Wedoany.com Report on Mar 4th, ASX-listed Sunrise Energy Metals recently confirmed in a feasibility study that the construction cost for its Syerston scandium project in New South Wales is US$120 million. This project is one of the few scandium projects globally capable of providing scandium at a scale and cost that can serve as an alternative supply and secure long-term Western demand. It aims to produce 60 tonnes of scandium oxide annually, with production expected to commence in the first half of 2028.
Scandium, as a critical material, is widely used in solid oxide fuel cells, aerospace alloys, semiconductors, and other fields. Sunrise Co-Chairman Robert Friedland and CEO Sam Riggall stated: "We are at a remarkable and historic moment where access to a handful of metals is driving the fastest and most aggressive global public policy response since wartime, and that response is likely to persist for years." Based on a mine plan consisting of 26% proven reserves and 74% probable reserves, the project has a 32-year mine life with an average operating cost of US$534 per kilogram of scandium oxide.
The feasibility study, completed by GR Engineering Services, predicts the project will process 64,000 tonnes of ore annually. Competitive advantages stem from the high-grade deposit (average scandium grade of 690 ppm over the first ten years), efficient extraction technology, strategic location, and existing infrastructure. Sunrise is evaluating expansion options to add a further 120 tonnes per year of scandium oxide production, which would reduce operating costs.
Current global demand for scandium oxide is between 50 and 60 tonnes, with a compound annual growth rate of approximately 19%. Sunrise forecasts demand will reach 300 tonnes per year by 2030 and 600 tonnes per year by 2035. Under a lower-price scenario, the Syerston scandium project is valued at US$771 million with an internal rate of return (IRR) of 67%; under a higher-price scenario, the valuation is US$1 billion with an IRR of 83%.
As of January 31, Sunrise holds A$107 million in cash, covering approximately 60% of the capital cost, and has A$90 million in unexercised options. The company has received a letter of interest from the US Export-Import Bank supporting up to US$67 million in debt financing, subject to formal application and due diligence. Detailed engineering, equipment procurement, and negotiations will proceed in the coming months to advance the project into the construction phase.
In addition to scandium oxide production, the company is evaluating the construction of a metallisation facility to convert scandium oxide into scandium metal. The capital cost for this is not included in the US$120 million estimate and is not expected to impact the overall project economics. Sunrise has already obtained the mining lease, development consent, and environmental impact statement approval. Water supply is secured through a groundwater license.
