Biden officials issue permit for Perpetua's Idaho antimony and gold mine

Jervois Global

03/01/2025 23:12

(Adds details of permit decision throughout, share movement,
company background)

        * 
      Permit aims to boost U.S. antimony production amid trade
tensions with China
    

        * 
      Perpetua's mine to meet over 35% of U.S. antimony needs by
2028
    

        * 
      Nez Perce tribe consulted, concerns about salmon
population
remain
    

  
    By Ernest Scheyder
       Jan 3 (Reuters) - The Biden administration on Friday
issued the final mining permit for Perpetua Resources'  PPTA.O 
Idaho antimony and gold project, a move aimed at spurring U.S.
production of a critical mineral at the center of a widening
trade war between Washington and Beijing.
Permitting for the mine, backed by billionaire investor John
Paulson, comes after Beijing last month blocked exports to the
U.S. of antimony, a metal used to make weapons, solar panels,
flame retardants and other goods for which there are no current
American sources.
    The U.S. Forest Service released the final record of
decision for Perpetua's Stibnite project - essentially the
mine's permit - after an eight-year review process, according to
documents published on the agency's website.
    Shares of Boise, Idaho-based Perpetua gained 9.1% in
after-hours trading after Reuters reported the permit decision
earlier on Friday.
    Perpetua's mine will supply more than 35% of America's
annual antimony needs once it opens by 2028 and produce 450,000
ounces of gold each year, a dual revenue stream expected to keep
the project financially afloat regardless of any steps Beijing
may take to sway markets.
For example, Jervois Global  JRV.AX , the owner of an Idaho mine
that produces only cobalt, declared bankruptcy on Thursday after
Chinese miners aggressively boosted production of that metal in
a bid for market share.
In its 154-page report, the Forest Service said its Perpetua
decision was based on a detailed review of environmental data,
discussions with Indigenous groups and consultation with other
federal agencies.
    "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 the report.
    Perpetua, which changed its mine design three times in
response to critics, said it believes it can make the mine -
roughly 138 miles (222 km) north of Boise - "the best it can
be."
    "Every detail of this project was examined with a fine-tooth
comb," said Jon Cherry, Perpetua's CEO.
    Perpetua will need to obtain a wetlands permit from the U.S.
Army Corps of Engineers, although the Forest Service said its
own decision was made in consultation with that agency, implying
a smooth review process.
     
    FINANCES
    The Stibnite project was forecast in 2020 to cost $1.3
billion, a number expected to rise due to post-pandemic
inflation. The site has estimated reserves of 148 million pounds
of antimony and 6 million ounces of gold.
    The Pentagon committed nearly $60 million to fund permitting
for the project, which would entail cleaning and expanding a
site that was polluted by World War Two-era mining.
Perpetua last April received a letter of interest from the U.S.
Export-Import Bank, the government's export credit agency, for a
loan worth up to $1.8 billion to fund the Stibnite project.
    The project has not won the support of Idaho's Nez Perce
tribe, which is concerned it could affect the state's salmon
population.
    The tribe, though, was consulted for the permit review and
changes were made to address their concerns, according to the
record of decision.
    Representatives for the Nez Perce were not immediately
available for comment.

(Reporting by Ernest Scheyder in Houston
Editing by Matthew Lewis)
((ernest.scheyder@thomsonreuters.com; X: @ErnestScheyder;
+1-469-691-7667; Reuters Messaging:
rm://ernest.scheyder.thomsonreuters.com@reuters.net/))