INTERVIEW: China antimony export restrictions exacerbate global supply fears: USAC

China's plans to introduce restrictions on exports of antimony ores and oxide have exacerbated fears of severe global supply shortages among US government officials and industry leaders, the Co-CEO of US Antimony Corp. Gary C. Evans told S&P Global Commodity Insights in a recent interview.

The announcement from China's ministry of commerce that it will restrict exports of antimony metals, ore and oxides from Sept. 15, has triggered a wave of interest in USAC, owner of North America's only antimony smelter located at Thompson Falls, Montana.

The Thompson Falls smelter has the capacity to produce 15 million pounds per year of antimony oxide or 5 million lbs/y of antimony metal from imported antimony ore.

Recognized as a critical mineral by the US and the EU, antimony is a vital material across many high-end commercial applications including batteries, electronics, alloys, flame-retardants and pigments.

China is the world's largest producer of antimony, accounting for around 48% of mined production in 2023, according to estimates from the US Geological Survey.

In contrast, the US has not mined antimony since the closure of the Sunshine Mine in Idaho in 2001. Perpetua Resources' Stibnite gold-antimony mine in Idaho is set to become the only US source of mined antimony in 2028. It ranks fourth globally among the largest active mining properties that host antimony deposits, according to Market Intelligence data.

According to the USGS, the recycling of lead-acid batteries currently accounts for around 18% of estimated domestic apparent consumption of antimony with the remainder being imported, predominantly from China.

"Since the announcement, we've seen a significant uptick in inquiries from both government entities and private sector companies," Evans said.

"With China tightening exports, the availability of antimony on the global market will shrink, potentially leading to shortfalls, particularly for critical industries like defense and electronic industries," he said.

Evans said that he expects the new restrictions to lead to tighter global markets, higher prices, and increased competition among buyers looking to secure antimony from non-Chinese sources, describing it as "the perfect storm for USAC."

Evans added that USAC actively engaged in discussions with US government agencies to expand the company's production capacity and support the strategic needs of North America.

"We hope to be able to fill this plug that exists today with respect to antimony supply, and we're going to try to do that both internationally and with our own projects," he said, adding that USAC is actively engaging in discussions with potential new antimony ore suppliers in countries such as Bolivia, New Zealand and Australia.

A strategic vulnerability

In addition to its industrial applications, antimony is also considered a critical material across a wide range of sensitive military applications, including the manufacture of night vision goggles, infrared sensors, precision optics, ammunition, armor-piercing bullets, explosive formulations, and nuclear weapons production.

Having stretched their inventories to support the ongoing conflict in Ukraine and Israel, the US and its NATO partners have recognized the current shortage of munitions as a critical vulnerability.

For the 2024 fiscal year, US Congress approved $30.6 billion for munitions, an increase of $5.8 billion over 2023.

Evans said the concerns extend down the supply chain.

He added that China's constraints on antimony exports will exacerbate these shortages in line with increasing ammunition production and limited global availability.

Evans said that, although it will take time, reducing dependence on China is possible with coordinated efforts around investments in domestic production, recycling, and sourcing from other countries.

"There is no doubt in my mind that there are sufficient antimony deposits available in the US, Mexico, and Canada to solve this problem. It's just going to require capital and an accelerated permitting process."

Expansion

Evans added that the USAC's operational ambitions extends beyond antimony into other critical minerals such as tungsten, cobalt, nickel, bismuth, and copper.

On Aug. 21, the company announced that it had acquired 69 new Alaska mining claims covering more than 11,000 acres, including an 8-ft wide quartz vein. The company said that 13 samples collected from the quartz vein by state geologists averaged 16.5% copper with 0.076 opt gold and 2.21 opt silver.

A week ago, the company said it agreed to acquire a 100% ownership interest subject to a 2.5% net smelter royalty in 97 mining claims and three mining leases covering 4,300 acres in Ontario's Sudbury region, targeting high-grade cobalt, nickel, copper and bismuth.

The announcement came a week after the company revealed that had agreed to acquire a 100% ownership interest in 97 mining claims and three mining leases in Ontario, Canada, targeting high-grade cobalt, nickel, copper and bismuth.