Hardrock, Rare Earth and Strategic / Critical Minerals Mining

Both Congress and the Executive Branch have shown increased interest in recent years in the development of America's hardrock resources. Lawmakers are interested in the rules which would allow these resources to be extracted because of the impacts on our nation's energy supply and national security. Below are some examples of policy developments in hardrock mining that have been taken in Congress and the Executive Branch:

Rare Earth and Strategic Minerals

The popularity of clean energy technologies and the desire for advanced national defense technologies has re-ignited a strong interest in American reserves of rare earth elements and other strategic minerals. In addition to their applications in components of defense weapons systems, rare earth minerals are used in various clean energy technologies such as hybrid car batteries, fuel cells, solar panels and wind turbines. While the United States is thought to hold about 13 percent of the world's developable reserves of rare earth minerals, China currently controls about 95 percent of world production. This has led to calls for a comprehensive national strategy on rare earth metals.

With the help of the U.S. Geological Survey and the Bureau of Land Management, the U.S. Department of Interior has released a series of reports over the last few years detailing the government's path forward on the development of these critical resources. The House of Representatives has passed a bill that would require the U.S. government to develop a strategy to promote the domestic production of rare earth and many other materials. In addition, the bill would change the permitting process for these minerals, mainly through streamlining and regulatory reform. The Senate has held hearings and also considered a bill that incorporates different provisions. With so many policy developments, it is clear that both government and industry want the U.S. to take the necessary steps to ensure that we have a secure, reliable supply of rare earth metals in the coming decades.

Phosphate

Phosphate is a key ingredient in the production of fertilizer and herbicides that are critical to the nation's agriculture industry. In recent years, there has been disagreement between conservationists and industry groups over the potential environmental impacts of selenium, which is a bi-product of phosphate mining. Therefore, some stakeholders are supportive of increased environmental regulation at phosphate mines, while producers raise concerns about the merit and cost of new rules for phosphate production.

In 2012, the U.S. Government Accountability Office released a report detailing selenium contamination in southeast Idaho, which is one of the major phosphate-producing regions in the U.S. That report concluded that federal land management agencies need to increase coordination to reduce the federal government's cleanup costs from phosphate mining contamination. Clearly, policy makers in Washington, D.C. are reviewing and thinking about updating the regulations applicable to phosphate mining on public lands, which could impact a resource that is critical to the well-being of American agriculture and food production. 

Uranium

The market price of uranium and the high-quality uranium ore reserves in the Southwestern U.S. have led to new interest in extracting those deposits near the Grand Canyon. In response to concerns about impacts to water quality, the U.S. Department of Interior (DOI) made more than one million acres of federal public lands off limits from new uranium mining claims for the next 20 years. The withdrawal of this land that serves as home to high-quality uranium reserves was met with substantial opposition from industry and some in Congress. Congress has taken steps to reverse the action of the DOI, but the regulatory decision has not been overturned. Industry continues to support a legislative resolution but has also filed several lawsuits in federal court. Meanwhile, companies with existing claims within the one million acre boundary have continued to develop uranium reserves where the government has determined such action to be in compliance.

Precious Metals

Gold, silver, copper and other precious metals are in high demand in the U.S. because their value has increased dramatically over the last few years. Many times, those resources can be found on public lands triggering scrutiny from lawmakers in Washington, D.C. Companies and consortiums in several states are in various stages of exploration and development on many high-value reserves. While this has sparked new optimism in many states about bringing jobs back to rural regions experiencing high unemployment, it has also elicited environmental concerns pertaining to water quality, protection of endangered and sensitive species, and other issues. In the coming years, these resources are expected to attract continued attention, investment and federal intervention.

Conclusion

As the Third World population grows and their economies move toward an industrialization, the demand for U.S. high-value, hardrock resources will increase. The U.S. has substantial reserves of a variety of hardrock resources on public and private lands. Farmers, green energy technology companies, nuclear energy producers and companies that market precious metals directly to consumers are driving up demand. Therefore, the Executive Branch and Congress will continue to scrutinize and propose changes to the rules and regulations that apply to rare earth minerals and hardrock mining.