Hazelwood North Plant Ramps Up to 1,000 Tonnes Per Annum of Magnesium Oxide

Operational Breakthrough at Hazelwood North

Latrobe Magnesium Limited (ASX – LMG) has announced a key operational update from its Hazelwood North Demonstration Plant in Victoria. After short-term disruptions caused by storm-related ash delivery delays, the company has successfully started producing Magnesium Oxide (MgO), a critical intermediate in its proprietary magnesium metal extraction process. This milestone validates the core technology underpinning LMG’s patented hydrometallurgical and thermal reduction method.

The Demonstration Plant has received over 200 tonnes of brown coal ash feedstock in recent weeks, ensuring sufficient inventory for continuous operations. The company’s mining partner continues to supply and stockpile ash in compliance with environmental regulations, while long-term reagent suppliers such as Origin Energy, Coregas, and Ixom maintain steady deliveries of LPG, industrial gases, and acid respectively. These stable supply chains are crucial as the plant ramps up production.

Progress Towards Commercial Scale

LMG’s operational team is methodically increasing output towards a targeted steady-state capacity of 1,000 tonnes per annum of Magnesium Oxide. Scheduled maintenance pauses during start-up have been leveraged as training opportunities and to implement preventative measures, aiming to reduce downtime and improve operational resilience. The produced MgO is being stockpiled in preparation for initial shipments to offtake partners, signalling the company’s transition from demonstration to commercial readiness.

Beyond MgO, the plant has successfully generated valuable by-products from the ash feedstock, including char, silica, iron oxide, and agricultural lime. These materials open additional revenue streams and support LMG’s commitment to circular economy principles. Validation trials with multiple interested parties are underway to secure long-term offtake agreements for these by-products, which will be integral to both the Demonstration and future Commercial Plants.

Looking Ahead – Expansion and ESG Leadership

LMG plans to commission the full Demonstration Plant in the first quarter of 2026, followed by development of a 10,000 tonne per annum Commercial Plant targeted for completion in the second half of 2027. Situated in Victoria’s Latrobe Valley, the Commercial Plant will benefit from proximity to feedstock, infrastructure, and skilled labour. Additionally, LMG is progressing an ambitious International ‘Mega’ Plant project in Sarawak, Malaysia, aiming for 100,000 tonnes per annum capacity using ferronickel slag feedstock.

Magnesium’s exceptional strength-to-weight ratio makes it increasingly valuable across automotive, aerospace, medical, and electronics sectors. LMG’s innovative approach not only recycles industrial waste but also aligns with environmental, social, and governance (ESG) best practices by reducing landfill and lowering carbon emissions. This operational update underscores the company’s progress in de-risking its technology and advancing towards commercial magnesium production.