Perpetua Resources’ Stibnite Gold project is a proposed open-pit gold and antimony mine in a remote area of the Payette National Forest in Valley County, Idaho. Photographed from EcoFlight.
Sarah A. Miller | Idaho Statesman | Tribune News Service | Getty Images
mining company Perpetua Resources has secured a $2.9 billion loan from the U.S. Export-Import Bank, CNBC reported. The agreement comes as the United States seeks to secure access to critical minerals and break through China’s stronghold on critical supply chains.
The loan is the largest loan under EXIM’s “Make More in America” initiative and the fourth largest loan in the agency’s history, and will fund Perpetua’s Stibnite Gold project in Idaho. The mine will also produce antimony, which is essential for defense applications including munitions, semiconductor manufacturing, and renewable energy such as solar panels and wind turbines.
Perpetua stock rose more than 12% on the news.
The U.S. Geological Survey considers antimony a “critical mineral.” There are currently no active antimony mines in the United States. According to the USGS, China is the world’s leading producer of antimony, meeting more than half of the United States’ demand.
The company says the stibnite site is the only domestic source of antimony capable of meeting U.S. weapons production requirements, with the ability to supply approximately 35% of U.S. demand during the first six years of production.
This is the latest in a series of deals by the government focused on boosting domestic production of critical minerals, especially after China has weaponized natural resources by curbing exports in the past.
In February, the White House announced Project Vault, the first public-private partnership focused on mineral stockpiling. The $12 billion effort includes $10 billion in funding from the Export-Import Bank and an additional $2 billion in private capital.
The regime also directly acquired stakes in mining companies, including rare earth producers. MP material. In July, the Department of Defense announced an investment in the company that included not only a floor price but also an offtake contract. The United States was once the largest producer of rare earths, but production plummeted as China flooded the market and prices fell. The government also has contracts with miners that include: usa rare earths, lithium america and trilogy metal. Shares of all three stocks rose on Thursday.
Perpetua said construction has begun on the Stibnight site and should be operational in 2029. The company is working with the Department of Defense on antimony supplies and is in the process of securing additional commercial partners.
