China Imposes Export Limits on Antimony for National Security

BEIJING (Reuters) – China will impose export limits on antimony and related elements for national security, according to its commerce ministry on Thursday. This is part of Beijing’s latest effort to restrict shipments of critical minerals where it is a dominant supplier.

China accounted for 48% of global mined output of antimony last year, a strategic metal used in military applications including ammunition, infrared missiles, nuclear weapons, and night vision goggles, alongside batteries and photovoltaic equipment.

The restrictions are aimed at “safeguarding national security and interests” and meeting international obligations like non-proliferation, as stated by the ministry.

At a regular briefing, officials clarified that these curbs are not targeting any specific country or region.

“It’s a sign of the times,” remarked Christopher Ecclestone, a principal and mining strategist at Hallgarten & Company in London.

“The military uses of Sb (antimony) are now the tail that wags the dog. Everyone needs it for armaments so it is better to hang onto it than sell it,” he said. “This will put a real squeeze on the U.S. and European militaries.”

The limits will take effect from September 15 and cover six types of antimony-related products, including antimony ore, metals, and oxide. Furthermore, the rules prohibit the export of gold-antimony smelting and separation technology without permission.

DUAL USE

Exporters of the affected products will need to apply for licenses for dual-use items and technologies, which can serve military and civilian purposes.

The U.S. and other countries are urgently seeking to reduce their dependence on China for critical materials. They are implementing policies and support for their minerals sectors, including rare earths.

Analysts from China Securities noted that increasing global demand for arms and ammunition amid geopolitical tensions will likely lead to tighter control and stockpiling of antimony.

Perpetua Resources, a company developing a U.S. antimony and gold project with Pentagon support, originally planned production to start by 2028 but is now exploring ways to expedite the process.

“We are looking at things that we can do during construction to get antimony out the door sooner for some of these strategic needs,” said Jon Cherry, Perpetua’s CEO.

“The (U.S.) Department of Defense is aware of the critical nature of antimony and the short supply… the market is very tight and getting tighter daily.”

Perpetua’s shares surged by as much as 19% on Thursday, reaching levels not seen in three years.

WIDENING CURBS

China’s latest export restrictions follow a trend that started last year. In December, China banned the export of technology for rare earth magnets, adding to prohibitions in place on the extraction and separation of critical materials.

Additionally, it has restricted exports of certain graphite products along with gallium and germanium, both crucial for the semiconductor industry.

In 2024, antimony prices hit record highs due to tight supply and growing demand, particularly from the photovoltaic sector, where the metal enhances solar cell performance. This surge helped increase the share prices of Chinese producers like Hunan Gold and Tibet Huayu Mining by 66% to 93%.

One antimony producer in Hunan expressed uncertainty about the immediate effects of the latest moves. However, they believe prices will be supported by panic stockpiling from international buyers.

While China remains the largest supplier of refined antimony, it is a net importer of concentrates and relies on ores from countries like Thailand, Myanmar, and Russia. Customs data show a significant drop in imports from Russia this year.

“A lack of concentrate feedstock remains the key feature of the antimony market at present,” stated Jack Bedder, co-founder of consultancy Project Blue.