Export-Import Bank & Stibnite Gold Project news
The Stibnite Gold Project continues to make headlines while IRU relentlessly pushes back. Photo credit: Nick Kunath, IRU staff
Earlier this month, Perpetua Resources announced they had received a letter of interest from the U.S. Export-Import Bank (EXIM) for a loan of up to $1.8 billion dollars (yes billion with a B), to assist with the development, initial construction costs, and the general operations of the Stibnite Gold Project (SGP). While this is a staggering sum of federal dollars, representing approximately 20% of all loans EXIM issued in 2023, there is still a long road ahead before this money becomes a reality.
Despite that fact, it is hard to ignore the pressure this letter of interest places on the Forest Service and other regulatory agencies to approve the project, not to mention the previously committed funds from the Department of Defence (DoD). Leading up to this announcement, Perpetua had already received two separate commitments from the DoD under the Defence Production Act totaling nearly $60 million.
This may be the first time you’ve heard of EXIM. It was initially established in 1934 by President Roosevelt under executive order and generally exists to finance and support American industry and hedge against foreign competition. The loan would be part of EXIM’s new Make More In American Initiative, specifically focusing on funding projects critical to national security, renewable energy, and energy storage.
The DOE and EXIM funding hinge on the fact that China, Russia, and Tajikistan control roughly 90% of the global antimony supply chain and highlight the quagmire that the United States has found itself in when it comes to balancing the need for mineral resources and other administration commitments to the environment and regional salmon recovery goals.
As we’ve highlighted in the past, while the SGP would be the United States' only source of domestically produced antimony, these potential investments of taxpayer dollars feel incredibly shortsighted when one truly considers the volumes of antimony estimated to be present.
Perpetua’s own investor slides and financial analysis estimate that the SGP has the potential to produce 115 million pounds of antimony. This antimony would then need to be processed overseas as there are currently no domestic facilities capable of refining this resource for finished products utilized by our military or potential emerging battery technology. Additionally, the potential antimony produced from the SGP would only satisfy the average US consumption for two years based on the 2021 USGS summary.
Despite these announcements, both pools of money are contingent on Perpetua clearing all regulatory and permitting hurdles that remain in their path toward operation. Most notably, we are still awaiting the Forest Service’s publication of the Final Environmental Impact Statement (FEIS) and Draft Record of Decision and final permits required under the Clean Water Act (CWA).
Idaho Rivers United and partner organizations recently submitted comments on Perpetua’s draft permit under section 401 of the CWA issued by the Idaho Department of Environmental Quality which regulates activities resulting in an exceedance of state water quality standards. This permit hinges on whether or not IDEQ finds the degradation “necessary to accommodate important economic or social development.” While we were pleased to see IDEQ reject another of Perpetua’s required permits earlier in the year, they can exercise considerable deference in determining what is and what isn’t “necessary” economic development in this case.
Despite initially being slated to be released this winter, we are now under the impression that the FEIS will be published sometime this summer. As always, we will continue to keep our members informed with any developments related to this incredibly irresponsible project and will publish additional tools and information for you to remain engaged.
