In a strategic move to reduce Western dependence on Chinese rare earth supplies, mining magnate Robert Friedland is throwing his weight behind a groundbreaking scandium mining project in rural Australia. The initiative comes as the United States and its allies accelerate efforts to establish reliable critical mineral supply chains outside China's control.
Parkes: From Elvis Festival to Mineral Frontier
The small Australian town of Parkes, located approximately 350 kilometers west of Sydney, has long been famous for hosting one of the world's largest Elvis Presley festivals. However, this rural community is now poised to become a significant player in the global race for rare earth minerals. Sunrise Energy Metals, where Friedland serves as co-chair and largest shareholder, is planning a revolutionary scandium mine that could begin production as early as 2028.
The project gained significant momentum last week when Sunrise successfully raised US$30 million to initiate pre-construction activities. This funding represents a crucial step forward for one of the first major rare earth projects to advance following the landmark agreement signed between Washington and Canberra in October.
Western Allies Mobilize Against Chinese Dominance
The urgency behind these developments stems from growing concerns about China's stranglehold on the rare earth market. Western governments have been scrambling to find alternative sources after China repeatedly threatened export restrictions during trade negotiations, using its control over these critical materials as leverage in international diplomacy.
Friedland, the founder of Toronto-listed Ivanhoe Mines, didn't mince words when assessing the situation. He accused several U.S. administrations of "sleepwalking" into a rare earths crisis while China strategically consolidated its supply chain dominance. "The Chinese are playing their hand strongly," the mining veteran stated, noting that Beijing's export restriction threats had triggered panic buying and supply chain disruptions globally.
Scandium: The Niche Mineral with Massive Potential
Scandium, one of 17 metallic elements classified as rare earths, serves critical functions across multiple high-tech industries. The metal is primarily used as an alloy to strengthen aluminum for automotive and aerospace components. It also plays an essential role in smartphone chip manufacturing, enabling radio-frequency selection, and shows promise in hydrogen fuel cell technology by improving electrical conductivity.
What makes the Parkes project particularly innovative is its extraction method. While scandium has traditionally been sourced from the waste tailings of other mined metals like nickel, titanium, and uranium, Sunrise's Australian operation will extract the metal directly from conventional open pit mines—a pioneering approach that could revolutionize scandium production.
Friedland expressed strong confidence in Australia's mineral future, declaring, "Australia has a bright future on scandium... there has never been a mine where you can just scrape it. Australia really is the lucky country."
The geopolitical implications extend beyond the mine itself. Downstream processing of the extracted materials is expected to occur in the United States, with Sunrise currently in discussions with potential American partners. This international collaboration reflects the broader US$2 billion commitment made by the U.S. and Australian governments in October, when President Donald Trump and Australian Prime Minister Anthony Albanese each pledged US$1 billion to support rare earth projects supplying both nations.
As the West awakens to the strategic importance of securing independent critical mineral supplies, projects like the Parkes scandium mine represent more than just business opportunities—they're becoming essential components of national security and technological sovereignty in an increasingly competitive global landscape.
