American Resource and ReElement Technologies project first-phase tolling revenues to exceed $29 million annually.
$AREC
American Resources Corporation (NASDAQ:AREC), in collaboration with its portfolio company ReElement Technologies, has recently announced a significant expansion of their existing antimony tolling agreement. This development marks a strategic enhancement of the company’s refining operations, particularly in the processing of stibnite ore into high-purity antimony sulfide and antimony oxide.
Under the revised terms of the agreement, ReElement Technologies will handle the refinement of stibnite ore at its central Indiana facilities. The output, ultra-pure antimony products, is targeted for use in both the domestic defense and commercial sectors. The pricing structure of these refined products will adhere to market index-based standards.
The agreement has been structured with a 10-year term that includes provisions for automatic renewals, ensuring a stable, long-term supply chain for these critical materials.
The initial phase of this expanded partnership is set to commence with the processing of approximately 500 metric tons of stibnite ore per month. This capacity is not fixed there is an option to increase the volume significantly depending on market demand.
Financial projections for the first phase suggest that tolling revenues could surpass $29 million annually, with potential for further increases as domestic demand for antimony continues to rise. Antimony is a critical material used extensively in various applications including flame retardants, lead-acid batteries and alloys. The decision to enhance refining capabilities and extend the contract term reflects a proactive approach to securing a robust supply chain amid fluctuating global market conditions.
The expanded antimony tolling agreement between American Resources and ReElement Technologies is a significant development in the strategic positioning of both companies within the critical materials sector. As this partnership progresses, it will be interesting to observe how the increased capacity and extended contract terms influence the broader market dynamics for antimony in the United States.
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