USSM secures $400M for cobalt mining in Missouri

US Strategic Metals (USSM), previously known as Missouri Cobalt, has received a non-binding Letter of Interest from the Export-Import Bank of the United States (EXIM Bank) for a potential $400 million loan to support its Madison cobalt mining project in Missouri. This project is significant as it is located in one of North America's largest cobalt reserves, covering 7.3 square kilometers and containing an estimated 72 million pounds of recoverable cobalt, along with substantial amounts of nickel and copper. The Madison site has a historical background, having been operational from 1847 until 1961, and is currently undergoing rehabilitation due to its designation as a Superfund site by the U.S. Environmental Protection Agency. The funding proposal may qualify for special consideration under EXIM Bank's China and Transformational Export Program, which aims to enhance the competitiveness of American companies in critical sectors against Chinese entities. Cobalt is a crucial component in lithium-ion batteries, and the U.S. currently contributes only 0.36% to global cobalt production, which is inadequate for domestic industrial needs. The cobalt market has experienced volatility, with prices soaring to $82,000 per metric ton in April 2022 before dropping below $30,000, impacting domestic production and leading to the temporary halt of operations at the only active cobalt mine in Idaho. The proposed investment could significantly decrease the U.S.'s dependence on foreign cobalt sources, particularly from the Democratic Republic of Congo, which dominates global production but is plagued by instability and human rights issues, including the use of illegal child labor in mining operations.