US to Take 10% Trilogy Metals Stake to Tap Alaska Mining

Watch US to Take 10% Trilogy Metals Stake to Tap Alaska Mining - Bloomberg on Dailymotion

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00:00The White House taking a 10% stake in Tritogy Metal, securing energy and mining projects in Alaska.

00:06With the latest, here's Bloomberg's Tyler Kendall. Hi, Tyler.

00:10Yeah, hey, John. So this company has these mining claims in a remote area of Alaska.

00:14And importantly, the deal comes in tangent with President Trump reversing a Biden-era decision

00:19which blocked something known as the Ambler Road Project.

00:23This is a controversial project that would build an access road to this mineral-rich mining district in Alaska.

00:29And as part of the deal, the Trump administration is going to invest $35 million for Trilogy to conduct exploration in this area

00:37in exchange for a 10% stake in the company.

00:40Now, the White House says that this is a bid to try to loosen China's grip on the critical mineral supply chain.

00:46And if we look at the data from last year, China was responsible for about 70% of global output when it came to rare earths.

00:53But this really does continue a more hands-on approach when it comes to industrial policy.

00:57Just look at the deals made so far this year by the Trump administration.

01:01A 15% stake in MP materials, a 10% stake in Intel, a 5% stake in lithium.

01:06America's announced last week, not to mention the so-called golden share when it came to the Nippon acquisition.

01:11Plus, that agreement where NVIDIA and AMD were going to give the U.S. government part of its China chip sales.

01:17Now, the White House says the common theme here is that this all has to do with national security interest,

01:23even as critics say that this could hurt competition and give an unfair advantage.

01:28John, importantly here, Trilogy is a Vancouver-based company.

01:32The Canadian Prime Minister, Mark Carney, is set to visit the White House for his second Oval Office meeting today.

01:37And no doubt this is going to be on the agenda.