US Sovereign Fund Could Boost Critical Minerals Investment, Says Ivanhoe Chief

Ivanhoe Mines

Long-term mine value undervalued in Western models, new funding approach may unlock investment in extended-lifecycle projects.

Ivanhoe Mines founder and executive co-chairman Robert Friedland urged the creation of a US sovereign wealth fund to support the critical minerals supply chain, arguing it could encourage deeper and longer-term investment in mining. Speaking at the CERAWeek by S&P Global conference, Friedland said traditional net present value (NPV) models fail to reflect the true economic potential of century-long mine lifespans.

Financial Models Discourage Long-Term Mining

"NPV models make mining look poor beyond 10 years," Friedland stated. He noted that discounting future cash flows leaves "almost nothing" of value after the first decade, despite mines often running far longer.

Shaun Usmar, CEO of Vale Base Metals, agreed, stressing that the industry regularly underestimates asset longevity. "We statistically undervalue the upside of mines extended two to three times their original life," he said.

This short-term financial lens causes many Western mining firms to overlook long-duration, high-reward mineral projects, especially in strategic supply chains for clean energy technologies.

US Government Eyes Policy and Project Support

Efforts to fix this gap are already underway. The US Export-Import Bank’s Supply Chain Resilience Initiative now provides financing for international critical mineral projects, contingent on long-term offtake agreements with US companies.

Moreover, Laura Lochman, acting assistant secretary at the US Bureau of Energy Resources, highlighted Washington’s role in coordinating global partnerships. She cited a recent collaboration between Umicore (Belgium) and Gecamines (Democratic Republic of Congo) on a germanium project as a model for future deals.

"Our job is to connect capable players and accelerate execution," Lochman said.