The Senate just took an important step toward addressing America’s complex and unworkable energy permitting process. At a markup on July 31, the Energy and Natural Resources Committee voted to approve the Energy Permitting Reform Act of 2024.
The bill was championed by Committee Chairman Joe Manchin and Ranking Member John Barrasso and received bipartisan support. If enacted, the legislation would help reduce the long, complicated and costly process for developing mineral mining projects, while protecting the environment and ensuring active community participation.
Developing a New Mine in the U.S. Takes Longer than the Great Pyramid
A new report from S&P Global, titled Mine Development Times: The U.S. in Perspective, found that on average it takes 29 years for a U.S. mineral mine to be developed. That is the second longest lead time in the world, behind only Zambia.
Prospective U.S. mines face an uncoordinated and redundant system of state and federal regulations, without centralized government support that is common in peer countries. For example, Canada and Australia have agencies dedicated to overseeing mine development in the public interest.
These production uncertainties and challenges also contribute to lower mining investments in the United States. According to S&P, over the past 15 years, Australia’s exploratory budgets were 57 percent higher than those of the United States, and Canada’s were 81 percent higher, despite the US being home to similar and often greater mineral reserves.
Dependence on Foreign Rivals Risks National Security and Economic Prosperity
The United States relies heavily on minerals from other countries. We are 100 percent import-dependent for supplies of 15 minerals. For 49 other minerals including silver, nickel, antimony, platinum and titanium, imports make up more than half of our national supply. These minerals are essential to manufacturing, energy, defense, technology and every sector that drives our economy.
China dominates global production for many of these, including minerals that are essential to military technology, U.S. manufacturing and energy production. Our dependence on foreign rivals puts our economic security, energy security and national security unnecessarily at risk.
Bringing more mineral mining home would also create widespread economic benefits:
$105 billion: The amount that domestic mineral production contributed to the U.S. economy in 2023
$110,359: Average pay for a U.S. metal mining job – almost one and a half times higher than $74,580, the median household income for an American family in 2022
It’s Time to Address Our Self-Imposed Permitting Obstacles
S&P’s new analysis demonstrates that it’s past time to address our needlessly complex permitting reform process. The NMA strongly supports the Senate’s recent bipartisan efforts towards this goal. It is an historic step towards streamlining our permitting processes to address the needs of today and tomorrow.
This article was published by: Sally Pearson
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