Mandalay Resources reported Q4 2023 antimony production of 404t contained Sb in concentrate, putting annual production down 19% year-on-year.

Mandalay’s Costerfield mine is the only operating antimony mine in Australia and the mine typically accounts for around 2-4% of global antimony mine supply. In 2023, the company chased a wide guidance range of 1.8-2.4kt Sb, finishing the year just above the lower end at 1.8kt. The decline continues a significant year-on-year decline since 2020, when record production reached 3.9kt Sb. The decline is forecast to continue in 2024, with the company’s guidance for the year predicting 1.1-1.5kt Sb, accounting for closer to 1% of global supply according to Project Blue’s supply predictions for the year.

Antimony has faced three consecutive years of a tight market , with one mine in Russia – Polyus’ Olimpiada mine – currently the deciding factor. Polyus produces antimony as a by-product of gold and while the mine’s capacity makes Olimpiada the single largest source of antimony concentrate it has operated its antimony flotation concentrate more as swing production for the industry based on the market conditions of both gold and antimony. Chinese antimony ingot smelters import all the concentrates from Polyus. Still, some were hesitant to quickly absorb much-needed concentrate from Russia over 2023 with sanctions putting pressure on the supply chain to clients in Europe and the USA.

Project Blue expects the market balance to remain tight in 2024. Polyus has produced an average of 10ktpy Sb since being commissioned in 2018, however, ranging from 2.3kt to over 20kt Sb per year. Gold prices are at record highs, which could see by-product supply from Olimpiada take a back seat again in the near term, as the world’s fourth largest gold mine will likely target its primary commodity. The only significant and sustainable relief is a new Chinese-owned joint venture gold-antimony project in Tajikistan. Project Blue is tracking over 20 gold mines and projects with by-product antimony potential; however, most defined reserves have a limited life of mine for antimony.

Mandalay has been focussing on extending the life of mine at Costerfield with plans exploration expenditure of US$9-11M in 2024. The mine’s current reserve depletion is set towards the end of this decade. With antimony becoming an increasingly important part of the solar industry, where its use helps improve energy efficiency, the industry will need to see more new entrants into the market to maintain the status quo for antimony’s other major applications.