United States Antimony (NYSE-A: UAMY) has announced plans to revive its mining operations in Montana, having reacquired several mining claims adjacent to its smelting facility this year. The company is preparing to restart mining in areas with existing permits.
These newly acquired claims boast a notable history of antimony production dating back to the 1970s and are situated around the only antimony smelting operation in the United States.
Antimony has been categorized by the US government as a mineral critical to national security and economic stability, similar to rare earth elements. This gray metal finds applications in various high-tech and defense products, including flame-retardant materials, select semiconductors, and superhard materials. Notably, the US has not produced antimony on a commercial scale since 2016.
Following a review of historical and geological records, US Antimony revealed that the newly acquired claims contain ‘sufficient’ quantities of antimony to recommence mining, with indications of up to three vein systems within the property.
The company believes that establishing surface mining operations will require minimal pre-development investment, complementing previously conducted underground operations. Currently, US Antimony has the permits to initiate mining on a patented property of five acres and has filed a small miners exclusion statement (SMES) with the State of Montana.
In the next ten days, the company intends to submit a second SMES and file exploration permit applications with both the Montana Department of Environment Quality and the US Forest Service.
On Thursday, US Antimony’s stock rose by 4% on the NYSE American exchange, capturing a market capitalization of $258.5 million.
Gary Evans, Chairman and CEO of US Antimony, highlighted that the decision to reignite mining operations is influenced by a significant price surge concerning global supplies of antimony ore, particularly following China’s embargoes implemented last year.
China, which dominates 80% of the world’s processing capacity of antimony, is a key player in the market. In contrast, the US relies heavily on imports, with no domestic production.
The ongoing geopolitical tensions between the United States and China have heightened the urgency to secure a domestic supply of antimony, a focus underscored during President Donald Trump’s administration.
Earlier this year, the government fully permitted the Stibnite project in Idaho, owned by Perpetua Resources (Nasdaq: PPTA) (TSX: PPTA), which is believed to hold one of the largest antimony reserves outside of Chinese control.
US Antimony aims to strengthen the US supply chain by leveraging its antimony oxide smelter located in Thompson Falls, with the potential to produce up to 5 million pounds of antimony metal annually. According to Evans, restarting production from the new mining claims would position the company as the first to resume US antimony production in decades.
‘Governments globally are recognizing the importance of securing their supply chains, particularly for critical minerals,’ Evans stated in a press release. ‘There continues to be a worldwide shortage of this essential material needed by our Department of Defense.’
Additionally, the company holds more than 35,000 acres of mining claims in Alaska, which could further contribute feed to the Thompson Falls smelter.
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