If your portfolio contains mining companies of various sizes, you will be well aware that resources are spread across the Globe and when they are spread across the globe it means countries have many different political systems governing them. Some you likely you could live in, some countries you may want to visit, and others are way down on the list to visit, but they have mineral resources. As an investor, you leave it to the company to determine how it works with the government.

In an article by Geoffery York of the Globe and Mail, President Trump has declared the US needs to have US ownership of critical minerals in order for the county to be and continue to be a world leader. This is when it becomes tricky.

The Democratic Republic of Congo or the Congo is a major producer of cobalt and copper. China controls an estimated 70 – 80% of the copper and cobalt production in the Congo. There is a war which has killed thousands and forced millions to flee the Congo. In early February, President Trump and the President of Congo President Felix Tshisekedi signed an agreement for the US to do more in the Congo.

One of the largest global miners is Glencoe, it decided to sell 40% of its Congolese copper and cobalt assets to Orion Critical Mineral Consortium, in which the US government is a partner. The deal is for about $9 billion.

Orion CMC was formed to secure long-life, high-quality production of critical minerals while supporting resilient supply chains for the US and its allies, noted Oskar Lewnonski, CEO of Orion Resource Partners.

The Orion consortium is backed by 2 state-owned investment funds the US International Development Finance Corp and ADQ, s sovereign wealth fund in the UAE or United Arab Emirates.

Similar to stockpiles in oil the US has in the US, President Trump launched Project Vault, a $12 billion domestic stockpile of critical minerals.

Linking to dividend paying stocks, in the world of Wall Street, where money talks there is limited morality about what happens within countries as long as the interests of the company are protected. As an investor you can decide which companies you invest in or do not invest in, there are many companies that meet and surpass whatever value you have, which is why choice of Wall Street is a terrific thing. When the government invests in projects, issues of allocation of scarce taxpayer dollars come forth and is it the best thing to do in a capitalist society?

There are more questions than answers, till the next time – to raising questions.