By Melissa Blewitt

Sunrise Energy Metals has approved the final investment decision to develop its Syerston Scandium Project near Fifield, paving the way for construction and a targeted start to commercial production in the second half of 2028.

The decision marks a significant step towards establishing what the company says has the potential to become the world’s first major source of primary scandium mine supply, providing an alternative to existing international sources.

The project is expected to process 64,000 tonnes of ore annually to produce 60 tonnes of high-purity scandium oxide each year, with production planned to exceed 99.9 per cent purity.

Sunrise said the project had an estimated operating life of 32 years, comprising 21 years of mining followed by a further 11 years of processing ore from stockpiles.

The company identified Syerston’s high-grade ore deposit, established infrastructure and processing technology as key advantages. Ore grades are forecast to average 690 parts per million scandium during the first decade of operation.

Mining will use conventional open-pit methods, with excavators and trucks, while scandium will be extracted through hydrometallurgical processing and refined into high-purity scandium oxide.

Sunrise Chairman Robert Friedland said the investment decision followed extensive technical development, engineering, permitting and commercial engagement.

“Our decision to proceed with development of the Syerston Scandium Project follows extensive technical development, engineering, permitting and commercial engagement, and reflects the Board’s confidence in the quality of the Syerston resource, and the significant market opportunity ahead of us,” he explained.

“Scandium has long been recognised for its exceptional properties and potential across a range of advanced technologies, but its adoption has been constrained by the absence of reliable, scalable supply. Syerston has the potential to fundamentally change that dynamic by delivering a secure, long-term and primary source of highpurity scandium to global markets.”

The company said demand was expected to grow over the remainder of the decade, driven by applications in solid oxide fuel cells, aerospace and defence, and advanced semiconductor technologies.

Sunrise also highlighted the importance of developing alternative sources of supply following Chinese critical minerals export controls imposed in 2025, which it said had significantly restricted scandium supply to key Western markets.

Work towards construction has progressed across engineering, procurement and project planning, including the design of water infrastructure and the selection process for major equipment.

The project is supported by a conditional commitment of up to US$400 million in long-term debt financing from the United States Department of War’s Office of Strategic Capital. Sunrise reported available cash of $148.1 million as at 30 September 2026.

The company is also continuing studies into the potential expansion of production capacity, although the timing and scale of any expansion have not yet been determined.

Sunrise said any expansion would depend on customer commitments, demand growth, engineering outcomes, financing and further board approval.

The company is also progressing a proposed redomiciliation of its parent company from Australia to the United States, together with a proposed Nasdaq listing. Shareholders will receive a Scheme Booklet outlining the proposal and its implications before a meeting to consider the transaction.

The board’s approval moves the project into its next phase, with construction preparations continuing ahead of the planned 2028 production start.