The U.S. Department of Defense has awarded Ares Strategic Mining Inc. a contract valued at $168,938,267.30 through the Defense Logistics Agency. This five-year Indefinite Delivery/Indefinite Quantity agreement has a total contract ceiling of up to $250 million, establishing the company as a sole-source domestic supplier of acid-grade fluorspar to the U.S. government. Acid-grade fluorspar, designated as a critical mineral by the United States, is essential to defense readiness, industrial manufacturing, clean energy supply chains, and high-tech applications.
The mineral is a vital input used in the production of hydrofluoric acid and fluorine-based materials, supporting industries including defense systems and missile technology, steel and aluminum production, fluorochemical manufacturing, and semiconductors, batteries, and next-generation electronics. This contract represents a significant development for domestic critical mineral independence. The United States has historically been 100% import-dependent for fluorspar, making the establishment of a domestic supply chain a critical national priority. James Walker, CEO of Ares Strategic Mining, stated that this award reflects the U.S. government's commitment to revitalizing a long-neglected critical mineral supply chain.
The contract will support the replenishment of government stockpiles of strategic and critical minerals. Ares Strategic Mining is the only U.S. producer of acid-grade fluorspar, with operations centered on its fully permitted Lost Sheep Fluorspar Project in Utah's Spor Mountain area. The company's technical report identified extensive high-grade fluorspar with low levels of impurities at this location. This award positions Ares at the heart of America's effort to build a robust domestic sourcing network to ensure long-term self-sufficiency.
Walker emphasized that the company is now a partner in America's strategic future, with products that directly contribute to national resilience, industrial strength, and long-term security. The contract validates the national importance of the Utah-based project and represents a turning point in reducing reliance on foreign sources for this critical material. The Defense Logistics Agency's investment through this contract signals a strategic shift toward securing essential mineral resources within national borders, addressing vulnerabilities in supply chains that affect both military capabilities and civilian industries.
