eCobalt Solutions Inc. (fka ECSIF)

[farml1234]

This could be a big problem for the merger



Mamba1029

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July 12, 2019 - 08:43 AM 39 Reads
Post# 29912334
Letter to US Department of the Treaury

July 9, 2019
U.S. Department of the Treasury
Attn: Secretary Steven Terner Mnuchin
1500 Pennsylvania Avenue, NW
Washington, D.C. 20220

Dear Secretary Mnuchin:
Foreign investment is important for the State of Idaho and America, but it must be done
right. You will recall that we collaborated in a SelectUSA initiative that brought an $80 million
foreign investment to Idaho and I again thank you for your help and the jobs that it has
supported.

Unfortunately, I am writing to call your attention to the proposed acquisition of eCobalt
Solutions, Inc.’s by Jervois Mining Ltd., which I fear is the wrong investment for Idaho and for
our Nations’ security. I am very worried by Australia-based Jervois’ failure to notify the U.S.
Government of this acquisition and its potential impact on our national security. Before closure
of this acquisition is allowed, in your capacity as chairman of the Committee on Foreign
Investment in the United States (CFIUS), I would urge you to review this transaction to ensure
that Jervois – and the cobalt resources it is acquiring – is free from Chinese control. To that end,
I note that the CEO of Jervois recently confirmed that they are in discussions with potential
Chinese partners to jointly develop their flagship nickel-cobalt project in Australia.1
The U.S. Commerce Department’s recent report, A Federal Strategy to Ensure Secure
and Reliable Supplies of Critical Minerals states: “The assured supply of these critical minerals,
and the resiliency of their supply chains, are essential to the United States’ economic security
and national defense.” Cobalt was identified by the White House as one of 35 strategic
minerals critical to our “Nation’s security and economic prosperity.” Currently, there is no
domestic supply of cobalt. Rather, producers of advanced military and energy storage systems
rely on China, which controls about 80 percent of global refined cobalt supply.
Idaho’s cobalt belt presents the United States with its best opportunity to develop a
domestic source for this critical mineral. These lands include the only cobalt belt in the United
States and have been deemed so important to our national security that they were expressly
excluded from wilderness designation by the U.S. Congress in 1980.

Having said this, no foreign company should be allowed to make an acquisition in this
region without a careful review by CFIUS of both corporate ownership and control as well as
outyear plans for mining and refining of Idaho cobalt. My great concern is that without a plan
for North American refining and a commitment to supply domestic consumers, Idaho cobalt ore
will be shipped to China. This would be the worst imaginable outcome for our national security,
economic development and job creation.

As a former three-term governor of Idaho, Member of Congress and, most importantly,
a concerned citizen worried about our Nation’s security, I would urge you to examine this
transaction carefully to ensure that it is best for America. The proposed Jervois deal for eCobalt
should not be closed until such an investigation by CFIUS is concluded and a decision made by
the U.S. Government – not a foreign company – to allow it to proceed.

Please do not hesitate to contact me at (208) 340 – 3031 if you have any questions or
need additional information. Lastly, I want to thank you for your service to our Nation. Your
work is important.

Best regards,
C.L. “Butch” Otter
CC: Hon. Wilbur Ross, U.S. Secretary of Commerce
Hon. Rick Perry, U.S. Secretary of Energy
Hon. Mark Esper, U.S. Secretary of Defense (Acting)
Hon. David Bernhardt, U.S. Secretary of Interior

1 Reuters, “Australia’s Jervois to choose nickel-cobalt JV partner by end of 2019” (March 21, 2019),
https://www.mining.com/web/australias-jervois-choose-nickel-cobalt-jv-partner-end-2019/

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