PLATINA RESOURCES LIMITED
Recently published, independent industry market research by the
Applications have been limited to a number of smaller niche markets where the cost is less sensitive. This is despite strong evidence that aluminiumscandium alloys are lightweight and high strength with excellent weldability characteristics. They also provide opportunities to reduce the carbon footprint through weight reductions and improved fuel efficiencies. While the solid oxide fuel cell industry has been the dominant consumer of scandium in recent years, the metal's greatest opportunity is as an aluminium alloy targeting aerospace, marine, military and automobile industries. The recent entry into the scandium market by companies with significant aluminium business units provides a genuine opportunity for the aluminium-scandium alloy sector to expand rapidly.
However, new pure play scandium projects like the PSP, which offer stable sources of non-by-product supply, will be needed to support and stimulate further demand growth in the future. Platina Managing Director Mr
'The key to unlocking the scandium market is having the ability to supply customers with master alloy at a smallscale and grow production as demand increases. We believe this can be achieved at relatively modest capital and operating costs and produce a premium value-added product directly into the market'
With these new initiatives, combined with the PSP's key strengths of high scandium grades, long-life and robust ore reserve and mineral resource positions, low capital and operating costs, and access to excellent infrastructure, we believe the project has significant, untapped value in comparison to our scandium, and scandium-nickel-cobalt peers.
Our move to capture more of the downstream value chain provides a major point of differentiation to our peers,' he said. PSP Development Strategy PSP development activities have largely been on hold since the beginning of 2020 due to a combination of Covid restrictions, the challenges of securing scandium oxide offtake agreements and cash preservation.
The recent entry into the scandium market by global mining companies with aluminium business units provides a genuine opportunity for the aluminium scandium alloy sector to expand rapidly but capacity will be constrained given the scandium production comes as a by-product of other metal production capacity. However, new pure play scandium projects like the PSP, which offer stable sources of non-by-product supply, will be needed to support and stimulate further demand growth in the future. At this early stage it's not clear how quickly this demand pipeline will fill but given the infancy of scandium markets it could take some time.
The PSP is well placed to capture this opportunity given the robust nature of the resource but the scale of production required to justify investment is a significant development hurdle until the market grows significantly larger. Moreover, whilst scandium oxide provides some opportunities for offtake, development of a more saleable value added product, aluminium-scandium master alloy, will be critical to monetising the PSP.
Platina's new development strategy contemplates development of master alloy production intellectual property (IP) and a two-phase market entry strategy based on the development of a commercial scale master alloy production facility initially using third party purchased scandium oxide feedstock until such time that the market size or security of oxide supply warrants the PSP development. The expected capital and operating costs are expected to be modest and will be defined by a feasibility study once the IP and market development strategies are completed.
Master Alloy Development Program
The aluminium industry prefers scandium supply via a master alloy or 'hardener' rather than scandium oxide, the planned product of the PSP operations in
The test work was conducted at a relatively small scale and focussed on producing master alloy from scandium oxide, but also from intermediate products from the PSP flowsheet developed for the DFS. The testing concluded and demonstrated that the procedures developed can reliably produce, market preferred, 2% scandium-aluminium master alloy from either scandium oxide or from intermediate products in the flowsheet developed in the DFS test work program.
The company is now planning to extend this test work program and refine its master alloy production processes and secure the intellectual property protection for the processes developed. It's expected the program will take two months to complete. Once IP has been developed, a feasibility study will be undertaken to assess the capital and operating costs of the production process. Our internal studies demonstrate that the incremental capital and operating cost to construct a master alloy production facility will be relatively small but allow the production of a higher-value more readily saleable product to the market.
PSP Permitting Process
In parallel with the preparation of the PSP DFS during 2017 and 2018, a number of work programs including community consultation, Environmental Impact Assessments (EIA) and Mining Licence Application were progressed. In 2019, these were put hold pending further progress on scandium marketing initiatives and offtake agreements. Platina is now planning to recommence the permitting process and secure a
Contact:
Tel: +61 (0)7 5580 9094
Email: admin@platinaresources.com.au
ABOUT
Platina is an Australian-based company focused on returning shareholder value by advancing early-stage metals projects through exploration, feasibility, permitting and into development.
(C) 2021 Electronic News Publishing, source
