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In a new piece for Investor Intel, our very own Dan McGroarty sounds the alarm on a little-noticed but troubling passage in the U.S. House-passed Defense Authorization Act for 2014.  Said section in Title III acknowledges the importance of Tungsten and Molybdenum powders, including Tungsten Rhenium (WRe) wire to a variety of Department of Defense (DoD) applications. Noting that there is no suitable substitute for WRe wire, the bill directs the Secretary of Defense to determine whether there is sufficient supply of WRE wire to meet DoD requirements, and to submit a mitigation plan in case of a negative determination.

As McGroarty argues, “in the case of Tungsten, the U.S. currently produces more than half of the metal it uses each year. Which makes Rhenium the weak link in the WRe chain.”

The reason?  In spite of the fact that Rhenium is critical for high-temperature superalloys used in the turbines of the Joint Strike Fighter-35 and other fighter aircraft, there is no Rhenium in the U.S. National Defense Stockpile and the U.S. currently imports 78% of the Rhenium it uses.

With Rhenium being a byproduct of Copper production, the non-specified military applications could be met if the proposed Resolution Copper mine project in Arizona – expected to increase U.S. Rhenium production by more than 200% – was realized.

However, that project remains in limbo with a necessary land swap bill having met ferocious (and largely baseless) opposition by mining opponents.

Concludes McGroarty:

“U.S. policymakers have a choice to make. They can put in place a strategic resource development policy that would help produce more U.S. supply of critical metals like Rhenium – and, while they’re at it, the 18 other metals for which the U.S. is currently 100% import-dependent – or they can stick with our current faith-based resource policy on the theory that other countries will happily sell us the metals and minerals we fail to mine in the U.S.

Until then, Rhenium will remain an example of the leverage the U.S. places in other country’s hands to provide – or withhold – metals critical to U.S. national security.”

Click here to read the full piece. 

A sobering story comes to us via Reuters, which reports that Peoria, Illinois-based Caterpillar Inc’s release of dealer sales data this week shows continuing weak demand, with sales down nine percent compared to last year.

Ongoing weak demand has led the world’s largest maker of mining and construction equipment to slash its workforce by eight percent over the past year.

One of the main reasons, according to Reuters, is that sales in the mining equipment segment – which has been Caterpillar’s most profitable product category – as miners “have slashed capital spending, slowed the development on some projects and shelved others entirely.”

A slight improvement in U.S. sales figures, meanwhile, is not attributable to mining equipment sales, but rather “the nascent rebound in public spending on infrastructure projects as well as the wobbly but ongoing recovery in residential and nonresidential construction.”

Meanwhile, the domestic mining segment in particular is one that could go far in spurring growth and creating jobs if its potential was unlocked:

On an annual basis, the United States imports almost $7 billion worth of minerals – in spite of the fact that it is home to substantial mineral riches, with estimates placing the value of these key minerals at $6.2 trillion. One of the key reasons for which this vast potential is not harnessed at present is challenging policy environment at the heart of which lies an outdated and onerous permitting structure that deters investors.

Case in point is the average time it takes to get a mining project online: the very process that is wrapped up in one to two years in Australia, and three to five years in Canada – without compromising environmental standards – takes a whopping seven to ten years in the United States.

Not surprisingly, the esteemed mining industry advisory firm Behre Dolbear has called permitting delays the “most significant risk to mining projects in the United States,” prompting investors to take their money, and thus the jobs, elsewhere.

Consider that even in spite of this, the U.S. mining industry supported “1.1 million American jobs, [and] mineral-based products added more than $2 trillion to the U.S. economy in 2012, or roughly 15 percent of the GDP.” If policy makers were to formulate a coherent 21st century critical minerals strategy and reform our ever-expanding process, these numbers could increase drastically – however the fate of promising first efforts to do so, remains questionable.

An overhaul of the approvals process in Queensland, Australia will cut the time it takes to issue an exploration permit in half, according to the state’s government.  The change applies to exploration permits only, and government officials are very clear that a granted exploration permit is not a right to mine. Nonetheless, the new process represents (…) more

With the launch of its Graphene Flagship project last week, the European Union is embarking on one of its most ambitious science projects ever – and is trying to get out in front of a growing rush to harness graphene’s vast potential. A single layer of carbon atoms, graphene has been called a new “wonder (…) more

The government shutdown notwithstanding, mining experts took to Capitol Hill this week to share their concerns about the roadblocks they encounter in the form of often unnecessary and costly regulations, and even – in some cases – abusive actions on the part of the Obama Administration, with members of Congress. During Thursday’s House Natural Resources (…) more

We have had a fair amount of graphite- and graphene-related coverage on our blog in recent months – but for good reason. As analyst Byron King argues, graphite, as one of the primary carbon raw materials in a naturally occurring form, and allotropes of carbon, such as graphite nanotubes and graphene, will play a major (…) more

While the fate of even first steps towards implementing a strategic minerals policy in the U.S. remains questionable, China is expanding its mineral resource footprint virtually all over the globe. According to recent media reports, Chinese companies have made forays into Sri Lanka looking for copper, zinc and aluminium suppliers. While this search was unsuccessful, (…) more

While the Government Shutdown dominates the news channels and occupies the pundits, the U.S. Congress continues to conduct business with potentially far-reaching impact on the U.S. economy and national security. Case in point: Debate concerning H.R. 687, the Southeast Arizona Land Exchange and Conservation Act – a meticulously crafted bill that would allow a proposed (…) more

As if to confirm Robin Bromby’s recent assessment that “the Lithium story [was] getting stronger,” there have been media announcements that China will be subsidizing purchases of electric (and hydrogen) cars sold between now and 2015 to the tune of roughly $9,800. China’s reported goal of putting five million “new energy cars” on the road (…) more

ARPN readers know the vehemence of anti-mining activists in the U.S., including groups like Earthworks, whose director admitted during Congressional testimony earlier this year that the group couldn’t identify a single mine that had ever met with its approval. But the cynical tactics on display in the debate taking place around a U.S. House bill (…) more