Latrobe Magnesium: creating jobs, driving innovation and paving a path for reduced emissions

The Latrobe Valley has long been recognised as the heart of Victoria’s energy production. For generations, the region has powered the state through brown coal-fired electricity. Today, it stands at the centre of a transformation shifting towards a cleaner, more sustainable and diverse economy. Latrobe Magnesium is at the forefront of this transition. Through innovation and commitment to sustainability, Latrobe Magnesium is redefining the region’s industrial legacy by turning waste into opportunity. 

A world-first in magnesium production 

Latrobe Magnesium has developed a world first magnesium demonstration production plant. This breakthrough technology extracts magnesium metal from fly ash, a waste product of brown coal-fired power generation. Located in Hazelwood North in the Latrobe Valley, the demonstration plant has the capacity to produce 1,000 tonnes per annum of magnesium metal. 

This breakthrough not only marks a first for the Latrobe Valley but also for Australia. This project demonstrates how advanced technology can transform industrial waste into a valuable, low-carbon resource.  Magnesium is a lightweight and versatile metal that is essential for industries such as automotive, aerospace, medical electronics, construction, and defence.  

Magnesium is not only in high global demand, but it is also a critical material for the clean energy transition. It is used in electric vehicles, wind turbines, batteries, and lightweight alloys. Latrobe Magnesium is contributing to the production of this valuable resource locally, sustainably and with a significantly lower carbon footprint than traditional methods.

Empowering the Latrobe Valley community and workers 

Latrobe Magnesium recognises the importance of being deep-rooted in the Latrobe Valley, and the role of the local workforce in its success. 'Community is absolutely everything to us.' said Chief Operating Officer, Ronan Gillen. 'It's important to have not only a social license to operate, but a good reputation within the community that support you, who want to work with you and want to see you grow.'

Through investment and growth in the region, there is an opportunity for skilled workers to lead the transition into new jobs and new industries. Located at the centre of Victoria’s coal power generation region, the demonstration plant provides direct access to local fly ash feedstock and leverages the skills of the region’s highly capable workforce.

During construction hundreds of direct and indirect jobs were created, engaging local workers and businesses in every phase of the project. Since the demonstration plant opened, it has continued to deliver local, long-term, clean tech careers for the region’s future.  

Mark Cassar, a lifelong Latrobe Valley resident, joined Latrobe Magnesium during the final commissioning and operational phase. Coming from an electrical and purchasing background, he took on the opportunity of becoming a field operator. 

'My advice to anyone considering changing careers', he said, 'is to look outside their comfort zone. You have to embrace that there are greater opportunities.'

Local partnerships and training programs have also helped to ensure that the workforce is equipped with the skills required to succeed and thrive in this emerging industry.       

Innovation driving sustainability 

At the core of Latrobe Magnesium’s operation is a patented hydrometallurgical and thermal reduction process, a world-first technology designed to extract magnesium metal and other saleable by-products efficiently, safely, and with minimal environmental impact.

This innovative process produces over 50% less CO₂ emissions than conventional global magnesium production plants. It also eliminates downstream waste by converting fly ash, which would otherwise end up in landfill, into valuable resources.  

Looking ahead, Latrobe Magnesium’s next milestone is the development of a commercial plant capable of producing 10,000 tonnes per annum of magnesium metal. 

'The commercial plant is projected to operate for around 20 years, using approximately 2 million tonnes of fly ash,” said Project Manager, Sal Awad. 'It represents long-term waste recovery and sustained employment for the Latrobe region.' 

Latrobe Magnesium’s vision extends beyond production.

'After many years of R&D, our process has the ability to be fully electrified,' said, Ronan Gillen. 'Once there is sufficient renewable energy available in the grid, we can transition our process to 100% renewable power and achieve net zero emissions by the end of the decade, as opposed to 2050. We're incredibly excited by that opportunity and our goal to be Australia's first net zero metal producer.'

Latrobe Magnesium is committed to the long-term future of the Latrobe Valley: supporting local jobs, strengthening partnerships between industry and community, and fostering innovation. Through its pioneering technology, commitment to local development, and focus on sustainability Latrobe Magnesium is setting the standard for how regional industries can lead Australia’s net zero transition.