U.S. Critical Minerals to acquire McAllister tantalum mine in Alabama

USCM signed binding agreements to merge with Nova Resources and buy the last significant US tantalum-producing mine, targeting closure by end-2026.

By Rowen Brooks Fri, 18 September 2026 AI level 2 of 5

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A sprawling industrial chemical plant under bright daylight, featuring numerous metallic pipes, large storage tanks, and multi-level steel structures, with mountains visible in the arid background.

U.S. Critical Minerals (USCM), a privately held exploration and development company based in Sylacauga, Alabama, has signed binding agreements to merge with Nova Resources and acquire the McAllister tantalum mine and its associated processing mill in Coosa County, Alabama. The two transactions are intended to re-establish domestic tantalum production at what the company describes as the last significant known tantalum-producing mine in the United States.

USCM already holds a 20% interest in Nova Resources, which controls more than 5,000 acres across the Coosa County district. Nova's exploration work has outlined a lithium-cesium-tantalum (LCT) pegmatite system spanning more than 230 square kilometres, with initial drilling confirming tantalum and lithium intercepts in the McAllister area. The McAllister deposit produced roughly 250 tonnes of tantalum concentrate between 1989 and 1992, approximately half of which was supplied to the US National Defense Stockpile.

The transactions

The merger with Nova requires approval from shareholders of both entities and is expected to close by end-October 2026. The McAllister mine and mill acquisition is targeted for completion no later than 31 December 2026, subject to payment of the outstanding consideration and satisfaction of customary closing conditions. USCM did not disclose deal values, acquisition prices, or the identity of financing parties for either transaction.

Post-closing, the company plans a district-wide airborne geophysical survey and a focused drilling programme to define additional tantalum resources. It will also conduct engineering assessments, metallurgical testing, environmental baseline studies, and regulatory engagement before any decision is taken on restarting mining or milling operations. Chief executive Jesse Edmondson described the combination as "a proven American mine, existing processing infrastructure and a large exploration position in a district with demonstrated tantalum, tin and lithium mineralisation."

Market context

Tantalum is formally designated a US critical mineral. It is used in high-performance capacitors and semiconductors, aerospace superalloys, medical devices and defence electronics. The US currently imports all of its tantalum concentrate, with supply concentrated in central and west Africa. That import dependency has drawn growing policy attention as Washington attempts to onshore supply chains for defence-critical materials.

The broader critical-minerals sector has attracted substantial capital over the past three years, driven partly by the US Inflation Reduction Act's domestic-content incentives for battery and advanced-manufacturing supply chains, and partly by the Department of Defense's direct investment programmes under its Defence Production Act Title III authority. While those mechanisms have focused most heavily on lithium, cobalt and rare earths, tantalum's designation as a priority material for the Department of Defense signals that government offtake or co-investment arrangements are plausible as the Alabama project advances.

LCT pegmatite districts are of particular commercial interest because they can host multiple critical minerals within a single mineralised system. Nova's position in the Coosa County district, if confirmed by systematic drilling, could support a broader development thesis covering lithium as well as tantalum and tin, adding optionality for future financing structures, including potential strategic offtake from defence primes or battery supply-chain participants.

Path to production

USCM is at an early stage. No mineral resource estimate under a recognised reporting standard has been disclosed, no feasibility study has been completed, and the mill has not operated for more than three decades. The company's stated near-term priorities, airborne surveys, drilling, metallurgical testing and permitting engagement, are standard pre-development steps that typically take several years to convert into a production decision.

Investors and potential government partners will look for a maiden resource estimate, a scoping or prefeasibility study, and clarity on mill rehabilitation costs as the key milestones that would convert the Alabama Tantalum Project from a strategic land and infrastructure position into a financeable development asset.