The Biden administration on Friday (January 3) issued the final mining permit for Perpetua Resources, an American mining developer, for its antimony-gold mining project in Idaho, aiming to promote the production of key minerals in the United States. These critical minerals have become the core of the increasingly expanding trade war between Washington and Beijing.
According to Reuters, the mining plan for this mine is backed by billionaire investor John Paulson. The project will provide antimony to the United States, which is a necessary metal for manufacturing weapons, solar panels, fire retardants, and various other products.
The issuance of this permit follows Beijing’s blockade of antimony metal exports to the United States last month. This move has further drawn attention to the domestic production demand for this key metal in the United States. Despite the crucial importance of antimony for electronic products and renewable energy equipment, the U.S. is currently not self-sufficient.
The Stibnite mine is located about 138 miles north of Boise, Idaho, and is expected to commence mining in 2028. Upon operation, the project will meet over 35% of the annual antimony demand in the United States and also produce 450,000 ounces of gold annually. This dual source of income is expected to ensure the financial stability of the Perpetua mine, even if Beijing exerts greater influence on the market, the project is unlikely to be severely impacted. Perpetua’s stock price rose by 9.1% following the announcement of the permit.
The United States used to be the world’s leading rare earth producer, but with the decline of the Western mining industry, China now controls the production and processing of these strategic materials.
Perpetua’s antimony-gold mining project in Idaho has undergone an eight-year approval process and has finally received approval from the U.S. Forest Service. The agency stated that Perpetua’s plan underwent detailed environmental assessments and extensive consultations with indigenous groups and other federal agencies. In response to environmental criticism, Perpetua made three adjustments to the mine design to minimize environmental impacts. Perpetua’s CEO Jon Cherry emphasized that every detail of the project has been carefully scrutinized.
Financially, the project is estimated to cost $1.3 billion and will involve pollution cleanup and expansion. The U.S. Department of Defense has committed to providing $60 million in funding to support the permit issuance, and the U.S. Export-Import Bank has also expressed interest in the project, planning to provide up to $1.8 billion in loans.
Perpetua Resources’ antimony-gold mining project is seen as a crucial initiative for the United States to reduce dependence on foreign sources and strengthen its production capacity of critical minerals, especially amid the backdrop of the U.S.-China trade war.
One week after China announced an export ban on antimony and other key minerals, Perpetua Resources announced a non-binding agreement with Sunshine Silver Mining and Refining to explore the possibility of separating antimony from the stibnite ore at the Sunshine Mine Complex in Idaho.
United States Antimony Corporation in Montana stated that the company believes China’s ban will drive market prices higher and is preparing to expand its smelter production to meet market demand.