American Tungsten Corp. (TSXV: TUNG, OTCQB: DEMRF)
Building America’s Defense Critical Metals Supply
The company becomes the only fully integrated antimony producer in the U.S. as Washington pushes to reduce reliance on Chinese supply
United States Antimony Corp. (NYSE-A: UAMY) announced it has commenced exploration and bulk sampling at its Stibnite Hill mine in Montana, marking a significant milestone in the company’s journey to become the nation’s only fully integrated antimony producer from mining to finished products.
The development comes as the U.S. intensifies efforts to secure domestic supply chains for critical minerals, with antimony being designated as a strategic mineral since 2018 by the U.S. Geological Survey. The metal is essential for flame retardants, alloys, and military applications.
According to Fortune Business Insights, the global antimony market size was valued at $1.01 billion in 2023 and is projected to grow from $1.08 billion in 2024 to $1.78 billion by 2032, registering a compound annual growth rate of 6.5% during the forecast period. While the Asia-Pacific region dominates with 64.36% of market share, the U.S. market is expected to reach $106 million by 2032.
China’s export restrictions implemented in 2024 triggered a global price surge, exposing vulnerabilities in Western supply chains and highlighting the strategic importance of domestic production capabilities.
The Stibnite Hill mine is strategically located adjacent to USAC’s Thompson Falls smelter, one of only two antimony processing facilities in North America, both owned by the company. The smelter currently can produce approximately 15 million pounds of antimony oxide or 5 million pounds of antimony metal annually, with expansion plans already underway.
With the necessary permits from Montana’s Department of Environmental Quality now secured, the smelter will for the first time process company-mined material. Initial ore shipments have been transported to a Montana flotation mill for crushing and sampling, with company management expressing optimism about the high quality of the material.
The company’s strategic position was further strengthened last month when it secured a five-year exclusive supply agreement with the U.S. Defense Logistics Agency to provide antimony metal ingots for the national defense stockpile. The contract, valued at up to $245 million, represents approximately 17 times the company’s 2024 revenue of $14.9 million.
John Lawrence, CEO of USAC, emphasized that this exclusive contract underscores our unique position as the only fully integrated antimony producer outside of China.
Despite the operational breakthrough, USAC shares recently declined over 10% amid a broader market selloff, closing at $10.95 per share with a market capitalization of $1.52 billion. Market analysts suggest the stock movement reflects macroeconomic sentiment rather than company-specific fundamentals.
The achievement of full supply chain integration positions USAC to potentially reshape global antimony supply dynamics, offering Western markets a sustainable alternative to Chinese-dominated supply chains while supporting U.S. national security interests in critical minerals.
