February 19, 2014
Gold is one of the world’s most sought-after minerals, prized f...
Last week, Forbes mining analyst, Tim Treadgold discussed the revitalized interest in U.S. resources that is driving a mining boom throughout the country. Treadgold cites that falling costs in the U.S., mean that companies are putting greater emphasis on America as a future investment.
“Both U.S.-based companies [Cliffs Natural Resources and Apache] will probably re-invest the capital generated in U.S. projects in much the same way some industrial companies are shifting their international operations back to the U.S. because it has become the global go-to destination, in some cases surpassing the long-term low-cost leaders, China and Germany.”
Particularly when looking at gold’s prices, it is evident that the U.S. is the “preferred destination for new mine developments.” With the average ounce of gold in the U.S. costing seven percent less than the average cost of gold per ounce on a global scale, the U.S. is winning the “cost race” that could ignite expanded production in the country. National Mining Association member company, AngloGold, is one of the leading gold mining companies that is re-focusing its investments and exploration resources to the U.S.
“Other AngloGold divisions might have more attractive geology, but they are not winners when it comes to profitability, which is why the U.S. has reclaimed its position as a preferred mining investment destination, and a reason why fleet-footed fund managers are demanding that U.S. natural resource companies re-focus on opportunities closer to home.”
Despite this renewed interest in American resources, the U.S.’ outdated permitting process hinders mining exploration and deters U.S. competitiveness. A more timely and efficient permitting policy would allow for greater U.S. mineral exploration and increased investment from mining companies around the world.
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