US Strategic Metals Secures Interest for $400 Million Loan from EXIM Bank for Madison Cobalt Project
US Strategic Metals (USSM), previously known as Missouri Cobalt, has announced that it received a non-binding Letter of Interest from the Export-Import Bank of the United States (EXIM Bank) for a potential $400 million debt financing package. This funding is aimed at supporting the development of their flagship Madison cobalt mining project in Missouri.
The proposed loan could extend up to 15 years and may qualify for EXIM Bank's China and Transformational Export Program. This initiative, supported by Congress, is designed to enhance the competitive standing of American companies in critical industries such as energy storage and renewable energy, positioning them against Chinese firms.
The Madison project, located in the Mine La Motte-Fredericktown Mining District near Cobalt Village, is one of North America's largest known cobalt reserves. The site covers an area of 7.3 square kilometers and has a history of mining activities dating back to 1847, with operations ceasing in 1961. USSM has been actively rehabilitating the area, which has been designated as a Superfund site by the U.S. Environmental Protection Agency due to historical environmental issues.
The project is estimated to contain 72 million pounds of recoverable cobalt, 105 million pounds of nickel, and 103 million pounds of copper—materials essential for the green energy sector, particularly for the production of lithium-ion batteries. Currently, the U.S. accounts for only 0.36% of global cobalt production, which is insufficient for domestic needs.
The cobalt market has experienced significant volatility, with prices soaring from $30,000 per metric ton in April 2020 to $82,000 in April 2022, before dropping back below $30,000. This price fluctuation has adversely affected U.S. cobalt production, leading to the temporary closure of the only operating cobalt mine in Idaho.
Securing a $400 million loan could reduce the United States' reliance on foreign cobalt sources, particularly from the Democratic Republic of Congo (DRC), which controls over 70% of the global market. The DRC has faced instability, including a recent failed coup attempt, and has been criticized for employing illegal child labor in its mining operations.
This potential funding represents a significant step for USSM and the Madison project, promising to bolster domestic cobalt production and contribute to a more secure supply chain for critical minerals in the U.S.
