Latrobe Magnesium Shares Surge After Producing “World’s First Sustainable Magnesium Oxide”

Latrobe Magnesium Ltd (ASX: LMG) shares have surged after producing the world’s first environmentally sustainable MgO (magnesium oxide) from fly ash.

This follows the successful commissioning of the first phase of Latrobe’s 1,000 tonnes per annum, Stage 1 Demonstration Plant in Victoria’s Latrobe Valley.

Latrobe shares were trading ~23.5% higher intra-day following the announcement, at A$0.063.

Magnesium from waste

The successful commissioning marks a significant milestone in pioneering a sustainable magnesium extraction method from fly ash – a waste resource from brown coal power generation.

The extraction was done at an industrial scale, using Latrobe’s patented, world-first hydromet process.

Following this achievement and validating the hydromet process, Latrobe can now officially start a bankable feasibility study and financing discussions, in relation to the 100%-contracted, 10,000 tonnes per annum Stage 2 Commercial Plant.

MgO production from the demonstration plant will be sold to Rainstorm Dust Control Pty Ltd as per the MoU between the parties.

Reduces carbon emissions

Latrobe’s patented hydrometallurgical extraction/thermal reduction technology is the only process capable of extracting magnesium from brown coal fly ash, and ferro-nickel slag tailing feedstocks.

Converting nearly 100% of this unwanted waste resource into saleable products, this low-emission process produces magnesium metal with accompanying valuable secondary products at no incremental cost.

LMG’s patented process not only reduces the operating cost of traditional magnesium and cement production methods but simultaneously reduces carbon emissions by as much as 60% compared to the industry average.

The company’s patented process produces no further downstream tailings, ensuring environmental sustainability.

“Incredibly proud”

Latrobe CEO David Paterson said: “We are incredibly proud of the results from our Demonstration Plant and the achievement of MgO production.

 “The world’s first flow sheet using a hydromet process is a testament to our technology, our staff and contractors involved in the process to date.”

 

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