Congressman Blasts Obama Administration Stance on Mining at SME Conference

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Written by John Egan for Industrial Info Resources (Sugar Land, Texas)--U.S. Rep. Doug Lamborn (R-Colo) told an industry conference in Denver that the Obama administration's energy and environmental policies have hurt the domestic mining industry and threaten America's national security. But in a keynote address at the annual meeting of the Society of Mining, Metallurgy & Exploration (SME) and the Colorado Mining Association (CMA), Lamborn praised the industry for "sticking it out in a difficult environment."

Lamborn repeatedly blasted what he called the Obama administration's "non-energy" policies. "Environmental extremists have succeeded in limiting our ability to access our vast energy reserves," he said. "For years, extreme environmentalists have waged war on coal. Mineral-bearing areas on public lands are routinely withdrawn or restricted from development even before comprehensive inventories and economic assessments have been made."

"Environmental extremists are bent on making it impossible to open a new coal electrical plant in the United States," he continued. The congressman sharply criticized the Obama administration's attempt to lower carbon dioxide (CO2) emissions from coal-fired power plants by rulemakings from the U.S. Environmental Protection Agency (EPA) (Washington, D.C.): "The President and his cronies couldn't pass their environmental agenda--otherwise known as Cap-and-Trade--through the Congress, so they are trying to go around us."

Lamborn chairs the U.S. House Subcommittee on Energy and Mineral Resources, which oversees permitting for energy projects on federal lands. In his speech, he ripped the Bureau of Land Management (BLM) (Washington, D.C.) for limiting or precluding energy development on nearly half of the 700 million acres of federal land it manages. BLM has restricted energy development on about 182 million acres of federal land, and withdrawn an additional 167 million acres of land from potential development.

"Public land should remain open and available for mineral exploration and development unless Congressional withdrawals or administrative actions are clearly justified in the national interest," Lamborn told about 1,000 attendees at the keynote session. "A thorough geological and economic assessment should be made before any land is withdrawn."

Despite the Obama administration's claims it has been following an "all-of-the-above energy policy," Lamborn charged that land-use decisions by BLM, a branch of the U.S. Department of Interior (DOI) (Washington, D.C.), translate into "no-energy policies."

Given the Obama administration's approach to mining and minerals production, the congressman told conference attendees it was no surprise industry consultant Behre Dolbear Group Incorporated (Denver, Colorado) ranked the U.S. permitting process worst among 25 mineral-producing nations.

Lamborn noted a U.S. Department of Energy (DoE) (Washington, D.C.) report from 2010 concluded that the seven-to-10 year process to obtain permits is one of the principal barriers to new mining ventures in the U.S. He asked, "Is it any wonder that new mines are opening in countries like Canada and Australia that have a two- or three-year permitting process?"

The U.S. currently has 962 active Metals & Minerals projects under development, valued at $114.4 billion, according to Industrial Info's Metals & Minerals Project Tracker Database. Canada, by contrast, has 487 active metals & minerals projects with a total investment value (TIV) $313 billion. Around the world, Industrial Info is tracking a total of 10,553 active metals & minerals projects valued at approximately $2.7 trillion.

"The complexity, uncertainty, and delays within the current permitting system place the U.S. at a competitive disadvantage compared to many other countries that have a more welcoming business and regulatory climate," Lamborn said. "Despite reserves of some 78 important mined minerals, the U.S. currently attracts only 8% of worldwide exploration dollars and is increasingly reliant on foreign sources of strategic minerals important to national and economic security."

"Though at least 40% of the world's rare earth reserves are located within the borders of the U.S. and its ally nations, our country now depends upon imports from China for nearly 100% of its rare earth needs," he charged. "Too much dependence on foreign countries for critical and rare earth minerals threatens our national security."

China can shut off the U.S. supply of rare earth materials, Lamborn warned: "China has decreased their export through quotas on rare earth oxides and metals by over 70%, causing price increases of three- to eight-fold and shortages of some materials."

The congressman praised U.S. mining companies for not giving up in the face of an adverse permitting environment: "Mining labor makes up less than one quarter of 1% of the available U.S. workforce, yet this small workforce is the starting point for a value chain that consistently contributes 13% to 14% of the U.S. economy. Mining is one of the few industries where long-term, high-paying jobs are currently being added."

The results of the last national election do not suggest the political or regulatory environment in Washington, D.C. will get better any time soon, as the president was re-elected and the U.S. House and U.S. Senate remain under the control of Republicans and Democrats, respectively.

But Lamborn is committed to making the U.S. more mining-friendly. He vowed to reintroduce a bill from last session to promote domestic production of minerals vital to the U.S. economy. This bill will:

• Require the Secretary of the Interior to coordinate a government wide inventory of the Nation's non-fuel mineral resources on federal lands and to identify any restrictions that may inhibit development of these mineral resources.
• Require the Secretary of the Interior to evaluate factors impacting domestic mineral development, such as permitting delays.
• Direct the Interior Department to assemble a report within six months and require them to include a specific inventory of the rare earth element potential on federal lands, and identify restrictions on the exploration or development of rare earth elements, along with recommendations to lift restrictions.
• Require an annual report outlining the progress made in reaching the policy goals described in the bill.

Lamborn bemoaned the current state of divided government in Washington: "As you can see, we are in a challenging political and regulatory climate for both mineral and energy exploration and development. Much works needs to be done to reverse the restrictive policies of the current administration."

"The bottom line remains, America has abundant energy and mineral resources, but instead of responsibly developing our own resources, we have allowed ourselves to become dependent on foreign countries. During this Great Recession, mining, as well as energy, is one of the few bright spots in a mostly bleak job market. If we play our cards right, we will remain the strongest and freest nation on the face of the earth."

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.