A new analysis by a specialty metals expert finds that
scandium-contained aluminum alloys can deliver in the range of $9
million in net present value savings to airline operators for every
mid-body airliner because of the metal’s ability to lightweight
jets, reduce or eliminate the use of rivets, and reduce fuel
consumption.
Further, the analysis shows that integrating aluminum-scandium
alloys could allow aircraft manufacturers to boost annual revenue
by hundreds of millions of dollars per year through lower materials
costs, lower direct manufacturing costs, and higher manufacturing
throughput.
The analysis was published by Dr. Andrew Matheson, President of
OnG Commodities LLC in an article here. Dr. Matheson is an
expert in niche metals including scandium and tantalum.
According to Dr. Matheson’s analysis:
“Scandium can save airlines money because it can eliminate the
need to rivet aluminium components. Scandium acts to
stabilise the grain structure in the vicinity of welds, meaning
aluminium parts can be welded quickly and efficiently. This in turn
means that aircraft can have thinner skins in some locations, and
can eliminate the weight of rivets wherever scandium-doped
aluminium alloys are used. “For a B737 flying 3250 hours per year,
and using American Airlines' cost of capital and the US EIA
projections for future fuel price inflation, the present value of
fuel savings driven by scandium alloys, assuming a 15% aircraft
weight reduction, amounts to a little over $9 million. The cost of
added scandium, at a price of $3,500/Kg oxide, and assuming an
average 0.7% by weight scandium doping level, is around $800,000 –
a savings to cost ratio of 11:1. For a wide body jet, flying
perhaps 5000 hours per year, the savings in avoided fuel burn can
be dramatically larger.
“Scandium alloys can also offer a range of cost savings to
airframe manufacturers. The most obvious is a reduction in the bill
of materials: fewer rivets (of which there are hundreds of
thousands on large jets) means a substantial reduction in the
variable cost of manufacturing. For Boeing and Airbus, this would
amount to tens of millions of dollars per year in lower bill of
materials costs.
“In general, welding is faster than riveting, and while rivets
and fasteners will still be important wherever galvanic corrosion
in multi-material structures is a factor, elimination of rivets
means on balance a lower direct manufacturing cost, both machine
time as well as direct labour to measure and repair riveting.
Reductions in direct costs are once again likely to run into the
tens of millions of dollars per year.
“To the degree welding speeds the production line, there are
also substantial potential benefits from reduced throughput time.
For a large aircraft manufacturer, increasing output by 1% could
mean several more aircraft per plant per year, with a better
absorption of fixed costs and consequently increased
profitability.
“Finally, faster throughput means more product to sell. A 1%
increase in the annual production of a narrow body jet is worth in
the range of $500 million revenue to the OEM, regardless of any
value to be obtained from sharing the benefit of fuel savings.
“Overall, then, the impact on profitability for the aircraft
manufacturing industry can be substantial - in the range of $0.5-1
billion per year through a combination of increased revenue and
reduced cost. This is a large number, roughly equal to the amount
of scandium needed (say 200-300 tons per year of oxide, assuming
efficient recycling) at today's oxide price. Depending on the
specifics of OEM operations scandium could end up paying for itself
in passenger aircraft regardless of how fuel savings are allocated
between OEMs and airlines.”
Dr. Matheson also noted that “Other transportation markets
represent a third potential demand source for scandium,
particularly in electric vehicles (where weight reductions can lead
to savings in battery cost) as well as lower temperature service as
a replacement for titanium. These markets are more fragmented than
aerospace but represent substantial potential, and will grow
further as innovation reduces scandium intensity in aluminium
alloys.”
Further, he wrote, “The corrosion properties of scandium mean
the metal can permit aluminium to replace titanium in lower
temperature service (say below 300C), where corrosion is the key
requirement. Examples might include truck turbochargers.”
He concluded: “Overall, scandium can have a dramatic
impact on cost in transportation, whether because of the ability to
reduce weight, or the ability to speed production lines. Moreover,
it is likely that scandium alloys can be optimised in time to
achieve today's performance at lower levels of scandium.
Paradoxically, this may in the end lead to higher scandium usage
and even, perhaps, higher per-Kg prices for scandium oxide.”
On Behalf of the Board of Directors,
"Mark Smith”
Mark Smith Executive Chairman, CEO, and
Director
Source: NioCorp Developments
Ltd. (TSX:NB) (OTCQX:NIOBF) (FSE:BR3).@NioCorp $NB $NIOBF $BR3
#Niobium #Scandium #ElkCreek
For More Information:
Contact Jim Sims, VP of External Affairs, NioCorp Developments
Ltd., 720-639-4650, jim.sims@niocorp.com
About NioCorp
NioCorp is developing a superalloy materials
project in Southeast Nebraska that will produce Niobium, Scandium,
and Titanium. Niobium is used to produce superalloys as well as
High Strength, Low Alloy ("HSLA") steel, which is a lighter,
stronger steel used in automotive, structural, and pipeline
applications. Scandium is a superalloy material that can be
combined with Aluminum to make alloys with increased strength and
improved corrosion resistance. Scandium also is a critical
component of advanced solid oxide fuel cells. Titanium is
used in various superalloys and is a key component of pigments used
in paper, paint and plastics and is also used for aerospace
applications, armor and medical implants.
Cautionary Note Regarding Forward-Looking
Statements
Neither TSX nor its Regulation Services Provider
(as that term is defined in the policies of the TSX) accepts
responsibility for the adequacy or accuracy of this document.
Certain statements contained in this document may constitute
forward-looking statements, including but not limited to potential
future production at the Elk Creek Project, anticipated products to
be produced at the Elk Creek Project, the future critical and
strategic nature of niobium and scandium, anticipated costs of
production at the Elk Creek Project being competitive, and
anticipated competitive advantages. Such forward-looking statements
are based upon NioCorp’s reasonable expectations and business plan
at the date hereof, which are subject to change depending on
economic, political and competitive circumstances and
contingencies. Readers are cautioned that such forward-looking
statements involve known and unknown risks, uncertainties and other
factors that may cause a change in such assumptions and the actual
outcomes and estimates to be materially different from those
estimated or anticipated future results, achievements or position
expressed or implied by those forward-looking statements. Risks,
uncertainties and other factors that could cause NioCorp’s plans or
prospects to change include risks related to the Company's ability
to operate as a going concern; risks related to the Company's
requirement of significant additional capital; changes in demand
for and price of commodities (such as fuel and electricity) and
currencies; changes in economic valuations of the Project, such as
Net Present Value calculations, changes or disruptions in the
securities markets; legislative, political or economic
developments; the need to obtain permits and comply with laws and
regulations and other regulatory requirements; the possibility that
actual results of work may differ from projections/expectations or
may not realize the perceived potential of NioCorp’s projects;
risks of accidents, equipment breakdowns and labor disputes or
other unanticipated difficulties or interruptions; the possibility
of cost overruns or unanticipated expenses in development programs;
operating or technical difficulties in connection with exploration,
mining or development activities; the speculative nature of mineral
exploration and development, including the risks of diminishing
quantities of grades of reserves and resources; and the risks
involved in the exploration, development and mining business and
the risks set forth in the Company’s filings with the SEC at
www.sec.gov. NioCorp disclaims any intention or obligation to
update or revise any forward-looking statements whether as a result
of new information, future events or otherwise.
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