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Latrobe * Magnesium ABN 52 009 173 611 QUARTERLY ACTIVITIES REPORT 31 December 2020 LATROBE MAGNESIUM PROJECT 1 . Updated Feasibility Study In May 2020 , LMG updated its feasibility study to its 3,000 tpa magnesium plant to incorporate the latest production flowsheet . The updated numbers estimated to generate EBITDA in the range between $ 4.0 million to $ 4.5 million per annum when it is operating at its name plate capacity . The initial plant is estimated to still employ up to 54 on - going direct employees and contractors and 50 to 75 construction jobs . The feasibility study estimates the capital cost to be in the order of $ 54 million . This estimate includes design growth and contingencies of $ 6 million . LMG has completed a Value Engineering exercise and determined the capital cost can be reduced to $ 50 million . It has also identified annual energy savings of up to $ 1 million . 2. Latrobe Council Planning Permit On 5 June 2020 , LMG's application to the Latrobe City Council for planning approval to use and develop the site for its initial 3,000 tpa magnesium plant at 320 Tramway Road Hazelwood North was approved and a certificate issued . LMG remains committed to progressing this project to safely re - process brown coal mining waste , generating jobs and developing a new industry in the Latrobe Valley . 3 . EPA Planning Approval On 16 September 2020 , LMG's application to the Victorian Environmental Protection Authority ( EPA ) for its research , development and demonstration application for its initial 3,000 tpa magnesium plant at 320 Tramway Road Hazelwood North was approved and a certificate issued . The approval allows LMG to operate the plant for a period of 18 months post the commissioning stage . The EPA's approval comes with mainly standard conditions which need to be fulfilled before construction or commissioning of the plant . 4 . Project Funding LMG will be making it final investment decision at the end of March 2021 once it has secured its project finance and equity funding . Suite 307 , 20 Barrack Street , Sydney , NSW 2000 Postal Address : GPO Box 4729 , Sydney , NSW 2001 Phone : +61 ( 0 ) 2 8097 0250 Email : Img@latrobemagnesium.com