Americore Resources (TSXV: AMCO)
Drilling Value in the Silver State
Over the past few years, countries worldwide have raced to forge partnerships on critical minerals, signing more than 70 agreements and policy frameworks since 2021. The core goal is to cut reliance on China across mineral supply chains. Yet this flurry of diplomatic activity has done little to alter the existing landscape, and efforts to rebuild alternative supply networks have fallen well short of expectations.
Most of these cooperation arrangements lack enforceable commitments. More than 50 new bilateral and multilateral mineral pacts have been inked in the past 18 months. By May 2026, over 60 percent of them were non-binding memorandums of understanding and general cooperation frameworks, with no concrete rules on investment, production targets, procurement or financial support. The United States has led the push and sealed over 20 such deals, but only a tiny fraction carry legal force.
These agreements serve largely as geopolitical gestures rather than practical solutions. They cannot deliver tangible commercial guarantees for mines, refineries, separation facilities and battery production lines. Long-term purchase contracts, public financing, streamlined permitting and protection against policy shifts remain out of reach, creating a stark divide between diplomatic momentum and industrial implementation.
China’s unrivaled industrial edge forms a formidable barrier for external players. The country controls 60 percent to 90 percent of the world’s rare earth refining capacity and holds leading positions across multiple strategic mineral chains. Amid China’s export controls and lengthy licensing procedures, US companies face persistent difficulties securing critical minerals. High-end products including samarium-cobalt magnets, yttrium and cadmium, which are vital for aerospace and defense sectors, have become nearly inaccessible.
Challenges extend far beyond raw mineral supplies. China dominates both mining and downstream processing. Even if overseas firms manage to source raw materials elsewhere, they struggle to bridge the gap in processing capabilities. Industry insiders warn that the US will hardly resolve its supply woes in the next three years.
A growing number of foreign enterprises have started to diversify their supply sources due to China’s export restrictions. Among 38 affected companies surveyed, 29 percent have fully shifted to non-Chinese suppliers, while 47 percent are still hunting for viable alternatives without success. In total, over 70 percent of the firms are pushing for supply diversification, but progress remains sluggish, dragging down long-term confidence in supply stability.
The global minerals competition is also reshaping the bargaining power of resource-producing nations. Africa holds more than 60 percent of the world’s cobalt reserves, alongside rich deposits of copper, graphite and rare earths, but it is underrepresented in current cooperation deals. Resource-rich economies are now more selective about partnership terms. The Democratic Republic of the Congo has reached a binding minerals deal with the US to strengthen ties in the cobalt supply chain, while Zambia has turned down Washington’s proposed cooperation conditions. Producer countries increasingly demand local industrial development, infrastructure investment and processing capacity in exchange for resource access, raising the bar for the US and Europe to rebuild supply chains.
Uncertainties surrounding China-US trade relations have also cast a shadow over business sentiment. A survey shows that merely 49 percent of 134 foreign firms plan to expand investments in China this year. The current truce on China’s critical minerals export controls is set to expire later in 2026, drawing close attention from the global industry. Even if the two sides agree to an extension, the existing global network of minerals partnerships will continue to operate.
Industry observers note that while the global drive to build diversified mineral supply chains is genuine, the current cooperation system lacks solid legal and financial backing. Most deals remain nothing more than political statements, unable to support project financing, procurement and capacity expansion. Until more frameworks are turned into enforceable operational terms, global attempts to erode China’s strong position in mineral midstream processing will stay as ambitions rather than real achievements.
