Trump summoned 100 mining executives to hold a round table on Friday. The US stock mining sector may welcome favorable policies

The Zhitong Finance App learned that on August 7, EST, US President Trump will convene more than 100 global mining company executives at the US State Department to hold a roundtable on key minerals. Global mining giants such as Rio Tinto (RIO.US), BHP Billiton (BHP.US), and Freeport McMoran (FCX.US) are all listed. According to reports, the core agenda of this summit is to “guarantee the supply of critical minerals to the US and its allies” to fill the US military's weapons stocks that have been rapidly depleted during the five-month war against Iran.

Trump will be attending with Home Secretary Doug Bergham, head of the National Energy Leadership Council, Executive Director Jarrod Agen, and White House adviser David Copley. Companies from MP Materials (MP.US), American Rare Earths (USAR.US), Energy Fuels (UUUU.US), American Antimony (UAMY.US), Sunrise Energy Metals (SREMF.US), and The Metals Company (TMC.US) may also attend the conference.

The high-level meeting, which has been in preparation for several weeks, aims to showcase the White House's achievements in promoting the development and processing of key minerals, and plans to announce a number of deals and memorandums of understanding. Against the backdrop of the five-month war between the US and Iran, which has greatly consumed the US military's stocks of precision-guided missiles and anti-aircraft interceptor ammunition, the US is reconstructing the supply chain of key minerals with an unprecedented sense of urgency.

The US-Iran war revealed a “fatal injury” in the supply chain: ammunition ran out, minerals couldn't keep up

The urgency of this summit stems from the real plight of the US military on the Middle East battlefield. In the war against Iran, which lasted more than five months, the US military consumed a large amount of precision-guided missiles and anti-aircraft interceptor bombs. US defense officials and lawmakers have warned that due to current production capacity restrictions, it may take several years to replenish some of the inventory.

Minerals such as rare earths, tungsten, germanium, and scandium are “essential” for manufacturing precision-guided missiles, fighter jets, armored vehicles, infrared sensors, and other advanced weapon systems. However, the supply chain for these critical materials is highly dependent on China — around 90% of the world's rare earth processing capacity is concentrated in China. After China imposed export controls on rare earths and permanent magnets last year, various US industries such as automobiles, wind power, and defense were directly impacted.

White House's “combo punch”: From executive orders to 10 billion subsidies, building a closed loop of “mine to magnet”

Friday's summit is the culmination of the Trump administration's key mining strategy, which has already delivered an intensive “combo punch”:

January: Trump signs an executive order authorizing the Department of Commerce to negotiate with trade representatives to adjust imports of processed key minerals and derivatives. The Trump administration took a 10% stake in the US Rare Earth Company as part of a $1.6 billion deal. In the same period, the government also invested 150 million US dollars in ATALCO to create the only gallium producer in the US.

February: Trump announced the establishment of a $12 billion “Project Vault” (Project Vault) to store critical minerals such as lithium, nickel, and rare earths. The plan is seen as a core tool to reduce China's dependence on rare earths.

July 20: An executive order was signed requiring the US defense industry to stop purchasing critical materials such as rare earth magnets, tungsten, molybdenum, and tantalum from China, Russia, Iran, or North Korea from January 1, 2027.

July 30: An order was signed authorizing federal officials to block the export of used batteries and electronic waste containing critical minerals and to direct tungsten and “black powder” (crushed lithium-ion battery waste) to domestic recyclers.

The scale of the policy endorsement: The US has launched a multi-billion dollar critical minerals program, committing about $10 billion to build a complete supply chain “from mine to magnet.” The Ministry of the Interior has implemented an emergency NEPA procedure, and critical mineral projects can be approved within 28 days. This fiscal year, investment in critical infrastructure and defense industries has been accelerated by nearly 4.5 billion US dollars. MP Materials has obtained about 15% of the shares of the Ministry of Defense and signed a 10-year minimum price guarantee supply agreement.

Furthermore, the US government has signed a rare earth framework agreement with Japan, reached memorandums of understanding with 11 countries on the supply of key minerals, and began cooperative negotiations with Brazil and other countries.

US Stock Mining Sector: Diversification Under Policy Dividends

Stimulated by news of the summit, key mining sectors of US stocks have been active recently. MP Materials (MP.US) was acquired by the Department of Defense and promoted a $1.25 billion rare earth magnet production base in Texas. The United States Rare Earth Company (USAR.US) was also included in China's export control list, highlighting its strategic position.

However, policy dividends are not without risk. According to S&P Global Market Intelligence data, US mining companies' short positions have risen this year, involving US Antimony (UAMY.US), American Resources (AREC.US), and MP Materials. The lawsuit between MP Materials and USA Rare Earth over technology theft also highlights competition within the industry.

An important topic of this conference was Arizona's Resolution Copper Project. The project is a joint venture between Rio Tinto and BHP Billiton. It is one of the largest potential sources of additional copper supply in the US and a core project of the government's key minerals strategy. The project's general manager, Vicky Pearcey, said US government aid has helped the project to make “substantial progress” and the joint venture has now awarded major contracts for drilling and underground development.

Friday's summit marked a formal shift in America's key mineral strategy game from the policy formulation stage to the implementation stage. However, it usually takes 5 to 10 years from mine exploration to mass production of magnetic materials. There is a gap that is difficult to overcome in the short term between the urgent need to replenish US military ammunition stocks and the long construction cycle of the local mineral supply chain. This divide is the core proposition that 100 mining executives and White House officials need to face together at Friday's summit.