Rivaling China, Trump Builds Strategic Mineral Reserves

JAKARTA - US President Donald Trump announced that he would launch a new strategic reserve of important minerals to ensure that the American manufacturing industry can break away from dependence on China.

The reserve, worth $12 billion (Rp201 trillion), will be "the first major mineral reserve ever" and will be used "to ensure American businesses and workers are never harmed by any shortages," Trump said.

"We don't want to experience what we experienced a year ago, even though it can eventually be overcome," he said in the Oval Office, White House, as reported by ANTARA from Anadolu, Tuesday, February 3.

This statement is allegedly referring to China's decision to suspend the imposition of export controls on important minerals, which caused a shock in the global market.

"Just as we have long had strategic oil reserves and critical mineral reserves for national defense, we are now creating these reserves for American industry so that we don't have problems," Trump said.

The initiative will be funded by export-import bank financing of US$ 10 billion (Rp167.6 trillion) and an additional US$ 2 billion (Rp33.5 trillion) of financing from the private sector.

Trump said he expected the loan used to form the reserve would generate interest income.

He did not mention China by name directly, but US Trade Representative Howard Lutnick directly pointed to Beijing as the main reason for the formation of the reserve.

"Previous presidents have taken America for granted. They let our critical minerals be controlled only by China. They let our mining business collapse by closing all mines, closing our coal-fired power plants, while China opens them," said Lutnick.

"We are taking back important minerals. We are taking back mining," he added.