Latrobe Magnesium Limited announced that it is investing $39 million to establish Stage 1 of a magnesium production facility at their Tramway Road facility in Morwell which will create 43 new Full Time Equivalent (FTE) jobs. The Stage 1 magnesium production facility will treat brown coal fly ash from the Yallourn Power Station. The facility is expected to be constructed by June 2023 and then undergo commissioning.

LMG is establishing a 1,000tpa magnesium plant as a demonstration of the LMG unique patented hydromet process to extract magnesium and other saleable products from the brown coal fly ash. LMG's process allows for 100% recycling of the fly ash. LMG's plant is expected to emit less than half of the average CO2 emissions per tonne of magnesium from the rest of the world's producers.

LMG are presently completing a body of work with GHD to determine what will be the capacity of the expanded facility. LMG has announced that upon successful commissioning of the demonstration plant it plans to expand the plant to 10,000tpa of magnesium. The current production of Yallourn fly ash until it closes in 2028, is sufficient to provide feedstock for a 10,000tpa plant for 20 years.

The mining of the Yallourn landfill could increase the size of the expanded plant. This next expansion will be decided by the end of 2023. LMG is committed to providing local jobs and contractors work in the Latrobe Valley from both its Stage 1 and expanded plants and acknowledges the support provided from the Regional Jobs Fund.