US govt initiatives go a long way in supporting base metals production
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The United States has significant base metals production capacity which contributes to its domestic and global supply. Base metals, including copper, zinc, lead, nickel, and aluminum, are crucial for various industries, including construction, manufacturing, and infrastructure. Also, the US government is actively incentivising investment in base metals mining.
Copper production in the US plays a vital role in meeting demand for electrical wiring, electronics, and plumbing systems. The country has substantial copper reserves, estimated at around 44 million tonnes (mnt). US copper mine production amounts to approximately 1.3 mnt, supporting the domestic supply chain.
Additionally, the US refines about 1 mnt of copper further contributing to its production capacity. In 2022, 1.24 mnt of copper was produced by the US.
Zinc production is another essential component of the US' base metals industry even as the country is a net importer with 76% of global share. The country relies on both domestic production and imports to meet its requirements. While US reserves amount to approximately 7.3 mnt, the country's mine production stands at around 0.77 mnt of ore and concentrates and 0.22 mnt of refined zinc. In 2022, the US produced 0.76 mnt of zinc and imported a significant portion of its refined zinc, with major supplier markets being Canada, Mexico, Peru, and Spain.
Lead production in the US stood at 0.95 mnt in 2022 . The country possesses reserves of approximately 4.6 mnt of lead. US lead production amounts to around 0.28 mnt, supporting the domestic supply chain. Key supplier markets are Canada, Mexico, and South Korea.
Nickel and aluminum are also important base metals produced in the US. Nickel is used extensively in the production of stainless steel and other alloys. The US relies on imports to meet a significant portion of its nickel demand. Aluminum, on the other hand, is produced domestically in large quantities to support various industries such as automotive, aerospace, and packaging.
Overall, base metals production in the US plays a vital role in meeting domestic demand and supporting various industries, contributing to economic growth and infrastructure development.
Support for domestic, global projects
To support the expansion of American businesses, particularly in sectors of strategic importance to national security, the Export-Import Bank (EXIM) will provide its existing medium- and long-term loans, loan guarantees, and insurance services to facilitate export-oriented manufacturing projects within the country.
EXIM offers medium- and long-term financing options specifically designed for critical minerals projects involving US content abroad. These projects may qualify for more favourable financing terms compared to EXIM's standard financing options, along with potential exemptions from certain EXIM policies.
Mineral Security Partnership
The Minerals Security Partnership (MSP) is a collaborative initiative led by the State Department and comprise several countries including Australia, Canada, Finland, France, Germany, Italy, Japan, the Republic of Korea, Norway, Sweden, the United Kingdom, the US, and the European Union. The main objective of the MSP is to strengthen critical minerals supply chains.
In September 2022, the US hosted the MSP Ministerial Meeting, bringing together MSP partners and minerals-rich countries to address priorities, challenges, and opportunities related to responsible mining, processing, and recycling of critical minerals.
In February 2023, the MSP partners announced their support for principles that emphasise a shared commitment to high environmental, social, and governance (ESG) standards in critical minerals supply chains. The MSP aims to promote socially responsible projects that adhere to internationally recognised ESG standards.
