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American Resources Policy Network
Promoting the development of American mineral resources.
  • Beyond the Rhetoric Lies the Hard Reality of Materials Supply — ARPN’s McGroarty on U.S. Ban of Huawei’s 5G in the Context of Resource Policy

    In a new piece for The Economic Standard, ARPN’s Daniel McGroarty discusses critical mineral resource challenges associated with “the great U.S.-China decoupling.”  He does so against the backdrop of the U.S. decision to ban Huawei’s 5G network and imposition of travel sanctions on Huawei employees — a move McGroarty says may well be called the “first battle of the U.S.-China tech war, the contest to define — and dominate — the technology Operating Systems of the 21st Century.”

    Outlining both the opportunities and risks of the cutting edge technology of 5G, which are equally tremendous, McGroarty writes that “[i]n a rabidly partisan political climate, Huawei worry is one of the few afflictions that affect both U.S. political parties,” and points to a new White House strategy document on how to secure 5G, as well as the Biden presidential campaign’s plan on the issue.  While both recognize the security risks involved, McGroarty laments:

    “What neither plan does in any detail is reckon with the unique material inputs required for the U.S. to begin its own 5G buildout. Here, as in its blinding speeds, 5G is like no network that’s come before” — requiring significant quantities of “one of the rarest of rare earths:” 
    Erbium.

    He goes on: 

    “With the U.S. currently 100% import-dependent for the rare earths, where does the world get its Erbium? From China. So as the U.S. thumbs its nose at Huawei, it’s worth wondering how China will react when it comes to selling American and allied nation companies the Erbium they need to build a 5G alternative.”

    While the “U.S. has deposits rich in the very rare earths needed to build our own 5G, as well as all of the 22 minerals and metals on the U.S. Government’s Critical Mineral List,” for now, China is either main supplier globally, or the United States’ leading supplier, and in some cases, it is both — a fact that is easily overlooked, but impossible to ignore. 

    McGroarty closes: 

    “So the next time you read an article that talks about reshoring America’s manufacturing capability or bringing critical supply chains back from China to the U.S., bear in mind that, beyond the rhetoric of decoupling, there’s the hard reality that manufacturing requires ready access to the materials that make things work. It’s one thing to ban Huawei’s 5G, and quite another to build an American alternative – when China controls the minerals and metals it’s made of.”

    Read the full piece here.

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  • Independence Day 2020 – Critical Mineral Resource Policy in a Watershed Year

    It’s that time of the year again – Independence Day is upon us.  This year, things are different, though. If you’re like us, it kind of snuck up on you, and it took seeing the booths selling fireworks in the parking lots to realize it’s July already.  After all, we just came off the longest month of March ever, right?

    While parades and fireworks to honor the men and women who have fought for, and continue to safeguard our freedom today, have been canceled in many places, July 4th still provides us with an opportunity to pause and take stock of where we are as a nation — and this year, there is much to reflect on.

    From a critical mineral resource perspective, we at ARPN have always used the occasion of Independence Day to remind ourselves that “while we cherish the freedom we are blessed with in so many ways, we must not become complacent, as there are areas where we’re increasingly becoming less independent” — with our reliance on foreign mineral resources being a case in point. 

    Today, this statement rings more true than ever, with the ongoing coronavirus pandemic having exposed the vast extent of our mineral resource supply chain vulnerabilities. As ARPN’s Daniel McGroarty argued in a piece for Real Clear Politics in March, “[t]he rapid spread of the coronavirus is doing more than claim an alarming number of human hosts — it is burning through decades of bureaucratic inertia and plain inattention as the American economic ecosystem has become dangerously dependent on China.”

    As followers of ARPN know — and as our nation as a whole is increasingly realizing —the United States’ reliance on foreign non-fuel minerals has significantly increased over the course of the past 65 years, both in terms of number and type, as well as as a percentage of import reliance.  Along with the rise in import dependency came a drastic shift in provider countries.

