Platina plans to unlock value in Scandium Project as demand from electric vehicle makers and others is heating up markets

Platina Resources Limited (ASX:PGM) plans to unlock 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. Following the global mining major Rio Tinto’s recent announcement to construct a commercial scandium oxide demonstration plant at its titanium dioxide feedstock facility in Quebec, the company expect that move would stir favourable winds for the market and PSP. Platina’s 100% owned PSP is in central New South Wales, 350 kilometres west of Sydney, and is one of the world’s highest-grade scandium deposits and has potential to be Australia’s first scandium producer with planum, cobalt and nickel credits. To secure production offtake agreements Platina managing director Corey Nolan said: “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 in New South Wales and hosts one of the highest-grade scandium deposits in the western world. “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.” Planned independent scandium market study The company has 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. Platina would also continue to work with Traxys Europe SA to assess scandium product and market development, and potential project funding options in the US, Europe, Asia and Australia. Nolan said: “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. “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.” Potential for producing high purity alumina The project also has the potential for producing high purity alumina for use in the lithium-ion batteries. He said: “In comparison to our scandium, and scandium-nickel-cobalt peers, we believe the PSP has significant untapped value.” The DFS, completed in late 2018, demonstrated the technical and economic viability of constructing the project. The positive DFS demonstrated the opportunity to create substantial long-term sustainable shareholder value at a manageable capital cost.