Biden's $475M For Mining Aims To Power Communities 'Hit Hardest By Our Evolving Energy Landscape'

Author: Stjepan Kalinic | March 25, 2024 10:05am

The Biden administration announced that it will allocate almost half a billion dollars for clean energy projects to major mining companies, including Freeport-McMoRan (NYSE:FCX), Barrick Gold (NYSE:GOLD), and Newmont (NYSE:NEM). This funding, totaling $475 million, aims to accelerate the domestic deployment of clean energy solutions.

“The communities that have powered our nation for the past 100 years should power our nation for the next 100 years,” said U.S. Secretary of Energy Jennifer M. Granholm in a press release. “The department is helping deploy clean energy solutions on current and former mine land across the country, supporting jobs and economic development in the areas hit hardest by our evolving energy landscape.”

However, the three influential mining companies, with significant domestic and international presence, find themselves in varied situations. They are dealing with challenges such as management changes, diversification efforts, and debt reduction, all amidst a volatile geopolitical environment.

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Freeport-McMoRan is leading a pioneering project in Arizona aimed at deploying geothermal heat combined with a battery energy storage system at two copper mines. Kathleen L. Quirk, who is set to succeed Richard Adkerson as president and CEO, emphasized the importance of executing reliably and responsibly. The initiative not only aims to decrease reliance on backup generators but also supports the mining of 25 million pounds of copper annually, showcasing Freeport’s commitment to sustainable resource extraction.

Despite recent speculation regarding potential mergers, Barrick Gold is steadfast in its expansion into copper mining, particularly in Africa and the Middle East. The company is exploring new ventures in the Democratic Republic of Congo and Zambia, highlighting its ambition to solidify its position as a premier copper producer globally.

Barrick CEO Mark Bristow underscored the company’s vision to transform previously disadvantaged regions into flourishing economic hubs, emphasizing projects such as the Kibali mine in Africa.

Meanwhile, Newmont Corporation is looking to streamline its operations following a Newcrest acquisition. The company has initiated the sale of non-core assets, including the Akyem gold mine in Ghana. This strategic divestiture aligns with Newmont’s broader goal of reducing debt and optimizing its portfolio.

By concentrating on tier-one assets such as Merian in Suriname and Cerro Negro in Argentina, Newmont aims to maximize shareholder value while contributing to environmental stewardship.

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Also read: Alaska Governor Wants Overhaul Of Mine Permitting, Seeks $700B In Economic Losses

Image generated using artificial intelligence with Midjourney.

Posted In: FCX GOLD NEM