Written by Ernest Scheider
(Reuters) – The Biden administration on Friday issued the final mining permit for Perpetua Resources' antimony and gold project in Idaho, a move aimed at spurring U.S. production of a critical mineral at the heart of a widening trade war between Washington and Beijing.
The license for the mine, backed by billionaire investor John Paulson, comes after Beijing last month banned exports to the United States of antimony, a mineral used to make weapons, solar panels, flame retardants and other goods for which there are no current American sources.
The U.S. Forest Service issued the final record of decision for Perpetua's 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.
The Perpetua mine will supply more than 35% of America's annual antimony needs once it opens by 2028 and produces 450,000 ounces of gold each year, a dual revenue stream that is expected to keep the project financially afloat regardless of any steps Beijing may take to influence… Markets.
For example, Jervois Global, owner of an Idaho mine that produces only cobalt, declared bankruptcy on Thursday after Chinese miners aggressively boosted their production of the metal in an attempt to gain market share.
In its 154-page report, the Forest Service said its decision on Perpetua was based on a detailed review of environmental data, discussions with indigenous groups and consultation with other federal agencies.
“It took into account the degree to which (the mine's) environmental design features and monitoring and mitigation actions, where possible, would reduce adverse environmental impacts on (federal lands),” Matthew Davis of the Forest Service said in the report.
Perpetua, which has changed the design of its mine three times in response to criticism, said it believes it can make the mine, located about 138 miles (222 kilometers) north of Boise, “the best it can be.”
“Every detail of this project has been scrutinized with a fine-tooth comb,” said John Cherry, CEO of Perpetua.
Perpetua will need to obtain a wetlands permit from the U.S. Army Corps of Engineers, though the Forest Service said its decision was made in consultation with that agency, meaning a seamless review process.
Financial affairs
The cost of the Stibnet project in 2020 was expected to reach $1.3 billion, a figure that is expected to rise due to inflation after the pandemic. The site estimates its reserves at 148 million pounds of antimony and 6 million ounces of gold.
The Pentagon has allocated nearly $60 million in permit funding for the project, which entails cleaning up and expanding the site that was contaminated by World War II-era mining.
Last April, Perpetua received a letter of interest from the Export-Import Bank of the United States, the government's export credit agency, for a loan of up to $1.8 billion to finance the Stibnet project.
The project has not received support from the Nez Perce Tribe in Idaho, which is concerned that it could affect salmon populations in the state.
In a statement to Reuters, the Nez Perce tribe said it was still reviewing the final decision, although “not optimistically,” adding that it believed the Forest Service “rushed to approve Perpetua Resources’ mine proposal without doing the required due diligence.”
