MML Toolkit

8/4/2019 MML Toolkit

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Minerals play an invaluable role in enhancing our quality o lie, powering the economy and strengthening thenational security o the United States. Yet, while America is home to a wealth o mineral resources, our abilityto secure these critical materials in the ace o rising global competition is threatened by an outdated permittingprocess and regulations that delay critical investments or yearsand in some cases, up to a decade.

Every year, the average American uses hundreds o newly mined minerals. Behind every cell phone calland email typed on a laptop are minerals that make it all possible. Minerals not only improve the qualityo our lives, they also orm the bedrock o the U.S. economy by providing the materials needed to keepour economy moving. Minerals enable us to manuacture automobiles, to construct new oce buildings,and to bring to market the liesaving medical devices and innovative nanotechnologies that will keep ourcitizens healthy and our economy competitive in the uture. Minerals also play a central role in ensuring ournations security by orming the components o technologies such as missile guidance systems.

The United States has reserves o more commodity minerals and metals (78) than any other country.The estimated value o select mineral resources is $6.2 trillion. Today, the United States is considered a

major mineral producing country and is a net exporter o several mineral commodities, predominantly gold.Additionally, we produce large quantities o iron ore, copper, phosphate rock and zinc.

Technological advancements, improved saety procedures and rigorous oversight have helped make miningsaer than ever or the environment and or those in the industry. Over the last three decades, more than 2.6million acres o mined lands have been restored through reclamation or other uses such as sanctuaries orwildlie, range land or cattle, housing and commercial developmenteven research acilities.

Yet, despite these advances and our vast reserves, the United States share o global investment in metalsmining has dramatically declined over the last 20 yearsalling rom 21 percent in 1993 to 8 percent today.Why? One reason is that it takes anywhere rom ve to 10 years to go through the permitting process.According to a recent independent report, the United States was ranked dead last among a list o 25 countriesjudged on delays in the permitting process.

As a consequence, we have become increasingly dependent on importseven or minerals we couldproduce at home. The United States now imports $5.1 billion worth o mineral materials and is 100 percentdependent on imports or 18 dierent minerals. This situation subjects our supply chain to multiple potentialdisruptions, ranging rom political instability to market-induced export quotas.

In the ollowing pages, we invite you to read more about what minerals mean to America, the challenges acingour supply chain, and solutions to ensuring that we have access or the long-term to the minerals we needor economic prosperity and national security. Please visit www.mineralsmakelie.org or more inormation.

U.S. Share of Global Investment

in Sharp Decline

20108%

21%

1993


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A Single 3MW Wind Turbine Needs:

335 tons of steel

4.7 tons of copper

1,200 tons of reinforced concrete

3 tons of aluminum

700-plus pounds of rare earth minerals

Zinc

Molybdenum

Source: Vestas Wind Systems


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Minerals are the building blocks or our uture. They hold the keys to developing the technologies that willpropel our economy, enable America to compete globally and improve the quality o our lives.

The technologies that dene innovation today all depend on mineralsliesaving medical devices, smartphones and advanced energy technologies alike require minerals to unction. Beyond using large quantitieso minerals, many o todays emerging technologies also rely on combinations o a variety o dierent mineralsworking together. For example, in the 1980s, computer chips were made with a palette o 12 minerals.A decade later, 16 elements were used. Today, as many as 60 dierent minerals (or their constituent elements)are used in abricating the high-speed, high-capacity integrated circuits that are crucial to this technology.

As the worlds population grows, as developing countries embrace new technologies and erect newinrastructure, and as products relying on even greater combinations o minerals come to the market,demand or minerals will grow. In act, over the next ve years, worldwide demand or select, requently-usedmetals and minerals is anticipated to match or outpace global GDP growth (roughly 4 percent) or key com-modities. Demand or copper will match GDP growth; at 5.6 percent and 7.6 percent, respectively, demandor molybdenum and iron ore will outpace GDP; and demand or aluminum will grow twice as ast as GDP.Auto executives estimate that the demand or lithium or hybrid car batteries could outpace supply in assoon as 10 years.

With such demand projected, the United States ability to continue to innovate will depend on proper planningtoday to meet tomorrows needs.


