Terrafame launches pre-feasibility study for scandium recovery to strengthen Europe’s critical raw materials supply

Successful outcome of the study and start of production would make Terrafame the sole producer of scandium in Europe. Scandium is a rare earth element, classified by the European Union as a critical raw material of high economic importance and at high risk of supply disruption. Terrafame already produces battery-grade nickel, copper and cobalt – all of which are EU-designated strategic and critical raw materials.

At its industrial site in Sotkamo, Finland, Terrafame benefits from a large and diverse ore body and the potential to extract metals in addition to its current production of nickel, zinc, cobalt, copper, and uranium. The study, which will be led by Worley, a leading provider of engineering and project services in the resources sector, aims to leverage an existing side stream from Terrafame’s uranium recovery plant to recover scandium, offering a capital-efficient way to expand Europe’s production of strategic and critical raw materials.

Scandium is a critical metal for high-tech, defence and advanced manufacturing applications, however, approximately 85% of global scandium supply currently originates from China. By developing a European source, Terrafame can contribute to a secure and transparent European rare earths supply chain. The targeted end-use for the scandium produced is in high-performance aluminium alloys, where its unique properties enable lighter, stronger, and more durable components. Even a small addition of scandium can dramatically improve the strength of aluminium alloys, making it highly attractive for use across a number of industries.

“By exploring the recovery of scandium from Terrafame’s existing ore feed, we are utilising the full value of our resources, while also addressing the need for domestic European supply of this critical metal. This project has the potential to establish Terrafame as the sole producer in Europe and a significant player in the global scandium market. This follows our recent application for a permit to expand our operations and investment in the expansion of our primary leaching capacity, cornerstones for our future growth and resilience,” says Antti Koulumies, CEO of Terrafame.

The pre-feasibility study is expected to be concluded by the end of 2026, with final investment decision (FID) targeted in early 2027. Following FID, Terrafame estimates start of production after two years. As an extension of Terrafame’s existing operations, the project is expected to benefit from competitive production costs and a favourable development timeline compared to a greenfield project. In parallel with the technical study, Terrafame will approach potential customers and explore opportunities related to national strategic stockpiling initiatives.

Read the article online at: https://www.globalminingreview.com/mining/19052026/terrafame-launches-pre-feasibility-study-for-scandium-recovery-to-strengthen-europes-critical-raw-materials-supply/