Latrobe Magnesium (LMG) has received a letter of interest (LOI) from the US Export Import Bank (EXIM), advising that it would be prepared to finance up to $US122 million ($200 million) for LMG’s Stage 2 commercial plant over a maximum repayment term of 15 years.
Based in Victoria’s Latrobe Valley, LMG is among the first tranche of Australian mining companies slated to benefit from the landmark critical minerals deal signed between the US and Australia earlier this week.
Speaking to Australian Mining, LMG chief executive officer David Paterson said the company’s inclusion among those selected for initial deals and potential funding stemmed from its position as a unique producer of magnesium.
“I think what we saw was the smaller companies that got picked, that was on the back of what they produce,” Paterson said.
As a critical mineral, magnesium is vital for electronics, including consumer electronics and satellites, and in advanced manufacturing for aerospace, defence, and infrastructure.
Paterson detailed some of the background leading up to the announcement and LGM’s inclusion among the initial companies to benefit from the deal.
“We put out a white paper around June, and we spoke to probably 50 of the Pentagon people in one sitting,” he said. “That was probably around July. We also had meetings with the Department of Commerce and others.”
He said the US was very keen to “catch up” with China on critical minerals, which has helped to propel the deal.
He said LMG had crafted a pitch to the US based on its unique position as one of the few magnesium producers outside of China.
“Firstly, it’s a good product,” Paterson said. “We’re using a completely new process; no one anywhere else in the world is close to what we’re doing.
“We have Allens do all our IP work, so that protects us against China, and we always wanted to be Western-based, and stay Western-based, even though there were offers in the hard times.
“Our pitch to the US was, effectively, we’re using Bechtel, a major US Tier 1 engineering firm and we have 100 per cent offtake already with a US buyer.”
LMG was one of seven Australian companies mentioned in the announcement made by EXIM regarding the critical minerals deal, which, in EXIM’s words, represents “the next phase in securing the minerals that power American manufacturing, national security, and other strategic industries”.
EXIM chairman John Jovanovic said the letter of interest to LMG reflected the bank’s commitment to advancing projects that strengthen US national security, enhance supply chain resilience, and revitalise domestic manufacturing.
“By fostering collaboration between American industry and Australian mining initiatives, EXIM is helping deliver on President Trump’s vision to bolster America’s industrial innovation, create high-quality US jobs, and ensure reliable access to the critical minerals that power key American industries and technologies,” he said.
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