Latrobe Magnesium Ltd. and RWE Power AG signed a term sheet to jointly develop a new 30,000-tonne-per-annum magnesium plant in Germany, according to a Dec. 18 release.
The magnesium will come from the brown coal fly ash from coal mined at RWE's Hambach mine in Germany and processed through its supercritical brown coal power station near Cologne.
A memorandum of understanding for the development of the magnesium plant was previously signed in June 2016.
Latrobe recently produced a large scale beneficiated sample of RWE's fly ash to process through its fast cycle vertical retort furnace at its under-development Latrobe Valley plant in Victoria, Australia. The processing is expected to complete by February 2018.
Following completion of test work and signing of an ash supply agreement for the Victoria project, Latrobe can move to develop its 3,000-tonne-per-annum magnesium plant at Morwell, Victoria, in 2018.
If a suitable ash supply is not secured in Victoria's Latrobe Valley in the near future, the company may construct the 3,000-tonne-per-annum plant in Germany.