The US International Development Finance Corporation (DFC) is negotiating with Orion Resource Partners to create a $5 billion fund to boost critical mineral supplies. This would be the most significant US government investment in mining, aiming to reduce reliance on China for minerals like copper, cobalt, and rare earths. The fund will support mining projects worldwide, including in Africa and the Democratic Republic of Congo, according to Bloomberg. Both parties would invest equally, similar to Orion’s recent deal with Abu Dhabi. This move aligns with US efforts under Trump and Biden to secure strategic mineral supply chains amid growing global demand and competition. They write:
The US is in talks to set up a $5 billion fund to invest in mining, in what would be the government’s most significant foray into dealmaking to boost supplies of critical minerals.
The US International Development Finance Corp. is in discussions to establish the fund as a joint venture with New York-based investment firm Orion Resource Partners, according to people familiar with the matter, who asked not to be identified because the talks are private. […]
Created towards the end of Trump’s first term, the DFC has already approved multiple investments in the mining industry, via credit, equity stakes and technical assistance grants. That includes a loan of $150 million to support Syrah Resources Ltd., which operates a graphite mine in Mozambique and has a deal to supply the battery material to Tesla Inc. […]
Trump picked Ben Black – the son of billionaire Apollo Global Management Inc. co-founder Leon Black – to lead the DFC in January, but the Senate is yet to approve the appointment. In his confirmation hearing three months ago, the younger Black told lawmakers that the federal agency “should never be crowding out private capital” and must have more exposure to New York City financial firms.
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