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Biden officials issue permit for Perpetua’s antimony and gold mine in Idaho Reuters


Ernest Scheider

(Reuters) – The Biden administration on Friday issued a final mining permit for Perpetua Resources’ antimony and gold project in Idaho, a move aimed at boosting U.S. production of the critical mineral at the center of a widening trade war between Washington and Beijing.

The permit for the mine, which is backed by billionaire investor John Paulson, comes after Beijing last month blocked U.S. exports of antimony, a metal used to make weapons, solar panels, flame retardants and other commodities for which there are currently no U.S. sources.

The U.S. Forest Service announced a final decision on the Perpetua Stibnite project — essentially a mine permit — after an eight-year review process, according to documents posted on the agency’s website.

Shares of Boise, Idaho-based Perpetua rose 9.1% in after-hours trading after Reuters reported the permit decision earlier on Friday.

Perpetua’s mine will supply more than 35% of the U.S.’s annual antimony needs once it opens by 2028 and produce 450,000 ounces of gold each year, a double revenue stream expected to keep the project financially afloat regardless of any steps it takes. could Beijing take to influence the markets.

For example, Jervois Global, the owner of a mine in Idaho that produces only cobalt, declared bankruptcy on Thursday after Chinese miners aggressively increased production of the metal in a bid for market share.

In its 154-page report, the Forest Service said the Perpetua decision was based on a detailed review of environmental data, discussions with indigenous groups and consultation with other federal agencies.

“I have considered the degree to which (the mine’s) environmental design features, monitoring and mitigation measures, where possible, will minimize adverse environmental impacts on (federal lands),” Matthew Davis of the Forest Service said in the report.

Perpetua, which has changed its mine design three times in response to criticism, said it believes it can make the mine — about 138 miles (222 km) north of Boise — “the best it can be.”

“Every detail of this project was examined with a fine-toothed comb,” said Jon Cherry, CEO of Perpetua.

Perpetua will have to obtain a wetlands permit from the U.S. Army Corps of Engineers, though the Forest Service said it made its own decision in consultation with the agency, implying a smooth review process.

FINANCE

The Stibnite project was projected to cost $1.3 billion in 2020, a figure expected to rise due to post-pandemic inflation. The deposit has estimated reserves of 148 million pounds of antimony and 6 million ounces of gold.

The Pentagon has set aside nearly $60 million in permitting funding for the project, which would involve cleaning up and expanding the site, which was contaminated by World War II mining.

Last April, Perpetua received a letter of interest from the US Export-Import Bank, the government’s export credit agency, for a loan of up to $1.8 billion to finance the Stibnite project.

The project has not received support from the Nez Perce tribe of Idaho, which is concerned it could affect the state’s salmon population.

In a statement to Reuters, the Nez Perce tribe said it was still considering the final decision, though “not optimistically,” adding that it believed the Forest Service “rushed to approve Perpetua Resource’s mine proposal without doing the necessary due diligence.”





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