The US Government is negotiating with Orion Resource Partners to establish a multibillion-dollar fund for overseas mining projects.

The Trump administration has prioritised access to critical minerals like copper, cobalt and rare earths. Bloomberg reports that the collaboration between the US International Development Finance Corporation (DFC) and Orion stems from concerns about supply, particularly China's processing dominance and acquisition of overseas mining assets.

The DFC and New York-based Orion are expected to each invest $600m or more in the fund.

Other sovereign investors and US agencies may also participate, reported the Financial Times (FT), citing sources familiar with the discussions. The fund aims to invest in projects extracting critical minerals that are crucial for various industries.

Center for Strategic and International Studies director of the Critical Minerals Security Programme Gracelin Baskaran was quoted by the FT as saying: “These talks really show that the [Donald] Trump administration is trying to align its financial tools with its broader mineral ambitions.”

She added that the public-private partnership could catalyse significant capital.

Talks between Orion and the DFC began last year but faced delays due to questions from Commerce Secretary Howard Lutnick. These concerns have mostly been addressed.

The US plans to invest $600m, with $100m for equity stakes in mining projects and $500m for debt.

The DFC, which is required only to invest outside the US, faces limitations on equity stakes due to its mandate.

The DFC told the FT that it “actively pursues investments that are aligned with administration priorities, including diversifying critical mineral supply chains”. A source indicated that the deal is proceeding.

The White House is prioritising securing critical mineral supplies, rapidly expanding investments in mining and supply chains. Under Ben Black's leadership, pending Senate confirmation, the DFC is expected to collaborate more with the private sector. It has already invested in mining, including $105m for start-up TechMet and $50m in a South African rare earths project. The Orion deal would be its largest.

Orion, led by chief executive Oskar Lewnowski, is a specialist investor in mining and commodities, managing $8bn. It provides equity and debt funding to mining projects through its private capital arm and operates a hedge fund arm specialising in commodities.