Latrobe hopes for Dec start to plant construction
PERTH (miningweekly.com) – The construction of a 3 000 t/y magnesium plant in Victoria is expected to start in December this year, following a positive prefeasibility study (PFS).
ASX-listed Latrobe Magnesium on Monday reported that the PFS estimated an initial capital cost of A$56-million to develop the project.
The PFS estimated that the project would generate earnings before interest, taxes, depreciation and amortisation of up to A$5.6-million a year, once it was operating at nameplate capacity, with the plant expected to initially employ 54 staff.
The project is expected to start production in June 2021, and to expand to 40 000 t/y some 12 months later.
Latrobe at the start of 2018 entered into a memorandum of understanding with EnergyAustralia Yallourn to supply ash to the Latrobe Valley operation, converting the ash into mainly magnesium and two supplementary cementitious materials.
Subject to agreeing to terms for ash supply with EnergyAustralia, Latrobe is expecting to make a final investment decision and to start construction of the operation by December this year.
With the completion of the PFS, the ASX-listed company will now approach the commonwealth and Victorian governments to consider the company’s request for a A$12-million grant to assist in funding the construction of the project.
A further A$16-million is expected to be raised from a mix of exclusivity payments and equity from Latrobe’s current interested sophisticated investors and supplementary cementitious material partners.
The company already has a A$28-million project funding in place.
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