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Robert Friedland-backed Sunrise Energy Metals (ASX) has approved construction of its Syerston scandium project in Australia, advancing plans to establish the world’s first major primary source of the critical mineral outside China.
The company expects to begin producing high-purity scandium oxide at the mine and refinery in New South Wales in the second half of 2028, ramping up to 60 tonnes annually. The project carries an estimated development cost of $322 million, with construction and commissioning expected to take 24 months.
“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,” Friedland, Sunrise’s chairman, said in the statement.
The decision comes as Western economies seek alternatives to Chinese scandium supplies, which Sunrise says have virtually stopped reaching key markets since Beijing imposed critical mineral export controls in 2025. Demand is expected to grow through the decade as the metal finds wider use in aerospace, defence, fuel cells powering AI data centres and advanced semiconductors.
Construction advances
Early construction work is already underway, including a water pipeline that broke ground on Oct. 9. The company has also advanced procurement of long-lead equipment, completed the second-stage pipeline design and begun construction of an autoclave for processing.
Syerston is expected to process 64,000 tonnes of ore annually, producing scandium oxide with purity exceeding 99.9%. The deposit is forecast to average 690 parts per million scandium during its first decade of operations.
The project has a planned operating life of 32 years, comprising 21 years of open-pit mining followed by 11 years of processing stockpiled ore.
Sunrise is also studying an expansion of production capacity beyond the initial 60 tonnes annually. The timing and scale will depend on customer commitments, demand growth, engineering results, financing and board approval.
US funding
Sunrise has received a conditional commitment for up to $400 million in long-term debt financing from the US Department of War’s Office of Strategic Capital. The company also reported A$148.1 million in available cash as of Sept. 30.
The miner is pursuing a move of its corporate headquarters to the US through a proposed redomiciliation and Nasdaq listing, aligning its capital markets presence with prospective customers and strategic financing.
Under the proposal, a newly incorporated Delaware company would become Sunrise’s parent, with shareholders receiving shares in the new entity or ASX-listed depositary interests. The company plans to distribute a scheme booklet outlining the transaction shortly.
The financing remains conditional, while any expansion beyond the initial development would require a separate investment decision.