Every administration has the ability to enact policy which is the reason why they were elected. Part of President Trump’s policies is the critical importance of critical minerals. The administration has passed policy which says if a critical mineral is found in a country around the world, the US would do all it could to ensure the mineral would be mined and shipped to the US for processing and use. In some countries around the world, the US has said to an area is off limit to waring partners as the force of the US military will ensure the critical mineral is mined and transported to ports to go to the US.

In an article by Geoffrey York of the Globe and Mail, the country of Zambia has said no to the US. Zambian Foreign Minister Mulambo Haimbe, said the Zambian government rightfully takes the view, first and foremost, that Zambians must have a say of how her critical minerals are use and second no one strategic partner is to be treated preferentially to others.

Zambia is one of the world’s largest copper producers, and negotiations between Zambia and the senior US diplomat are not going well. US ambassador Michael Gonzales, has talked about corruption that deterred US investors. He also threw in the Zambian has ignored a proposed health deal of $2 billion for the next 5 years.

Mr. Gonzales has been ambassador since 2022, denied reports that the Trump administration was threatening to halt its long-standing financial support for life-saving medicine for Zambians with HIV. But he questioned if the funding for health will continue, unless the US sees corruption being halted. (if you think about dollars for HIV funding in America, would the US cut funding for HIV in other countries?)

The largest players in the Zambian mining sector are Canadian companies First Quantum Minerals which operates the Kansanshi and Sentinel mines which produce over half of Zambia’s copper. Barrick Mining operates the Lumwana mine which is undergoing a $2 billion expansion. Vedanta Resources of India which mines in Konkola. Mopani Copper Mines owned by UAE’s International Resources; KoBold developing the Mingomba, the $3 billion project backed by US investors including Jeff Bezos and Bill Gates. Various Chinese companies are active in the country.

Linking to dividend paying stocks, a company can and does carefully evaluate allocation of resources in other countries to expand and sell their products. There is always a certain amount of goodwill that flows from the home country. Then politics enters in to help or supercharge investments or to do something for political goodwill at home. Management at very good mining companies tend to stress the long-term nature of their relationship, while politics can help or hurt, it is the long-term relationship that is the important aspect. If you are investing in mining companies try to stick with the long-term relationships because politics changes regularly. Politics comes and goes, but profits can continue for decades.

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