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American Resources Policy Network
Promoting the development of American mineral resources.
  • U.S. Senator and AK Governor for The Hill: With China Having Taken Control of Critical Mineral Supply Chains, We Need to Act Now

    Beijing’s threat to withhold potentially life-saving medical supplies and medications in the middle of a global pandemic, during which China has “taken control of [respective] supply chains around the world as part of its quest for global domination,” were a wake up call, write U.S. Sen. Ted Cruz (R-TX) and Gov. Mike Dunleavy (R-AK) in an op-ed for The Hill. Medical supplies and medications, however, they say, “aren’t the only products the Chinese control that the United States depends on.” With China having effectively consolidated the global supply chain for critical minerals, including rare earth elements, we are now faced with the gargantuan task of “jumpstarting an industry that barely exists.”

    Thankfully, as Sen. Cruz and Gov. Dunleavy point out, the Trump administration began taking steps towards prioritizing critical mineral resource policy and re-shoring these supply chains in 2017, and has stepped up its efforts once more with the signing of a new presidential executive order declaring a critical minerals national emergency at the end of September of this year.

    The task, as the authors point out, is “exponentially more difficult” than keeping existing supply chains in the United States, because China recognized the importance of critical minerals for high-tech economies well before other global players, and has been jockeying for the global pole position in the space ever since. Write Cruz and Dunleavy:

    “Bringing the supply chain to the United States requires granular knowledge of the industry, because investors are sitting on the sidelines of the critical minerals industry for different reasons than they’re sitting on the sidelines of the pharmaceutical industry. To fix this, we have to convince investors to get into a market where they are justifiably afraid China will undermine them at every point of the supply chain.”

    They point to Sen. Ted Cruz’s ORE Act and Gov. Dunleavy’s executive action to provide financing for REE mining projects in Alaska as examples of market-based incentives which, coupled with regulatory reform can jump-start the much-needed buildout of our nation’s crucial mineral supply chains.

    The ORE ACT provides tax incentives for buying American mined rare earths and battery minerals and metals; strengthens requirements for the Pentagon to source these critical mined materials from the U.S.; and establishes grants for pilot programs to develop these materials in the U.S.”

    Sen. Cruz and Gov. Dunleavy insist that “the entire country has a role to play” in the effort to build out a comprehensive domestic critical minerals supply chain – “from the reclamation of mines and reprocessing of mine waste rock in Appalachia, to mines in Texas, Alaska, California and Wyoming. In Alaska alone, 30 of the 35 critical minerals identified by President Trump are available for extraction, as well as tremendous amounts of commercial-grade graphite, lead, zinc and copper.”

    Efforts like the ORE Act are gaining traction in Congress, and Alaska – rich in metals and minerals (with 30 of the 35 deemed critical by the Department of the Interior in 2018 available for extraction) — is assuming a leadership role at the state level.

    We don’t have a moment to waste. As Sen. Cruz and Gov. Dunleavy argue:

    “At any time, China could cut off our access to rare earth elements and critical minerals. We need to act now to establish a critical mineral supply chain in the United States, and to make sure we can manufacture defense technologies and support our military. Our national security depends on it.”

    Click here to read the full op-ed.

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  • China’s New Export Control Legislation Raises Specter of REE Ban

    Three weeks ago, U.S. President Donald Trump signed an executive order declaring a critical minerals national emergency aimed at expanding domestic production of rare-earth and other critical minerals in an effort to reduce dependence on China. Among other things, the order directs the Department of the Interior to explore the application of the Defense Production Act — used earlier in the year to accelerate production of medical supplies in the context of the ongoing coronavirus pandemic — to promote domestic resource production and development.

    The executive order is a direct response to an inconvenient truth the current pandemic has brought to the forefront — our over-reliance on foreign (and especially Chinese) critical minerals, and China’s penchant for playing politics when holding leverage over its adversaries, indications for which have been mounting over the last few months amidst growing trade tensions between the United States and China.

    News coming out of China this weekend point to China’s readiness to escalate tensions with the United States and its allies and underscore the need for action.

