More American Energy Needs More Minerals and Better Permitting

News out recently that the Trump Administration is imposing a new copper tariff may have come as a surprise to some, but it shouldn’t have. Regardless of who is in the White House, our access to important minerals like copper, a critical resource for clean energy development, depends on a delicately balanced supply chain that can be disrupted by an array of geopolitical or economic considerations. However, this announcement put a bright spotlight on the need for onshoring critical mineral production across America to help meet the rapidly growing energy demand.

For some, critical mineral development is wrought with hand-wringing and reflexive opposition by those who ignore the strength of our nation’s environmental protections and stringent regulations. What needs to be considered in greater detail, however, are the economic and energy security implications of turning a blind eye to fully bringing this production online in the U.S. 

Take for instance, the fact that the demand for copper is expected to double by the year 2030. Or the fact that copper plays a vital role in the nearly six million line-miles of our electric grid, as well as manufacturing for a number of energy components. As we figure out ways to double power generation in the U.S., we’ll inevitably need more power lines, and obviously more copper. However, supply will fall 30% short of the amount required by 2035, according to the International Energy Agency.

Thankfully, one of the first actions President Trump took in his second term in office was to issue an Executive Order taking immediate actions to boost American mineral production. 

While the majority of copper supplies come from Chile, Canada and Mexico - China leads the world in copper refining, with over half the world's smelting capacity. The good news - we can and should source more domestically. Americans can look to places like the Santa Cruz mine in Arizona or the Twin Metals project in Minnesota which are modern, innovative and domestic projects with strong environmental records.

Further, projects like these will support economic development across rural communities. Northeast Minnesota, where multiple companies are proposing to develop mining projects, is home to the world’s largest known undeveloped source of copper, nickel, cobalt, platinum group metals and more. The Duluth Complex mineral deposit in this area contains an estimated four billion tons of resources, estimated to be worth more than $1 trillion. New copper-nickel mining projects proposed in this area will create hundreds of millions in revenue through state and federal taxes and royalties and will generate several thousand high-paying jobs. The average salary for these mining jobs is more than $100,000 per year, and each one will generate another 1.5 spinoff jobs in related industries. However, these proposed projects have faced setbacks due to the lengthy, duplicative, and expensive permitting process and unending litigation by opposition groups. 

Never has the phrase “time is money” been more appropriate. Regulatory delays greatly increase project costs. Overall, a typical mining project loses more than one-third of its value, as a result of bureaucratic delays in receiving the numerous permits needed to begin production. Meaningful permitting reform to get projects moving should involve leveraging innovative American technology, increasing transparency for permitting data, establishing clear timelines for projects, deploying AI to automate and streamline reviews, and implementing a compliance-based permit-by-rule permitting process.

Given that demand for copper and energy worldwide is expected to soar and that the U.S. is in dire need of boosting our economic and national security, the options are clear: Will the U.S. unleash the American miner and allow them to develop energy and critical mineral resources on our own soil, or will we continue down the same old dangerous path and continue to depend on foreign adversaries? 

Already, the United States is home to some of the most rigorous environmental standards in the world. We know how to develop our nation’s rich resources safely and responsibly. It’s clear the Trump Administration understands what it will take to enable these high-tech, innovative energy and critical mineral projects to move forward, and Congress can work to cement good policy into law. 

Jeremy Harrell is the CEO of ClearPath, a conservative energy organization whose mission is to accelerate American innovation to reduce global energy emissions.