China’s #1 antimony smelter is shutting down this month: report

A steady reduction in antimony processing activities has been a trend in the country recently

Rowan Dunne

Published

3 days ago

China’s top facility for processing antimony ore into metal and other products is suspending operations indefinitely, according to a new report. The significant development is part of a broader trend of slowed production and refining within the country.

Hunan Anhua Zhazixi Mining Co., Ltd., a subsidiary of Hunan Gold Corp Ltd (SHE: 002155), will no longer be contributing 500 metric tons of the commodity to the supply chain per annum. The news broke in a bulletin posted by the Shanghai Metals Market (SMM) on Jun. 25, citing official sources it procured.

“Market participants have expressed that, as Hunan Anhua Zhazixi Mining Co., Ltd. is also a domestic flagship antimony smelter, the suspension in July may lead to a continued decline in domestic antimony production,” the metals and mining intelligence provider stated.

The firm also explained that the smelter was one of several to become stagnant since the beginning of June as exports leaving the country have declined immensely. China hasn’t been shipping antimony products to the United States for over six months and has tightened its grip on exports to Europe and other nations.

“Based on the current operational status of over 30 antimony smelters tracked nationwide by SMM, approximately 20 are currently in a state of suspension,” the agency added.

This trend was also highlighted by an analyst from Fastmarkets in a LinkedIn post last week. Xiaoying Du explained that China shipped no antimony metal in May while antimony trioxide exports declined by over 83 per cent year-over-year.

“On the production side, many Chinese smelters are cutting or suspending output due to feedstock shortages and weak downstream demand—particularly from the solar glass sector,” Du said.

Those in need turn their attention elsewhere

Tajikistan has emerged as a key supplier as China continues to retain its grip on the element due to trade war tensions with the Americans and broader national security concerns. This Central Asian nation produces about 26 per cent of the international supply.

The U.S. has also resorted to obtaining antimony metal from South Korea. A large shipment from Korea Zinc Inc (KRX: 0101030) is expected to show up in Maryland via cargo ship in the immediate future.

Russia, Turkey and Bolivia are also major contributors.

Military tech contractors, battery makers, flame retardant product makers and semiconductor producers are currently scrambling to fill the void that China, the world’s top producer, has left.

The shortage has made recycling antimony become a new focus for companies like MTM Critical Metals Ltd (ASX: MTM) (OTCMKTS: MTMCF) (FRA: 8JC), Campine NV (EBR: CAMB), United States Antimony Corp (NYSEAMERICAN: UAMY) and Teck Resources Ltd (TSE: TECK.A) (NYSE: TECK) (FRA: TEKB).

Furthermore, there has been an unprecedented rate of junior mining companies seeking to advance new deposits into production, particularly in the U.S. Xtra Energy Ord Shs (OTCMKTS: XTPT), NevGold Corp (CVE: NAU) (OTCMKTS: NAUFF) (FRA: 5E50) and Nova Minerals Ltd (ASX: NVA) (OTCMKTS: NVAAF) (FRA: QM3) are notable prospectors pursuing the metalloid in Nevada, Alaska and Washington.