US Mining Executives Urge Swift Action on Critical Minerals

US mining and refining executives are calling on Washington to accelerate its initiatives aimed at bolstering critical minerals projects. During discussions at the Reuters NEXT conference in New York on December 4, 2023, they emphasized the need for a comprehensive strategy to counter China’s dominance in the supply of essential materials used in electronics, weapons, and various other products.

The executives represent companies such as American Rare Earths, Westwin Elements, and Perpetua Resources, all of which are heavily invested in the US minerals sector. They contend that despite increased government support this year, including investments in mining companies and price guarantees for rare earths, these actions are insufficient to compete with China’s extensive control over the market.

Calls for a Comprehensive Strategy

Melissa Sanderson, a director at American Rare Earths, highlighted the urgency for the US government to develop an integrated plan for establishing a robust critical minerals supply chain. “We need an industrial vision,” she stated, stressing the importance of a coordinated approach that encompasses various inputs such as antimony, nickel, and copper. Sanderson is currently involved in efforts to establish a rare earths mine in Wyoming.

Another executive, KaLeigh Long, CEO of Westwin Elements, urged the US administration to pressure Indonesia to restrict its nickel production. In recent years, Indonesia has surged to account for approximately 60% of global nickel supply, which has negatively impacted prices and posed a challenge for US mining operations.

Long proposed that establishing quotas on Indonesian nickel production could immediately stabilize the market. “You do that, and I can almost promise you that overnight you will see a cure in the nickel price,” she explained. She added that instead of a price floor, which she deemed impractical due to the large market size, limiting production would be a more effective strategy.

Need for Financial Support and Efficiency

The executives emphasized the critical importance of financing for their projects. Mckinsey Lyon of Perpetua Resources, which is developing an antimony and gold mine in Idaho, noted the challenges posed by the complex web of federal agencies involved in funding decisions. “Companies are getting some solutions, but what’s not happening right now is a comprehensive strategy or road map,” Lyon said.

Both Perpetua and Westwin have sought funding from the US Export-Import Bank, which provides export credit support. The executives argued that the approval process for these loans must be expedited. Perpetua has requested $1.8 billion in government loans, which could significantly enhance its commercial expansion capabilities.

Long indicated that faster underwriting processes could facilitate access to necessary funds. “ExIm debt could allow us to execute on our commercial expansion, but the underwriting needs to speed up,” she said, highlighting the need for more efficient processing within the agency.

The discussions at the conference underscore a growing sense of urgency among US mining leaders to develop a strategic response to the challenges posed by Chinese competition in the critical minerals market. As the industry continues to evolve, the call for a decisive and integrated approach from Washington becomes increasingly vital.