Washington needs to move faster on critical minerals projects to challenge China’s control of key resources, three U.S. mining and refining executives warned Thursday.
The push underscores how Washington’s support for the sector — including taking stakes in mining companies and guaranteeing a price floor for the only U.S. rare earths mine — is falling short of what industry leaders say is needed amid Chinese competition.
Executives from Perpetua Resources, American Rare Earths and Westwin Elements told the Reuters NEXT conference that the U.S. government should release a comprehensive minerals plan, pressure Indonesia to trim nickel production, and speed approval times for U.S. Export-Import Bank loans.
KaLeigh Long, CEO of Westwin, which is building the only U.S. nickel refinery, is asking the Trump administration to pressure Indonesia to limit its nickel output, which has surged to roughly 60% of global supply and dragged down nickel prices nearly 50%.
That has posed a challenge for Westwin as it aims to secure financing to refine 34,000 metric tons of nickel per year in Oklahoma by 2030.
“In terms of nickel, let’s get a quota on Indonesian production,” Long said. “You do that, and you will see a cure in the nickel price.”
Long said a price floor for nickel would be impractical given the size of the market and pushed for limits on Indonesia’s output instead.
“A price floor is kind of a waste of our energy right now,” she said.
Rare earths, though, are a much smaller market and price supports are key until there is more transparent pricing, said Sanderson, a former U.S. diplomat and executive at copper miner Freeport-McMoRan.
The London Metal Exchange trades nickel but not rare earths, a market China also dominates.
“It would be helpful if LME were to develop a pricing mechanism for rare earths, but the question becomes, ‘Would China actually honor it?'” Sanderson said.
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Mckinsey Lyon of Perpetua said Washington’s recent moves reflect a “frantic scramble” across agencies with conflicting priorities.
“What’s not happening right now is a comprehensive strategy or road map,” said Lyon.
Both Perpetua and Westwin have applied for Export-Import Bank funding.
“ExIm debt could allow us to execute on our expansion, but the underwriting needs to speed up,” Long said.
(With inputs from Reuters)
