Mandalay Resources Antimony Output Drops Sharply in Q1 2025

Mandalay Resources

Antimony Production Falls 60pc at Costerfield Mine

Canada-based Mandalay Resources saw a significant decline in antimony production at its Costerfield mine in Australia during the first quarter of 2025. Production dropped 60pc year-over-year, reaching just 161 metric tonnes, compared to 404t in Q1 of the previous year.

Quarter-on-quarter, production also declined by 40pc, down from 267t in Q4 2024.

This marks one of the company’s weakest antimony output periods in recent years, amid operational and market pressures.

Sales Decline as Global Antimony Prices Surge

Meanwhile, Mandalay’s antimony sales fell by 40pc, totaling 196t for the quarter.

The slump coincided with soaring global antimony prices, following China’s export controls introduced in September 2024.

As a result, Mandalay faces an increasingly challenging environment in balancing production capacity and market demand. The company has not disclosed the causes behind the output drop but may cite mine sequencing, ore grade variation, or logistics as contributing factors.

China’s Policy Shift Reshapes Global Antimony Supply

China’s tighter export controls have significantly impacted global antimony availability and pushed prices higher across strategic metal markets. Mandalay, as one of the few Western producers, may benefit from high prices once production rebounds.

However, the sharp drop in supply underscores global supply chain fragility, particularly for critical minerals like antimony, used in batteries, flame retardants, and alloys.

The Metalnomist Commentary

Mandalay's steep antimony output decline highlights the vulnerability of non-Chinese producers in a market dominated by Beijing’s policies. As demand for antimony surges across energy and defense sectors, Western producers must address output volatility to remain competitive in this strategic space.

Alkane Mandalay Antimony Acquisition Creates Diversified Gold-Antimony Producer

Mandalay Resources

Alkane Resources will acquire Mandalay Resources in a strategic merger that strengthens both companies' positions in gold and antimony markets. The deal, valued at approximately $650 million, will result in a diversified mining firm with global assets and a projected output of 160,000 gold-equivalent ounces in 2025.

Strengthened Position in Global Antimony Supply

The Alkane Mandalay antimony acquisition positions the combined entity as a major supplier of antimony outside China, Russia, and Tajikistan. The Costerfield mine in Australia, currently one of the largest non-Chinese antimony producers, will serve as a cornerstone asset. Meanwhile, Mandalay’s True Blue prospect adjacent to Costerfield shows expansion potential, following positive drilling results earlier this year.

Global Asset Portfolio and Growth Outlook

The new Alkane will operate three producing mines: Costerfield and Tomingley in Australia, and Björkdal in Sweden. These mines primarily yield gold but offer growing exposure to antimony — a critical mineral in semiconductors, batteries, and military applications. As a result, the Alkane Mandalay antimony acquisition brings diversified revenue and exploration upside amid rising global demand for strategic metals.

The Metalnomist Commentary

Alkane’s acquisition of Mandalay adds critical mineral depth to its portfolio, increasing exposure to antimony — a strategic material under global scrutiny. This move reflects a broader trend of miners seeking supply chain resilience by combining gold cash flow with critical mineral leverage.