In a panel discussion at the Milken Institute Global Conference in Los Angeles on Monday, Amos Hochstein, White House senior adviser for energy and investment, emphasized the importance of mining projects in countries where Western corporations are hesitant to do business.
Hochstein said that these projects are crucial for securing a reliable and sustainable global supply of critical minerals needed for combating climate change and supporting the growth of artificial intelligence.
“We can all live in the capitals and cities around the world and say ‘I don’t want to do business there.’ But what you are really saying is we’re not going to have an energy transition,” Hochstein said. “Because the energy transition is not going to happen if it can only be produced where I live, under my standards.”
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The senior adviser warned that without tapping into the mineral resources of nations like the Democratic Republic of Congo and Zambia, the world may not be able to achieve its energy transition goals. He highlighted the need for the United States and its allies to encourage and support mining projects in these countries, even if they have different risk profiles compared to Western standards.
“If you want to invest in, whether it’s Chile, Peru, Ecuador, Mexico, Congo, Zambia, DRC, etc, Angola — these are different profile countries that have different kinds of risks associated with them. And Western finance has basically said we will not be able to absorb this risk,” Hochstein said.
Hochstein called for collaboration among the United States, Group of Seven (G7) nations, Australia, South Korea, and Saudi Arabia to unlock capital and back companies willing to take on projects in countries deemed risky to their reputations or assets. He suggested that this capital could flow through US agencies and global institutions like the World Bank and the International Monetary Fund.
The White House adviser emphasized the government’s role in incentivizing private capital by taking more risk in the initial work, allowing the private sector to augment it and invest in a diversified, sustainable, and equitable energy transition. Hochstein also stressed the importance of offering countries incentives to improve their communities and quality of life through these collaborations.
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