Sunrise Energy Metals Boosts Syerston Scandium Reserves by 87%, Securing 32-Year Mine Life
Sunrise Energy Metals has announced a significant 87% increase in the Ore Reserve Estimate for its Syerston Scandium Project, underpinning a 32-year mine life with steady scandium oxide production. The update comes amid tightening Chinese export controls, positioning the project as a critical non-Chinese scandium supply source.
- Ore Reserves increased to 2.0 million tonnes at 644 ppm scandium
- Mine life extended to 32 years with 60 dry tonnes per annum scandium oxide output
- Forecast capital cost of US$120 million and operating cost of US$534/kg Sc2O3
- Updated feasibility study due early 2026 incorporating increased reserves
- Chinese export restrictions bolster market demand and customer engagement
Significant Reserve Upgrade
Sunrise Energy Metals Limited (ASX – SRL) has delivered a substantial boost to its Syerston Scandium Project in New South Wales, announcing an 87% increase in its Ore Reserve Estimate. The updated reserve now stands at 2.0 million tonnes of ore grading an average 644 parts per million (ppm) scandium, equating to over 2,000 tonnes of contained scandium oxide. This sizeable upgrade not only enhances the project's resource base but also supports a robust 32-year mine life.
Operational and Economic Outlook
The project is designed to produce approximately 60 dry tonnes per annum of high-purity scandium oxide (Sc2O3), a critical metal increasingly sought after for aerospace, automotive, and advanced manufacturing applications. The forecast capital expenditure is set at US$120 million, with an average life-of-mine cash operating cost of US$534 per kilogram of scandium oxide. These figures reflect a low capital intensity and competitive operating cost profile, bolstered by extensive metallurgical test work demonstrating an 88% scandium recovery rate.
Strategic Market Position Amid Export Controls
Recent tightening of Chinese export licensing restrictions on scandium has added strategic importance to the Syerston Project. The new controls, which extend extraterritorially to products containing more than 0.1% Chinese-derived scandium, have disrupted global supply chains and heightened demand for secure, non-Chinese sources. Sunrise's management highlights that these developments are accelerating discussions with prospective customers and funding agencies, reinforcing confidence in the project's market outlook.
Next Steps and Regulatory Status
Sunrise plans to complete an updated feasibility study by early 2026, integrating the increased ore reserves and advancing metallisation options, particularly in the United States. The project benefits from an existing Development Consent granted by the New South Wales Government, with minor modification applications underway to align with the updated mine plan. Infrastructure is well established, including water rights and road access, positioning the project for timely development.
Market Implications and Industry Context
The Syerston Project stands to become one of the world’s first primary scandium mines, offering a stable supply to a market currently dominated by fragmented by-product production and constrained by geopolitical tensions. With global scandium demand estimated at 50-60 tonnes per annum and forecast to grow, Sunrise’s production capacity could significantly influence market dynamics, especially as industries seek to diversify supply away from China.
Bottom Line?
As Sunrise Energy Metals prepares its updated feasibility study, the Syerston Project is poised to become a cornerstone of global scandium supply amid shifting trade landscapes.
Questions in the middle?
- How will evolving Chinese export policies further impact global scandium supply and pricing?
- What progress is Sunrise making in securing offtake agreements with key aerospace and automotive customers?
- How might metallisation developments in the US influence the project's downstream processing strategy?