U.S. President Donald Trump is planning to establish metals refining facilities on military bases managed by the Pentagon as part of his strategy to enhance domestic production of essential minerals and reduce reliance on China‘s dominance in this sector, according to two senior officials from his administration who spoke to Reuters.
This initiative is among several actions that Trump may include in an executive order he could sign as early as Wednesday, following his announcement to Congress last week about his intention to “take historic action to dramatically expand production of critical minerals and rare earths here in the USA.”
The proposed order would involve collaboration between the Pentagon and other federal agencies to set up processing facilities on military installations, as indicated by the sources, who requested anonymity due to the sensitive nature of the discussions.
Utilizing military bases for mineral processing highlights the significance Trump places on critical minerals for national security, as U.S. military equipment, including fighter jets and submarines, relies on minerals that are currently processed in China. Additionally, Trump intends to appoint a critical minerals czar, mirroring actions taken by previous administrations to streamline focus on various strategic areas, according to one of the sources. These plans are still under consideration and may evolve before the order is finalized.
Some officials within the Trump administration expressed concern over early indications that China might limit exports of critical minerals in response to Trump’s tariffs or other factors, as noted by an individual familiar with their concerns. The U.S. National Security Council has not provided comments on the matter.
With the Pentagon overseeing approximately 30 million acres of land, this plan would secure the necessary space for refining facilities, thereby mitigating potential disputes with local communities and eliminating the need to acquire land from other federal agencies.
A strategy that emphasizes metals processing instead of a comprehensive reform of U.S. mining permits may frustrate domestic miners, yet it could alleviate a persistent issue for manufacturers concerned about China’s dominance in the global metals processing industry. For instance, China is a leading global producer of 30 out of the 50 minerals deemed critical by the U.S. Geological Survey.
The feasibility of Trump’s proposal for processing facilities on military bases raises regulatory questions, as the U.S. Clean Air Act and Clean Water Act would still be applicable, complicating private sector development of processing initiatives in the past.
Trump has previously indicated a readiness to explore alternative uses for federal lands. During his presidential campaign, he committed to making certain federal lands available for extensive housing projects, proposing zones characterized by “ultra-low tax and ultra-low regulation.”
According to sources, Trump does not intend to create a U.S. critical minerals stockpile akin to the Strategic Petroleum Reserve, a measure that some officials and members of the mining sector had advocated. China maintains stockpiles of certain critical minerals, such as cobalt, and last year, the U.S. government contemplated stockpiling this metal, which is essential for missiles, aerospace components, and communication and guidance systems.
Trump does not intend to mandate that the Pentagon or other U.S. agencies require suppliers to utilize only American minerals, a policy commonly referred to as a “Buy American” initiative. This approach has been particularly advocated by junior miners who argue it is essential to counteract China’s market influence. Additionally, the order will not seek to modify the federal mine permitting process established by the 1970 National Environmental Policy Act, as such changes would necessitate congressional approval. However, it aims to enhance the FAST-41 permitting process for mining operations, building on a measure Trump initiated during his first term, according to sources.
The Hermosa zinc-manganese project in Arizona, developed by South32, was expedited under former President Joe Biden, marking the first mine to benefit from this accelerated process. The order also intends to reclassify mine waste on federal land, following the lead of companies like Rio Tinto and Freeport-McMoRan, which have sought to utilize previously deemed worthless piles of old waste rock at U.S. mines. This reclassification could facilitate the extraction of copper and other minerals more efficiently and cost-effectively than constructing new mines. It remains uncertain whether Trump will designate copper as a strategic mineral, a move that would enable U.S. copper producers to access a 10% production tax credit. Freeport, the largest copper miner in the U.S., expressed hope that Trump will pursue this designation, which could result in annual savings of $500 million.
Discover more from Defence Talks | Defense News Hub, Military Updates, Security Insights
Subscribe to get the latest posts sent to your email.
