America sits atop an abundance of natural resources, yet our once-robust mining sector has withered. Today, only two of the world’s 25 largest mining companies are headquartered in the United States, and just one is led by an American CEO. Meanwhile, China has surged ahead, leveraging state-backed investment and aggressive diplomacy to increase its influence over the global mining business. This is not just an economic issue — it’s a national security issue.
Access to the world’s mineral wealth will influence America’s ability to advance technologically, militarily, and economically. If we become dependent on Beijing’s mineral supply chains, we are handing China leverage over our future.
President Donald Trump understands the stakes. His administration has taken the first steps to counter China’s aggressive push into the global mining business, recently floating security-backed mineral deals with Ukraine and the Democratic Republic of Congo. But securing mining rights is only a starting point. To compete with China, America must execute. That means not only securing legal access to resources but also becoming the partner of choice for resource-rich nations and global mining companies.
China’s influence over the mining sector has grown rapidly over the past two decades. Its global buying spree began in 2007 with the $789 million acquisition of the Toromocho mine in Peru. Its initial approach was straightforward: Provide funding to state-owned mining companies, acquire proven mineral reserves, develop the assets, and ship the minerals directly to China rather than selling them on international markets.
This strategy yielded mixed results. While China amassed significant mineral resources, it struggled with the technical and social challenges of its projects. The Toromocho mine did not go into production until December 2013 and faced environmental problems, local opposition, strikes, and blockades. The story repeated itself at Las Bambas, an even larger Peruvian copper mine China acquired in 2014 for $5.85 billion.
But China adapted. By 2015, it pivoted to partnerships, forming a joint venture with Ivanhoe Mines in the Democratic Republic of Congo to develop Kamoa-Kakula, the world’s third-largest copper mine, which produced 437,000 metric tons of copper last year. This success encouraged China to forge additional joint ventures with the world’s largest mining firms.
China’s strategy has been so effective because it offers host countries and global mining companies a compelling value proposition. To host governments, China provides infrastructure investments and loans that extend beyond a single mine. To mining companies, it supplies capital, iron-clad deals with host nations, and the promise of future investments.
The results speak for themselves. Since 2007, Chinese mining companies have invested $57 billion in overseas mines. Just last year, a Chinese state-owned company approved a $15 billion investment in partnership with Rio Tinto in the West African country of Guinea. And in February, a subsidiary of China Minmetals bought the entirety of Anglo American’s nickel business in Brazil.
By contrast, America’s presence in global mining is anemic. Despite executive orders and the creation of the Minerals Security Partnership in 2022, American companies remain largely absent from the global mining business. America’s domestic mining firms simply lack the heft necessary to compete in this business with China on a global scale.
However, America still has significant advantages. Our capital markets are the largest and most sophisticated in the world. With the right incentives and some capital from the federal government, American financiers are more than capable of analyzing and investing in mines around the world. Additionally, our unmatched military footprint allows us to provide security to companies operating under the American umbrella. But these advantages will mean little if Trump is not successful in prodding America’s private sector into action.
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The U.S. cannot afford another false start. Signing mineral deals without developing them is a losing strategy. Nor can we wait for our domestic mining sector to grow organically over the next decade while China continues consolidating its grip on the global mining sector. The only viable path forward is for the U.S. government and American financiers to work with the largest mining houses to offer host countries a credible alternative to China.
Encouragingly, there is a palpable demand for an American push into the global mining business. Officials in resource-rich nations are openly acknowledging the risks of overreliance on Beijing and signaling a desire to diversify. Earlier this year, the Democratic Republic of Congo’s mining ministry emphasized the danger of allowing a single nation to dominate its mineral sector and expressed interest in broadening partnerships. If the U.S. is going to compete, this is an invitation we cannot pass up.
Sean Fieler is the chief investment officer of Equinox Partners. Follow on X: @SeanFieler