Latrobe Magnesium advances plant commissioning toward first metal

Commissioning reaches the halfway mark

Latrobe Magnesium Limited (ASX:LMG) has moved its Latrobe Valley demonstration plant deeper into the critical commissioning phase, reporting that 50% of Phase 1B commissioning was complete at 31 October, up from 25% a month earlier. Installation is now 98% complete, leaving only minor works that the company says do not affect the commissioning critical path.

The project remains aimed at producing magnesium metal crowns containing more than 98% magnesium by the end of 2026. That target is still forward-looking, but the latest update puts the plant materially closer to the technical milestone than it was in September. The previous Phase 1B commissioning update had reported the plant at 35% commissioned and 95% installed.

Reduction Furnace moves into testing

Work is now concentrated on turning installed equipment into an operating plant. Commissioning of the Reduction Furnace began in late October, with vendor representatives on site for system testing. Vacuum testing has been completed across all 30 retort and condenser assemblies, and those assemblies have been delivered to the site.

“Reduction Furnace electrical QA/QC final checks”

Caption and image © Latrobe Magnesium Limited. From “October Project Update”, 2 Nov 2026.

In the Briquetting area, the Ball Mill has been charged and reagent ore commissioning and control-system tuning have started. Mechanical and electrical testing of the Crown Handling Baler is complete, while testing of the automatic load shuttle, utilities and SCADA controls continues. All reagent supplies required ahead of first metal production are reported to be on site.

Budget holds as final works continue

Latrobe says the project forecast remains within its original A$6.1 million budget, with forecast cash spending in line with the A$3.8 million allocated in its recent equity raising. The company had completed a A$3.4 million entitlement offer shortly before this update, with the earlier funding announcement saying the raise was intended to carry the Victorian demonstration plant towards targeted first production.

Remaining work includes minor grouting in the Reduction Furnace area, installation of roof components and upper expansion joints, final fire-monitoring systems and further commissioning checks. Latrobe says these activities are expected to progress in the coming weeks as the plant transitions from installation into operations.

Safety record remains intact

Health and safety performance has remained strong during the more demanding commissioning phase. Weekly HSE audit compliance stayed above 98% throughout October, and the project has recorded zero recordable incidents since commencement.

The next hard evidence will come from furnace and retort performance rather than installation percentages. Latrobe’s end-of-year first-metal target now depends on completing those tests, moving through the remaining commissioning stages and demonstrating that the system can produce the promised magnesium purity within the stated timeframe.