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Critical Minerals and Materials Legislation 9 June 2011
On 9 June 2011, the Senate Energy and Natural Resources' Subcommittee on Energy held a hearing discussing critical minerals and materials legislation. The hearing focused on critical minerals legislation S.383, S.421, and S.1113. Three panels provided testimony regarding the importance of kick-starting a domestic critical minerals supply. Topics included the research, permitting, extraction, processing, recycling, and alternatives necessary to keep the U.S. competitive in a clean-energy economy and for national security purposes as a whole.
Senators Cantwell (D-Wash.) and Murkowski (R-Alaska) set the tone for the hearing. Sen. Murkowski echoed Sen. Cantwell's assertions that critical minerals are the "building blocks of [the American] economy." Sen. Murkowski also bemoaned the extensive permitting process presumably inhibiting American mining companies from fully competing with Chinese and other international companies.
The United States is currently 100% reliant on other nations for over 17 minerals. Rare earths and other critical minerals production have essentially come to a standstill, while demand for rare earth- and critical mineral-bearing goods has risen. Although the U.S. used to be a dominant supplier of rare earth elements (REEs), China currently produces over 97% of the world's rare earths, and has the proper funding and intellectual know-how to remain dominant for years to come.
David Sandalow, Assistant Secretary for Policy and International Affairs at the Department of Energy (DOE), provided testimony regarding the beginnings of a domestic critical minerals industry. Sandalow reported that California's Mountain Pass Mine will produce an estimated 19,000 tons of rare earths and rare earth oxides by next year, and will produce an estimated 40,000 tons by 2014. DOE recognizes that a stable, sustainable, domestic supply of minerals is essential in the coming years, and has already invested $35 billion into green technologies that require critical minerals to function. Mr. Sandalow suggested the U.S. focus on three things: 1) research into viable substitutes; 2) extensive recycling programs; and 3) obtaining critical minerals from diversified global supply chains, including strong domestic supplies.
Marcilynn Burke, Deputy Director for the Bureau of Land Management (BLM) provided the opinions from the Department of the Interior (DOI). Ms. Burke testified that DOI fully supports and wishes to promote domestic production of REE and critical minerals. She stressed the importance of producing a strict methodology for determining criticality, the necessity of producing a comprehensive natural resource assessment by the U.S. Geological Survey, and of creating a high-level working group to oversee and help guide the process.
Senators Murkowski, Franken (D-Minn.), Heller (R-Nev.), and Barrasso (R-Wyo.) all addressed the issue of permitting within the BLM. Senator Heller directly asked Ms. Burke to clarify what can be done to streamline the permitting process in order to get American mines up-and-running more quickly. Ms. Burke explained that the permitting process from the BLM can take up to four years; however, coupled with the time necessary for discovery and exploration, along with additional permits required not through the BLM, the process could take anywhere from 7-10 years. Ms. Burke further explained that the BLM is currently running a pilot program in its Nevada office to institute policies and procedures to help make the permitting process more efficient.
Alternatively, Sen. Bingaman (D-N. Mex.) did not attribute the lack of a domestic supply of REE and other critical minerals to the permitting process and "bureaucratic intransigence," but, rather to a lack of economic incentive. Sen. Bingaman emphasized the importance of the growing market for critical minerals, and how this would speed up production in the U.S. Testimony provided by the third group of panelists reinforced Sen. Bingaman's comments. The panel was composed of AGU member Dr. Jonathan Price, State Geologist and Director of the Nevada Bureau of Mines and Geology; Mr. Luca Erceg, President and CEO of Simbol Materials; Dr. Steven Duclos, Chief Scientist of GE's Global Research Center; and Mr. Mark Caffarey, Executive VP of Umicore, USA. All the panelists underscored the importance of REE and critical minerals to the economy.
The hearing concluded with the general agreement that more research, and collaboration between industry and government, is necessary in order to ensure a thriving domestic critical minerals industry.
For a full list of panelists, and to view the archived webcast click here.