Australian Mines Confirms Water Licence for Flemington 180tpa Scandium PFS

Australian Mines has confirmed its Water Access Licence WAL41718 remains valid at the Flemington Scandium Project, clearing a critical development hurdle as the fast-tracked PFS evaluates scaling annual Sc₂O₃ production up to 180 tpa.
By William Hadrian -
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Australian Mines confirms valid water licence as Flemington PFS eyes scale-up to 180 tpa scandium

Australian Mines has confirmed that its existing Water Access Licence WAL41718 remains current and valid, forming the baseline water supply for the 100%-owned Flemington Scandium Project in New South Wales. Water studies are advancing to support the fast-tracked Pre-Feasibility Study (PFS), which is assessing the potential to scale annual Sc₂O₃ production from 60 tpa up to 180 tpa. The Company notes that the up-to-180 tpa figure is an assessment case being evaluated as part of the PFS and does not represent a new production target or forecast financial information.

Securing a confirmed water supply de-risks a critical project input for any scandium development, particularly as the Company advances technical studies toward a final development configuration.

Water supply — the baseline and the options being assessed

The existing licence, WAL41718, sits within the Lachlan system and is held by the Company’s subsidiary Flemington Mining Operations Pty Ltd. The licence was acquired on the open market in 2017 and has been confirmed as current and valid as part of the PFS assessment. The Flemington Scoping Study estimated steady-state water demand of approximately 454 ML/year for the 60 tpa development case, based on a projected average feed grade of 573 ppm Sc over the first 15 years and a scandium recovery rate of 90.8%.

Metric Detail
Water Access Licence WAL41718 (Lachlan system, valid)
Steady-state demand (60 tpa case) ~454 ML/year
Average feed grade (first 15 yrs) 573 ppm Sc
Sc recovery 90.8%
Supplementary sources under review Surface water + groundwater

The PFS is also assessing water requirements and infrastructure for the potential up-to-180 tpa scenario, alongside supplementary surface water and groundwater options. These options are being evaluated with the associated infrastructure, environmental, and regulatory requirements.

Flemington Scandium Project: Base Case Metrics vs Scale-up Assessment

Hydrogeological investigations to define groundwater potential

The Company is currently reviewing proposals for hydrogeological investigations as part of the PFS. The scope of the investigations includes:

  • Assessing groundwater availability and quality.
  • Determining the potential contribution of groundwater to the Project’s overall water requirements and supply.
  • Feeding into the broader Project water balance alongside surface-water options.

Groundwater work could supplement the existing entitlement, strengthening supply security for a larger development configuration.

Andrew Nesbitt, Managing Director

“Confirming that Flemington’s existing Water Access Licence remains current and valid provides an important foundation for the PFS. We are now assessing this entitlement alongside supplementary surface-water and groundwater options, including planned hydrogeological investigations, to define and secure the water requirements for the Project.”

Why water matters for a scandium project

Scandium is a rare, high-value critical mineral used in aerospace alloys and solid oxide fuel cells. Processing scandium oxide (Sc₂O₃) is water-intensive, making secured water supply a foundational de-risking step for any project moving through feasibility. Confirming a valid water licence early removes a common permitting and development bottleneck before capital-intensive stages, strengthening the project’s path to development.

What comes next for Flemington

The Company has outlined the following next steps for the PFS:

  1. Advance hydrogeological investigations (proposals under review).
  2. Complete water requirements assessment for both 60 tpa and up-to-180 tpa scenarios.
  3. Assess supplementary surface-water and groundwater options alongside infrastructure, environmental, and regulatory requirements.
  4. Progress the fast-tracked PFS toward completion.

Previous milestones include the Scoping Study (Amended, 8 May 2026) and the PFS fast-track announcement (27 July 2026). The Company reiterates that the up-to-180 tpa scenario is an assessment case only and does not represent a new production target or forecast financial information. The 60 tpa production target’s material assumptions remain unchanged from the 8 May 2026 announcement.

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Frequently Asked Questions

What is the Flemington Scandium Project and who owns it?

The Flemington Scandium Project is a 100%-owned scandium development asset held by Australian Mines (ASX: AUZ) in New South Wales, currently advancing through a fast-tracked Pre-Feasibility Study targeting annual Sc₂O₃ production of 60 tpa with a scale-up scenario to 180 tpa under assessment.

What is Water Access Licence WAL41718 and why does it matter for Flemington?

WAL41718 is an existing water entitlement within the Lachlan system held by Australian Mines' subsidiary Flemington Mining Operations Pty Ltd, acquired in 2017 and now confirmed as current and valid — it provides the baseline water supply for the project and removes a common permitting bottleneck ahead of feasibility completion.

How much water does the Flemington Scandium Project require?

The Flemington Scoping Study estimated steady-state water demand of approximately 454 ML/year for the 60 tpa development case, based on an average feed grade of 573 ppm Sc over the first 15 years and a scandium recovery rate of 90.8%; water requirements for the up-to-180 tpa scenario are still being assessed.

What is the difference between the 60 tpa and 180 tpa scenarios at Flemington?

The 60 tpa case is the established production target with material assumptions confirmed in the 8 May 2026 amended Scoping Study, while the up-to-180 tpa figure is an assessment case being evaluated as part of the current PFS — it does not represent a new production target or forecast financial information.

What are the next steps for the Australian Mines Flemington PFS?

Australian Mines is advancing hydrogeological investigations to assess groundwater availability, completing water requirements assessments for both the 60 tpa and up-to-180 tpa scenarios, evaluating supplementary surface water and groundwater options, and progressing the fast-tracked PFS toward completion.

William Hadrian
By William Hadrian
Partnerships Director
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