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American Resources Policy Network
Promoting the development of American mineral resources.
  • ARPN Expert Panel Member on Globalization, Supply Chains: “What We Thought the Future Was Going to Look Like May Change Markedly”

    Over the past few weeks, the spread of the coronavirus has exposed the supply chain challenges associated with an over-reliance on foreign raw materials.   With the effects being felt across broad segments of manufacturing, supply chain security — for medical devices, for personal protective equipment (PPE), pharmaceuticals, and beyond — is (finally) becoming one of the focal points for policy makers on Capitol Hill.   

    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.

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  • Demand for Certain Metals and Minerals to Increase by Nearly 500%, According to New World Bank Study

    At ARPN, we have long argued that the current push towards a lower-carbon future is not possible without mining, as green energy technology relies heavily on a score of critical metals and minerals.

    The World Bank’s latest report, entitled “The Mineral Intensity of the Clean Energy Transition,” published earlier this week in the context of the global lender’s “Climate-Smart Mining” initiative, confirms this notion, and estimates that production of metals and minerals like graphite, lithium and cobalt will have to increase by nearly 500 percent by 2050 to meet global demand for renewable energy technology.  To achieve the transition to a below 2°C pathway as outlined by the Paris Agreement, the deployment of wind, solar and geothermal power, as well as energy storage will require more than three billion tons of minerals and metals.

    Interestingly, the report finds that while shifting to clean energy technology will be mineral-intensive, the carbon footprint of their production “will account for only 6% of the greenhouse gas emissions generated by fossil fuel technologies.” While recycling and re-use of metals and minerals will play an important role in increasing mineral demand, even drastic increases in this category will not suffice to meet demand for renewable energy technology and energy storage.

    Published against the backdrop of the global coronavirus pandemic, which, according to World Bank Global Director for Energy and Extractive Industries and Regional Director for Infrastructure in Africa, Riccardo Puliti, “could represent an additional risk to sustainable mining,” the report, and the Climate-Smart Initiative as a whole, seek to offer a “data-driven tool for understanding how this shift will impact future mineral demand.”  

    As economies — particularly in developing nations, many of which are home to the critical materials used in battery technology — start to reopen, the initiative seeks to help these nations “to mine those commodities in a sustainable manner to avert major ecological damage.”

    The World Bank’s Climate Smart Mining initiative is one facet of approaches taken to sustainably green our future, but, as we recently outlined, it does not end here. In an effort to offset some of the carbon costs of resource development, mining companies have started to incorporate renewable power sources into their operations.  Some recent examples include:

    • Rio Tinto looking at incorporating renewables and battery storage into its main mining sites in Australia, for example as part of its $1 billion upgrade for its Pilbara ore project

    • Fortescue Metals having partnered with a power utility to – with the backing of the Australian federal government – help power its Pilbara operations with solar energy and battery storage

    • Gold Fields planning to predominantly operate its Agnew gold mine in Western Australia (WA) using renewable energy by partnering with a global energy group and investing in an energy micro grid combining wind, solar, gas and battery storage

    • Antofagasta partnering with a utility company to turn its Zaldívar mine into the first 100% renewable energy-powered Chilean mine with a mix of hydro, solar and wind power

    • Rio Tinto looking to reduce its carbon footprint at its Kennecott Utah copper mine by as much as 65% through the purchase of renewable energy certificates 

    As challenging as the global post-COVID-19 environment will be, it also holds opportunity.  As Dr. Morgan Bazilian, Director of the Payne Institute and Professor of Public Policy, Colorado School of Mines told committee members during testimony before the U.S. Senate Committee on Energy and Natural Resources chaired by Sen. Lisa Murkowski (R-Alaska) last fall:

    “The future energy system will be far more mineral and metal-intensive than it is today. Many of these advanced technologies require minerals and metals with particular properties that have few to no current substitutes.

    The opportunity for the mining industry is tremendous. An industry that has experienced enormous public pressure and critique, accompanied by offshoring production overseas, can now evolve into one fundamental to supporting a shift to a low-carbon and sustainable energy system based on domestic natural resources.”

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  • Copper at the Frontlines – Hong Kong to Distribute Face Masks Containing Copper to Its Citizens

    Known and appreciated already by the Ancients for its antimicrobial properties, Copper has recently entered into the discourse over how to fight the current coronavirus outbreak and future pandemics.   A case in point is a new Assembly bill in New York, which seeks to reduce the spread of infection by requiring all new construction [...]
  • U.S. Import Reliance, Supply Chains, and National Security – A Visual

    The current coronavirus pandemic will have a lasting impact on many aspects of social life and public policy. With nations struggling to secure critical medicines and other supplies, many of which are sourced from China, the global crisis is increasingly exposing the challenges associated with supply chain security — for medical devices, for personal protective [...]
  • College Seniors Develop Copper Phone Case – A “Smart Move” for Smartphones Amidst a Pandemic

    Courtesy of the current coronavirus pandemic, we wash our hands – perhaps more frequently and thoroughly than before, and contactless shopping is becoming the norm for many.  Disinfectant has become more than a household staple, and we find ourselves constantly sanitizing everything from light switches over door handles to groceries.   To borrow a quote [...]
  • ARPN’s McGroarty for The Economic Standard: Red Swan – a Leaked 2010 Cable on Critical Infrastructure/Key Resource Vulnerabilities Provided Warning Signs We Failed To Act On

    In a new piece for The Economic Standard, ARPN’s Daniel McGroarty argues that while the “intellectual shrug” of “who could have seen this coming” tends to be a common reaction to our new normal of sheltering in place and social distancing, there were warning signs for a coming crisis we failed to recognize for what they were, and act [...]
  • New Chart Unveils Supply Chain Weaknesses for Manganese, a Critical Input for EV Technology

    Testifying before the U.S Senate Committee on Energy and Natural Resources in February 2019, ARPN expert panel member and managing director of Benchmark Mineral Intelligence Simon Moores sounded the alarm on the supply chains of metals and minerals that are key components of battery technology and energy storage. Arguing that we were in the middle [...]
  • As China Looks to Move Past Coronavirus Pandemic, Resource War Theaters Come into Focus

    With much of the world still in lockdown, China appears to rev up its engine to move past the coronavirus.  The City of Wuhan, the epicenter of the global coronavirus pandemic, has re-opened, factories have restarted their operations, stores are reopening and people are leaving their confined quarters to venture outside.  With coronavirus having exposed [...]
  • Mining Sector Essential Part of Nation’s Critical Infrastructure Workforce

    As the U.S. grapples to flatten the curve of the rapid spread of the novel coronavirus, large swaths of public life have come to a grinding halt. However, as North of 60 Mining News publisher Shane Lasley points out in a new piece for the publication, “it remains imperative for the nation to maintain the critical [...]
  • As Beijing Sees Coronavirus Pandemic as Opportunity to Weaken U.S. Position, America Should Bolster Domestic Mineral Supply Chains

    Earlier this month, ARPN’s Daniel McGroarty argued that while the current focus on ending the dangerous dependence on critical medicines needed to combat COVID-19 is more than warranted, Congress and the administration “may want to broaden their focus from critical medicines to critical minerals.” In a new piece published in the Duluth News Tribune, Michael Stumo, [...]

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