulatory relationship, with EPA feedback expected imminently. This regulatory diligence is crucial given the environmental sensitivities around processing coal ash waste and the company’s ESG positioning as a low carbon emitter recycling industrial byproducts.
Bottom Line?
Latrobe Magnesium’s licence extension and planned production restart mark a decisive step toward commercial magnesium production, but regulatory approvals and market agreements remain key hurdles ahead.
Questions in the middle?
- Will EPA’s final commissioning permissions arrive on schedule to enable the August restart?
- How quickly can Latrobe Magnesium scale from pilot outputs to commercial volumes by 2027?
- What are the prospects and timelines for securing binding long-term offtake agreements?