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, representing a strategic move to strengthen domestic manufacturing and rebuild national stockpiles of critical minerals. This five-year Indefinite Delivery/Indefinite Quantity agreement has a total potential value of up to $250 million through future task orders.
This contract establishes Ares as the sole domestic supplier of acid-grade fluorspar to the U.S. government, positioning the company at the center of national efforts to secure supply chains for materials essential to defense readiness, industrial manufacturing, and clean energy technologies. Acid-grade fluorspar, also known as acidspar, is a U.S. designated critical mineral used in producing hydrofluoric acid and fluorine-based materials that support defense systems, missile technology, steel and aluminum production, fluorochemical manufacturing, semiconductors, batteries, and next-generation electronics.
The significance of this award lies in addressing a critical vulnerability in U.S. supply chains. Historically, the United States has been 100% import-dependent for fluorspar, creating strategic risks for industries vital to national security and economic competitiveness. This contract represents a turning point in establishing domestic production capacity for a material that supports multiple high-priority sectors. 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 and confirms the company's leadership in rebuilding U.S. critical mineral capability.
The contract will support Ares' Lost Sheep Fluorspar Project in Delta, Utah, a 5,982-acre operation located in the Spor Mountain area approximately 214 km southwest of Salt Lake City. The project holds extensive high-grade fluorspar deposits with low impurity levels and operates under fully permitted status, including mining permits approved by the Bureau of Land Management. Technical details about the project's mineral resources are documented in the NI 43-101 Technical Report available through regulatory filings.
For industries ranging from defense contractors to semiconductor manufacturers, this development signals progress toward more resilient supply chains less vulnerable to international disruptions. The establishment of domestic fluorspar production capacity contributes to long-term industrial strength and national security by ensuring reliable access to materials essential for advanced technologies. As the only U.S.-based operation positioned to deliver acid-grade fluorspar at scale, Ares Strategic Mining now plays a central role in America's strategic mineral independence efforts.
