Critical Minerals and Energy Intelligence. Stay Ahead.

80% of US financial support to mining industry is for new mine development

Subscribe for Investment Insights. Stay Ahead.

Investment market and industry insights delivered to you in real-time.

First Name:* First Name Required

Last Name:* Last Name Required

Address Line 1:* Address Line 1 is Required

Address Line 2: Address Line 2 is not valid

City:* City is Required

Country:* Country is Required

State/Province:* State/Province is Required

Zip/Postal Code:* Zip/Postal Code is Required

Username:* Invalid Username

Email:* Invalid Email

Password:* Invalid Password

Password Confirmation:* Password Confirmation Doesn't Match

I agree to the Terms & Conditions and Privacy Policy of The Oregon Group* and and agree to receive newsletters.

No val Please fix the errors above

Since 2021 to Q1 2024, the US government has made US$4.9 billion in commitments to the mining industry, with a particular on critical minerals supply, with more than 80% of the funding focused on new mine developments, according to a new report by the Payne Institute.

US government financial support focuses on new mine development - The Oregon Group - Critical Minerals and Energy Intelligence

15 bills passed or introduced in US Congress in the last four years have included or have been dedicated to promoting domestic critical mineral mining in some form — as part of a growing awareness on the need to secure critical mineral supply.

The majority of the funds are allocated from legislation including the IIJA, the Energy Act of 2020 and the Inflation Reduction Act, from:

83% from the Department of Energy
17% from the Department of Defense

And the different forms of financial support include:

loans (US$2.2B, 47%)
grants/awards (US$1.8B, 37%)
tax credits (US$0.8B, 16%)

The report notes that other forms of support are also being considered to “derisk, or make less volatile, critical mineral pricing” and encourage more private investment in both production and processing. This includes:

government stockpiling (eg similar to SPR)
price and demand support for producers (eg contracts for differences, options, offtake as last resort, etc)
bolstering commodities markets (eg loan guarantees)

The commitments and moves highlight a growing awareness and strategy in the US, that the current course of action threatens disaster:

America’s current critical mineral strategy threatens disaster

Subscribe for Investment Insights. Stay Ahead.

Investment market and industry insights delivered to you in real-time.

First Name:* First Name Required

Last Name:* Last Name Required

Address Line 1:* Address Line 1 is Required

Address Line 2: Address Line 2 is not valid

City:* City is Required

Country:* Country is Required

State/Province:* State/Province is Required

Zip/Postal Code:* Zip/Postal Code is Required

Username:* Invalid Username

Email:* Invalid Email

Password:* Invalid Password

Password Confirmation:* Password Confirmation Doesn't Match

I agree to the Terms & Conditions and Privacy Policy of The Oregon Group* and and agree to receive newsletters.

No val Please fix the errors above

Disclaimer

The Oregon Group maintains full editorial control over all content published on this website. While sponsored and advertised placements may be featured, the content remains the sole opinion of The Oregon Group. The author may receive compensation or remuneration for providing content, but all statements and expressions are made independently and are not influenced by sponsors or advertisers. From time to time, The Oregon Group and its directors, officers, partners, employees, authors, or members of their families, as well as persons who are interviewed for articles on this website, may have a long or short position in securities or commodities mentioned and may make purchases and/or sales of those securities or commodities in the open market or otherwise. By accessing and using this website, readers are cautioned to assume that each of the foregoing persons may have a financial interest in all companies and sectors mentioned on this website. Any projections, market outlooks or estimates herein are forward looking statements and are inherently unreliable., and any such statements are based upon certain assumptions and should not be construed to be indicative of the actual events that will occur. Other events that were not taken into account may occur and may significantly affect the returns or performance of the securities or commodities discussed herein. The information provided herein is based on matters as they exist as of the date of preparation and not as of any future date, and The Oregon Group undertakes no obligation to correct, update or revise the information in this document or to otherwise provide any additional material. The information provided on this website is for informational purposes only and is not, directly or indirectly, an offer, solicitation of an offer and/or a recommendation to buy or sell any security or commodity, and the information provided on this website should not be construed as any advice or an opinion as to the price at which the securities of any company or commodity may trade at any time. The Oregon Group is a publisher of financial information, not an investment advisor. We do not provide personalized or individualized investment advice or information that is tailored to the needs of any particular recipient, and the information provided on this website is not and should not be construed as personal, financial, investment or professional advice. Readers are cautioned to always do their own research and review of publicly available information and to consult their professional and registered advisors before purchasing or selling any securities or commodities and should not rely on the information contained herein. Neither The Oregon Group nor any of its affiliates accepts any liability whatsoever for any direct or consequential loss howsoever arising, directly or indirectly, from any use of the information contained herein. By using the Site or any affiliated social media account, you are indicating your consent and agreement to this disclaimer and our terms of use. Unauthorized reproduction of this newsletter or its contents by photocopy, facsimile or any other means is illegal and punishable by law.