Scandium Supply Security at Risk: Australian Mines Moves to Expand Flemington Resource

Drilling Approval Unlocks Exploration Potential

Australian Mines Limited (ASX, AUZ) has taken a significant step forward by securing regulatory approvals to commence a focused drilling campaign at its Flemington Scandium-Nickel-Cobalt Project in central New South Wales. The planned ~1,000-metre drilling program aims to test a large, underexplored geophysical anomaly adjacent to the company’s existing scandium resource, which is already recognised as one of the highest-grade deposits globally.

This drilling initiative is designed to gather critical geological data and potentially expand the known scandium mineralisation. The anomaly targeted has been defined through a combination of historical exploration and recent geophysical reinterpretation but has not yet been adequately tested by previous drilling efforts.

Strategic Importance of Scandium Amid Global Supply Shifts

The timing of this drilling program coincides with recent policy developments in China, where the Ministry of Commerce introduced export-control licensing on rare-earth-related technologies, including mining and processing. These restrictions highlight the growing strategic importance of securing diversified, non-Chinese sources of critical minerals like scandium.

Flemington’s location in a stable jurisdiction such as New South Wales offers Australian Mines a potentially secure pathway to supply scandium to global markets increasingly wary of geopolitical risks. This is particularly relevant given scandium’s rising profile in advanced technologies.

Synergy with Proprietary Hydrogen Storage Technology

Beyond exploration, Australian Mines is developing proprietary scandium-doped metal hydride compositions that show promise for safe, efficient, and cost-effective hydrogen storage solutions. The ability to vertically integrate supply; from mining scandium at Flemington to producing metal hydrides; could provide the company with a unique competitive advantage in the emerging clean energy sector.

CEO Andrew Nesbitt emphasised the strategic value of this alignment, noting that success in the drilling program could expand one of the world’s highest-grade scandium deposits and support the company’s innovative hydrogen storage technology, thereby strengthening supply security for this critical mineral.

Looking Ahead

While the announcement does not disclose new exploration results, the secured approvals mark a critical milestone. The market will be watching closely as drilling commences and results emerge, potentially reshaping the supply landscape for scandium and related rare earth elements.