Utah pitches critical minerals sector to Gulf investors as US races to cut reliance on China

Utah is actively seeking investment from the Middle East to bolster its critical minerals sector, a strategic move aimed at reducing American reliance on China.

Brian Somers, president of the Utah Mining Association, noted that while the state holds significant reserves of critical minerals, most foreign investment has historically flowed from Australia and Canada, not the Gulf. "We haven’t seen a lot of investment from the Middle East in particular," Somers told Khaleej Times, adding that while some service companies have Middle Eastern ties, actual mining operations have seen less.

The urgency to develop these resources stems from national security concerns. The US Geological Survey reports that the nation is heavily import-dependent on numerous mineral commodities, with China being a primary source. Rare earth elements, crucial for defense technology like the F-35 fighter jet, exemplify this vulnerability. "If we don't have control of these supply chains, that obviously creates a national security risk for us," Somers stated.

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We haven’t seen a lot of investment from the Middle East in particular. We do have a few service companies that have either Middle Eastern investors or Middle Eastern ownership, but in the actual mining operations, we haven't seen as much of that.

Utah boasts a rich mining history, dating back to 1863. Today, it leads global production of beryllium and is home to Rio Tinto Kennecott, a major copper mine. The state is also seeing new projects for minerals like lithium, uranium, and rare earth elements, including an unconventional source found in a clay deposit near Utah Lake.

A significant hurdle is the lengthy permitting process in the US, which averages 29 years from site discovery to production. Utah's strategy involves streamlining this process to expand output and attract the necessary capital from Gulf investors.

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If we don't have control of these supply chains, that obviously creates a national security risk for us.