Analytic Question:
How will mineral and mining legislation affect United States businesses in the next three to five years?
Overall Finding:
It is highly likely that mineral and mining legislation will hamper the US business sector over the next three to five years.
Key Findings:
- Re-opening dormant mines will likely remain the most attractive method to procure strategic minerals domestically
- Mining industry must adhere to over 80 laws through 20 agencies
- Opening mines in the US takes, on average, seven years
- It is likely that the effects of the Dodd-Franks bill on conflict minerals will be far-reaching, across many industries.
- Dodd-Franks legislation creates a competitive disadvantage for US public industries
- US industries could incur between USD 3 and 4 billion in implementing Dodd-Franks legislation
- It is likely that passage of US Congressional bills relating to strategic and rare earth minerals would improve the job market; however it is unlikely legislation will be implemented
- Only 29 percent of bills sent to the floor for a vote pass both the US Senate and Congress
- Ten strategic mineral-related bills have been introduced to the 112th Congress
- In spite of growing non-Chinese supply of minerals, US businesses are likely to remain heavily dependent on Chinese rare-earth sources.
- A number of strategic minerals, including Rare Earths, are 100 percent imported
- China supplies 79 percent of the rare earths used by US industries, increasing trade tensions
