Ares Strategic Mining Inc. has been awarded a $168,938,267.30 contract by the U.S. Department of Defense through the Defense Logistics Agency as part of a five-year Indefinite Delivery/Indefinite Quantity agreement with a total contract ceiling of up to $250 million. This award represents a significant initiative to strengthen America's domestic manufacturing and supply base while supporting the rebuilding of U.S. strategic mineral stockpiles.
The contract establishes Ares as a sole-source domestic supplier of acid-grade fluorspar to the U.S. government, positioning the company as the only U.S.-based operation capable of delivering this critical mineral at scale. Acid-grade fluorspar, also known as acidspar, is a U.S. designated critical mineral essential to defense readiness, industrial manufacturing, clean energy supply chains, and high-tech applications. The mineral is vital for 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.
This development marks a turning point for U.S. critical mineral independence, as the nation has historically been 100% import-dependent for fluorspar. The contract validates the national importance of Ares' Utah-based Lost Sheep Project, which encompasses 5,982 acres with 353 claims located in the Spor Mountain area of Juab County, approximately 214 km southwest of Salt Lake City. The project is fully permitted, including mining permits approved by the Bureau of Land Management, with a NI 43-101 Technical Report identifying extensive high-grade fluorspar with low impurity levels.
James Walker, CEO of Ares Strategic Mining, stated that the contract reflects the U.S. government's commitment to revitalizing a long-neglected critical mineral supply chain. "We're not just producing fluorspar; we're helping build a more resilient and secure domestic supply chain for critical minerals," Walker said. "This contract confirms our leadership in rebuilding U.S. critical mineral capability and ensures our products directly contribute to national resilience, industrial strength, and long-term security."
The strategic implications of this contract extend beyond immediate financial value, representing a fundamental shift in how the United States sources materials essential to national security and technological advancement. By establishing domestic production capacity for acid-grade fluorspar, the U.S. reduces vulnerability to international supply chain disruptions and gains greater control over materials critical to defense systems, clean energy technologies, and advanced manufacturing. This development supports broader government initiatives to invest in resilient national supply chains and promote long-term economic growth through domestic sourcing of strategic materials.
For business and technology leaders, this contract signals increasing government investment in domestic critical mineral production, creating opportunities for companies positioned to support supply chain resilience. The award demonstrates how public-private partnerships can address strategic vulnerabilities while fostering industrial capabilities essential for technological innovation and national security. As the United States continues to prioritize supply chain security across defense, energy, and technology sectors, similar initiatives are likely to emerge for other critical materials, creating new market dynamics and investment opportunities in domestic resource development.
