Mining Engineering’s Weekly Rundown: Episode 15

First up, a major move in America’s quest for mineral independence. The U.S. Department of Defense has awarded up to $10 million to Elk Creek Resources, a NioCorp Developments subsidiary, to advance its scandium project in Nebraska. This funding, under the Defense Production Act, aims to boost the domestic supply of the lightweight metal used in aerospace and defense, a material the U.S. hasn’t mined since 1969. The Pentagon hopes this will help reduce the nation’s heavy reliance on China, which along with Russia and Ukraine, currently dominates global scandium supply. The Elk Creek Project is being positioned as a high-grade, shovel-ready operation, and the award could help NioCorp secure as much as $800 million in financing from the U.S. Export-Import Bank. 

Next, in Australia, the government is exploring a price floor to support its critical minerals sector, especially rare earths, a move that sent shares of local producers soaring. Resource Minister Madeleine King confirmed that price certainty is being considered through voluntary national offtake agreements, which would help buffer miners from volatile and opaque global markets. The proposed support is part of a broader strategy to position Australia as a stable supplier of key minerals for defense and green technologies, while countering China’s market dominance. Earlier this year, Canberra committed more than 1.2 billion Australian dollars to establish a national critical minerals reserve. Shares in Lynas Rare Earths, Iluka Resources and Arafura all saw significant gains, with Lynas hitting a 13-year high.

Finally, the big miners are tightening their belts. Rio Tinto, Anglo American and Glencore are scaling back shareholder dividends this earnings season, redirecting cash toward massive growth projects amid falling mineral prices and rising operational costs. Rio posted its lowest first-half dividend in seven years, while Anglo slashed its payout to the lowest level in at least five years after reporting a nearly $2 billion loss. Glencore held its dividend flat as it wrestled with weaker coal prices and increased debt. The shift reflects a broader trend: despite bullish prospects for copper, up 8 percent this year thanks to energy transition demand, most other key commodities like iron ore and coal are in decline. That’s leaving mining giants focused on long-term capital spending, even if it means keeping dividend payouts to a minimum for now.

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