    Whereas the number of non-fuel mineral commodities for which the United States was greater than 50% net import-dependent was 28 in 1954, this number increased to 47 in 2014.  And while the U.S. was 100% net import reliant for 8 of the non-fuel commodities analyzed in 1954, this total import reliance increased to 11 non-fuel minerals in 1984, and currently stands at 17.  In the latest USGS Mineral Commodity Summaries report, China continues to be the elephant in the data room, and is listed 25 times as one of the major import sources of metals and minerals for which our net import reliance is 50% or greater.

    This spells trouble, and this realization is going mainstream, as indicated by this week’s Wall Street Journal discussion of a report by consulting firm Horizon Advocacy, which (looking specifically at rare earths) warns that “China’s rare earths positioning both implicates and threatens the entire global system,” and that “China will not rule out using rare earth exports as leverage (…).”

    Thankfully, there are indications that policymakers on Capitol Hill, in Cabinet Departments and in the White House are taking the issue seriously, and, after years of inaction, a flurry of current policy initiatives aimed at alleviating our supply chain vulnerabilities points to the U.S. Government viewing strategic materials and critical minerals issues with a new seriousness.

    Underscoring the urgency of the situation largely from a battery tech minerals perspective, Simon Moores, managing director of Benchmark Mineral Intelligence and a member of the ARPN panel of experts, told the committee that “(…) the consequences of a long-term cutoff of some of the critical materials that we’ve discussed today would just be disastrous for the U.S. economy. (…) The threat of China…is becoming more and more evident every day even during this pandemic.” 

    How we proceed forward over the next few months of 2020 could become a watershed moment for United States. Will we continue to tinker around the edges of policy reform, or will we finally take significant steps towards U.S. mineral resource independence? 

    As Moores concluded in his Senate testimony with regards to securing critical mineral resource supply chains:

    “It is not too late for the US but action is needed now.”

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  • ARPN’s McGroarty: “First Word in Supply Chain is ‘Supply’”

    Re-shoring is the word of the hour.  If the current coronavirus pandemic has shown us anything, it’s that we will need to rethink where we source and produce in the aftermath of COVID — an issue ARPN’s Daniel McGroarty zeroes in on in a new piece for The Economic Standard. Citing the excitement over the [...]
  • 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 [...]
  • 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 [...]
  • ARPN’s Daniel McGroarty for RealClearPolitics: “Time to Reduce Reliance on China for Medicine AND Critical Minerals”

    In a new piece for RealClear Politics, ARPN’s Daniel McGroarty argues 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.” Read his full piece here: Getting Critical [...]
  • Are we Ready for the Tech Metals Age? Thoughts on Critical Minerals, Public Policy and the Private Sector

    Earlier this week, ARPN’s Daniel McGroarty shared his views on the coming tech metal age and its policy implications at In the Zone 2019 – Critical Materials: Securing Indo-Pacific Technology Futures – a conference hosted in cooperation with the University of Western Australia to look at critical mineral resource issues through the prism of the [...]
  • McGroarty Warns of Real World Problem for 21st Century American Warrior

    In a new commentary for Investor’s Business Daily, ARPN principal Daniel McGroarty warns of “America’s unilateral disarmament in the resource wars.”  Invoking the world of Marvel comics, in which Vibranium is the imaginary metal used for Captain America’s shield, IronMan’s exoskeleton, and Black Panther’s energy-absorbing suit, McGroarty argues that the 21st Century American warrior (perhaps [...]
  • ARPN’s McGroarty for The Hill: With USMCA, Time to Take Strategic North American Alliance to the Next Level Has Arrived

    “Now that President Trump has won agreement to replace NAFTA with the USMCA — the new U.S.-Mexico-Canada trade agreement — he has an opportunity to build on that accomplishment, and broaden the benefits of trade to strengthen national security,” writes ARPN Principal Daniel McGroarty in a new op-ed for The Hill. The next step, says McGroarty, [...]
  • Interview: AEMA’s Laura Skaer – The Mining Industry’s Challenges and a Look Ahead

    For the last few months, politics has sucked up much of the oxygen in Washington, DC and around the country.  With the inauguration of the 45th President of the United States behind us, many of us are hopeful that the time has come to finally shift the focus away from politics toward policy. Against the backdrop [...]

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