On Nov 20, 2018, Scandium International has signed a Letter Of Intent (LOI) with Austal Ltd., the world’s largest aluminum shipbuilder and Australia’s largest defense exporter, to test scandium-containing aluminum alloys in marine applications. The LOI calls for the Scandium International to contribute various aluminum alloy samples containing scandium, for testing by Austal and potentially other third party testing groups, to determine suitability in marine and defense applications. In over thirty years of operation, Austal has constructed over 300 vessels for 100 operators in 54 countries around the world. Scandium International intends to publicly report a summary of the results at the conclusion of the program.
Australia-focused critical metals explorer Scandium International will work with shipbuilder Austal (ASX:ASB) to test aluminum alloys containing scandium for marine applications. The companies have signed a letter of intent (LOI), stating Scandium International will provide Austal with a variety of aluminum alloy samples containing different amounts of scandium. The samples will be used by Austal and other third party testing groups to determine if the alloys are suitable for use in marine, naval and defense applications. “We are very pleased to add Austal to our list of partners exploring scandium’s advantages in marine/naval applications,” George Putnam, CEO of Scandium International, said in the press release. “Austal is a design-leader in high-speed marine vessels utilizing aluminum hulls and superstructures for lightweight design and fast, efficient performance.” Austal is one of world’s leading large high-speed marine vessel manufacturers and also supplies maritime technologies, as well as it fulfills defense contracts with some of the globe’s leading militaries. With operations in Australia, Vietnam, Philippines and the US, Austal is the largest aluminum marine vessel maker in the world. The mega shipbuilder currently makes the majority of its hulls and superstructures from aluminum. Scandium International believes the inclusion of scandium to the alloy will make the hulls lighter, and also stronger, with the ability to travel faster.
“We believe scandium additions will deliver unique and useful property values in marine environments, and we believe Austal represents an ideal partner to determine their applicability,” added Putnam.
Results from the alloy testing program will be shared and possibly made public, adhering to any intellectual property guidelines.
Scandium International is currently working to develop its Nyngan scandium project, located in New South Wales, Australia. When production commences at the critical metals site, Nyngan will be the first scandium-only producing mine in the world.
Shares of Scandium International were trading at C$0.215 on Wednesday (November 21).
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Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.