In a column for Newsweek, U.S. Senator Jim Risch (R-ID) makes an urgent appeal to the U.S. public and policy stakeholders to embrace domestic mining and processing of critical minerals “before it’s too late.”
Arguing that while it is “possible to produce them here” he says that “onerous federal rules make it extremely difficult,”adding that “[w]e cannot sit idly by and hope our U.S. mining industry can cut through the red tape currently strangling it.”
Sen. Risch points to the long-standing and, against the backdrop of surging demand, increasingly dangerous practice of over-relying on foreign – and especially Chinese supplies of critical minerals, which has given our adversaries significant leverage over us. The senator points to China’s penchant for weaponizing the mineral supply chain, with recent examples being the restriction of gallium and germanium exports — key components of semiconductor production and defense technology, arguing that “[i]t is only a matter of time before China decides to punish the U.S. and ur allies again by holding minerals hostage. That will even apply to minerals that are mined in the U.S. but processed in China, like copper.”
Meanwhile, one of the key obstacles to increased domestic mining and processing according to Sen. Risch, is the Biden administration, under whose guise a “working group on mining regulations released recommendations that, if implemented would transition mineral rights to a leasing program and add a dirt tax to every shovelful of ore, regardless of the value of the mineral,” which, according to the senator “would add years to the already lengthy permitting process and stifle investment in mining projects.”
Followers of ARPN are familiar with the average permitting timeframe for mining projects of roughly seven to ten years. Litigation from NIMBY environmental groups — Sen. Risch points to the Rosemont decision in the Ninth Circuit Court which “changed the interpretation of long-established mining law” and “hampers the industry while making mining significantly less efficient and cost-effective”– can further add years to the already onerous process.
With even U.S. car companies requesting that the Biden administration speed up the mine permitting process, a consensus is growing that reform should be a national priority.
Sen. Risch points to the U.S. Department of Defense being an outlier in the administration and having recognized the “danger we face, which is why it is awarding grants to critical mining projects.” The senator highlights the stibnite gold project in the central region of his home state of Idaho, where Perpetua Resources is working to be the sole domestic source of antimony, a key component of military technology.
But of course, as followers of ARPN know, there are more projects receiving DoD support with even more expected to be announced on a rolling basis.
In ARPN’s latest post on the blog, we pointed a series of Presidential Determinations involving specific critical minerals which laid the foundation for this type of funding under Defense Production Act Title III authority.
Current projects, recently highlighted by Oregon Group’s Anthony Milewski, include:
- Graphite: a $37.5 million agreement between the DoD and Graphite One (Alaska) to fast-track a domestic graphite mine;
- Antimony (as highlighted by Sen. Risch): two awards — $24.8 million and $15.5 million — by the DoD to Perpetua Resources to secure a domestic source of antimony [an additional conditional award of up to $34.6 million under the existing Technology Investment Agreement was announced earlier last month];
- Lithium: a $90million agreement to secure lithium production between the DoD and Abermarle;
- Nickel: a US $20.6 million agreement between the DoD and Talon Nickel to increase domestic nickel production.
Closes Sen. Risch:
“Every aspect of our society and security relies on processed minerals and would therefore benefit from expedited permitting and easier access. We cannot afford to wait until China reduces or even cuts off our access to critical minerals.
It is time for America to see the power of the U.S. mining industry, invest in it, and secure our supply chains. The technology we depend on every day is only possible because of mining. To ensure not just our economic success but our national security, Congress must revamp our mining laws and substantially reduce irrelevant regulations.”
The stakes are getting higher by the day, and, as ARPN’s Daniel McGroarty pointed out years ago, “we can’t admire the problem any longer” because “we don’t have the luxury of time.” However, we are dealing with Washington, D.C., and the question is whether Congressional stakeholders will finally be able to put policy over politics in an election year.