With scandium’s increasing appeal in the electric vehicle market, Platina Resources Limited (ASX:PGM) announced today plans to “sharpen its focus” on unlocking the value of its Platina Scandium Project in New South Wales.
Platina’s announcement follows in the footsteps of Rio Tinto’s (ASX:RIO) which announced an upcoming construction plan to build North America’s first scandium plant.
“Platina’s prime objective is to secure production offtake agreements to enable financing options to be pursued for construction funding for the project, which is located in New South Wales and hosts one of the highest-grade scandium deposits in the western world,” said Platina Managing Director Corey Nolan.
A 2018 Definitive Feasibility Study (DFS) showed that the Platina Scandium Project is one of the world’s leading undeveloped scandium projects with a 20-tonne Stage 1 annual production value and a forecast modest initial capital expenditure of US$50 million.
Despite primarily feeding into the solid oxide fuel cell industry – which Nolan described as a “dormant consumer” – the scandium metal has significant uses when treated as an aluminum alloy in the aerospace, marine, military, and automobile industries.
The metal, when blended with aluminum, creates a stronger, more heat-tolerant, and weldable alloy that is seeing increased usage in electric vehicles that demand more stringent fuel efficiency than regular ones.
Growing opportunities
To assess market opportunities and identify industry players potentially interested in offtake and investment, Nolan said that Platina is eyeing an update of its independently-conducted market study.
“Close on the heels of extracting more than $18 million in value from our Skaergaard Project in Greenland, we are committed to realising the full value from all our assets where we’re registering a low value.”
“The PSP has excellent infrastructure including access to labour, water, rail, sealed roads and water; and offers the potential to produce nickel and cobalt by-products which have significantly increased in price during 2021, rising 8.8% and 16.5% respectively.
Feeding the project’s output into the production of high-purity alumina for use in lithium-ion batteries are also in-talks.
“In comparison to our scandium, and scandium-nickel-cobalt peers, we believe the PSP has significant, untapped value,” Nolan added.
