New South Wales revoked the mine lease for the Nyngan project, which was issued in 2017, due to a procedural error on its part.
The New South Wales Department of Planning and Environment revoked the mine lease for the Nyngan project, which was issued in 2017, due to a procedural error on its part.
As Scandium International explains in a release, “The Department has determined that its internal procedures failed to properly and fully consider an affected landowner’s ‘Agricultural Land’ objection prior to the grant of ML 1763, as specified by applicable Law.”
As a result of the permit’s premature expiration, Scandium International has submitted a new mining license application (ML 568) covering 371 hectares of property owned by Scandium International subsidiary EMC Metals Australia.
The revised hectare count reduces the mining area from the original 875 outlined in the first mining lease application (ML 1763). The company has reduced the area in hopes of getting the new plan approved. The larger zone is still being reviewed due to complaints and objections from local residents.
“The new MLA filing is in direct response to ongoing delays in governmental resolution of a neighboring landowner’s objection to the company’s 2017 mine lease grant (ML 1763),” states the company.
“(The new MLA) is not expected to encounter delays in processing by the relevant governmental departments, and specifically is not dependent on either timing or ultimate resolution of the ongoing landowner objection to the award of ML 1763.”
If the scandium explorer can get the Nyngan project up and running it will be the only exclusively scandium-producing mine in the world.
While scandium is found all over the world, its low concentrations make developing pure-play scandium operations difficult, if not near impossible.
Despite the difficulty associated with producing the critical metal, scandium is used to make aluminum alloys, which are extremely durable, yet lightweight, making them ideal for aircraft and automobiles.
Demand for scandium is likely to go up as more electric vehicle brands and models are introduced.
“Whether an ML is granted over EMC Metals Australia Pty Ltd freehold land, or is granted to also include additional land currently owned by a neighboring landowner, the company intends to pursue plans to construct and operate the world’s first primary scandium mine on the Nyngan project site,” Scandium International’s release concludes.
Shares of Scandium International were down 3.55 percent on Wednesday (May 15), trading at C$0.13.
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Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.