Latrobe Magnesium (ASX:LMG) plans to pursue a 50,000-tonne-per-annum (tpa) primary magnesium metal plant in South Carolina, US, having secured letters of intent (LOIs) for 32,000 tonnes of committed demand from US consumers and traders.
The company has identified a preferred site with port and logistics access and optionality for expansion to 100,000 tonnes per annum (tpa).
CEO Robert Stein says Latrobe is ‘uniquely positioned’ to capitalise on the opportunity with its intellectual property and capabilities, which can help with the US magnesium supply gap.
“This strategic update is the culmination of years of pioneering and tireless work by [former Latrobe chief executive] David Paterson and the Latrobe team,” Stein says.
“Latrobe has identified a clear pathway to advance this commercial project, with a clear focus on disciplined execution and shareholder value creation.”
The LOIs include an in-principle commitment from Metal Exchange to expand its North American distribution agreement to a minimum of 25,000tpa. Other LOIs cover 5,000 tonnes from Meridian Lightweight Technologies and 2,000 tonnes from Twin City Die Castings.
Latrobe says it has already received customer enquiries for up to 110,000tpa from North America and 285,000tpa globally.
The facility will utilise feedstock covered by a binding 20-year ferronickel slag memorandum of understanding with Société Le Nickel (Eramet), with Bechtel nominated as engineering partner.
An indicative economic assessment estimates capital costs of US$1.1–1.5 billion ($1.4–2.1 billion) and operating costs of US$2,600–4,000 per tonne. Latrobe estimates EBITDA of US$320–615 million per annum under a price range of US$5,000–7,500 per tonne.
South Carolina has likewise offered a substantial incentives package comprising cash incentives, in-kind services, and tax holidays, pending site purchase and formal application lodging.
Latrobe intends to prioritise the US project, while work on its Victorian operation in Australia will progress pending resolution of the state’s trailing liability scheme for declared mines.
An estimated US$30 million is required to fund feasibility studies, site acquisition, and the establishment of the US subsidiary; and is in talks with several US financial institutions for funding.
The company aims to start a Feasibility Study by Q1 2027 ahead of a financial investment decision targeted in March 2028. It also intends to complete construction in 24 months, with first production scheduled for April 2030.
Latrobe Magnesium is a magnesium metal developer with projects in the US, Australia, and Malaysia.
Write to Paula Fabe at Mining.com.au
Images: Latrobe Magnesium
