H.R. 4391: Minerals Security Partnership Authorization Act

This bill, known as the Minerals Security Partnership Authorization Act, focuses on enhancing the security and resilience of critical mineral supply chains through international cooperation. Here’s a summary of its main components:

Purpose

The bill aims to promote collaboration between the United States and its allies to ensure a stable supply of critical minerals. These minerals are essential for various sectors, including technology and national defense.

Key Policies

• Encourage partnerships with international allies to build secure supply chains for critical minerals.
• Support domestic production of critical minerals to meet national needs and fulfill export agreements with allied nations.
• Reduce dependency on critical minerals sourced from countries like China, Russia, and Iran.
• Enhance exploration and technology capabilities in friendly nations to prevent adversaries from accessing critical minerals.
• Implement market-based incentives to facilitate the establishment and maintenance of secure supply chains.
• Incorporate critical minerals security as a priority in U.S. foreign policy.

International Cooperation

The bill authorizes the President to negotiate agreements with international partners to form a coalition that will:

• Facilitate the mining, processing, and supply of critical minerals.
• Support advanced manufacturing processes reliant on these minerals.
• Improve collective access to critical mineral resources and investments.
• Promote joint projects and infrastructure development for critical mineral extraction.

Partnership Framework

The Secretary of State will lead U.S. involvement in the Minerals Security Partnership by:

• Identifying and promoting commercial investment in critical mineral projects.
• Coordinating regional diplomatic strategies and project priorities.
• Sharing information with other members of the partnership.
• Maintaining a database of critical mineral projects to encourage private sector investment.

Investment and Project Selection

The bill emphasizes prioritizing projects that align with national security and economic interests. It also mandates the use of environmental and social governance standards during project selection to ensure compliance with U.S. and international norms.

Definition of Critical Minerals

The bill defines critical minerals as those vital to U.S. economic and national security and which have supply chains vulnerable to disruption.

Financial Provisions

It authorizes appropriating $75 million to the Department of State for fiscal year 2026 to bolster critical mineral supply chain security measures as outlined in the bill.

Relevant Companies

• FCX (Freeport-McMoRan Inc.): As a major copper and gold mining company, it may benefit from increased demand for critical minerals.
• SCCO (Southern Copper Corporation): Engaged in mining and exploration, it could see enhanced opportunities and investments in the critical minerals sector.
• VALE (Vale S.A.): A leading global mining company that deals with various minerals, potentially gaining from improved supply chain dynamics.