On the Dash:
- The U.S. DFC and Orion Resource Partners will jointly establish a $5 billion fund to secure critical minerals such as copper, cobalt, and rare earths.
- The fund reflects growing U.S. concern over reliance on China for mineral supplies and potential long-term global shortages.
- The DFC plans to expand its role in strategic investments, potentially doubling its capacity and taking on riskier projects under Trump’s second-term plans.
The United States is negotiating to create a $5 billion fund to invest in mining, which would mark the government’s largest direct involvement in critical mineral deals. The proposed fund would form a joint venture between the U.S. International Development Finance Corp. (DFC) and New York investment firm Orion Resource Partners, according to sources familiar with the matter.
Sources said the two parties would each contribute equal amounts to reach a combined total of $5 billion over time, sources familiar with the talks said. Key terms remain under negotiation, and officials have not guaranteed a deal. The fund would mirror Orion’s $1.2 billion partnership earlier this year with Abu Dhabi’s sovereign wealth fund ADQ.
The fund aims to expand U.S. access to copper, cobalt, and rare earths amid growing concerns over supply from China and long-term shortages caused by declining ore grades, limited investment, and slow permitting processes. President Donald Trump has previously touted mineral deals in Ukraine and Greenland, while the White House is encouraging investment in Congo’s mining sector.
The DFC has already invested in mining projects, including a $150 million loan to Syrah Resources Ltd., which supplies battery-grade graphite to Tesla Inc. Under the Biden administration, the agency put over $550 million into upgrading Angola’s Lobito Corridor railway, which carries copper-belt minerals to a port on the Atlantic.
Additionally, Orion Resource Partners, which manages roughly $8 billion in assets, is pursuing deals in Congo, the world’s top cobalt producer and second-largest copper source. The firm is teaming with Virtus Minerals to bid for Chemaf Resources Ltd., a mine previously targeted by a Chinese state-owned company before Congo withheld approvals.
U.S. officials are signaling intent to compete with China for strategic minerals. The Department of Defense launched its first cobalt stockpile tender since the Cold War and invested $400 million in U.S. rare-earth producer MP Materials, pairing the investment with a guaranteed floor-price supply agreement.
Trump’s administration views the DFC as a key tool for foreign and economic policy. Plans under a potential second term could double or triple the agency’s investment capacity, allow riskier projects, and increase collaboration with private-sector partners. Ben Black, Trump’s pick to lead the DFC, has not been confirmed by the Senate. In his confirmation hearing, he emphasized that the agency should work closely with private capital and New York financial firms.
The proposed fund with Orion represents a major step toward securing minerals critical to technology, defense, and renewable energy industries.
