Washington is eying the possible creation of an American sovereign wealth fund (SWF) to compete with China’s state-controlled extractive industries by directly investing in miners, both domestic and foreign, as the administration scrambles to collect new critical minerals allies.
The plan, revealed Thursday by Interior Secretary Doug Burgum, who is advising the campaign on energy and national security, would mark a dramatic shift in how Washington supports resource development. “We should be buying equity in these companies,” Burgum told CNBC on Thursday, citing strategic concerns over China’s grip on the global critical minerals supply chain.
“We should be taking some of our balance sheet and making investments. The U.S. may need to make an “equity investment in each of these companies that’s taking on China in critical minerals,” CNBC cited Burgum as telling a Hamm Institute for American Energy conference this week.
An American SWF would be similar to those found in Saudi Arabia and Norway, where they hold significant stakes in mining and energy assets worldwide. Trump allies argue that public investment could catalyze U.S. supply chain security, particularly in sectors key to clean energy and defense.
The Trump administration advances a broader slate of pro-mining measures, including plans to fast-track permitting for 10 U.S. mining projects under the FAST-41 initiative and proposals to build metal refining infrastructure on military bases, Mining.com reported.
While supporters argue these moves are long overdue, environmental groups and tribal leaders warn of ecological and legal backlash, particularly surrounding controversial projects like Resolution Copper in Arizona.
If implemented, the sovereign fund would signal a significant escalation in the U.S. critical minerals strategy—shifting from regulatory support to direct state-backed capital deployment. The implications for miners, markets, and geopolitics could be far-reaching.
The concept of a U.S. SWF has gained momentum as a tool to enhance national economic resilience and strategic investments. While the U.S. is not traditionally associated with SWFs, its substantial asset holdings in the neighborhood of $5.7 trillion provide solid footing for a fund, which could help generate fiscal revenue and direct investments into key sectors like energy, mining, and manufacturing.
By Charles Kennedy for Oilprice.com
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