Trump Administration Branches Out in Search for Rare Earth & Critical Minerals

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Written by Paul Wiseman for Industrial Info Resources (Sugar Land, Texas)--Is President Donald Trump really looking to other nations for rare earths and other critical minerals, or is he simply pressuring top supplier China to negotiate a trade deal? Either way, the administration has explored options across the globe, reaching beyond the well-publicized and oft-delayed agreement with Ukraine, the latter aimed at mining minerals in exchange for military assistance against the invading Russian army.

Nations with some level of interest by the U.S. include the Democratic Republic of the Congo (DRC), Burundi and Russia. Also, Saudi Arabia is seeking a partner to develop its rare earths, and a U.S. company is among those in the running for that. Here is a by-country breakdown of the huge challenges in DRC and Burundi, with a future story to tackle Saudi Arabia and Russia.

DRC: In March, DRC's embattled government approached the Trump administration with an option for the U.S. to develop the DRC's significant mineral deposits in return for military assistance against rebel group M23. This complex and multifaceted group is led by members of Rwanda's Tutsi tribe, and Rwanda has been accused of funding the fighting and stealing the DRC's minerals.

Deposits in the DRC include vast stores of cobalt (of which it is the world's dominant producer), copper, and lithium--along with coltan, tantalum, diamonds and tin. Other than diamonds, most are on the U.S. list of critical minerals.

IIR is tracking U.S.$6.7 billion worth of active capital mining and smelting projects in the DRC. These projects include copper and lithium. Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals and Minerals Project Database can click here for the project reports.

On April 17, Reuters reported that Trump associate and paramilitary firm Blackwater founder Erik Prince had agreed to help the DRC "secure and tax its vast mineral wealth." The initial focus would be on a mine near Goma, the capital of North Kivu province, but that area is now under M23 control.

In fact, say experts, most of the richest mines are currently controlled by M23, making any U.S. benefits contingent first on helping DRC government forces recapture such areas--a result that is far from certain without significant U.S. involvement. The nation has basically been in military turmoil since the ouster of U.S. protégé Joseph-Désiré Mobutu in 1993.

A move toward the DRC could also be a pushback on China, which has increasingly dominated minerals extraction there over the last 20 years. A mine in Kisanfu, which has become a significant copper and cobalt producer under Chinese ownership, was previously owned by U.S-based Freeport-McMoRan Incorporated (NYSE:FCX) (Phoenix, Arizona) until its sale to Chinese mining firm CMOC in 2020 in order to pay down debt. According to the Foreign Policy Research institute (FPRI), 60% of Chinese cobalt consumption originates from Congolese mines."

Burundi: Bordering DRC, Rwanda and Uganda, Burundi has also been in Tutsi-Hutu-related conflict since 1993. Mineral deposits include uranium, tin, platinum, tantalum, cobalt, neodymium, gadolinium, bastnäsite and monazite, among others--but its mining industry only began in 2017, with its Gakara mine, which is still its main source of production. That means further development will be lengthy and expensive. In 2021, the mine produced 200 tons of these elements, less than 0.1% of world output.

Like neighboring DRC, military strife, also involving M23, has hampered development and could be a motivating factor in getting the U.S. involved. It houses thousands of DRC refugees and could be concerned about further M23 violence crossing its border.

China is also active in Burundi, creating new trade initiatives aimed at boosting its influence. But Burundi President Évariste Ndayishimiye has pushed back on perceived unfair trade practices by international miners. He halted foreign mining operations there in 2021, denouncing unfair profit-sharing arrangements. That included the Gakara mine, which had been operated by U.K.'s Rainbow Rare Earths (RRE) (St. Peter Port, Guernsey) under a 25-year contract.

All mining operations there now are operated exclusively by Comptoirs miniers des exploitations minieres du Burundi (COMEBU), Burundi's national mining company. The COMEBU monopoly, which was created by a failure to live up to contractual obligations on the part of the Burundi government, could cause any potential foreign investors, in the U.S. or elsewhere, to think twice before putting money into rare earths there.

Industrial Info is tracking three mining projects in Burundi, all of which involve rare earths. All are owned by Rainbow Rare Earths. Subscribers can click here for the project reports and click here for the plant profiles.

As yet, there have been no official announcements of any U.S.-Burundi collaboration, but many experts in the field see it as an area of interest, especially considering Burundi's national security interests and its proximity to the DRC, where preliminary outreach has been made.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).