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American Resources Policy Network
Promoting the development of American mineral resources.
  • Op-ed: A Potential Copper Bonanza Runs Afoul of the EPA

    Copper

    The following op-ed by American Resources Principal Dan McGroarty was published in the Wall Street Journal on July 5, 2013. The original text can be found here.

    A Potential Copper Bonanza Runs Afoul of the EPA

    The metal is essential for wind turbines, but a proposed mine in Alaska has set off Keystone-like alarms.

    By Daniel McGroarty

    Activists are pushing the Environmental Protection Agency to take a drastic regulatory step that could have significant repercussions for the U.S. economy. I’m not referring to the Keystone XL pipeline or taxing carbon emissions. At issue is the Pebble Mine—a natural-resource project in Alaska that could yield more copper than has ever been found in one place anywhere in the world.

    In addition to an estimated 80 billion pounds of copper, the Pebble Mine also holds strategic metals like molybdenum and rhenium, which are essential to countless American manufacturing, high-tech and national-security applications. Yet even before a plan to mine the deposit has been introduced by the Pebble Partnership, the group poised to bring the mine into production, the EPA appears all too willing to bend to the pressure of environmental activists. The EPA has conducted a hypothetical environmental assessment of the region that positions the agency to pre-emptively veto the Pebble project before the partnership even applies for a single permit.

    Apparently some left-wing environmental groups, like the Natural Resources Defense Council, Earthworks and Trout Unlimited are so worried that the project might make it through the permitting process that they’re trying to stop it before it starts. As the NRDC put it in August 2012: “EPA’s study (and intervention) is critically important. If left to its own devices, the state of Alaska has never said no to a large mine.”

    Thankfully, some liberals are voicing their opposition to a new EPA pre-emptive veto power. The Center for American Progress, for example, has come out in favor of letting the permitting review take place, even though the group has criticized the Pebble Mine project.

    This is the first instance of a fissure in the unofficial anti-mining alliance that wants to see the EPA acquire vast new powers. With luck, more groups will emulate the Center for American Progress’s principled position.

    The irony here is that renewable-energy industries that environmentalists champion, like solar and wind, rely heavily on copper. More than three tons of it are needed for a single industrial wind turbine. CIGS photovoltaic panels hold out the promise of efficiently capturing the sun’s rays, with an energy conversion rate topping 20%. The “C” in CIGS stands for copper, and the “S” for selenium, 95% of which is derived as a copper byproduct.

    Electric cables, of course, carry the energy generated by these renewable sources to the national grid. The cables are usually made of copper, using the metal’s superior conductivity.

    Yet to hear anti-mining activists tell it, the project at Pebble Mine offers none of these benefits. Just last week, when speaking to the trade publication Energy & Environment News on the subject, NRDC official Joel Reynolds said flatly: “We view this as one of the worst projects anywhere in the world today.”

    Let’s take environmentalists’ advice and “think global” for a moment about that statement. How would a mining project at Pebble stack up against some other places where global markets currently source copper?

    Will Pebble employ child-slaves as young as 8 to do the mining? Copper mines in the Democratic Republic of Congo do—and that copper is sold into the global market.

    Will Pebble send its miners to work without respiratory equipment, wearing boots with holes that let acid rot miners’ feet? Chinese-run mines in Zambia do. Where are the environmentalist protests at the Zambian or Chinese embassies?

    Will Pebble’s leadership be able to order local officials jailed for opposing its project? That’s what happened last month in Iran—a mining nation set on doubling its copper production by 2015—where an entire town council was jailed for opposing a marble and stone mine.

    It’s easy for someone like the NRDC’s Mr. Reynolds to protest an American mine from the organization’s $5 million waterfront headquarters (the Robert Redford Building) in Santa Monica, Calif. In the U.S., protesting is a career choice, and movement leaders are feted with awards and grants. Opposing a project the size of Pebble makes a great fundraising tool. It’s far more challenging to life and limb to take on African warlords, Chinese officials or Iranian mullahs.

