US in talks to establish $5B critical minerals fund: report

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The US International Development Finance Corp (DFC) is in talks with New York-based Orion Resource Partners to establish a fund of up to $5 billion for investments in critical minerals, Bloomberg reported.

According to people familiar with the matter, who asked not to be identified because the discussions are private, the proposed venture would involve both parties contributing equal amounts of capital.

Key details are still being negotiated, and there is no certainty that an agreement will be reached.

The initiative comes as the US seeks to secure supplies of minerals such as copper, cobalt, and rare earths amid concerns about China’s dominant role in processing and forecasted shortages due to insufficient investment, declining grades, and long permitting timelines.

If finalized, the joint venture would represent a new mechanism for the US government to participate directly in large-scale mining projects.

Orion manages about $8 billion in assets and specializes in private equity, private credit, venture capital, and commodity trading in the mining sector.

A representative for Orion declined to comment. A DFC official also declined to comment on potential projects but said the agency is pursuing collaboration with private sector partners and host governments in eligible countries.

The DFC, created toward the end of President Donald Trump’s first term, has already approved several mining-related investments, including a $150 million loan to Syrah Resources for a graphite mine in Mozambique.

Under President Joe Biden, it has committed more than $550 million for railway upgrades along the Lobito Corridor, which links central Africa’s copper belt to Angola’s Atlantic port.

If the DFC were to commit $2.5 billion to the proposed venture, it would mark the largest single investment in the agency’s history, according to government data.