Australia’s Latrobe Magnesium surges after outlining US plant plans

Australia’s Latrobe Magnesium surges after outlining US plant plans

Latrobe Magnesium unveiled plans on Tuesday to build a magnesium plant in the US with an estimated capital cost of $1.1-billion to $1.5-billion to tap into the North American market, sending its shares up 80% in intraday trade.

Shares of the Sydney-based company were last up 50% at 04:20 GMT, heading for their biggest one-day gain in nearly five years.

The magnesium producer said the project will be the first commercial-scale magnesium-producing plant in North America, delivering for the US defence, which faces a supply shortage.

The company said it aims to build a 50 000-ton-a-year plant, which can be expanded to 100 000 tons a year.

First production is targeted in 2030, the firm said

Source: Mining Weekly