US Greenlights Perpetua's Stibnite Gold-Antimony Mine, Paving Way for Domestic Supply

Perpetua Resources

The United States has given the final go-ahead to Perpetua Resources mine plan for its Stibnite gold-antimony project in Idaho, marking the culmination of a lengthy permitting process that began in 2016. This significant milestone brings the project closer to potential development and could bolster domestic supplies of critical antimony.

Final Record of Decision and Next Steps

The US Forest Service issued its final record of decision for Stibnite, clearing the path for Perpetua to focus on securing the necessary financing and remaining federal and state authorizations.  The company aims to make a construction decision this year. Perpetua has been actively raising capital for the project, estimated to cost $1.3 billion in 2020.  Recent efforts include an equity sale launched in November, complementing existing funding sources such as the Department of Defense.

Stibnite's Significance in a Changing Market

Located near Yellow Pine, Idaho, Stibnite holds economic reserves of 148 million lbs of antimony, which Perpetua plans to extract over the mine's projected 15-year lifespan.  Production is anticipated to begin in 2028, with construction estimated to take three years, according to the company's September investor presentation.  China's December decision to ban antimony exports to the US has further accelerated the drive to establish a domestic supply chain for this crucial metal. Antimony is used in a variety of applications, including electric batteries, ammunition, and renewable energy technologies.

Strategic Partnerships and Market Dynamics

Following China's export ban, Perpetua has forged agreements with US Antimony (USAC) and Sunshine Silver Mining and Refining to explore opportunities for processing ore and concentrate from Stibnite into antimony products.  USAC itself plans to restart its Maduro smelter in Mexico this year, having secured deals to source antimony ore from Australia and Thailand.  This comes after USAC shuttered operations at the smelter in March due to profitability issues.  Antimony prices have seen an uptick in the US and Europe since China added the metal to its export restriction list in mid-August, prompting Western consumers to seek alternative supply sources.