The Pentagon is investing in a mining project in Alaska, securing a 10 percent share in Trilogy Metals. At the same time, the U.S. government has authorized the approval of a planned access road to the remote mining area.
Making supply chains for critical minerals less dependent on China is a key priority for the current U.S. administration. In addition to accelerated permitting and research initiatives, funding and increasingly direct investments in companies are being used as tools to achieve this goal. In mid-July, the U.S. Department of Defense made headlines by taking a stake in the country’s leading rare earths company, MP Materials. In the following months, the U.S. government made additional investments in companies across the critical raw materials supply chain.
Now, another strategic investment has been announced: The mining companies Trilogy Metals, South32, and their joint venture Ambler Metals will receive nearly $36 million, again via the Pentagon as was the case with MP Materials. Ambler Metals owns the Upper Kobuk Mineral Projects, a series of deposits in northwest Alaska containing copper, cobalt, zinc, lead, gold, silver, among other minerals. The funds are intended to support the further development of these mining projects.
As part of the investment, the Pentagon will also acquire approximately a 10 percent stake in the Canadian company Trilogy Metals. In addition, the U.S. government has the right to purchase another 7.5 percent of the shares at a pre-set price at a later date.
Ambler Road Needed to Develop Remote Mining Area in Alaska
According to the announcement, the three companies and the U.S. government also plan to cooperate on the permitting, financing, and construction of the Ambler Road (officially the Ambler Access Project). The planned 340-kilometer road would provide access to the remote Upper Kobuk Mineral Projects and is essential for their development.
The White House also announced on Monday that President Donald Trump has directed his administration to issue the necessary permits for the project. Despite the anticipated economic benefits for the region, the road’s construction has been controversial, reports the Anchorage Daily News. Ambler Road had previously been approved during Trump’s first term but was later blocked by his successor, Joe Biden, due to environmental concerns (we reported).
U.S. Funding for Australian Rare Earth Project Announced Simultaneously
On Monday, the U.S. also announced additional plans to strengthen raw materials supply chains: The government-backed Export-Import Bank (EXIM) has offered the Australian mining company VHM Limited a non-binding financing package of up to $200 million. The funds are intended to support the further development of VHM’s Goschen rare earth and mineral sands project in the southeastern state of Victoria, Australia. However, China is also interested in this project: In February 2024, the Chinese rare earths company Shenghe Resources secured 60 percent of the annual production at Goschen (we reported).
Photo: Aleksander Tumko