in brief
- The US Pentagon has pledged $566 million for an Australian mine.
- This project aims to secure critical defence minerals to counter Chinese supply.
A remote Australian town is set to become a "cornerstone" of the Western supply of scandium, a rare earth mineral needed for defence, planes, and data centres after local mining company Sunrise Energy Metals secured a US$400 million ($566m) pledge.
The Pentagon revealed the details of the conditional loan commitment to Sunrise to build the world's first primary mine for scandium, of which China dominates supply and processing, at a meeting between US President Donald Trump and mining executives in Washington.
Scandium is usually sourced as a byproduct of other mining and is found throughout the Earth's crust in low concentrations.
"We aim to establish Syerston as a cornerstone of Western scandium supply," Sunrise chairman Robert Friedland said in a statement, referring to the proposed mine in Fifield, New South Wales.
Fifield is a remote town in the centre of the state, roughly 450 kilometres west of Sydney. 2016 census data shows just 129 people live in the town that boasts a single pub.
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NSW has some of the highest concentrations of scandium globally, Resources Minister Madeline King said.
"The Sunrise scandium project hosts the world's largest and highest-grade known scandium resource, which has a range of vital aerospace, defence and clean energy applications," she said.
"No one country alone can create secure, end-to-end supply chains in critical minerals and rare earths.
"In working together, Australian mining companies can create more jobs and investment opportunities here at home, and more jobs and investment in the United States."
King described the announcement as a "significant vote of confidence" in Australia's capacity to supply the US and its allies with the minerals they need.
China restricted exports of scandium for defence products last year, triggering the US search for new suppliers.
The Pentagon statement said the scandium project will "ensure Western alignment from mine to finished product".
"Secretary Hegseth and Deputy Secretary Feinberg are mobilizing the Department of War's resources to secure our critical mineral supply chain," said Emil Michael, Under Secretary of War for Research and Engineering.
Trump and Australian Prime Minister Anthony Albanese signed a critical minerals agreement aimed at countering China in October, pledging that each would invest $1 billion in projects.
On Saturday, Trump announced that the US was reclaiming its place as the "minerals superpower of the world."
"Critical minerals are the raw materials of American strength that power everything from advanced weaponry to automobiles, and we want these essential products to be mined, refined and made right here in the USA," he said.
Sunrise struck a deal with Lockheed Martin last year to sell the defence and aerospace manufacturer 25 percent of its scandium output for the first five years of the mine.
The company will make an announcement to the Australian Securities Exchange on Monday, Friedland said.
The mine is set to have an initial capacity of 60 tonnes a year of scandium oxide and will commence production in the first half of 2028.
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