Trump touts $3.83b in minerals projects to promote economic stability and national security

WASHINGTON – President Donald Trump touted US$3 billion (S$3.83 billion) in US investments in critical minerals mining at a meeting on Aug 7 with top industry executives aimed at weaning the US off supply chains dominated by China.

Trump said the projects would “create thousands of jobs and promote our economic stability and security”, at an event at the State Department.

“We’re putting our miners back to work, and we’re reclaiming America’s rightful place as the minerals superpower of the world,” he added.

Trump said the investments included a US$1.4 billion loan agreement with Sila Nanotechnologies from the Defence Department’s Office of Strategic Capital to expand production of silicon battery anodes and lithium-ion battery cells.

Other investments include US$400 million to Sunrise Energy Metals by the Pentagon to expand production in Australia of scandium, which is critical to aerospace and defense industries, and US$150 million with Niron Magnetics, a Minnesota magnet-making firm.

The Export-Import Bank is also working to provide more than US$1 billion in financing for Ivanhoe Electric’s Santa Cruz copper project in Arizona – as part of a previously announced agreement – along with a US$25 million investment to launch a graphite mine in Alabama.

The president also hailed plans to spend over US$180 million to bolster educational programmes for the industry, saying it would “train the next generation of American miners”.

Trump said his efforts would ensure the US “is never again reliant on hostile foreign nations for the resources our country needs to dominate in the future”.

The president was joined by executives from prominent companies, including Rio Tinto Group, BHP Group, MP Materials, USA Rare Earth, Energy Fuels, US Antimony and The Metals Company.

The event showcased administration efforts to spur US critical minerals development and processing before a planned visit by Chinese President Xi Jinping to Washington in September.

Trump said that under his administration domestic mines were reopening at a fast pace, including what he said was the first American rare earths mine in more than 70 years and the construction of the first new aluminum smelter since 1980.

Despite a trade truce that eased export controls over critical minerals and magnets essential to a host of cutting edge industries, rare earths remain a source of tension between the world’s two largest economies.

The US has sought to partner with domestic companies to build out a mine-to-magnet supply chain independent of China.

Ramon Barua, the chief executive officer of Aclara Resources and a participant in the meeting, called the event a signal that the administration is prepared to go “all out supporting mining initiatives”.

The federal government has already pledged more than US$10 billion of investments in a bid to jump-start nascent US markets for rare earths and permanent magnets.

The Pentagon kicked off the spending spree more than a year ago, announcing it would take a US$400 million preferred equity stake in MP Materials – the sole domestic rare earths producer – and the US has since announced other projects the government is championing.

While the scale of the US critical minerals build-out is enormous, there have been serious challenges and slow progress in developing the domestic industry.

The funding for schools comes as the US mining sector faces an ageing workforce and a limited pipeline of engineers, geologists, metallurgists and other workers with specialised skills.

Mining schools have seen enrolment and interest in the industry decline over decades, leaving companies competing for a relatively small pool of talent just as the US seeks to rapidly expand domestic production of critical minerals.

The workforce challenge is particularly acute because bringing new mines online can take years, meaning companies need to develop the talent pipeline well before projects begin producing.

The administration has also pushed to fund mining projects in Africa and South America in an effort to loosen Beijing’s grip on critical minerals.

On Aug 7, the US International Development Finance Corp. said it would match a US$4.8 million investment in Harena Rare Earths to develop a rare earth mine in Madagascar, which would supply materials including magnet metals for US manufacturing.

“We’ve been sleepwalking through many administrations,” said mining billionaire Robert Friedland, whose firms, Ivanhoe Electric and Sunrise Energy Metals, Trump highlighted for funding on Aug 7.

“This is critical to our national security.” BLOOMBERG