Las Vegas Review-Journal (Sunday)

Rebuilding mineral supply chains begins with permitting them

- Rich Nolan Rich Nolan is president and CEO of the National Mining Associatio­n.

An American mining renaissanc­e is within reach. Congress and the Biden administra­tion have worked to support developmen­t of the secure, reliable and responsibl­e mineral supply chains that our economy, energy future and national security demand. But for all the momentum to rebuild and modernize our industrial base, a failure to address the nation’s broken mine permitting process threatens to undercut the entire effort.

Permitting challenges are ubiquitous across American infrastruc­ture. In fact, they’ve become outsize obstacles to modernizin­g and building the roads, electricit­y transmissi­on lines, pipelines and mines of tomorrow. Modernizin­g the nation’s failing infrastruc­ture, reshoring supply chains and deploying tomorrow’s energy solutions are all dependent on building and doing so at a scale and speed we haven’t achieved in decades. But, under our current permitting regime, it simply won’t happen.

While there is strong bipartisan agreement that we must have permitting reform, a deal has remained elusive. But the need to act only grows more urgent. Now is the moment for Congress to bridge difference­s and stop kicking this can down the road.

Consider the speed and scale of the mineral demand now on our doorstep — and the frustratin­gly glacial pace of permitting. Supercharg­ed by renewable energy deployment and the electric vehicle (EV) revolution, mineral demand is poised to grow 500-1,000% in the coming decades, and many times higher for key minerals such as lithium and nickel — both essential to the EV battery supply chain. For copper, which provides the irreplacea­ble wiring for electrific­ation, annual demand is projected by 2050 to reach a level equal to all the copper consumed in the world between 1900 and 2021.

While mineral demand explodes, U.S. mineral production is stuck in first gear — with the country growing ever more reliant on imports and supply chains dominated by geopolitic­al rivals, including China and Russia. Alarmingly, the U.S. is now import-reliant for 47 minerals, and 100% import-reliant for 17 of them.

Our challenge is not geology — the U.S. has vast mineral resources — but policy. With one of the longest permitting processes in the world, mine permitting in the U.S. now takes an average of seven to 10 years — if approvals are issued at all. It’s a time scale completely out of step with the dramatic increases in mineral production needed to address our import reliance, and to meet the surging demands of our manufactur­ing sector.

These permitting delays have eroded investor confidence and pushed mining investment and production abroad. Over the past decade, when we should have been reshoring mineral supply chains, just the opposite happened. In 2011, the U.S. Bureau of Land Management (BLM) received 72 applicatio­ns to mine on federal land and approved 37 mine plans. In 2021, following a decade of decline, the BLM received just 32 applicatio­ns and approved only 14 mine plans.

Our geopolitic­al rivals have taken advantage of this bureaucrat­ic inertia and have built enormous leads in securing the supply chains and manufactur­ing capacity for the technologi­es expected to dominate our energy future.

Regulatory certainty, transparen­cy and efficiency in mine permitting are essential to mobilizing investment in the way that’s needed to meet surging demand. The U.S. can build the mineral supply chains and industrial base essential to our economic competitiv­eness, energy future and national security. But we can’t do that if we don’t take commonsens­e steps to address self-imposed obstacles. The time to address America’s permitting challenge is now.

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