(NewsDirect)
Latrobe MagnesiumLtd (ASX:LMG) CEO David Paterson tells Proactive that under an amendedcontract with Metal Exchange Corporation (MEC) LMG will now provideall magnesium from its 1,000 tonnes per annum demonstration plant andits subsequent 10,000 tonnes commercial plant for markets in North,Central and South America and the Caribbean. Further to this, MEC’sofftake of magnesium will increase by 20% from both of Latrobe’splants, a move the company estimates will increase revenue of itsdemonstration plant by $1 million. The amendment could work in LMG’sfavour to the estimated tune of an incremental A$10 million in salesrevenue. This in turn should increase EBITDA for the 10,000 tonnes perannum plant to in excess of $50 million.
Latrobe Magnesium is constructing a 1,000tonne per annum (tpa) demonstration production plant in Victoria’sLatrobe Valley using a proprietary patented combined hydromet /thermal reduction process. Using this world-first, low cost, lowemission process, the plant will harvest magnesium metal and othervaluable by-products from a fly ash resource – a waste stream frombrown coal power generation.Following a successful feasibility studyand project financing, development of the demonstration plant atLMG's Hazelwood North site is well underway including engineering,purchasing of equipment and construction works.
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Proactive Investors
JonathanJackson
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jonathan@proactiveinvestors.com
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