    According to Nikkei Asia, the Chinese legislature on Saturday passed export control legislation China to “take countermeasures against any country or region that abuses export-control measures and poses a threat to China’s national security interests,” and effectively allows the “government to ban exports of strategic materials and advanced technology to specific foreign companies.”

    Listing some of the ramifications of the new law, which is set to go into effect on December 1, 2020, Nikkei Asia writes that “[c]oncerns have been raised that rare-earth metals, for which China’s market share exceeds 60%, may be included in the restricted items. Such a ban would have broad implications worldwide.”

    Aside from also affecting companies that import export-controlled items from China, and not only end users, the law can also “be enforced over acts committed outside Chinese borders,” and employees of foreign companies without offices in China could be arrested upon entering the country.

    The move comes on the heels of ministerial meetings of the Australia-India-Japan-United States Quadrilateral or Quad in Tokyo earlier this month — which had prompted the Chinese Communist Party to dub the Quad an “anti-China coalition” and an “exclusive clique.”

    During the Quad meetings, U.S. Secretary of State Mike Pompeo had called for the four-nation grouping to “collaborate” on countering China, stating that “[a]s partners in this Quad, it is more critical now than ever that we collaborate to protect our people and partners from the Chinese Communist Party’s (CCP’s) exploitation, corruption, and coercion.”

    With tensions escalating, it is encouraging to see that stakeholders have begun to realize the urgency of the situation and there are indications that the new executive order is (finally) setting off a flurry of activity in the U.S. critical minerals space — along all links of the supply chain. As ARPN’s Daniel McGroarty has stated:

    “[W]e’ve spent enough time admiring this problem. The question now will be whether this EO triggers an immediate and active response on the part of the U.S. Government – one that will encourage American ingenuity, innovation and investment to bring new sources of supply into production.”

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  • Scandium Has Yet to Go “Ballistic” — Will Recent Developments Change the Material’s Odds to Shine?

    “This obscure metal is going to go ballistic in a few years,” John Kaiser of Kaiser Research told the Investing News Network a few years ago. The metal he was referring to is Scandium — a material that is “as strong as titanium, as light as aluminum, and as hard as ceramic.” It’s a material [...]
  • Russia Pushes for Global Rare Earth Market Share as U.S. Struggles to Move Forward With Critical Minerals Initiatives

    Russia is certainly making headlines this week.  Quite obviously, much of the media attention is focused around President Vladimir Putin’s declaration that Russia has approved a vaccine for the coronavirus (after less than two months of testing) — but developments in the critical minerals realm also warrant attention: A top Russian government official has told [...]
  • 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 [...]
  • 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 [...]
  • ARPN’s Wirtz: “COVID Should Be the Last Warning the U.S. Needs to Bolster Mineral Resource Security”

    ***Posted by Daniel McGroarty*** “The current coronavirus pandemic has exposed significant supply chain challenges associated with our over-reliance on foreign (and especially Chinese) raw materials,” — writes ARPN’s Sandra Wirtz in a new piece for The Economic Standard:   “PPE has become the poster child, but whether it’s smart phone technology, solar panels, electric vehicles, or [...]
  • ARPN’s McGroarty for The Economic Standard: Red Swan – a Leaked 2010 Cable on Critical Infrastructure/Key Resource Vulnerabilities Provided Warning Signs We Failed To Act On

    In a new piece for The Economic Standard, ARPN’s Daniel McGroarty argues that while the “intellectual shrug” of “who could have seen this coming” tends to be a common reaction to our new normal of sheltering in place and social distancing, there were warning signs for a coming crisis we failed to recognize for what they were, and act [...]
  • 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 [...]
  • To Reduce Supply Chain Vulnerabilities, U.S. Should Tap Domestic Mineral Resources More

    Over the past few weeks, the spread of the coronavirus has begun to expose the supply chain challenges associated with an over-reliance on foreign raw materials, the effects of which will be felt across broad segments of manufacturing. In a new piece for PennLive Patriot-News, Michael Stumo, CEO of the Coalition for a Prosperous America [...]

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