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    Latrobe Magnesium (ASX:LMG) upgraded USA distribution agreement

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    Latrobe Magnesium (ASX:LMG) has signed an upgraded exclusive distribution agreement with Metal Exchange Corporation (MEC) to sell the majority of its magnesium into North, Central and South America and the Caribbean markets.

    The contract delivers excellent prices to LMG due to a US anti-dumping duty payable on magnesium imports from China.

    The agreement includes updated dates, a minimum firm commitment of 8,000 tpa of magnesium, a minimum initial term with a rolling annual renewal, and a minimum floor price for the purchase of the magnesium.

    LMG proposes to sell up to 80% of its production into the Americas since it is exempt from any import duty under the US-Australia free trade agreement.

    The company is developing a magnesium production plant in Victoria's Latrobe Valley using its patented extraction process and plans to sell the refined magnesium under long-term contracts to USA and Japanese customers.

     

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