Putting U.S. Mine Development Times – and Failures – in Perspective

WHAT YOU NEED TO KNOW

• S&P Global developed a report that compares mine development times in America to that of Canada, Australia and other nations. The results do not paint a positive picture of the U.S.
• At 29 years on average, the U.S. now has the second longest mine development time in the world – with only Zambia taking longer.
• The U.S. has more than enough minerals to secure our supply chains and help us – and the world – meet our mineral needs, but we must streamline our circuitous permitting process to allow us to access them.

LETTER FROM THE PRESIDENT AND CEO

The U.S. has a historic opportunity to become a global leader in mineral production. But it is failing to take advantage of its vast mineral endowment due to long and uncertain mine development times, putting our country at a competitive disadvantage.

A recent report by S&P Global reveals that the U.S. has the second longest mine development time in the world, at almost 29 years on average from first discovery to first production. Only Zambia takes longer (34 years). In contrast, Canada and Australia, America’s main peers in terms of mineral resources and mining regulations, take 27 and 20 years respectively.

The report also proves our country is underinvesting in exploration for key minerals such as copper, lithium and nickel. These metals are essential for building the infrastructure and technologies that enable advanced energy sources. American land has ample reserves of these metals, but it receives significantly less exploration budget per ton of endowment than Canada or Australia. Exploration budgets in Canada and Australia have been 81% and 57% higher than the U.S. over the last 15 years.

Why are we lagging behind peers when it comes to meeting our mineral potential? The report identifies several factors, but the most prominent is the complexity and unpredictability of America’s permitting process. Particularly on federal lands, where much of American mineral resources are located, the mine approval process can take decades and millions – if not billions – of dollars. Once completeness determinations are finalized, then environmental impact statements must be produced under the National Environmental Policy Act. The mine permitting stage frequently requires multiple approvals from various agencies, such as the Bureau of Land Management, the Forest Service, the U.S. Army Corps of Engineers and the Fish and Wildlife Service. These agencies often request revisions to environmental statements, increasing total development time. Canada and Australia are not devoid of these regulations, but both countries have dedicated ministerial offices to oversee the development of national mineral resources. No comparable office exists in the U.S. so our long list of agencies regularly proceed in parallel, often duplicating efforts, instead of seamlessly collaborating.

Even if a U.S. mine makes its way through the U.S. permitting labyrinth and receives all the necessary permits, it is subject to much higher litigation risk than Canadian and Australian mines. Uncertainty and litigation risk are partially the reasons for the disparity between exploration budgets in Canada and Australia and the U.S. over the last 15 years.

This situation is unsustainable. Instead of updating our long, duplicative permitting process, and reducing the endless litigation loop, we have resorted to importing the minerals our country needs. The global demand for these metals is set to soar in the coming decade as the world strives to achieve net zero ambitions. We must tap into our own domestic sources of these metals, not only to reduce our dependence on geopolitical rivals like China and Russia, but also to ensure that the mining done to meet the energy transition meets the highest standards of environmental and social responsibility.

That is why the National Mining Association is calling for urgent reforms to streamline and modernize the permitting process on federal lands. We must develop a framework that balances the need to meet the rising mineral demand with the need to prioritize conservation of important lands. To do this, we should join Canada and Australia in designating a singular agency to oversee the entire process and ensure timely and transparent decisions.

These reforms are not only in the interest of the mining industry, but of the entire nation. Mining is a key driver of economic growth, job creation and innovation. This industry directly contributes to the development of technologies that improve the quality of life for all Americans. It also keeps Americans safe by helping to create the technologies used in national security efforts.

The U.S. has a golden opportunity to secure its own mineral supply chains. But we need to act fast to overcome the barriers that are holding back our mining potential. The National Mining Association stands ready to work with the administration, Congress, environmentalists and all stakeholders to achieve this goal. Together, we can make the U.S. a mining powerhouse that can power the future of our planet.

Thank you,

Rich Nolan
NMA President and CEO