Mining.com: Trump considering sovereign wealth fund to invest in US miners, Interior Secretary says

US President Donald Trump is considering investments in domestic companies that mine and process critical minerals in an effort to reduce America’s reliance on imports, according to Interior Secretary Doug Burgum.

Speaking at a conference organized by the Hamm Institute for American Energy this week, Burgum said the Trump administration is exploring various investment strategies — including a sovereign wealth fund to strengthen the US supply of critical minerals such as rare earths.

China is the top global producer of 30 of the 50 minerals that the US Geological Survey considers to be critical. For rare earths, which comprises a group of 17 elements, it has a near monopoly over the global supply chain, accounting for over 60% of the mine production and nearly all of the processing. The US, meanwhile, has limited domestic production and imported about 80% of the rare earths it used last year, with most of those coming from China.

Amid heightened trade conflicts between the world’s two biggest economies, China has weaponized its critical minerals dominance by imposing export restrictions on seven rare earths, highlighting the urgency for US to developing its own sources.

“The US may need to make an equity investment in each of these companies that’s taking on China in critical minerals,” said Burgum, who previously served as the governor of North Dakota.

Commenting on the potential sovereign fund, Burgum said this strategy would guard companies that invest in approved projects against changing political winds in Washington.

“If a future president cancels a project through executive fiat, companies would be paid back from the fund,” Burgum said.

The comments, as first reported by CNBC, came as the Trump administration intensifies efforts to boost domestic mineral production. Last week, the White House identified 10 mining projects to be fast-tracked under the FAST-41 permitting initiative. These include projects covering copper, lithium and antimony in states such as Idaho, Arizona and Nevada.

“We have to get back in the game,” Burgum said. “It’s not just drill, baby, drill. It’s mine, baby, mine. If we don’t do that as a country, we will not be successful.”

On Wednesday, Burgum’s Interior Department announced that it will expedite the development of domestic energy resources and critical minerals. Under the new emergency permitting system, mine project approvals could be reduced from years down to just 28 days at most.

As part of its plan to boost domestic production of critical minerals, the Trump administration has also proposed to build metals refining facilities on Pentagon military bases as part of an executive order last month, Reuters previously reported.