$1.2 Trillion Infrastructure Bill Means More Metals And Mining Will Be Needed

After much anticipation, the U.S. House approved a bipartisan $1.2 trillion infrastructure spending package last week, sending it to President Joe Biden’s desk to sign. Although no single lawmaker got everything they wanted, I believe this bill is generally constructive news for the metals and mining industry, which will be tasked with supplying the critical minerals necessary to build and improve the nation’s roads, bridges, ports, power grid and so much more.

First, let’s look at what’s in the bill. Some $517 billion will be deployed over 10 years, with roads, bridges and highways receiving the largest portion at $110 billion. According to the White House, the $40 billion set aside for bridges is the single largest bridge investment in the U.S. since the Eisenhower Administration. Passenger and freight rail projects come next at $66 billion, followed by power infrastructure and broadband infrastructure at $65 billion each. Water projects, public transit, airports and ports and waterways will also receive new funding, as will new electric vehicle (EV) charging infrastructure.

Applications for funding may not be approved for several more months, but already the spending package is being compared to past major infrastructure programs such as the transcontinental railroad and Interstate Highway System.

That said, I believe this could be a catalyst for significantly higher prices for metals and other raw materials, meaning now may be the time to get exposure to the mining industry as well as refiners and manufacturers.