As legislation to boost domestic resource production is being drafted and (re-)introduced, it becomes clear that our supply chains will have to look different in a post-COVID-19 world. 

Writes ARPN expert panel member and President of House Mountain Partners, LLC Chris Berry:

“The effects on all of us of COVID-19 are hard to fathom as the virus threatens economic activity through both a supply and demand shock of indeterminant proportions. The light at the end of the tunnel is that this will blow over eventually, but what we thought the future was going to look like may change markedly.” 

In a series of posts on his website www.discoveryinvesting.com (arguably aimed primarily at an investment audience), Berry provides context and addresses some key questions including, among others: 

- How does COVID-19 affect the thematic of de-globalization and supply chain regionalization? Is the result inherently inflationary or deflationary?

- Does the collapse in oil pricing and a race to the bottom in global interest rates slow down or accelerate the transition towards electrification?

- What will raw material producers need to do in order to ensure the viability of their businesses going forward (from juniors to producers)? What is the optimal capital structure and what do companies do to manage costs with ESG pressures only set to increase?  

Take a look here, and if you’re not following @cberry1 on Twitter yet, you can fix this oversight here.

The post ARPN Expert Panel Member on Globalization, Supply Chains: “What We Thought the Future Was Going to Look Like May Change Markedly” appeared first on American Resources Policy Network.

Rising wages in China, and with that increased production costs, may be slowing the trend of manufacturers flocking to China to a degree, however the lure of metals and minerals cannot be dismissed. As American Resources principal Dan McGroarty phrased it in a piece for Real Clear World last October:

The magnet drawing American automakers to China these days isn’t metaphorical: It is quite literally the Rare Earths magnets and other metals-based components critical to batteries and parts necessary for mass electric vehicle production. Just as we have seen with solar panel and wind turbine producers, China has the metals – and where the metals are, manufacturing will follow.

Unlike with Rare Earths, China may not have the near-total supply monopoly for Lithium. It is, however, one of the top-three suppliers for U.S. manufacturers, who, according to USGS data, are more than 80 percent dependent on foreign-sourced Lithium. Meanwhile, domestic Lithium reserves, while not necessarily abundant, are available. With Lithium usage on the rise, it is entirely possible that the mineral, which is currently only featured on the American Resources “Watch List” may make our “Risk Pyramid” of critical metals and minerals in future years.

With China ready to play politics with its mineral supplier status, the time to focus on exploring and developing our domestic mineral resources is now.

The post Foreign Manufacturers Still Flock to China appeared first on American Resources Policy Network.

A nation already rich in a broad variety of mineral resources, Canada is known to also have significant REE deposits, which it is beginning to harness.  Having moved from exploratory drilling to development drilling at Quest Rare Minerals’ Strange Lake property on the Quebec-Labrador border, Canada was also recently sought out by Japan’s Toyota for a joint venture to expedite development of rare earth mines in Quebec.

While the U.S. is re-entering the REE market – Molycorp is taking the lead with the reopening of its Californian Mountain Pass mine here – Canada (and particularly Quebec, which has embraced a coordinated resource-development plan with its “Plan Nord”), is known to have a significantly better mining climate than the United States.  Our neighbors to the North are clearly maximizing their mining potential. Is the U.S. comfortable with riding bench?

The post Will Canada step in to fill REE void? appeared first on American Resources Policy Network.

McMahon is Vice-President of Research, International, at the Fraser Institute, and, among other things, co-author of the Fraser Institute’s annual Survey of Mining Companies.  Minardi is Associate Director of the institute’s Global Natural Resource Policy Centre and has researched, written and spoken on mining issues in Canada and internationally. He is also the author of a forthcoming series of papers on Canadian mining policy.

To learn more about their work, and our other distinguished panelists, visit our experts page.

The post Fraser Institute resource policy experts join ARPN panel appeared first on American Resources Policy Network.

There is much dispute over China’s rare earths reserves, which makes even tighter export restrictions than the ones already imposed by the country a very likely reality. This tightening certainly serves as a catalyst for the current Congressional efforts aimed at ending America’s overreliance on foreign imports of all critical minerals.

The post China’s Rare Earths reserves to be exhausted by 2025? appeared first on American Resources Policy Network.

Says Hatch:
“Plan Nord could have a significantly positive effect on the development of rare-earth and other rare-metal projects in Quebec, and indirectly in Labrador as well, since Labrador shares a border with Quebec to the latter province’s east. It’s an interesting example of a jurisdiction putting together an integrated, coordinated effort to develop its resources, one that could have far-reaching consequences for Canada, North America and the rest of the developed world.”

What about us, “South” of Nord?  Are we doing what we can to maximize our resource potential? Let us know your thoughts in the comments section below.

Read Hatch’s full piece here.

The post How About a Strategy for South of Nord? appeared first on American Resources Policy Network.

Whether rockers- and other music listeners- will pay more to hear their favorite music, or companies will compromise on “low-fi” substitutes remains to be seen…

Either way, we’re all about to learn hard lessons on the many metals and minerals that make our every-day life what it is, and what happens when demand exceeds supply.

The post Could ‘Rock’ suffer from Rare Earths shortage? appeared first on American Resources Policy Network.