EPA Greenlights Latrobe Magnesium’s Demo Plant for Production Start
Latrobe Magnesium secures EPA Victoria approval to begin commissioning and operations at its Hazelwood North Demonstration Plant, moving closer to commercial magnesium oxide production.
- EPA Victoria updates and approves Pilot Project Licence for commissioning
- Operator training program successfully completed
- Demonstration Plant to produce magnesium oxide and byproducts from brown coal ash
- Advances commercial discussions for long-term offtake agreements
- Plans underway for larger commercial and international plants
Regulatory Approval Unlocks Production Phase
Latrobe Magnesium Limited (ASX – LMG) has reached a pivotal milestone with the Environment Protection Authority (EPA) Victoria updating and reissuing its Pilot Project Licence, enabling the company to commence commissioning and operations at its Demonstration Plant in Hazelwood North. This regulatory endorsement, granted on 15 August 2025, follows an earlier license extension and clears the way for Latrobe Magnesium to move from development into steady-state production.
From Brown Coal Ash to Magnesium Oxide
The Demonstration Plant utilises Latrobe Magnesium’s patented hydrometallurgical process to extract magnesium oxide (MgO) and valuable byproducts such as char, silica, agricultural lime, and iron oxide from brown coal ash, a waste product from coal-fired power generation. This innovative approach not only recycles industrial waste but also aligns with environmental, social, and governance (ESG) principles by reducing landfill and lowering carbon emissions.
Operational Readiness and Training
In preparation for plant start-up, Latrobe Magnesium has completed a comprehensive operator training program encompassing company induction, emergency response, operational routines, and practical field exercises. This rigorous training ensures that site personnel are equipped to manage safe and efficient operations, a critical factor as the company transitions to production.
Commercial Prospects and Future Expansion
With steady-state production imminent, Latrobe Magnesium is positioned to advance confidential commercial discussions with potential partners interested in production trials. These engagements aim to secure long-term offtake agreements for magnesium oxide and byproducts. Looking ahead, the company plans to develop a Commercial Plant with a 10,000-tonne annual magnesium metal capacity by the second half of 2027, leveraging local feedstock and infrastructure. Additionally, an ambitious International Mega Plant in Sarawak, Malaysia, targeting 100,000 tonnes per annum, is in pre-feasibility stages.
Strategic Implications
Magnesium’s superior strength-to-weight ratio makes it increasingly vital across automotive, aerospace, medical, and electronics sectors. Latrobe Magnesium’s progress not only taps into this growing demand but also exemplifies a circular economy model by converting waste into high-value materials. The EPA’s approval marks a significant regulatory and operational milestone, setting the stage for Latrobe Magnesium’s transition from pilot to commercial production.
Bottom Line?
Latrobe Magnesium’s EPA approval signals a critical step toward commercial magnesium production and market expansion.
Questions in the middle?
- When will Latrobe Magnesium achieve steady-state production and begin delivering MgO commercially?
- What are the timelines and terms expected for long-term offtake agreements?
- How will the company’s planned Commercial and International Mega Plants impact its growth trajectory?
