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Sunrise Energy Metals wins $400M conditional loan for scandium project
The deal includes a right of first offer on Sunrise output, aimed at supporting US companies that use scandium.
Mining.com reports the US Department of War’s Office of Strategic Capital (OSC) has announced a $400 million conditional loan commitment to Sunrise Energy Metals (ASX: SRL) for its scandium operations in New South Wales, Australia.
Sunrise says its Syerston project would help create primary mine supply for scandium end users. The company is backed by mining billionaire Robert Friedland, who characterized the effort as the first source of primary mine supply for scandium end users.
The financing is intended to support development of a full scandium value chain, starting with primary mining at Syerston and adding metallization and additive layer manufacturing capabilities to align production with Western demand.
The OSC financing also gives the Department a right of first offer on Sunrise output, and Sunrise said the scandium produced would support demand from US companies, including defense industrial base firms. Mining.com adds that the project is designed to produce 60 tonnes annually and that the USGS estimates global production at about 80 tonnes in 2025.