US President Donald Trump’s department of war (DOW) has bought a $17.8m stake in South32’s Alaskan joint venture partner, Trilogy Metals.
The deal, aimed at advancing access to critical minerals in Alaska, underscores Trump’s ongoing efforts to secure the country’s domestic production of minerals deemed critical to the clean energy transition and US national security.
Welcoming the agreement on Tuesday, the Australian mining giant said all of the $17.8m sale proceeds would be reinvested into Ambler Metals, an early-stage exploration project with known copper, zinc and silver deposits, to support exploration and development.
“We see great value in the US government’s intention to develop the Ambler Mining District,” said South32 CEO Graham Kerr.
“It is our aim to unlock the potential we see in this region, secure critical mineral supply chains for the US and create enduring economic activity and shared value for Alaska, particularly for communities in the surrounding region.”
Biden blocked road to Ambler project
Former US president Joe Biden had previously blocked the construction of an access road to the Ambler project on the grounds that it threatened the sustainability of caribou and fish populations that local communities relied on for subsistence.
Trump’s second term in office, including the sweeping tariffs imposed on US trading partners this year, has fuelled a global shift towards protectionist foreign policy, accelerating the race for critical minerals.
The drive for greater trade independence has seen the White House dishing out funds to secure more supplies of lithium and rare earth minerals in particular, including buying a direct stake in American Lithium Corp last week and in MP Materials Corp, a local rare earth outfit, earlier this year.
Details of the transaction
Trilogy Metals is South32’s 50% partner in the Ambler Metals joint venture. Under the terms of the deal, South32 will sell 8,215,570 Trilogy shares to the DOW.
Added to this is a 10-year call option allowing the DOW to acquire another 6,161,678 shares for 1c (US) each following the construction of an access road at Ambler.
Reuters reported that overall, the White House invested $35.6m in Trilogy Metals, making the US government a 10% shareholder in the company, with room to purchase an additional 7.5% stake.
The department of war, previously the department of defence, was renamed as part of Trump’s 200th executive order since assuming office.
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