China has announced new export limits on antimony and related elements, citing national security as the primary reason for the move. This decision, communicated by the Commerce Ministry on August 15, 2024, marks another step in Beijing's strategy to control the supply of critical minerals, where it holds a dominant position. Last year, China accounted for 48% of the global mined output of antimony, a strategic metal crucial for military applications, including ammunition, infrared missiles, nuclear weapons, and night vision goggles.
The restrictions will take effect on September 15, 2024, and will apply to six types of antimony-related products, including antimony ore, metals, and oxides. Additionally, the export of gold-antimony smelting and separation technology will now require permission. The ministry emphasized that these measures are not aimed at any specific country but are instead a reflection of the changing global landscape. Christopher Ecclestone, a mining strategist at Hallgarten & Company, noted that the military uses of antimony have become increasingly significant, leading countries to prioritize retaining supplies over exporting them.
The U.S. and its allies are currently scrambling to reduce their dependence on China for essential materials, including antimony. This urgency is driven by rising geopolitical tensions and the increasing demand for military resources due to ongoing conflicts. As a result, countries are implementing policies and support packages to bolster their domestic critical minerals sectors, especially for rare earth elements.
Perpetua Resources, a U.S.-based company developing an antimony and gold project with support from the Pentagon, has expressed concern over the new restrictions. Initially planning to commence production by 2028, the company is now exploring ways to expedite antimony production to meet urgent strategic needs. CEO Jon Cherry highlighted the Department of Defense's awareness of the critical nature of antimony, noting that the market is tightening daily.
Following the announcement, shares of Perpetua Resources surged by up to 19%, reaching levels not seen in three years. This reflects investor optimism about the company's potential to fill the gap left by Chinese restrictions. The broader market for antimony has been affected by rising prices, which have reached record highs this year. This surge is attributed to tight supply and increasing demand, particularly from the photovoltaic sector, where antimony enhances the performance of solar cells.
China's latest export curbs are part of a broader trend of restrictions that have been introduced since last year. In December 2023, China banned the export of technology used to produce rare earth magnets and has since tightened controls on graphite products and semiconductors. These moves indicate a strategic approach to safeguarding critical resources, which have become pivotal in global supply chains.
Despite being the largest supplier of refined antimony, China is also a net importer of concentrates, relying on countries like Thailand, Myanmar, and Russia for ore. This dependency adds complexity to the situation, as imports from Russia have sharply declined this year. Analysts emphasize that the ongoing lack of concentrate feedstock is a significant challenge for the antimony market, further complicating the dynamics of global supply and demand.
As countries grapple with these new realities, the implications of China's export limits on antimony will likely reverberate through various industries, affecting everything from military readiness to renewable energy technologies. The move underscores the growing importance of securing critical mineral supplies in an increasingly interconnected and competitive global landscape.
