Aiming To Take Advantage As Market Heats Up
Platina Resources Limited (ASX:PGM) will sharpen its focus on unlocking the value of its Platina Scandium Project (PSP) in the wake of the metal’s increasing appeal as a lightweight, high strength alloy for electric vehicles and other markets.
In response to global mining major Rio Tinto’s recent announcement that it will construct a commercial scandium oxide demonstration plant at its titanium dioxide feedstock facility in Quebec, Platina Managing Director Corey Nolan was hopeful it would stir favourable winds for the market and PSP.
“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,” Mr Nolan said.
“The PSP remains one of the world’s leading undeveloped scandium projects with the 2018 Definitive Feasibility Study (DFS) demonstrating a Stage 1 annual production of 20 tonnes and a forecast modest initial capital expenditure of US$50 million.”
“While the solid oxide fuel cell industry has been the dominant consumer of scandium in recent years, the metal’s greatest value is as an aluminium alloy targeting aerospace, marine, military and automobile industries.”
“Scandium can produce stronger, more heat tolerant, weldable aluminium products which are being increasingly incorporated into transportation applications for electric vehicles and more stringent fuel efficiency requirements,” he said.
Mr Nolan said the company planned to update an independent scandium market study previously produced for the DFS to assess new market opportunities and identify new industry players potentially interested in offtake and investment.
He added the company would also continue to work with Traxys Europe S.A to assess scandium product and market development, and potential project funding options in the USA, Europe, Asia and Australia.
“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,” Mr Nolan said.
“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.
The project also has the potential for producing high purity alumina for use in the lithium-ion batteries.
In comparison to our scandium, and scandium-nickel-cobalt peers, we believe the PSP has significant, untapped value,” he said.
The DFS, completed in late 2018, demonstrated the technical and economic viability of constructing the project. The positive demonstrated the opportunity to create substantial long-term sustainable shareholder value at a manageable capital cost.
