Platina Resources Ltd’s (ASX:PGM) (OTCMKTS:PTNUF) (FRA:P4R) campaign to unlock the value in its wholly-owned Platina Scandium Project (PSP) is gathering pace after a new market assessment by global commodity research company CM Group showed an improving worldwide scandium market.
CM Group’s 2021 Independent Scandium Market Report highlighted increasing opportunities in the scandium market, which offers the potential to be significantly larger and more diverse if scandium oxide can be converted into value-added, higher-margin and more readily saleable products like master alloy.
With PSP construction dependent on an offtake agreement to facilitate financing, the report also provides a growing list of potential off-takers and industry players that can be targeted for investment amid new applications, lower prices and greater supply security.
“World-class opportunity”
Managing director Corey Nolan said the PSP was a world-class opportunity to participate in this market growth.
He said: “A definitive feasibility study completed in 2018 demonstrated the technical and economic viability of developing the project.
“Key strengths included high scandium grades, low capital and operating costs, and access to excellent infrastructure including labour, water, rail, sealed roads and water.
“Further upside could [come] from the potential to produce nickel and cobalt by-products, which have significantly increased in price during 2021, and high-purity alumina.
“In comparison to our scandium, and scandium-nickel-cobalt peers, we believe the PSP has significant, untapped value and long-life, robust ore reserve and mineral resource positions.”
Potential for sector to expand rapidly
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.