J.P. Morgan Boosts U.S. Energy Security With Mining Investment

On October 13, JPMorganChase (JPMC) rolled out a major, $1.5 trillion plan designed to boost U.S. energy and national security with targeted investments in key projects and companies. Two weeks later, JPMC said the fund’s first initiative will involve a $75 million investment to acquire a 3% equity interest in Idaho mining company Perpetua Resources and its Stibnite Mine, which stands to become a key supplier of the critical mineral antimony in the years to come. It is a key investment in a mining industry whose role in U.S. national security has assumed elevated status in recent months.

“It has become painfully clear that the United States has allowed itself to become too reliant on unreliable sources of critical minerals, products and manufacturing – all of which are essential for our national security,” JPMC Chief Executive Officer Jamie Dimon said in a release. The company’s plan, called the Security and Resiliency Initiative, will target four key categories: Supply chain and advanced manufacturing, defense and aerospace, energy independence and resilience, and frontier and strategic technologies.

Highlighting Mining’s Key National Security Role

Perpetua Resources and the Stibnite Mine fit neatly into every one of those categories. As I first detailed here in 2021, antimony, though little known to most people, is a key component in a vast variety of products that are central to our modern way of life, including smart phones and other gadgets, bullets, major military weapons systems, and most forms of renewable energy.

Put simply, there can be no energy transition without ready and affordable supplies of this key mineral. That thick, heavy glass used in solar panels? It’s made with antimony. Those 300- to 700-foot-tall windmills that produce electricity when the weather’s good? Made with antimony. Antimony is a key element in the manufacture of lithium-ion batteries, and even more crucial is the fact that it is integral to the development of the next-generation battery technologies that could hold the key to truly scalable energy storage for wind and solar power.

“This is all about putting America first again relative to the supply chain, in this case for critical minerals,” said Jon Cherry, Perpetua’s CEO. JPMC obviously agrees, and it is not alone in that assessment.

The Pentagon considers the Stibnite mine important enough to national security that it sent a representative, Major General John T. Reim, to participate in the ribbon cutting ceremony when the mine was formally re-opened on September 19, following an arduous 15-year-long permitting process. Speaking to an audience of local, state, and company officials, Reim said the restart of its operations puts the Pentagon “one step closer to establishing a complete domestic supply chain,” for its antimony needs.

Mining For Gold, Antimony, And More

In addition to the infusion of $75 million from JPM, Perpetua also announced a $180 million investment into its operations on Monday by Canada-based Agnico Eagle Mines Limited, the world’s second-biggest gold producer. As with JPM’s deal, the up-front investment is in Perpetua common stock, and comes with warrants to buy additional shares at discounted prices over the coming three years.

“The Stibnite Gold Project is an excellent opportunity in a premier mining jurisdiction. Our investment in Perpetua aligns with Agnico Eagle’s commitment to disciplined and strategic investments through emerging and high-quality opportunities and provides measured exposure to one of the highest-grade open-pit gold deposits in the United States, with significant exploration upside,” said Ammar Al-Joundi, President and Chief Executive Officer of Agnico Eagle.

The Stibnite Mine is an obvious fit for Agnico Eagle and its prominence in the gold industry, given that the mine was originally established in 1927 as a gold mining operation. But early exploration quickly identified major stores of silver and antimony inside the targeted rock. Long a key player in ensuring U.S. national security, this single mine supplied 90% of America’s antimony needs throughout the war effort of World War II. Today, the Stibnite Mine is considered one of the largest resources of antimony outside of the control of China, Russia and their allies. In an email, a Perpetua spokesperson indicated that, in addition to its capital infusion, the mining operation also stands to benefit from Anglico Eagle’s deep technical expertise.

“The investments from Agnico Eagle and JPMorganChase are a vote of confidence in the Stibnite Gold Project and America’s critical mineral strategy,” said Jon Cherry, President and CEO of Perpetua Resources. “Investments from two leading, world-class institutions strengthens our capital position, reduces financing risk, and accelerates the development of one of the nation’s most strategic resource projects.”

With China cracking down on its exports of critical minerals such as antimony, the reopening of the Stibnite Mine and these associated investments could not be more timely. Readers can expect to see many more similar investments in America’s suddenly resurgent mining industry in the coming months.