Latrobe Magnesium chief executive David Paterson said the Samalaju location had notable strengths compared to the other two options being considered.
"The most significant benefit to this location is the presence of hydroelectric power generation, meaning Latrobe Magnesium will potentially be able to operate with 100% renewable power, with the process plant operating with net zero emissions immediately after commissioning, as opposed to achieving this goal over a much longer period of time," he said.
"Discussions with ministry officials and authorities in the Sarawak government, particularly the Bintulu Development Authority, are sufficiently advanced to agree on a 40 hectare site location. Latrobe Magnesium will immediately commence the land application process to secure the land."
Other advantages include local production of ferrosilicon, a substantial modern bulk handling port to cater for both imports and export of product, large workforce capability, and nearby supporting services.
Latrobe Magnesium will begin the B phase of the Pre-Feasibility Study with Bechtel on the selected location.
Paterson said a thorough evaluation process that assessed each location with respect to technical, financial, capex and risk was undertaken.
"Sarawak, Malaysia, was a clear leader in the majority of the above assessment criteria," he said.
"The PFS-B study will provide estimates of the financial return of the 100,000tpa plant based upon the revenues and costs for this location.
"Latrobe Magnesium has received favourable reactions in discussions with financiers in relation to funding the project in Sarawak.
"The selected location offers Latrobe Magnesium the opportunity to deliver a project that will offer significant returns to shareholders as well position Latrobe Magnesium to be the world's cleanest and largest magnesium producer, by volume."