Trump eyes sovereign wealth fund to back US mining

Washington is eying the possible creation of an American sovereign wealth fund (SWF). This is to compete with China’s state-controlled extractive industries by directly investing in miners. With that, both domestic and foreign as the administration scrambles to collect new critical minerals allies. Learn more why Trump eyes sovereign wealth fund.

The plan, revealed Thursday by Interior Secretary Doug Burgum, who is advising the campaign on energy and national security. It would mark a dramatic shift in how Washington supports resource development. “We should be buying equity in these companies,” Burgum told CNBC on Thursday, citing strategic concerns over China’s grip on the global critical minerals supply chain.

“We should be taking some of our balance sheet and making investments. The U.S. may need to make an “equity investment in each of these companies that’s taking on China in critical minerals,” CNBC cited Burgum as telling a Hamm Institute for American Energy conference this week.

An American SWF would be similar to those found in Saudi Arabia and Norway. It is where they hold significant stakes in mining and energy assets worldwide. Trump allies argue that public investment could catalyze U.S. supply chain security. This is particularly in sectors key to clean energy and defense.

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Source: Oil Price

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