Australian Mines has fast-tracked its Flemington Scandium Project pre-feasibility study to explore scaling production from 60 to 180 tonnes per annum amid rising market demand. The study builds on a strong scoping study that valued the project at up to US$860 million NPV.
- PFS expanded to assess up to 180 tpa scandium oxide production
- Scoping study shows post-tax NPV8 of US$860 million at US$3,000/kg Sc₂O₃
- New drilling program to test resource extensions and support metallurgical work
- Initial capital cost estimated at US$125 million for 60 tpa operation
- PFS expected to complete within 6-9 months including environmental and permitting studies
Fast-Tracked Study Targets Tripling Production Capacity
Australian Mines Limited (ASX:AUZ) is accelerating its plans for the Flemington Scandium Project in New South Wales by fast-tracking a Pre-Feasibility Study (PFS) that now includes an assessment of scaling annual scandium oxide production from the previously planned 60 tonnes per annum (tpa) to as much as 180 tpa. This move responds to potential supply shortfalls and growing demand for scandium, particularly linked to the expansion of solid oxide fuel cell (SOFC) technology.
The expanded PFS will run alongside a new drilling campaign designed to test extensions to the existing mineral resource and provide additional material for metallurgical test work. The study is slated for completion within 6 to 9 months and will cover environmental baseline studies, hydrogeological investigations, permitting, and intensified market engagement.
Robust Economics Underpinning Project Expansion
The PFS follows a compelling scoping study delivered earlier this year, which showcased the Flemington project's strong economics. At a market-aligned scandium oxide price of US$3,000 per kilogram, the project demonstrated a post-tax net present value (NPV8) of approximately US$860 million and an internal rate of return (IRR) of 74%. Even at a more conservative mine design price of US$1,500/kg, the NPV8 remained attractive at around US$270 million with a 32% IRR.
Initial capital expenditure for a 60 tpa operation is estimated at US$125 million, with operating cash costs around US$561 per kilogram of scandium oxide. The project is planned for a 28-year mine life, based on processing 2.09 million tonnes from Flemington's high-grade mineral resource, which boasts one of the highest scandium grades globally at 446 ppm, with an average feed grade of 573 ppm over the first 15 years.
Strategic Location and Market Potential
Flemington sits in the heart of a scandium hub in NSW, adjacent to Sunrise Energy Metals’ Syerston Scandium Project, positioning Australian Mines strategically within a growing supply cluster. Managing Director Andrew Nesbitt highlighted the importance of scaling Western scandium supply to meet the anticipated demand surge driven by Bloom Energy’s SOFC deployments.
The company’s approach to expanding production capacity aligns with broader market signals for scandium, a critical mineral gaining traction for clean energy technologies and aluminium alloy enhancement. The drilling program will be crucial to confirming resource extensions and supporting metallurgical advancements that underpin scalable production.
Next Steps and Investor Considerations
The PFS will refine technical and economic parameters, with a focus on unlocking the project’s full potential while managing environmental and permitting risks. Investors should note the expanded production scenario to 180 tpa remains an assessment case rather than a confirmed target, with cost estimates carrying an accuracy range of ±35%.
As the study progresses, updates on drilling results, resource upgrades, and permitting milestones will be key indicators of the project's trajectory. Australian Mines’ ability to navigate these technical and regulatory hurdles will shape Flemington’s role in the emerging scandium market.
Bottom Line?
Australian Mines is positioning Flemington to capitalize on rising scandium demand, but the leap to 180 tpa hinges on forthcoming drilling results and PFS outcomes.
Questions in the middle?
- Will drilling confirm extensions to the high-grade mineral resource to support scaled production?
- How will environmental and permitting challenges influence the timeline and costs of expansion?
- What impact will evolving scandium market prices have on the project's economic viability?