Key Takeaways:
- The global demand for antimony, a critical mineral used in the production of missiles, batteries, and flame retardants, has increased due to fears about China’s control of supply chains.
- Pakistan, which holds 1% of the world’s antimony reserves, is seeking to reap the rewards of the global race for critical minerals and has signed partnerships with US companies to explore and process antimony.
- The US government has encouraged companies to secure antimony supplies from outside China, with some companies receiving grants to explore for the mineral in countries such as Pakistan and Tajikistan.
- The price of antimony trioxide has shot up to around $40,000 per tonne, although it has fallen from its peak as new supply has come online and buyers seek substitutes.
- Pakistan’s mining sector remains at the lower end of the value chain, with little processing or refining capability, and there are concerns about the origin and quality of antimony sourced in the country.
Introduction to Antimony and its Importance
The global demand for antimony, a silvery-white rock, has increased significantly in recent years due to its critical role in the production of missiles, batteries, and flame retardants. For years, Chinese intermediaries were the primary buyers of antimony sourced from wildcat traders in Afghanistan, but now US buyers are showing interest in stockpiling the mineral from Pakistan and central Asia. The price of antimony trioxide has shot up to around $40,000 per tonne, although it has fallen from its peak as new supply has come online and buyers seek substitutes.
Pakistan’s Antimony Reserves and Mining Sector
Pakistan holds 1% of the world’s antimony reserves, with much of it located on the mountainous border with Afghanistan. The country’s mining sector remains at the lower end of the value chain, with little processing or refining capability. Most of the antimony mined in Pakistan is sourced from artisanal mines and sold to Chinese buyers at Karachi’s port, often at below market rates. There are also concerns about the origin and quality of antimony sourced in Pakistan, with some experts suggesting that it may have been mined in Afghanistan and smuggled across the border.
US Interest in Securing Antimony Supplies
The US government has encouraged companies to secure antimony supplies from outside China, with some companies receiving grants to explore for the mineral in countries such as Pakistan and Tajikistan. Nova Minerals, a company dual-listed in Australia and the US, has signed a "strategic partnership" with Pakistan-based Himalayan Earth Exploration to explore for antimony. The company plans to buy over 100 tonnes of Pakistani antimony concentrate for testing and processing in Alaska and may eventually set up downstream processing of the ore in Pakistan.
Global Market Trends and Challenges
The global market for antimony is highly competitive, with China dominating the supply chain. The recent global price surge was driven not by a shortage of ore, but by limited processing capacity outside China. Many miners complain that Pakistan remains at the lower end of the value chain, with little processing or refining capability. The number of smelters capable of processing antimony outside China remains limited, and there are concerns about the quality and origin of antimony sourced in Pakistan.
Partnerships and Collaborations
Pakistan-based Himalayan has signed a "strategic partnership" with Nova Minerals to "strengthen US-Pakistan economic ties" through exploring for antimony. Missouri-based US Strategic Metals has also agreed to collaborate with Pakistan’s military and political leaders on critical minerals essential for the defense, aerospace, and technology industries. Tajikistan, the second-largest antimony producer, is also benefiting from US attention, with the country’s president praising the "brilliant co-operation" with the US on exporting the mineral.
Conclusion and Future Outlook
The global demand for antimony is expected to continue, driven by its critical role in the production of missiles, batteries, and flame retardants. Pakistan, with its significant antimony reserves, is well-positioned to benefit from the global race for critical minerals. However, the country’s mining sector remains at the lower end of the value chain, and there are concerns about the origin and quality of antimony sourced in the country. As the global market for antimony continues to evolve, it is likely that we will see increased partnerships and collaborations between companies and governments to secure supplies of this critical mineral.
