Latrobe Magnesium has reached a third of construction completion at its Phase 1B Demonstration Plant, maintaining strong safety standards and progressing key installation milestones. The company targets first magnesium metal output in the second half of 2026, aligning with prior guidance.
- 33% overall construction completion at Phase 1B
- Critical Reduction Furnace installation on schedule
- Strong HSE compliance with zero reportable incidents
- Electrical and mechanical installations advancing steadily
- First magnesium metal production targeted for H2 2026
Construction Progress Hits One-Third Milestone
Latrobe Magnesium Limited (ASX:LMG) has reported that construction of its Phase 1B Demonstration Plant in Victoria has reached 33% completion. This milestone reflects substantial progress across structural, mechanical, and piping works, particularly within the Briquetting and Reduction Furnace zones. The company remains on course to commence magnesium metal production in the second half of 2026, consistent with its earlier timelines.
Critical Reduction Furnace Advances Amid Testing Plans
The Reduction Furnace, a pivotal component in the magnesium extraction process and on the project's critical path, has seen key structural elements completed, including the platform, stairways, and associated screw conveyors. Installation of utility piping and argon supply systems is underway, with final tie-ins progressing. A second prototype furnace test is slated for mid-July, aiming to validate the retort support design and ensure operational readiness. Automation specialists have resumed work on the furnace’s automatic shuttles following a recent site inspection that found no issues.
Electrical and Instrumentation Systems Gain Momentum
Electrical and instrumentation installation is advancing in tandem with mechanical works. Notably, the Briquetting screw feeder has been successfully powered and tested, marking a significant step toward system commissioning. Control panels and junction boxes for the Reduction Furnace have been installed, with ongoing cabling and wiring modifications to support the plant’s five-stage commissioning process. Rockwell Automation has commenced programming of the Briquetting system, targeting readiness for initial testing within four to five weeks.
Health and Safety Performance Remains Exemplary
Latrobe Magnesium continues to prioritise workplace safety, recording an average Health, Safety & Environment (HSE) compliance rate above 97% over the past month and maintaining zero reportable incidents. This strong safety record underpins the company’s disciplined approach to site execution as it ramps up installation activities.
Procurement and Supplier Engagement Support Schedule
Procurement efforts remain robust, with stainless steel piping, electrical materials, and structural steel among the items delivered or en route to site. Supplier remobilisation has been coordinated to align with installation schedules, ensuring no material delays are anticipated. The company continues to manage personnel resources actively to match the evolving work fronts.
Bottom Line?
Latrobe Magnesium’s steady progress and strong safety record keep its 2026 production target credible, but upcoming Reduction Furnace tests will be key to sustaining momentum.
Questions in the middle?
- Will the mid-July prototype furnace test confirm the Reduction Furnace design’s operational reliability?
- How will commissioning challenges impact the ramp-up to first magnesium metal production?
- What implications could procurement or supply chain disruptions have on the critical path moving forward?