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Minerals in a CAT Scan Include:

Tungsten

Copper

Lead

Silver

Chlorine

Aluminum

Gold

Europium

Terbium

Cerium

Source: Christensens Physics of Diagnostic Radiology


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A job in U.S. minerals mining is one o the highest-paying jobs o any industrial category, with the averagesalary registering more than $70,000 a year, and otentimes climbing above $100,000 or experiencedworkers. Prospects or those entering the eld today are bright; not only have technological and trainingadvances helped to make mining continually saer or workers, but mining is one o the ew industries that isbeginning to add more jobsat the rate o nearly 1,800 new jobs each month since the beginning o 2010,according to the Bureau o Labor Statistics. Moreover, as older workers retire over the next ve to 10 years,an estimated 55,000 new workers (including coal miners) will be needed.

Minings impact on local economies extends ar beyond the direct jobs created and state and local taxes

that are paid. It is estimated that every job in metal mining generates 2.3 additional jobs elsewhere inthe economy, and every nonmetals mining job generates 1.6 additional jobs. All told, more than 1.1million American jobs are supported through minerals mining; more than 400,000 directly and roughly700,000 indirectly.Perhaps even more undamental to the economy than the jobs created are the necessary raw materials thatmines supply to various sectors. Minerals are the building blocks or the manuacturing, construction andautomotive industries and are essential to growth in burgeoning elds such as health care and technology.By transorming minerals into the inrastructure and products we use, these industries add nearly $2 trillionto the U.S. economy each year.

To illustrate, in 2010, U.S. mines produced mineral raw materials worth $64 billion. These domestic rawmaterialsplus domestically recycled materialswere used to process mineral materials such as aluminum,copper and steel worth $578 billion. The mineral materials were then utilized by construction, manuacturing andother industries, ultimately adding more than $2 trillion to the U.S. economy in 2010roughly 14 percent o GDP.

Despite the act that the United States has grown increasingly dependent on mineral imports, U.S. minesplay an important role in supplying many o the minerals needed by U.S. industries. Manuacturers dependon American mines or approximately hal the minerals they use. But we can do more to meet our domesticneeds or minerals.

By creating jobs and providing essential materials, mining is emerging as an important partner in stimulatingeconomic recovery. The mining o just eight minerals (i.e., zinc, lead, potash, silver, molybdenum, gold, copperand iron ore) is worth $6 billion. In addition, we have plentiul resources o lithium, bauxite, cobalt and sulur.This role, however, pales in comparison to its potential or the uture.


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The Role of Nonfuel Minerals in the U.S. Economy

(Estimated Values in 2010)

U.S. ECONOMY

Gross Domestic Product:

$14.6 trillion

VALUE ADDED TO GROSS

DOMESTIC PRODUCT BY

MAJOR INDUSTRIES THAT

CONSUME PROCESSED

MINERAL MATERIALS1

Value: $2.1 trillion

MINERAL MATERIALS

PROCESSED DOMESTICALLY

Aluminum, Brick, Cement,

Copper, Fertilizers, Steel, etc.

Value o shipments:

$578 billion

NET IMPORTS OF

PROCESSED MINERAL

MATERIALS

Metals, Chemicals, etc.

Imports: $115 billion

Exports: $87 billion

Net imports: $28 billion

DOMESTIC MINERALRAW MATERIALSFROM MINING

Copper ore, Iron ore,Sand and Gravel, Stone, etc.

Value: $64 billion

METALS AND MINERAL

PRODUCTS RECYCLED

DOMESTICALLYAluminum, Glass, Steel, etc.

Value o old scrap:

$15.2 billion

NET EXPORTS OF MINERALRAW MATERIALS

Gold, Soda, Ash, Zincconcentrates, etc.

Imports: $5.1 billionExports: $7.5 billionNet exports: $2.4 billion

NET EXPORTS OF

OLD SCRAP

Gold, Steel, etc.

Imports: $5.1 billion

Exports: $19 billion

Net exports: $13.9 billion

Sources: U.S. Geological Survey and U.S. Department of Commerce

1Major consuming industries o processed mineral materials are construction, durable goods manuacturersand some nondurable goods manuacturers. The value o shipments or processed minerals cannot be directlyrelated to gross domestic product.


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Access to minerals means a more secure America, as minerals are among the most important componentsin the technologies protecting our nation. The U.S. Department o Deense uses nearly three-quarters o amillion tons o minerals every year.

Minerals are integral to a range o military unctionsrom the obvious to the unseen. Aluminum is akey structural component in aircrats due to its unique strength-to-weight ratio and its anti-corrosiveproperties. The magnetic capabilities o rare earth mineralsand their ability to resist demagnetization athigh temperaturesare what lend missiles their necessary precision. Rare earth minerals are also oundin lasers, radar systems, night vision equipment and satellitesin addition to commercial applications

such as cell phones and computer hard drives.

