(Kitco News) - For years, the mining sector has struggled to attract investor attention, but sentiment is beginning to shift, as one portfolio manager says the sector is on the cusp of a golden era of unprecedented growth.
Not only have record-high gold prices transformed the equity market—driving producers to report record profits and significant free cash flow—but, in a report provided to Kitco News, Tavi Costa, partner and Macro Strategist at Crescat Capital, said that exploration companies could experience the same transformation as the sector receives major support from the U.S. government.
Due to deglobalization and the evolving electrification of the global economy, the U.S. government has announced a series of executive actions aimed at significantly increasing domestic mineral production.
Costa noted that, under the directive titled “Immediate Measures to Increase American Mineral Production,” the U.S. government has begun to frame mineral production not merely as an economic objective, but as a national security mandate.
The government has also expanded its list of critical metals to include copper, uranium, potash, and gold, alongside traditional battery metals. The executive orders will fast-track permitting for mining projects on federal lands, and project financing could be made available through the Defense Production Act.
“This alignment of executive, legislative, and defense priorities signals a new era for U.S. mining—one in which the government is no longer merely a regulator or lender of last resort, but an active investor and strategic partner,” said Costa.
The government’s commitment to developing a strategic supply has quickly materialized, as the Department of Defence purchased $400 million worth of shares in MP Materials, establishing a 15% stake in the company as it seeks to build an end-to-end U.S. rare earth magnet supply chain.
MP Materials currently operates the world’s second-largest rare earth mine in Mountain Pass, California, where it extracts, refines, and separates rare earth materials. The company is using its new capital to build a magnetics facility in Texas.
The government has now become the company’s largest shareholder.
While the U.S. government has started to make initial investments in the resource sector, Costa said America still has a long road ahead on its path to critical mineral independence.
“The policy momentum is unmistakable. Washington has not only acknowledged its resource insecurity—it has declared war on it,” he said. “For investors, developers, and the broader mining ecosystem, this is the most powerful tailwind in decades. The U.S. government has made clear that mining is not just permitted—it’s prioritized, funded, and essential. The stage is set for a new golden era of American mining.”
