Latrobe Magnesium Produces 20 Tonnes of MgO Over Two Weeks at Hazelwood Plant
Latrobe Magnesium has successfully achieved continuous production of magnesium oxide from brown coal ash at its Hazelwood North Demonstration Plant, marking a critical step towards magnesium metal production later this year.
- Approximately 20 tonnes of magnesium oxide produced over two weeks
- Demonstration Plant processes confirmed sustainable and reliable
- Magnesium oxide meets quality standards and has been sold to a customer
- Plant entering shutdown for upgrades ahead of magnesium metal production
- Magnesium metal production targeted for second half of 2026
A Milestone in Magnesium Production
Latrobe Magnesium Limited (ASX: LMG) has announced a significant operational milestone at its Hazelwood North Demonstration Plant in Victoria’s Latrobe Valley. The company has successfully produced approximately 20 tonnes of magnesium oxide (MgO) continuously over a focused two-week period, confirming the robustness and sustainability of its proprietary extraction process from brown coal ash.
This achievement is more than just a production figure; it validates the plant’s operational stability following earlier technical challenges, including a gas transport fan defect. The continuous run time has allowed the team to optimise performance and demonstrate that the process can reliably deliver magnesium oxide at commercial quality standards.
From Demonstration to Commercial Ambitions
The magnesium oxide produced has already been sold to a customer, signalling market acceptance and providing early revenue streams. Importantly, this milestone de-risks the project by proving the core technology and process flowsheet ahead of the next phase: magnesium metal production. The company plans to install horizontal and vertical retorts on-site, targeting an initial combined output of 1,100 tonnes of magnesium metal per annum starting in the second half of 2026.
To prepare for this transition, the Demonstration Plant is entering a planned shutdown phase to complete the remaining process flowsheet and implement enhancements identified during recent operations. The experienced workforce will be retained and redeployed to ensure a smooth commissioning and start-up of metal production.
Strategic and Environmental Significance
Latrobe Magnesium’s approach is notable for its environmental credentials, recycling industrial waste; brown coal ash; that would otherwise be discarded. This aligns with broader ESG trends and the circular economy, reducing landfill and lowering carbon emissions compared to traditional magnesium production methods.
The company also has ambitious plans beyond Australia, with a proposed ‘Mega’ plant in Sarawak, Malaysia, aiming to produce 100,000 tonnes of magnesium metal annually. This international expansion underscores the strategic importance of magnesium as a lightweight, high-strength metal increasingly demanded in automotive, aerospace, and electronics sectors amid rising geopolitical competition for critical metals.
Looking Ahead
With continuous magnesium oxide production now proven, Latrobe Magnesium is well positioned to advance towards full-scale magnesium metal manufacturing. The next 12 months will be critical as the company completes commissioning, begins metal production, and pursues customer validation trials for its by-products. Investors and industry watchers will be keen to see how these developments translate into commercial contracts and operational efficiencies.
Bottom Line?
Latrobe Magnesium’s breakthrough in continuous MgO production sets the stage for metal output and commercial growth in 2026.
Questions in the middle?
- What will the final assay results reveal about the magnesium oxide quality?
- How smoothly will the transition to magnesium metal production proceed post-shutdown?
- What are the prospects for securing long-term contracts for magnesium metal sales?
