The Zhitong Finance App learned that US President Donald Trump made a high-profile announcement at a meeting with top mining executives on Friday that the US will invest 3 billion US dollars in key mineral extraction, with the aim of reducing America's dependence on external key mineral supply.
Trump said at an event held by the US State Department that these projects will “create thousands of jobs and promote our economic stability and security.” He also added, “We're getting our miners back to work, and we're taking back America's rightful place as the world's mining superpower.”
Trump said these investments include a $1.4 billion loan agreement from the Defense Department's Office of Strategic Capital to Sila Nanotechnologies to expand production of silicon battery anodes and lithium-ion batteries. Other investments include $400 million from the Pentagon to Sunrise Energy Metals Ltd. to expand its production of scandium in Australia, an element critical to the aerospace and defense industry; and $150 million to Minnesota rare earth company Niron Magnetics Inc.
The Export-Import Bank of America is also committed to providing more than $1 billion in financing for Ivanhoe Electric's (IE.US) Santa Cruz copper project in Arizona, while also investing $25 million to launch the Alabama graphite project.
Trump also praised plans to invest more than $180 million to strengthen mining education programs, saying it would “train the next generation of American miners.”
Trump said his efforts will ensure that America “will no longer rely on hostile foreign countries to obtain the resources our country needs to achieve future dominance.”
According to reports, executives from Rio Tinto (RIO.US), BHP Billiton (BHP.US), Freeport McMoran (FCX.US), MP Materials (MP.US), American Rare Earth Company (USAR.US), Energy Fuels (UUUU.US), and American Antimony (UAMY.US) attended the event.
Trump said that under his leadership, mines in the US are being rapidly restarted, including what he said was the first rare earth mine in the US in more than 70 years and the first newly built aluminum smelter since 1980.
Ramon Barua, CEO of Aclara Resources Inc., who participated in the event, said the event showed that the US government is ready to “fully support the mining program.”
The US federal government has promised to invest more than $10 billion to boost America's emerging rare earth and permanent magnet markets. The Pentagon began this investment boom more than a year ago, announcing that it will spend $400 million to acquire preferred shares of MP Materials, the only US producer of rare earths. Since then, the US government has announced other key projects.
However, the US mining industry is facing an aging workforce and insufficient reserves of engineers, geologists, metallurgists, and other skilled professionals.