Idaho Antimony Mine Finally Receives Final Permit

As President Joe Biden’s remaining days in office count down with many of his top energy and environmental priorities remaining unfulfilled, his regulators managed to publish a final record of decision (ROD) related to a major Idaho mining operation targeting the production of antimony, a key mineral integral to batteries and other aspects of green energy. The decision comes amid a rising trade war between the United States and China as the Biden Administration prepares to leave office.

On Friday, the U.S. Forest Service approved the final permit necessary for the Stibnite Mine, operated by Perpetua Resources, to proceed to production after a permitting process that consumed well over a decade. “I have taken into consideration the degree to which the (mine’s) environmental design features, monitoring, and mitigation measures will, where feasible, minimize adverse environmental impacts on (federal lands),” the Forest Service’s Matthew Davis said in a report published along with the permitting decision.

The Conclusion Of A Long, Complex Permitting Process

Perpetua estimates the mine will be able to provide as much as 35% of the nation’s antimony needs once it becomes fully operational in 2028. The mine will also produce a substantial amount of gold, which was the original target of the Stibnite mine when it was first opened in 1927. The mine was later re-tooled and was able to produce about 90% of U.S. antimony needs during World War II.

The additional gold production will serve to enhance the mine’s revenue stream, but in today’s world, antimony is the main prize being sought by Perpetua in its efforts to reopen a mine that has been inactive since it was shut down in 1996. In addition to its applications related to renewable energy, antimony is also integral to the production of tungsten steel and is used in a wide variety of other military applications.

The military considers access to domestic stores of antimony such a critical need that it contributed $60 million to help fund the permitting effort of the Stibnite Mine, the total cost of which was estimated to come in at a whopping $1.3 billion in 2020. That number will have likely risen substantially due to the high rates of inflation and supply chain issues that have run epidemic over the last four years.

The project was opposed by Idaho’s Nez Perce Tribe, which expressed concerns the mine could impact the state’s salmon population. The mitigation plans for the mine were modified at several points in response to Nez Perce concerns.

China’s Antimony Export Restrictions

The last-minute approval of the final ROD by the Biden Forest Service comes a month after China’s government invoked restrictions on the export of antimony and two additional critical energy minerals, gallium and germanium, in response to enhanced U.S. semiconductor export controls specific to China. It was the third such crackdown by the Biden government in the past three years. The timing is critical given that the U.S. relies on imports for the vast majority of its antimony needs.

Anticipating a positive outcome to this permitting process, Perpetua Resources announced in December the execution of a non-binding agreement with Sunshine Silver Mining & Refining to explore the potential for the domestic processing of the antimony recovered from the Stibnite mine.

“We are thrilled to receive our Final Record of Decision from the Forest Service,” said Jon Cherry, President and CEO of Perpetua Resources said Monday in a release. “This approval elevates the Stibnite Gold Project to an elite class of projects in America that have cleared NEPA. The Stibnite Gold Project can deliver decisive wins for our communities, the environment, the economy, and our national security.”

Judy Nissula, Mayor of nearby Cascade, Idaho, said she was pleased by the final decision. “Perpetua Resources has been part of our community for more than a decade. During this time, they’ve shown us the type of company they are. They’ve invited us to provide feedback, answered our questions, supported causes that matter to our community and looked for ways to partner with local businesses and provide well-paying jobs for Valley County residents.”

Perpetua estimates the mining operation will provide “substantial environmental and economic benefits to the region,” including “more than one billion investment dollars and an average of 550 jobs.”

The Bottom Line

In light of the growing trade war with China related to energy minerals, it is difficult to overestimate the importance of this final permitting decision. The successful outcome for Perpetua Resources is especially impressive given the complex nature of the federal, state, and local permitting process, as well as the work involved in satisfying the concerns of local communities and the Nez Perz Tribe.

The federal government has for more than 40 years been very reluctant to permit the opening of domestic mining operations. It will need to permit many more such mines if this energy transition is going to continue to move forward.