Players like Felix Gold could be well placed to bring western antimony supply online. Pic: Getty Images
China’s latest critical mineral export restrictions more than a chest puff
Mining
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- China restricts gallium, germanium, antimony and graphite product exports to US
- Move follows antimony controls earlier this year
- FXG says broader supply issues at play
This week China has added to its export restrictions to the United States, with the export of the critical minerals gallium, germanium and antimony cut to its trade war sparring partner.
This follows broader moves to restrict antimony exports back in September and gallium, germanium and graphite over a year ago, with China citing national security concerns amid rising trade tensions and President-elect Donald Trump due to take office next month.
It came after the outgoing Biden Administration issued controls on computer chip exports.
All of these minerals have widespread applications. Gallium and germanium are used in semiconductors, while germanium is also used in infrared technology, fibre optic cables and solar cells.
Antimony is used in bullets, infrared missiles, nuclear weapons, night vision goggles and as a flame retardant.
According to Reuters, the move has sparked fresh concern that Beijing could next target other critical minerals, including those with even broader usage such as nickel or cobalt.
But the trade tensions and security of supply concerns could pay off for resources companies with projects in the US.
One ASX lister looking to make hay while the sun shines is Felix Gold (ASX:FXG), whose territory across four projects in Alaska includes the Treasure Creek project. It hosts the historic Scrafford antimony mine, which once produced antimony at between 38-56% Sb – some of the highest ever known grades.
The company has near-term standalone production in sight for the military-critical mineral and is also looking at commercialising the combined 831,000oz of gold collected across its territory so far.
More than a Chinese chest puff
Executive director Joe Webb is keeping an eye on China’s market moves, but he says this isn’t just a chest puff, and that there’s a fundamental supply issue underscoring the export restrictions.
“It might be seen as a bit of a chest pump from China but there’s a fundamental issue with the supply chain of antimony at the moment,” he said.
“Resources are depleting, there’s production dropping out of the market at a steady rate and the existing supply chains can’t keep up with the demand.
“So, there’s a fundament supply chain issue, and China initially put restrictions on the antimony because they have issues keeping up the supply themselves.
“The geopolitical pressures that are happening at the moment have only compounded that.”
The US has also been shoring up its supply chain for several years now, with the ~US$370bn of incentives contained in the Inflation Reduction Act and Defence Stockpiling Act.
“They saw security and supply chain issues with critical metals – and antimony was always at the top of that list – well before this latest issue,” Webb said.
“The environment that’s behind this is not just a short term geopolitical chest pump from China, there’s more fundamental supply chain issues here.”
On the path to near-term production
Talk about right time, right place, right product. Felix is looking to get into production by the end of next year and Webb is confident FXG offers the US a timely and strategic option to shore up domestic supply to meet national defence demands.
“Our project is brownfields and has supplied the US Government military grade antimony on multiple occasions and we are actually in the US where the supply chain issue is happening,” Webb said.
“The trade wars have underscored the fragility of global supply chains and the US cannot afford to be dependent on foreign sources of antimony when its vital to our defence and economic interests.
“Felix Gold is ready to provide a stable, near-term solution and a clear path forward that addresses these critical needs.
From a timeframe point of view, the company is are targeting production by the end of next year.
“We’ve already kicked off our environmental baseline surveys, we’ve got engineering happening, we need to get through the permitting process as to the scope of the project,” Webb said.
“We’re on the pathway to near-term production, we’re surrounded by infrastructure in the mining district so we’re well positioned.
“And with the small scale nature of this and with the critical importance to the US, we just think there’s an opportunity to get into production by the back end of next year.”
Growing ASX opportunities
From a bare handful at the start of the year there are now ~40 companies focused on antimony on the ASX, as Bevis Yeo covered here.
Larvotto Resources (ASX:LRV), owner of the antimony endowed Hillgrove gold mine in New South Wales, is up 750% YTD and was reportedly running a $20m raise yesterday, an indication of the growing interest in ASX antimony stocks.
Meanwhile, Trigg Minerals (ASX:TMG) has built up its inventory of targets at the recently acquired Achilles project in NSW with multispectral analysis adding another 30 targets.
Achilles includes several historical high-grade antimony mines across a substantial 6km strike that have not undergone systematic exploration. It also includes the Wild Cattle Creek deposit that features intersections such as 10.7m at 14.24% antimony.
In September, Legacy Minerals Holdings (ASX:LGM) dusted extensive high-grade antimony and gold rock chips over the Lunatic Field that are indicative of mineralisation similar to that found at LRV’s Hillgrove Mine – a top-10 global antimony deposit – about 190km to the south.
Across the Tasman Sea, New Age Exploration (ASX:NAE) has defined nine high-priority gold, antimony and tungsten drill targets at its Lammerlaw permit in New Zealand. Part of the proceeds from a recent $1.75m placement will fund drilling in Q1 2025.
Over in Nevada, Sun Silver’s (ASX:SS1) inaugural drilling at its Maverick Springs project intersected not only silver, it also struck antimony, leading the company to say it would continue to assess its potential.
WA-focused antimony hopeful Octava Minerals (ASX:OCT) was up over 16% yesterday. It’s currently drilling the Yallalong project in WA’s Mid West.
Meanwhile, Equinox Resources (ASX:EQN) rock chip sampling at the Alturas project in British Columbia, Canada, has returned up to 69.98% antimony.
Nimy Resources (ASX:NIM), Battery Age Minerals (ASX:BM8) and MTM Critical Metals (ASX:MTM) were among the gallium and germanium exposed stocks lifting strongly on Wednesday, with leading ASX graphite stock Syrah Resources (ASX:SYR) also up over 13%.
At Stockhead, we tell it like it is. While Felix Gold, Equinox Resources, New Age Exploration, Octava Minerals, Sun Silver, MTM Critical Metals and Trigg Minerals are Stockhead advertisers, they did not sponsor this article.
