PERTH (miningweekly.com) – A definitive feasibility study (DFS) into the Platina scandium project, in New South Wales, has delivered attractive financial returns to project owner Platina Resources.
The DFS estimated that the project would have a post-tax net present value of $166-million, an after tax internal rate of return of 29% and a pay-back period of around 5.3 years based on an average scandium oxide price of $1 550/kg.
The DFS is based on the staged development of the Platina project, with the initial plant design set to produce 20 t/y of scandium oxide, at a capital cost of $48.1-million. The project will be expanded to an output of 40 t/y at an incremental cost of $11.7-million, as market demand for aluminium-scandium increased.
Based on the current resource estimate, the project is estimated to have a mine life of 30 years.
“We are pleased with the technical and commercial outcomes of the DFS and the compelling business case to develop the Platina scandium project,’ said Platina MD Corey Nolan.
“While the solid oxide fuel cell industry has been the dominant consumer of scandium in recent years, scandium’s greatest value lies in the functional properties it imparts when alloyed with aluminium. When used in combination with other common aluminium alloys, scandium can produce stronger, heat tolerant, weldable aluminium products.
“These products are being increasingly incorporated into transportation applications for light-weighting and lowering fuel efficiency requirements,” said Nolan.
With the DFS now complete, Platina is focused on completing the environmental-impact assessment, mining licence application, and development applications for the Platina project, as well as securing project financing and offtake agreements.