-->
American Resources Policy Network
Promoting the development of American mineral resources.
  • 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 national outlet has taken note – and it may be good timing, as our growing reliance on foreign mineral resources spell trouble.

    Earlier this month, John Moody, Executive Vice President, Executive Editor for Fox News, raised the specter of the President and his administration having to face the “very real possibility that China could cut off U.S. access to 17 rare materials vital to our advanced aircraft and guided missile systems,” as China has a near-total supply monopoly for Rare Earths.

    In a new piece for Fox News, Moody, citing the latest USGS Mineral Commodity Summaries report, highlights the United States’ 100 percent import dependency for at least 20 metals and minerals, and the fact that China is the most common source for many of these and other metals and minerals listed in the USGS report. According to Moody, this is a serious threat to our future military security – a threat which albeit acknowledged, has so far largely been ignored.

    Moody quotes REE expert and mining industry veteran George Byers, who confirms:

    “That 2017 USGS report is not fake news, (…). You have 29 or 30 studies on critical materials, including rare earths that go back to the early ‘90s. The outcome of each study is to declare ‘we have a crisis, let’s do something about it.’ But all they do about it, is to ask for another study.”

    Pointing to a legislative effort to be spearheaded by Rep. Duncan Hunter (R, Calif.), which seeks to mandate that the U.S. military obtain Rare Earths sourced domestically – even if this would mean subsidizing those industries – Moody explains the underlying challenge:

    “The problem, these analysts note, is that U.S. production capacity in this area has been allowed to wither to almost nothing, due to plentiful supplies from China that can be produced at a lower price than U.S. made rare earths.

    Even more perilous, China’s own rapacious demand for rare earths is outstripping its ability to supply domestic consumers as well as the U.S., meaning it may be unable to ship goods to the U.S. even if it wants to.

     In addition to rare earths, which are vital components of high-grade permanent magnets used in military aircraft and missile systems, the United States, according to the USGS report, is now 100 percent reliant on foreign countries for supplies of manganese, which is used to make impact resistant steel, among other things. Though readily available in mines in Arizona, Arkansas and Minnesota, it can be imported more cheaply. The USGS study lists American production of manganese last year as: zero.”

    Indeed, Rare Earths – though of critical importance for our domestic manufacturers and our military, are just the tip of the proverbial iceberg, and with trade issues looming and the global race for mineral resources heating up, our failure to respond to these supply challenges may soon come to haunt us.  Perhaps more national exposure for these issues will help generate some much-needed momentum for the formulation of a comprehensive mineral strategy this year.

    Share
  • As Resource Dependence Deepens, Miners Pivot Back to U.S. For Exploration

    Against the backdrop of market prices recovering and supply woes looming, mining companies are expected to increase spending on exploration for the first time in five years, reports news agency Reuters.

    In what may spell good news for the United States, analysts anticipate the biggest expenditure increases to occur in the United States, Canada and Australia, all of which are considered “safe bets” due to lower operating risks and high technology standards.  Providing a private sector viewpoint, Stephen McIntosh, group executive for growth and innovation at Rio Tinto, says:

    At quiet periods in the cycle, we will typically press out into non-OECD countries (…) But at the moment, we’re focusing on the OECD, predominately the Americas, and predominately for copper.

    The development comes at a critical time when U.S. mineral resource dependencies are deepening, as the USGS’s just-released Mineral Commodity Summaries report shows.   And while for Copper (which is one of the main metals discussed in the Reuters piece) our overall dependence may have slightly dropped, demand is likely to grow significantly — due to increased infrastructure and clean tech investments (both areas in which Copper is becoming increasingly indispensible), and because of its status as a Gateway Metal (to scarce specialty metals like Rhenium, Selenium, Tellurium, Cobalt and in some instances the Rare Earths).

    While Reuters reports on these developments largely from a market perspective, there may be policy considerations at work, here, too:

    The mining industry’s pivoting back towards the United States may reflect a growing optimism that with a new Administration at the helm in Washington, DC, policies devised at creating a regulatory environment that is more conducive to responsible domestic resource development may stand a better chance.  Here’s hoping that their optimism is well founded – America’s economic well-being, as well as our competitiveness and national security would be well-served.

    Share
  • Through the Gateway: Rhodium – Not Just Another Platinum Group Metal

    A rare, silvery white, hard and corrosion-resistant metal, Rhodium is not only one of Palladium’s fellow members of the Platinum Group Metals (PGMs); it, too, happens to be a Nickel co-product.  And, as is the case with Palladium, one of Rhodium’s main uses is in catalytic converters to reduce automobile emissions, as well as in industrial catalysts. Alloyed with [...]
  • Through the Gateway: Nickel – “The Metal that Brought You Cheap Flights”

    “It made the age of cheap foreign holidays possible, and for years it was what made margarine spreadable. Nickel may not be the flashiest metal but modern life would be very different without it.”  We couldn’t have introduced our next Gateway Metal any better than the BBC did in a feature story on Nickel and [...]
  • Through the Gateway: Germanium – Semiconductor of the Future?

    Our first Zinc co-product, Germanium, is a silvery metalloid.  According to USGS, “in nature, it never exists as the native metal in nature” and “is rarely found in commercial quantities in the few minerals in which it is an essential component.” That said, the “most commercially important germanium-bearing ore deposits are zinc or lead-zinc deposits formed at low temperature.” Discovered [...]
  • Through the Gateway: Vanadium – Next-Gen Uses Drive Co-Product Challenge

    As we continue our look “Through the Gateway,” one thing has become abundantly clear already:  Beyond their traditional uses, both Gateway Metals and their Co-Products have become building blocks of our renewable energy future.  This held true for Copper and its Co-Products, but it is also equally true for Aluminum and its Co-Products. While Gallium’s [...]
  • Through the Gateway: Aluminum – Fueling the Renaissance of American Manufacturing

    Aluminum is not only one of the most sustainable materials these days, it is also making headlines – most recently during the North American Leaders Summit, also dubbed “Three Amigos Summit” held at the end of June in Ottawa, Canada.  Invoking challenges associated with China’s trade policy, President Obama called for the North American countries to [...]
  • Independence Day – A Time To Celebrate Our Freedom, Yet Be Mindful of Growing Dependencies

    It’s that time of the year again. We’re filling our shopping carts with food and drinks, making sure we have enough gas for the grill, and buying some fireworks. The 4th of July, and with that, Independence Day, has arrived. But our country’s 240th birthday is more than a good reason to throw a barbecue in honor [...]
  • Through the Gateway: Molybdenum – “The Most Important Element You Have Never Heard Of?”

    A writer for Gizmodo has dubbed it the “most important element you have never heard of.”  Writes Esther Inglis-Arkell: “Molybdenum, with its 42 protons and 54 neutrons, sits right in the middle of the periodic table being completely ignored. It’s not useless. (…) It just doesn’t have that indefinable sexiness about it.” Inglis-Arkell explains Molybdenum’s biochemical relevance: Taken [...]
  • As Japan Retreats, US Dozes Off Again On Critical Minerals

    Over the course of the last few months, slumping prices have prompted Japanese companies to reassess their rare metals strategies and cancel cooperative agreements that were once considered a high priority. As Nikkei Asian Review reports, state-owned Japan Oil, Gas and Metals National Corp. (JOGMEC) has cancelled a joint exploration contract for a tungsten mine in [...]

Archives