U.S. Accelerates Critical Mineral Strategy: Ambler Road Approved and Trilogy Metals Receives Government Stake

The Trump Administration has recently intensified its efforts to address the country's critical mineral needs, a strategic shift that is rapidly upending the mining business. This aggressive approach culminated in two major actions announced late Monday: the approval of the Ambler Road Project in Alaska and a significant investment in Trilogy Metals (TMQ).

The White House specifically approved the Ambler Road Project to "unlock Alaska's mineral potential". This proposed industrial road will stretch hundreds of miles from the Dalton Highway to the Ambler Mining District. The 211-mile (340-km) highway is intended to provide access to vast deposits of critical minerals, including copper, cobalt, gallium, germanium, zinc, and lead. These metals are considered crucial for energy infrastructure, modern technology, defense technologies, and American national security. President Trump stated that this project "should have been long operating and making billions of dollars for our country".

Crucially, this order reverses the previous rejection of the road by the Biden administration. The Interior Department under former President Joe Biden had cited concerns regarding the negative impact on indigenous communities, wildlife, including caribou and fish populations, and the environment. Opponents like the Sierra Club argue that this order ignores local community voices in favor of "corporate polluters" and will harm pristine landscapes. Conversely, Trilogy Metals welcomed the decision, stating the order "reflects a renewed federal commitment to responsible resource development in Alaska".

The policy shift was immediately backed by a financial commitment. The announcement included a substantial investment in Vancouver, British Columbia-based Trilogy Metals, a small capitalization Canadian miner that is developing projects within the Ambler district. The investment totaled $35.6 million, which made the U.S. government a 10% shareholder in the company. The deal also included warrants allowing the government to purchase an additional 7.5% stake in the company's stock.

The move immediately impacted the market. Trilogy Metals, an earlier-stage company that does not yet generate significant sales, saw its shares soar. U.S.-listed shares more than doubled, jumping as much as 171% in premarket trade. The investment was heralded by Kaleb Froehlich, managing director of Ambler Metals—a joint venture between Trilogy and Australia's South32 Limited—as a "strong vote of confidence" in the Ambler Mining District.

This investment in Trilogy Metals is part of a recent pattern by the administration to use its resources to secure domestic supplies and counter China's dominance in the critical minerals industry. The Defense Department recently became the largest shareholder in rare earth miner MP Materials, and the Energy Department previously took a stake in lithium miner Lithium Americas. By acquiring stakes and accelerating permitting, U.S. officials aim to boost domestic mineral production and ensure materials like copper, fundamental to running a modern economy, are produced within the U.S..