U.S. Mining Stocks Eye Ukraine After Mineral Rights Deal
U.S. mining stocks may stand to benefit following a new mineral rights deal between Ukraine and President Donald Trump. The deal, which aims to improve relations between the two countries, has generated significant interest. Trump described the agreement as potentially worth trillions of dollars.
- Media outlets report that the deal comes after the U.S. dropped its demand for a $500 billion share in potential mining revenue from Ukraine.
- Trump’s actions, including pressure on Ukraine’s allies and his controversial stance on the conflict, have raised questions about the future of the deal.
While security guarantees remain unclear, Trump stated that Ukraine would receive “the right to fight on” in return for the agreement.
Who Gets to Mine the Minerals?
Though details on mineral extraction are still unclear, U.S. mining companies could potentially gain access to Ukrainian mineral assets, though much of the territory is still controlled by Russia.
- Ukraine holds 22 of 34 critical minerals identified by the European Union, accounting for around 5% of the world’s critical raw materials.
- It is estimated that Ukraine has about a third of all European lithium deposits, a key component for electric vehicle batteries. Before the Russian invasion, Ukraine produced 7% of the world’s titanium and 20% of the global supply of graphite, crucial for nuclear power stations and electric vehicles.
According to the Wall Street Journal, Ukraine also has deposits of at least 20 critical minerals as labeled by the U.S., including lithium, graphite, titanium, uranium, and rare earth elements. These minerals are used in a variety of industries, from smartphones to weapons systems.
- However, SecDev, a Canadian consultancy, estimated that Russia occupies 63% of Ukraine’s coal mines and has taken control of significant portions of its manganese, rare earths, and other mineral deposits.
Which Are the Biggest U.S. Mining Stocks?
Several top mining companies, both U.S.-based and international, are involved in minerals similar to those found in Ukraine. Here are some of the most notable U.S. mining companies:
- Albemarle Corporation (ALB): The largest lithium miner in the U.S. and a major supplier of lithium for electric vehicle batteries globally.
- Arcadium Lithium (ALTM): Formed from the 2024 merger of Livent and Allkem, focused on lithium extraction.
- Freeport-McMoRan (FCX): Specializes in copper, gold, and molybdenum extraction, with operations centered in Indonesia.
- Southern Copper Corporation (SCCO): A globally integrated copper producer with projects in Mexico and Peru.
- MP Materials (MP): The largest producer of rare earths outside China, operating the Mountain Pass mine in California.
- Energy Fuels (UUUU): A uranium mining company with operations in Utah, Colorado, and Wyoming.
- NioCorp Developments (NB): Focuses on niobium, scandium, and titanium at the Elk Creek project in Nebraska.
- Uranium Energy (UEC): A uranium miner that secured a contract with the U.S. Department of Energy for uranium supply.
- Newmont Corporation (NEM): The world’s largest gold mining company, based in Colorado.
These companies may see future opportunities if they gain access to Ukraine’s vast mineral wealth, especially if the geopolitical situation stabilizes.