The mining newspaper for Alaska and Canada's North
The mining newspaper for Alaska and Canada's North
CBS newsmagazine provides segue to Murkowski's critical minerals bill
U.S. Sen. Lisa Murkowski, R-Alaska, is again urging fellow lawmakers in Washington, D.C. to enact legislation that would restore America’s mineral security.
“After years of inaction, it is time for Congress to recognize that our mineral policies need to be modernized as soon as possible,” said Murkowski, who is chairman of the Senate Energy and Natural Resources Committee
CBS newsmagazine, 60 Minutes, provided a timely segue to Murkowski’s critical minerals bill by airing a story on the United States’ reliance on China for its supply of this group of 17 previously obscure metals, rare elements that are vital to modern military, green energy and high-tech applications.
“What do cars, precision-guided missiles and the television you’re watching right now have in common?” 60 Minutes Correspondent Lesley Stahl asked the some 11.6 million viewers tuned into the program. “They all depend on something called rare earth elements, unusual metals that are sprinkled inside almost every piece of high-tech you can think of.”
The program goes on to provide a brief history of China’s rise to dominance in global rare earth supply and the United States’ struggles to regain a foothold in the sector.
Murkowski, which commended CBS for shining a spotlight on the United States’ dependence on China to supply the majority of the rare earths it needs, said policymakers in Washington D.C. need to create an atmosphere that promotes the mining and refinement of rare earths and manufacturing of the high-tech components these elements enhance with their special properties.
“From my perspective, this is not just a matter of what China has done to pull ahead, but what our nation has failed to do in falling behind. Our foreign mineral dependence is a serious challenge, decades in the making, and we urgently need to reform federal policies all along the supply chain,” she said.
Since introducing the Rare Earth Supply Technology and Resources Transformation Act, or “Restart” Act, to the Senate in 2010, Murkowski has attempted to convince her fellow lawmakers of the need for updating domestic mineral policies – not only for rare earths sourced from China but any mineral considered critical to the United States.
“Minerals are critical to every aspect of our daily lives. We rely on them for everything we do and everything we make – from our smallest computer chips to our newest energy technologies to our most advanced defense systems,” Murkowski said. “Despite this, as highlighted just this weekend by 60 Minutes, we are alarmingly dependent on foreign sources for dozens of minerals. Instead of ignoring this situation as it grows worse, my bill offers a chance to change course. It would improve our mineral security and protect our manufacturers for decades to come.”
Revamping the supply chain
On March 26, Murkowski introduced Senate Bill 883, the “American Mineral Security Act of 2015,” the latest incarnation of critical minerals legislation that the Alaska senator has worked to get approved in recent congressional sessions.
“I have developed legislation to revamp our entire minerals supply chain – from the permitting of new mines, to establishing a forecasting capability, to promoting alternatives and recycling. After discussing and refining these ideas throughout the last two Congresses, I am hopeful this will be the year we finally enact this bill,” she said.
Tackling the nearly decade-long permitting timeline in the United States is considered one of the most important aspects of the legislation.
“While few countries can rival our abundance of mineral resources, even fewer have a permitting system as inefficient as the U.S.,” according to National Mining Association President and CEO Hal Quinn. “Our antiquated and duplicative permitting process discourages investment and jeopardizes the growth of downstream industries, related jobs and technological innovation that all depend on a secure and reliable mineral supply chain.”
In its latest report, “2014 Ranking of Countries for Mining Investment: ‘Where Not to Invest’,” Behre Dolbear continues to note that it takes seven to 10 years to permit a mine in the United States.
“Permitting delays are the most significant risk to mining projects in the United States,” said the longstanding mining advisor.
Even states considered to have efficient permitting processes are hampered by federal rules, according to Behre Dolbear.
Provisions in Murkowski’s legislation aim to shorten the time it takes to permit mines on federal lands by prompting the Bureau of Land Management and Forest Service to find ways to make the permitting process more efficient, while supporting economic growth.
Adopting a strategy introduced by Rep. Mark Amodei, R-Nevada, in 2014, the bill also would designate any proposed mines that would produce critical minerals as infrastructure projects as described by Presidential Order 13604, “Improving Performance of Federal Permitting and Review of Infrastructure Projects.”
Tagging critical minerals mines to the Presidential Order is expected to further streamline the permitting of these projects.
Finding domestic sources
Identifying exactly what minerals are critical to the United States and finding domestic sources for these is another important aspect of S.883.
According to a 2008 report by the National Academy of Sciences, “The unique properties of nonfuel minerals, mineral products, metals, and alloys contribute to the provision of food, shelter, infrastructure, transportation, communications, health care, and defense. Every year more than 25,000 pounds (11.3 metric tons) of new nonfuel minerals must be provided for each person in the United States to make the items that we use every day.”
In its 2015 minerals report, the United States Geological Survey listed 43 minerals for which the United States hosts half of what it needs, and the country is 100 percent reliant on foreign sources for 19 of these elements.
The American Mineral Security Act directs the USGS to work with fellow federal agencies to determine what minerals are critical, based on potential supply restrictions and the importance of minerals to energy, defense, currency, agriculture, consumer electronics and health care.
Once a list of critical minerals are established, the bill tasks the USGS with identifying and quantifying known domestic sources of these elements, and assessing the potentiality of yet-to-be discovered critical mineral resources in the United States.
S.883 also has language to continue programs aimed at recycling and seeking alternatives to minerals deemed critical; build upon the nation’s capacity to forecast critical mineral trends; and develop critical mineral curriculum and establish graduate and undergraduate programs for American colleges.
Downstream support
From miners to manufacturers, the minerals bill is getting support from all along the critical minerals supply chain.
According to a 2014 survey carried out by Edelman Berland for the National Mining Association, 91 percent of senior executives from U.S. manufacturing industries expressed concerns about potential disruptions in their minerals supply due to factors such as geopolitics and global competition. Some 80 percent of these survey respondents said they would prefer to source their minerals domestically.
“America’s manufacturing CEOs have recognized that using our country’s minerals responsibly and efficiently is a national priority for strengthening our manufacturing base and the jobs it provides,” said NMA President Quinn.
This downstream support was made evident last year when a coalition of 38 companies and organizations signed a letter urging Congress to pass legislation that would encourage the domestic mining of minerals that are critical to the United States.
This group – spearheaded by Minerals Make Life, an initiative of the National Mining Association – includes a broad range of signatories, from global corporations such as Dow Chemical Co. to local civic groups like the Metropolitan Milwaukee Association of Commerce.
The National Electrical Manufacturers Association – which boasts manufacturing giants such as 3M, GE and Samsung among its nearly 400 members – was among the first to endorse the American Mineral Security Act introduced by Murkowski this year.
“Media reports have raised public awareness about sourcing challenges for critical minerals that many of our member companies have been wrestling with in recent years,” said NEMA President and CEO Kevin Cosgriff. “I commend Chairman Murkowski’s consistent leadership on minerals supply and information policy matters, and her introduction of the American Mineral Security Act.”
Broad support from the manufacturing sector, coupled with sentinel news programs such as 60 Minutes bring broader awareness of America’s foreign dependence on critical minerals, and may provide the push needed to move the American Mineral Security Act, or a similar bill, onto the President’s desk for signing.
Over his more than 16 years of covering mining and mineral exploration, Shane has become renowned for his ability to report on the sector in a way that is technically sound enough to inform industry insiders while being easy to understand by a wider audience.
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