DOD Stake in Trilogy Metals: US Backs Alaska Copper and Critical Minerals

White House: Alaska mining

The DOD stake in Trilogy Metals marks a strategic US move into Alaska’s Upper Kobuk Minerals Projects. The DOD stake in Trilogy Metals brings $35.6mn to advance copper, zinc, lead, and cobalt resources. As a result, the DOD stake in Trilogy Metals aligns defense supply chains with domestic critical mineral development.

Why the deal matters for US critical minerals

The US Department of Defense will buy 10pc of Trilogy Metals. The purchase includes 16.4mn shares and a 10-year call option. South32 will transfer its option and sell part of its holding. The DOD may appoint a board director for three years. This structure strengthens governance and long-term offtake optionality. It also signals federal intent to accelerate strategic metals projects.

Path to development: UKMP and Ambler Access road

The UKMP sits in Alaska’s Ambler mining district. Trilogy and South32 jointly own Ambler Metals. The partners and Washington will coordinate on permitting and financing. They will also pursue expedited mine approvals. The Ambler Access road would link the district to the Dalton Highway. That logistics link remains the key unlock for project economics.

Copper focus with multi-metal upside

Copper leads the project’s value proposition. However, zinc, lead, and cobalt add revenue diversity. US policy now prioritizes resilient energy transition supply chains. This deal connects that policy to on-the-ground execution. It also broadens capital access for US-anchored base-metal assets. The DOD investment reduces perceived permitting risk for lenders.

The Metalnomist Commentary

Defense participation de-risks early-stage funding and accelerates timelines. If the Ambler Access road advances, project financing options should multiply. Expect midstream talks on concentrates and potential US refining routes to follow.