    Environmental activists often preach that the planet is interconnected. Well, that’s certainly true of the global marketplace: Every pound of copper left in the ground in Alaska or the Lower 48 is effectively a price support for producers in the places like Zambia and Angola.

    If the EPA reinterprets existing law—Section 404 of the Clean Water Act—and grants itself unilateral authority to stop the permitting process before it begins, Pebble Mine won’t be the only project in its cross hairs, and copper won’t be the only metal. A 2011 study by the Brattle Group, an economic consulting firm, shows that U.S. economic development projects worth more than $200 billion would be exposed if the EPA asserts this new power.

    President Obama recently said that we must weigh the opportunity cost of not building the Keystone XL pipeline. The same logic applies to the project at Pebble Mine—and the federal permitting process is the only place to do that.

    Mr. McGroarty is president of American Resources Policy Network, a public policy research group in Washington, D.C., that is supported by organizations and companies in mining and related industries.

  • Dan McGroarty featured (again) on the Glen Biegel Show

    American Resources President Dan McGroarty made his second appearance on the Glen Biegel Show in Anchorage, AK on Monday to discuss the U.S. mining permitting process and the proposed Pebble mine. Listen below.

     

     

  • Left-of-center group calls for due process on domestic mining project

    As we’re approaching the end of the EPA’s (extended) public comment period for its revised Bristol Bay Watershed Assessment, the surprises keep piling up. Only a few short days ago, the Washington Post – which is, as we’ve pointed out, not known to be a mouthpiece of the mining industry – came out against a (…) more

  • Washington Post takes common sense stance on metals mining

    Two days before President Obama is set to unveil his overhauled climate change agenda, the editorial board of the Washington Post has offered its take on what one of the paper’s own headlines has called: “one of the most important environmental decisions the president faces in his second term” – the Bristol Bay Watershed Assessment. (…) more

  • Awareness for REE supply chain issues grows in U.S. Senate

    In a column for the Washington Examiner, Ron Arnold, executive vice president of the Center for the Defense of Free Enterprise, asks why President Obama won’t “let the Defense Department face the rare earth security risk,” stemming from the severity of our mineral resource dependency on China. He cites Congressman Mike Coffman, sponsor of Federal (…) more

  • 3D Printing & the “New Rare Earths”

    “3D printing companies are the new Rare Earths.” Thus spake Twitter, a few hundred-million Tweets ago, giving birth to the new meme on what matters most in our constantly-evolving technology world. Meaning, of course, that the furor over Rare Earths sparked three years back — when China used its then-97% production monopoly as a weapon (…) more

  • What Happened to the Commitment to “Shovel-Ready” Jobs?

    At a time when the U.S. economy is still struggling, it is particularly troubling to see that real opportunities to foster job creation are being wasted by poor policy-making in Washington, DC. As Forbes reports, Caterpillar Inc.’s mining segment is facing severe pressure from a decline in capital spending from mining industries, owed in part (…) more

  • Environmentalists push energy efficiency but block development of mineral resources required for clean energy transition

    The issue of the White House blocking several Department of Energy regulations was raised at a recent Congressional hearing, the New York Times reports. The rules in question would require greater energy efficiency for appliances, as well as building and lighting. Critics argue that in spite of a 1993 executive order requiring the White House (…) more

  • Exporting California’s hazardous waste makes mockery of “environmental justice” concept

    Slowing down the permitting process is a common practice used by environmentalists to derail mining and construction projects, so one can’t help but notice the irony of a slow permitting process that complicates environmental cleanup. However, this is what is currently happening in California. As we have previously pointed out, the Golden State is in (…) more

  • Public Comment Period on Bristol Bay Watershed Assessment Extended

    Washington Post calls issue “the biggest environmental decision…you’ve never heard of…” The U.S. Environmental Protection Agency has officially extended the public comment period for its draft Bristol Bay Watershed Assessment – a review released in April in response to calls from anti-mining groups for the EPA to issue a preemptive permit veto under section 404(c) (…) more

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