The Biden Administration's Flip Flop on Mining Policy Is Foolish

By Danny Ervin
September 25, 2023

This decade looms as a period of great challenge for American mining. Already we're seeing the first stages of what eventually could become a widespread mineral shortage that slows the growth of electric vehicles and renewables. One long-lasting problem is the high cost of mining in the U.S. The cost of labor and materials keeps rising, and opening a new mine now takes an average of more than 20 years from exploration to first production.

The Biden Administration could help reduce mining costs by shortening the mine permitting process. But it has yet to seize the enormous opportunity offered by enactment of the Infrastructure, Investment and Jobs Act, which has provisions that would make permitting easier.  Instead, it has put off implementing the changes and shown no interest in the need for further action by Congress to simplify timelines for environmental reviews and limit court challenges.

One of the greatest dangers the country faces is President Biden's effort to bolster his political support from environmentalists by causing mining in the U.S. to be slowed such that manufacturers are forced to continue depending on overseas supply chains for rare earths, lithium and other critical minerals.  This is a prescription for serious trouble. China supplies half of the battery metals, and it is using its grip on global mineral extraction and processing of minerals for geopolitical leverage.

Anti-mining environmentalists have every reason to rejoice at the administration's new posture, as illustrated by its call for a royalty tax on minerals produced in the U.S. and a "dirt tax" on the tons of material moved at mine sites.  If Congress approves the royalty tax, domestic mining will become less competitive, forcing mines to close and bringing about even greater dependence on imported minerals. The "dirt tax" could be imposed by the Administration without approval from Congress. Higher costs from taxes and fees could upend mining in the U.S.

Read the full article at:  The Biden Administration's Flip Flop on Mining Policy Is Foolish | RealClearEnergy