Latrobe Magnesium Limited has signed an amendment to its exclusive distribution agreement with Metal Exchange Corporation (MEC) for the distribution of magnesium into North, Central and South America and the Caribbean markets. Under the amended contract LMG will deliver all its production from its 1,000 tpa demonstration plant and its 10,000tpa from its Stage 2 commercial. The demonstration plant will therefore send an extra 200 tpa to the USA market.

LMG's commercial plant will sell an additional 2,000 tonnes per annum of magnesium. Consequentially, LMG will receive additional revenue of AUD 1 million for its demonstration plant and AUD 10 million for its commercial plant. LMG made the decision to sell all its production into the USA market owing to the higher market pricing for magnesium in the US market, which is a consequence of the US anti-dumping duty payable on magnesium imports from China.

All other features of the agreement with MEC remain as previously disclosed, which include a minimum initial term with a rolling annual renewal and a minimum floor price for the purchase of the magnesium. Owing to the 6 months delay in the demonstration plant becoming fully operational, the timing schedule for the delivery of the 10,000+ tpa plant has also been pushed back to December 2025. The additional 200 tpa and 2,000 tpa volume secured by MEC was previously allocated to the Japanese market.

Japan remains an important strategic market for LMG, for which exports will now be deferred until the commissioning of LMG's 100,000 tpa Stage 3 project in Sarawak, Malaysia.