First meeting of White House mining law reform group provides hope for industry

Permitting rules and a drive to increase US metals production anchored discussions at the first meeting of President Joe Biden's Working Group on Mining Regulations, Laws and Permitting in May, participants told S&P Global Commodity Insights.

US miners see the meeting of the Interagency Working Group on Mining Regulations, Laws and Permitting led by the US Interior Department as a hopeful first step toward meaningful reform of mining laws and permitting rules. They support Biden's goal of moving the battery and renewable energy supply chain to the US where possible, and they hope changes to the way hard-rock mining has been governed, since the 1872 hard-rock mining law was passed, can stimulate new production.

The convening of the working group came at a time of significant upheaval in the federal government's approach to the mining industry. On March 31, shortly before the working group met, Biden invoked the Defense Production Act to encourage the domestic production of minerals critical to energy transition efforts. Any recommendations the group offers will have an impact on existing and proposed mining projects across the country. However, the White House has not announced a second meeting. The White House and Interior Department did not respond to requests for comment on the group's meeting schedule.

Efforts to expand domestic production of minerals important to clean energy technologies come while prices for those materials continue to surge. EV producers such as Ford have said increasing domestic mineral supplies is essential to making the vehicles affordable.

In its first meeting, members of the working group discussed a wide variety of issues, and few specific proposals came up, according to participants.

"We discussed [the General Mining Law of 1872] mining reforms, the [Defense Production Act] for critical minerals, the permitting streamlining included in the bipartisan infrastructure bill, and an administration-wide sense of urgency to uphold high standards, but to do so in a way that adhered to deadlines and a schedule," Joe Britton, executive director of the Zero Emission Transportation Association, said in an email. The Zero Emission Transportation Association is an industry-backed electric vehicle advocacy group.

Jason Walsh, executive director at the Bluegreen Alliance Foundation, a labor and environmental group alliance, and a meeting participant, said the US had to produce more metals.

"It is empirically the case that we are going to need more minerals to meet our climate and infrastructure goals," Walsh said. "The status quo right now is unacceptable ... our current mining laws do not provide for royalties around hard rock or any kind of comprehensive system around permits."

General Mining Law of 1872

The Biden administration made reform of the country's 150-year-old mining law a top priority when it convened the group. The law does not require hard-rock miners to pay any royalties for use of federal land, and it imposes few environmental restrictions on mining activities. An effort to reform the law, a top priority of Rep. Raúl Grijalva, chairman of the Natural Resources Committee, was briefly included in drafts of the $3 trillion Build Back Better Act, before getting cut from the bill, which itself is moribund. The administration responded by forming the working group.

Though the working group is led by the Interior, the agency pointed Commodity Insights to a readout of the meeting without further comment.

The White House convened the 20 mining, labor and environmental leaders "to discuss the need for reforms and improvements to establish strong, 21st century environmental and engagement standards that would allow for the responsible and sustainable development of domestic hard-rock minerals," it said in a readout from the meeting.

The exact proposals to be offered remain unclear, but the public display of convening multiple mining stakeholders has sent a promising message to some industry members.

"It is time for the US to modernize its mining law to ensure robust environmental and community practices and early engagement with communities," Albemarle spokesperson Kim Ronkin Casey said in an email.

"We are optimistic that the working group will be valuable for the industry and the country as it develops efficient permitting processes." Albemarle was the largest global lithium producer in 2020.

Permitting problems

Mining companies with an interest in US projects have long complained about extended timelines in securing permitting for projects. An analysis by the National Mining Association, a trade group for hard-rock miners, found that US companies needed seven to 10 years to get permits, far longer than in neighboring Canada.

Twin Metals Minnesota, a subsidiary of Antofagasta, which is the majority owner of the polymetallic Maturi project in Minnesota, said it hoped permitting would be a key part of discussions.

"The United States has an opportunity to meet our nation's needs by focusing on accessing its domestic mineral resources in an environmentally responsible and timely way," Twin Metals Minnesota spokesperson Kathy Graul said in an email. "But the United States will not be able to do that under a regulatory process that is unpredictable."

The Twin Metals project, which has faced the cancellation of its leases by the Interior Department, would produce copper and nickel, both of which are important to clean energy technologies.

Reviews of the mine permitting process have remained a bipartisan issue under the Biden administration, with several reform bills introduced by members of both political parties. Examples include House Republicans' National Strategic and Critical Minerals Production Act of 2021, and House and Senate Democrats' Clean Energy Minerals Reform Act of 2022. Neither bill has received a committee markup or progressed to floor votes, although the House Natural Resources Committee Subcommittee on Energy and Mineral Resources held a hearing on the Clean Energy Minerals Reform Act of 2022 May 12.

"The administration wanted to signal that they are fully committed to forging a path forward" on mining regulation, Walsh said. "The proof will be in whether we can all come back to the table."