US Strategic Metals (USSM), a company focused on developing critical mineral resources, has secured a significant financial boost from the Export-Import Bank of the United States (EXIM Bank). The bank has approved a $400 million loan package with a 15-year term to support the development of USSM’s ambitious mining and metallurgical project in Missouri. This funding marks a major milestone for the company as it moves forward with plans to exploit one of North America’s largest cobalt reserves.
Founded in 2018, USSM, which was formerly known as Missouri Cobalt, has made a name for itself by recycling essential metals from lithium-ion batteries and processing third-party concentrates at its metallurgical plant. The company’s operations have positioned it as a key player in the domestic supply of critical minerals, which are essential for various industries, including the production of electric vehicles and renewable energy technologies.
USSM’s flagship project is the Madison mine, located on a 7.3-square-kilometer site in Missouri. This project is set to become a major source of cobalt, nickel, and copper, all of which are in high demand globally. The Madison site hosts what is believed to be the largest cobalt reserve in North America, with an estimated 18-year supply of these vital minerals. This reserve is a cornerstone of USSM’s strategy to ensure a stable and sustainable domestic supply of critical metals.
The Madison mine project is not new to mining activities. The site has a rich history, with mining operations dating back to 1844. The mine was actively used until 1961, after which it lay dormant for several decades. However, in 2003, the site gained attention when the US Environmental Protection Agency (EPA) designated it as a Superfund site due to environmental concerns. The erosion of tailings from previous mining activities had led to contamination, prompting the EPA to initiate extensive clean-up efforts to restore the area.
When USSM acquired the Madison project in 2018, it partnered with local government and the EPA to carry out a comprehensive five-year clean-up plan. This collaboration underscored USSM’s commitment to responsible mining practices and environmental stewardship, which are increasingly important in today’s resource extraction industry. The clean-up plan has been a critical step in ensuring that the Madison site meets modern environmental standards as it transitions back into an active mining operation.
In 2020, USSM conducted an update to the geological and block models of the Madison project. This update included a detailed survey of the mine’s reserves, which resulted in a pre-feasibility study. The study provided new insights into the resource potential of the site, estimating that the Madison mine contains approximately 72 million pounds of recoverable cobalt, 105 million pounds of nickel, and 103 million pounds of copper. These estimates have reinforced the strategic importance of the Madison project in meeting the growing demand for these critical metals.
The $400 million loan from EXIM Bank will play a crucial role in advancing the Madison project. According to USSM, the loan, combined with the company’s existing equity and credit facilities, will provide the necessary capital to cover nearly all of the anticipated construction and development costs required to bring the project to completion. This financial support is seen as a strong vote of confidence in USSM’s ability to deliver on its ambitious plans.
USSM’s journey to secure this funding has been a strategic effort. Following the formal application for debt funding, EXIM Bank will now begin its formal due diligence process. This process will involve comprehensive underwriting to determine the final terms and conditions of the loan. The due diligence phase is a critical step in ensuring that the loan agreement meets both the needs of USSM and the risk management standards of EXIM Bank.
In addition to the Appian Capital investment, USSM has also received substantial funding from other notable partners. HPS Investment Partners committed $120 million to support the company’s operations, while Glencore, a global commodity trading and mining giant, provided $50 million as part of an offtake and sourcing agreement. These partnerships not only provide the financial resources needed to advance the Madison project but also establish long-term relationships that will be essential as USSM begins production.
By developing the Madison project, USSM aims to position itself as a key supplier of these critical metals within North America. The company’s focus on sustainability, environmental responsibility, and local partnerships aligns with broader national goals to secure a stable supply of essential minerals while minimizing environmental impact.
