-->
American Resources Policy Network
Promoting the development of American mineral resources.
  • REEs Underscore Challenges of Erosion of Defense Industrial Base

    While policies stemming from the dominating free-trade ideology “have succeeded in generating great wealth for the U.S. economy, they have also led to a number of unintended consequences, including the erosion of the manufacturing segment of the defense industrial base,” argues Jeff Green, president of Washington, D.C.-based government relations firm J.A. Green & Company, and member of the ARPN panel of experts in a new piece for National Defense Magazine.

    Compounded by budgetary uncertainty during the Obama administration, he says, a “greatly reduced scope within the industry left the defense supply chain with a large number of single points of failure.”

    Writes Green:

    “Looking at U.S. industry more broadly, it is clear that while certain segments of manufacturing output are doing well, industries that supply defense manufacturing have sustained deep declines in recent years. The mining of non-fuel resources, for example, peaked in early 2006 and has declined ever since. The decline in textile production has been even more dramatic. At a time when the economy is increasingly dominated by service businesses, both the executive branch and Congress must take a hard look at the ideological underpinnings driving our industrial policy.”

    Green points to the example of Rare Earths and our “near sole-source dependence on China” for these elements, which are essential components of a broad range of high-tech military equipment. The lack of domestic sources creates a serious strategic vulnerability vis-à-vis our adversaries, as underscored by the 2010 decision by China to cut off REE exports to Japan – an episode ARPN followers may remember.

    Green is concerned by indications that “China may try to use the export of critical raw materials to gain geopolitical leverage over the United States,” citing a remarks by China’s former finance minister Lou Jiwei who reportedly told an audience in September of last year that China could restrict exports of core items for the U.S. manufacturing supply chain.

    Thankfully, Green says, “government policy is rapidly changing to create a more secure industrial base, highlighted by efforts to create a more favorable business climate to sustain potentially low-volume, high priority production of key materials.”

    To read Green’s full piece, in which he outlines recent government initiatives and calls on Congress to provide legislative support for executive action, click here.

    And for a an insightful primer on Rare Earths supply and demand trends watch this interview with Roskill analyst David Merriman.

     

     

    Share
  • ARPN Expert: To Counter China’s Mineral Resource Dominance, U.S. Apathy About Critical Minerals Must End  

    Followers of ARPN know that China is the big elephant in the room when it comes to the United States’ critical mineral resource supply issues.  As ARPN expert panel member Ned Mamula, an adjunct scholar in geosciences at the Center for the Study of Science, Cato Institute, and “Rare Mettle” author Ann Bridges write in a new piece for National Review:

    “Where U.S.–China trade and tariff issues are concerned, China now holds a powerful trump card. Many of the advanced-technology and strategic-defense systems upon which our nation depends will not function without Chinese rare earth parts — and alternative parts makers are not in place to fill our needs. Therefore, it might be a bad day at the bargaining table for the U.S. if and when China decides to play its rare earth card.”

    To explain the United States’ retreat from being the world’s top minerals producer and exporter in the 1990s and China’s mineral resource dominance, Mamula and Bridges offer a point-by-point comparison of Chinese policies  “with the results of past U.S. minerals policies and sentiment about mining — ranging from apathy about critical minerals to open hostility toward their domestic production.”

    While the comparison paints a bleak picture, there are ways “out of this mineral-dependency mess.” Friends of ARPN won’t be surprised that Mamula and Bridges point to presidential executive order (EO 13817), which has set the stage for domestic mineral resource reform.  The proof remains in the pudding and the Congressional record since the announcement of the executive order has been somewhat mixed.

    However, the bottom line, according to Mamula and Bridges stands:

    “As informed citizens, we should embrace and not shrink from U.S. mineral wealth. It is an important part of our American resource endowment. Like the Canadians, Australians, and other resource-rich nations, we should insist on and applaud a vibrant mining industry. Investment in the technology and energy sectors now needs to include mining, too, as it supplies us with so much and can also contribute mightily to the GDP.

    The math is simple: More American mining = less Chinese mineral imports.

    The only real, sustainable pushback against the Chinese mineral-industry juggernaut, which is burying the U.S. with critical mineral imports, is more domestic mining. There really is no other way.”

    Perhaps the release of the Administration’s long-awaited defense-industrial base study, which we’re expecting any day now as per the Defense Department’s top acquisition official, will inject some fresh momentum into domestic mineral resource policy overhaul efforts.  With Rare Earths particularly at risk, the fragility of the U.S. defense supply chain looms large.

    Share
  • While Some Reforms Fizzled, Enacted NDAA Contains Potentially Precedent-Setting REE Sourcing Provision

    As we have noted, the recently-signed John S. McCain (may he rest in peace) National Defense Authorization Act for Fiscal Year 2019 (H.R. 5515), stands as a missed opportunity to enact several meaningful mineral resource policy reforms. Nonetheless, one provision of the signed legislation marks an important development for the realm of resource policy – [...]
  • Rare Earths Issue Back in the Mix As Trade Tensions With China Escalate

    At ARPN, we have long highlighted the inter-relationship between resource policy and trade policy. While more recently, we looked at tensions in our relationship with Canada over tariffs on aluminum and steel, other areas of concern are coming into focus. Mounting tensions over trade with China have brought the Rare Earths issue, with which ARPN [...]
  • Materials Science Profiles of Progress – Researchers Turn to Bioengineered Bacteria to Recover REEs

    Followers of ARPN are well aware that we have been calling out policy makers and other stakeholders for their inaction when it comes to working towards the development of a coherent, forward-looking and comprehensive mineral resource strategy – and we frequently point to missed opportunities to work towards this goal. While we stand by our [...]
  • Critical Materials Institute Head Puts Apple’s Goal to Stop Mining in Context

    Recently, tech giant Apple made a bit of a splash with the announcement of a lofty sustainability goal — one the company itself is not sure how to achieve yet. Kicking off its new Environmental Responsibility Report with the question “Can we one day stop mining the Earth altogether?,” Apple commits itself to working towards a “closed-loop supply chain, where [...]
  • North Korean Brinkmanship Highlights Nexus Between Resource Policy and Geopolitics

    At ARPN, we have long highlighted the important but oft-overlooked nexus between resource policy and geopolitics.   The latest case in point is South Korea, which, as ARPN President Daniel McGroarty points out in his latest opinion piece for Fox News, is navigating murky waters “talking sunshine and Rare Earths as North Korean war clouds gather.” For decades, [...]
  • The U.S. Tomahawk Strike – Syria, Russia … and China?

    While the world media mulls the impact of the U.S. airstrike on Syria in the wake of the sarin gas attack and marvel at the accuracy of the Tomahawk cruise missile, friends of ARPN are reminded that the rare earths critical to the Tomahawk’s terminal guidance system are sourced from China. An interesting sidebar to [...]
  • Guest Commentary: Jeff Green On New Congressional REE Policy Initiative

    The following is a guest post by American Resources expert and J.A. Green & Company president and founder Jeffery A. Green The United States has placed itself in a very precarious situation with respect to its ability to produce and refine strategic and critical materials. Over the past few years we have willfully ceded our last remaining [...]
  • USGS Report Bellwether for National Security Crisis?

    For over two decades, the United States Geological Survey has released its Mineral Commodity Summaries report.  And while ARPN followers will know how important this publication is, as it provides a snapshot of our nation’s mineral resource dependencies, in most years its release has gone largely unnoticed beyond the circles of mineral resource wonks. This year, a [...]

Archives