According to two senior administration officials who spoke with Reuters, U.S. President Donald Trump is planning to establish metals refining facilities on Pentagon military bases to enhance domestic production of critical minerals and counter China’s dominance in the sector. This initiative is part of an executive order that Trump may sign soon after promising Congress to take significant action to expand critical minerals and rare earths production in the United States. The Pentagon, in collaboration with other federal agencies, would set up processing facilities on its bases to emphasize the importance of critical minerals for national security, which are essential components in various military equipment. Additionally, Trump intends to appoint a critical minerals czar to coordinate efforts in this area. Initial concerns were raised by some administration officials about potential restrictions on critical minerals exports from China in response to tariffs imposed by the U.S. or other reasons. The plan to utilize Pentagon lands for processing facilities aims to secure available land without controversies in local communities or the need to purchase land from other federal departments. While this strategy may not align with the preferences of U.S. miners, it addresses concerns about China’s dominance in global metals processing. Trump’s plan does not include establishing a critical minerals stockpile akin to the Strategic Petroleum Reserve or mandating the use of U.S. minerals by vendors. The regulatory implications of setting up processing facilities on Pentagon bases, subject to the U.S. Clean Air Act and Clean Water Act, remain unclear. Trump’s past interest in repurposing federal lands for different purposes, such as housing construction, reflects his openness to alternative land uses.
Experts have emphasized the need to counteract China’s market manipulations, which the proposed order does not intend to address. The federal mine permitting process, established by the 1970 National Environmental Policy Act, will not be altered as it would require congressional approval. Instead, the order aims to expand the FAST-41 permitting process for mines, building upon a previous action taken during Trump’s administration. Former President Joe Biden expedited South32’s Hermosa zinc-manganese project in Arizona, making it the first mine to receive this treatment. Additionally, the order seeks to reclassify mine waste on federal land, following the example of companies like Rio Tinto and Freeport-McMoRan, who have reaped valuable resources from previously deemed worthless waste rock. This reclassification could streamline the production of copper and other minerals, potentially making it more cost-effective and efficient than developing new mines. The possibility of declaring copper a strategic mineral, which would grant U.S. copper miners a 10% production tax credit, remains uncertain. Freeport, the largest U.S. copper miner based in Phoenix, is hopeful that such a designation will be made by Trump, estimating an annual saving of $500 million.
