Latrobe Magnesium Reaches Key Technical Milestone as Demonstration Plant Advances Toward Production in H2 2026

Prototype Furnace Test Resolves Critical Reduction Furnace Risk

Latrobe Magnesium completed a pivotal second prototype furnace test for Phase 1B, heating the prototype to 1,180 B0C and successfully maintaining temperature without issues. This test validated the retort supporting pier design under operational thermal conditions, addressing a key project risk. Post-test inspections confirmed no refractory brick cracking or structural movement.

This validation is crucial as the Reduction Furnace remains on the project’s critical path. By resolving this uncertainty, Latrobe Magnesium has removed a major scheduling bottleneck that could have delayed commissioning and production. Minor design refinements to supports and rails will be implemented without requiring additional prototype testing. The prototype is being dismantled for return to site, and fabrication documentation for modified retort supporting piers is underway.

Briquetting System Installation Nears Site Acceptance Testing

The Briquetting system installation is nearing completion, with dust collector ducting and reagent and utility piping installed. Rockwell Automation is advancing system programming, with hardware onsite and SCADA screens finalized. Site Acceptance Testing (SAT) for the Briquetting system programming is scheduled for this week, marking a key commissioning milestone.

Mechanical installation is complete, with final grouting of the Briquetting Ball Mill and Briquette Machine underway to allow curing before staged commissioning. Quicklime and Magnesium Oxide (MgO) piping and supports are installed, and instrument air tubing for the Supplementary Cementitious Material (SCM) screw conveyor is complete pending final connections. The Briquetting system is among the most advanced areas within the Demonstration Plant, enabling early commissioning progress.

Reduction Furnace Installation Progresses on Critical Path

The Reduction Furnace area, identified as the critical path for project completion, is advancing with air aspiration piping installation commencing following receipt of fabricated components. Exhaust stack fabrication is progressing, with completion expected by early August 2026. A major coordinated lift operation is planned for early August to install the furnace exhaust stack support, dust collector atop the SCM silo, and Briquetting stacks using a slew crane.

Vacuum piping fabrication is substantially complete with six of seven manifolds finished; pressure testing is scheduled after the final manifold. Argon supply tubing installation is complete, awaiting final retort connections. Final gas piping and ducting contracts are in approval stages, with fabrication imminent. Crown Handling Baler and related equipment are mechanically installed, with automatic shuttle installation to follow Reduction Furnace progress. Dependencies are managed to maintain schedule efficiency.

Electrical and Instrumentation Commissioning Advances Concurrently

Electrical and instrumentation works are progressing alongside structural and mechanical installations in both Briquetting and Reduction Furnace areas. Briquetting electrical terminations are complete, with initial energisation pre-testing underway. All screw conveyors, quicklime and dust collector motors, and the Briquette Machine hydraulic press have been successfully tested. Baler racking and cable supply installation is near completion, with terminations ongoing.

This staged electrical commissioning approach—starting with pre-testing and individual equipment verification—ensures system integrity before full power-up, reducing risks and enabling early issue resolution. Parallel advancement of electrical and mechanical works ensures readiness for operational testing.

Procurement Nears Completion, Focus Shifts to Installation Support

Procurement remains active, with major equipment deliveries complete and recent activity focused on consumables and minor supplies supporting installation. This shift reflects the project’s transition from supply chain management to execution risk management. Coordination with Rockwell Automation for Briquetting system programming and hardware integration supports smooth commissioning.

Health, Safety & Environment Compliance Maintained Above 97%

Throughout Phase 1B, Health, Safety & Environment (HSE) compliance has consistently exceeded 97% weekly, with zero reportable incidents recorded. This strong safety record reflects robust protocols and management commitment amid complex mechanical, electrical, and high-temperature furnace operations.

The sustained high compliance rate and zero incidents demonstrate a mature safety culture, providing confidence that operational phases will maintain these standards.

Fire Protection Systems Installation Underway in Line with Victorian Standards

Fire protection installation has begun, including new fire hydrants, quad booster system, and hose reels around the Demonstration Plant, complying with Fire Rescue Victoria requirements. These systems integrate with the overall plant design to ensure operational safety readiness.

Installation of fire service piping and hose reels is progressing alongside other mechanical and structural works, ensuring comprehensive fire safety coverage. Compliance with regulatory standards is essential for operational approval.

Project 50% Complete, On Track for Magnesium Production in H2 2026

Phase 1B construction is 50% complete, progressing toward commissioning and first magnesium metal production targeted for the second half of 2026. This milestone marks the shift from installation to integration and commissioning across civil, structural, mechanical, electrical, instrumentation, fire protection, and programming work packages.

Production timing depends on completing installation milestones, commissioning phases, and achieving stable operating conditions. The Reduction Furnace remains the critical path due to its complexity. Parallel Briquetting system progress enables staged commissioning and knowledge transfer. Prototype furnace validation reduces technical risks, boosting confidence in the production timeline.

Latrobe Magnesium’s Proprietary Technology and Market Position

Latrobe Magnesium Limited is advancing proprietary magnesium metal production technology at its Gippsland Stage 1 Demonstration Plant. The validated reduction furnace design is central to this technology platform. Magnesium metal’s lightweight properties serve automotive, aerospace, electronics, and industrial markets seeking weight reduction and performance benefits.

The Demonstration Plant serves as a proof-of-concept facility validating integrated production from briquette preparation through furnace operation to product output. Operational data, cost validation, and product specifications will guide commercial scaling decisions. Resolving the furnace pier design risk enhances the company’s credibility with technology partners, financiers, and potential offtake customers assessing commercial viability.