US miners have commended recent adjustments made to federal permitting rules, which have now been written into an agreement between US President Joe Biden and House Speaker Kevin McCarthy but have appealed to Congress to do more.
The Senate passed bipartisan legislation backed by Biden to lift the government’s US$31.4T debt ceiling, halting what would have been a first-ever default. The Senate voted 63-36 to approve the bill, which had been passed the day before by the House of Representatives.
As reported by S&P Capital, The Fiscal Responsibility Act 2023 will set deadlines for certain environmental reviews under the National Environmental Policy Act (NEPA). Environmental impact statements required by NEPA will be completed in two years, while environmental assessments will follow a one-year deadline. The limits intend to address long-standing complaints that permitting reviews take too long, holding up a wide variety of extraction projects and infrastructure.
According to the National Mining Association, the US, out of all developed nations, is the most affected by the delays in obtaining mining permits. While the country takes a lead in developing technologies, it falls short in the production of minerals required for such high-tech manufacturing, and accounts for only 11% of global spending on mineral exploration.
Typically, a mining project loses around a third of its value during the delay in receiving permits from governments, and increased expenditure that arises from a prolonged permitting process can half the value of a mine.
Previously, it would take on average seven to 10 years to secure the permits needed to commence operations in the US. Comparatively, Canada and Australia, who both also have stringent environmental regulations, see an average permitting period of two years.
The Fiscal Responsibility Act includes permitting provisions like the Republican backed Lower Energy Costs Act, which was introduced to the house in March. Although the bill cleared the lower chamber, it has not faced a vote on the full Senate floor.
The debt ceiling deal, however, will not set deadlines on judicial reviews for projects under NEPA, which was included in the earlier house legislation.
Mining representatives have stated more legislation is needed to encourage permitting reforms.
“This is important progress in delivering the permitting reform so essential to building the infrastructure and supply chains that are the very foundation of our economy,” Conor Bernstein, a spokesperson for the National Mining Association, said.
“However, we hope that Congress builds upon this momentum and considers permitting legislation already introduced in the House and Senate that would deliver additional significant reforms still needed to reduce self-imposed barriers that stand in the way of developing … secure, reliable, and responsible energy and materials supply chains.” Bernstein said.
Additionally, Steve Trussell, executive director of the National Mining Association commented, “Although the permitting provisions in the debt limit legislation are a positive step forward and appreciated, much more needs to be accomplished to keep America globally competitive in meeting a rapidly increasing mineral demand.”
