Swiss miner and commodities trader Glencore (LSE: GLEN) will help build a U.S. critical minerals reserve after receiving a $500 million commitment from the Export-Import Bank of the United States (EXIM).
Through VaultCo, the public-private partnership between the global miner and the U.S. government agency, Glencore will source, procure and deliver critical minerals and base metals for the U.S. industry, the company said Wednesday. The arrangement pairs EXIM’s financing with the miner and trader’s global supply network.
“Mineral security is national security,” VaultCo executive chair Brett B. Lambert said in a release. The reserve is intended to give manufacturers access to materials when supply chains are disrupted.
Jyothish George, Glencore’s head of marketing for metals and bulks, added the company’s role draws on its experience connecting producers with industrial customers worldwide.
Existing initiative
VaultCo was established to carry out Project Vault, which EXIM announced in February as an independently governed public-private partnership. The bank approved a direct loan of up to $10 billion for the broader initiative, with plans to store raw materials at facilities across the US.
Glencore’s participation adds another major supplier to an initiative already involving traders Hartree Partners, Mercuria Americas and Traxys. EXIM says the reserve is designed to help domestic manufacturers withstand shortages while supporting U.S. production and processing.
Shares in Glencore were about flat at £5.45 apiece during late afternoon Wednesday trading in London. The company has a market capitalization of £64.1 billion (US$85 billion).
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