US Antimony Secures Antimony Ore Supply from Thailand for Mexico Smelter Restart

USAC

US Antimony (USAC) has secured a new antimony ore supply agreement with a supplier in Thailand to support the restart of its Madero smelter in Mexico. The Texas-based company announced that the first shipments, totaling 50 wet metric tonnes (wmt), will arrive at Manzanillo port on Mexico’s west coast in March 2025. This deal is part of USAC’s broader strategy to re-establish its Mexican operations after shutting them down in early 2024 due to profitability concerns.

USAC’s Expansion Amid Rising Demand for Non-China Antimony

USAC’s agreement with Thailand marks its second antimony supply deal this month, as the company works to secure alternative sources of the critical metal. The firm has not disclosed the total contract volumes or the identity of its supplier but has indicated that ore shipments are expected to increase significantly in the coming months.

The timing of USAC’s expansion coincides with rising market demand for antimony sourced outside of China. China, the dominant supplier of the metal, recently suspended exports of antimony to the US, prompting companies to seek alternative sources. As a result, USAC has accelerated plans to restart its Madero smelter, which is currently undergoing maintenance and refractory lining replacements.

Market conditions have also been favorable for USAC’s decision. Antimony prices have surged, with 99.65% antimony recently assessed at $18.10-$18.30 per pound CIF US, representing an astonishing 256% increase compared to the previous year.

USAC Strengthens Financial Position with $100 Million Shelf Offering

To support its expansion efforts, USAC has also filed for a $100 million shelf offering, which will provide liquidity flexibility over the next three years. This move, pending regulatory approval, will allow the company to sell securities to raise capital when needed, ensuring it has the financial resources to scale up operations and secure long-term supply agreements.

Conclusion

As China’s export restrictions on antimony continue to reshape global supply chains, USAC is positioning itself as a key supplier by sourcing antimony ore from Thailand and restarting its Madero smelter. With stronger market demand, soaring antimony prices, and a new financing strategy, USAC is well-placed to capitalize on the shifting dynamics of the antimony market.