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Belgrade
04/10/2024
Mining News

America’s mineral crisis: The urgent need to address China’s dominance and reform mining policy

For over a decade, Washington has been vocal about the necessity to reduce China’s dominance over global mineral supplies. Both Presidents Trump and Biden have highlighted America’s vulnerability to China’s mineral control as a critical and urgent risk. Yet, the situation is worsening: China’s hold on global mineral supply chains is tightening, while America’s dependence on Chinese minerals deepens.

This issue is primed to be a significant election topic, especially as China has recently escalated the pressure. In August, Beijing imposed export restrictions on antimony, a key mineral used in semiconductors, batteries, and munitions. With China dominating global production, this move signals a stark message: “Your defense industry relies on us.” This is not an isolated incident; in the past year, China has also restricted exports of gallium, germanium, graphite and rare earth metal processing technology. Each time the U.S. challenges China on trade issues or tariffs, Beijing responds by tightening its grip on mineral supplies, effectively warning: “Push us too hard, and we’ll cut off your access to essential resources.”

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China has effectively positioned itself as a singular mineral monopoly, akin to a mineral OPEC. The current mineral security threat could surpass the impact of the 1970s Arab oil embargo. For the first time, a major geopolitical rival holds unprecedented control over crucial elements of the American economy and defense. Of the 50 mineral commodities deemed essential by the U.S. government, China is the top producer of over half.

China’s strategic dominance over mineral supply chains contrasts sharply with U.S. negligence. A restrictive domestic mining approach and the offshoring of critical industrial components have compounded the problem. As demand for minerals rises, reclaiming mineral security will require a multifaceted strategy, including strengthening alliances, leveraging technology and recycling, and, most importantly, increasing domestic mineral production and processing.

Significant steps have been taken to reshore mineral supply chains, such as offering loans and grants to producers and implementing tariffs against Chinese dumping. However, these efforts are undermined by the U.S.’s sluggish mine permitting process and the lack of coordination among mining agencies. A recent study revealed that it takes an astonishing 29 years in the U.S. to progress from mineral discovery to production, the second slowest rate globally, behind only Zambia. This delay is untenable.

Without a decisive commitment to streamline responsible domestic mine permitting and transform U.S. resource potential into active production, all incentives and support for reshorning mineral production will be futile. A smart minerals policy must align with efforts to address permitting delays and expedite the approval of responsible mining projects.

A coherent, coordinated, and decisive minerals policy is crucial for countering China’s mineral leverage and securing our supply chains. Voters deserve to know how presidential candidates plan to tackle this pressing issue.

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