The U.S. government is currently actively promoting a mining investment fund of up to $5 billion. If successful, this will be the largest action taken by the U.S. government to date regarding critical minerals, allowing the Trump administration to invest directly in mining, ensuring the supply of key minerals such as rare earths, and reducing reliance on China.
According to Bloomberg, the U.S. International Development Finance Corporation (DFC), a development finance institution of the U.S. federal government, is in talks with New York investment firm Orion Resource Partners to establish a joint fund, which is still in the negotiation stage.
The Trump administration views the security of the supply chain of key minerals such as copper, cobalt, and rare earths as a crucial national strategy. The White House also hopes to strengthen its influence in the global mining sector through this fund.
The fund is expected to be funded equally by DFC and Orion Resource, with DFC investing $2.5 billion in this joint venture, marking the largest investment in the history of the institution.
Analysis suggests that DFC will play a more important role during Trump’s tenure. The White House is expanding government investment capacity and relaxing restrictions to allow the U.S. government to participate in projects of wealthier countries or high-risk projects to attract more private funds. Earlier this year, Trump nominated prominent investor and legal advisor Ben Black as DFC chairman, emphasizing that DFC should collaborate with private capital rather than exclude market forces.
If the fund is successfully established, the U.S. will participate in large-scale mineral transactions directly under government auspices for the first time, signaling a new phase in the global competition for mining resources.
Since Trump returned to the White House in January, the U.S. government has been trying to counter China’s dominance in the production and processing of rare earths, copper, aluminum, germanium, tungsten, and other metals. Trump has implemented measures such as imposing tariffs on certain metal imports and providing financial support to domestic companies producing and processing minerals.
In July, the U.S. Department of Defense invested $400 million in rare earth producer MP Materials, signed a supply agreement with a minimum price guarantee, and also launched the first cobalt strategic reserve tender since the Cold War.
Internationally, Trump has promoted mineral transactions in Ukraine and Greenland. During the Biden era, the U.S. has also invested in graphite mines in Mozambique and the construction of the “Rovuma Corridor” railway in Africa, showcasing America’s influence in the mineral supply chain.
Competition between the U.S. and China in Africa is intensifying. Orion Resource is currently bidding for a copper-cobalt mining company in the Congo. Previously, China North Industries Group (Norinco) attempted to acquire the company but was not approved; the U.S. had pressured the Congolese government to prevent the transfer at the time. The Congo is the world’s largest producer of cobalt and the second-largest source of copper, holding a critical position in mining resources.
However, China still controls most of the world’s mineral processing capacity and continues to acquire overseas mineral resources.
U.S. officials and industry professionals are concerned that without long-term investment in mining, the U.S. may be subject to Chinese authorities, leading to severe shortages in metal supply in the future.
Former U.S. Secretary of State Mike Pompeo urged the Trump administration to accelerate action to secure the supply chain of critical minerals. Pompeo is a board member of the London-listed copper mining company ACG Metals and an advisor to the Nasdaq-listed U.S. rare earth company USA Rare Earth.
Pompeo pointed out that the world is entering a “geopolitical new era” unseen since World War II, and mineral shortages could pose a threat to national security. He commended President Trump’s actions on mining and emphasized the need for the U.S. to cooperate with allies to ensure the secure supply of critical minerals.