Having steady access to these critical minerals is paramount to the integrity o our nations security. However,in the 70 years since the United States rst began stockpiling minerals or national deense, the picture osupply and demand or these minerals has changed markedlyleading to questions about where theseminerals will come rom in the uture. In the past, the United States has been able to readily access mineralsdue to abundant global supplies, but that is changing as top-producing countries need more minerals ortheir own growing markets. Additionally, dramatic industrial growth in China, India, Russia and Brazil has ledto greater demand or minerals. At the same time, minerals production in the United States has remainedrelatively fat or more than 20 years. Moving orward, we need to ensure we create policies and an overallenvironment that enable the United States to be more sel-reliant.

With waning domestic production and a reliance on an ever-widening range o minerals, today theUnited States is heavily reliant on imports or many o the minerals used by our military. This reliance,coupled with fat production at home, places the United States at greater risk o acing supply disruptions.In addition to increased demand, political instability, natural disasters, military conficts, terrorist attacksand even market manipulation are among the many actors that could limit our access to imported minerals.Already, the Department o Deense has experienced periodic supply availability issues in the globalmarketplaceor instance, when demand surged or titanium sponge/metal as a result o wartimeproduction eorts.

With increased demands on mineral resources, ensuring our military has adequate access to minerals willbecome more challenging in the uture. It will also become more important, as the demands on our militarychange. To respond on a moments notice to threats rom anywhere in the globe, we will need a reliable supplychain to meet our mineral deense needs.


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Standard MaterialRegular DoD Demand in

STONS/yr

Rank-Order or DoD/yr

(STONS)

Aluminum Metal 275,219.8 1

Aluminum Oxide Fused Crude 6,002.8

Antimony 4,693.8

Bauxite Reractory 7,700.5

Bismuth 171.5

Cadmium 75.0

Chromite Ore (all grades) 9,630.5 10

Chromium Ferro (Ferrochromium) 9,667.8 9

Chromium Metal 913.8

Cobalt 4,242.8

Columbium 484.8

Copper 105,625.8 2

Fluorspar Acid Grade 56,544.5 4

Fluorspar Metallurgical Grade 2487.5

Iridium (Platinum Group) 0.3

Lead 88,464.8 3

Manganese Dioxide Battery Grade Natural 63.5

Manganese Dioxide Battery Grade Synthetic 4,158.5

Manganese Ferro (C and Si) 7,897.0

Manganese Metal--Electrolytic 1,368.8

Manganese Ore Chem/Metal Grade 25,041.8 7

Mercury 35.5

Molybdenum 3,049.0

Nickel 17,311.8 8

Palladium (Platinum Group) 2.3

Platinum (Platinum Group) 0.8

Rubber (natural) 29,490.3 6

Silicon Carbide 8861

Silver 349.5

Tantalum 141.0

Tin 2,867.5

Titanium (sponge) 8,788.5 11

Tungsten 895.0

Vanadium 134.8

Zinc 51,085.5 5

Total: 733,468.1

Source: Reconfguration o the National Deense Stockpile Report to Congress, April 2009

Every year, the Department of Defense uses nearly three-quarters of amillion tons of mineralseverything from aluminum, bauxite and copperto lead, titanium and zinc.


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To help stimulate economic recovery, to secure our uture and to remain competitive in a global economy, theUnited States will need a strategy that encourages investment in the development o our domestic minerals.The reality is the United States remains one o the largest consumers o minerals, but our share o investmentin mining is at an all-time low. In the early 1990s, the United States was home to 21 percent o the worldsmining investment. By 2000, our nations share o global investment dropped to 10 percent, and today itstands at just 8 percent. As the United States has allen behind, investment in other areas has steadily grown.

One clear consequence o this lack o investment is an increased dependence on mineral imports. In 2010,the United States imported $5.1 billion worth o mineral materials. Today we are 100 percent dependent onimports or 18 dierent mineralsmany o which are critical to national security and innovative, emergingtechnologiesand more than 50 percent dependent on imports or tungsten, silver, titanium, cobalt, zinc,platinum, germanium and gallium.

Because the United States is home to a wealth o mineral resources, we do have the ability to reverse ourdependence on certain mineral imports. For instance, while China holds the dominant position in the globalrare earths market, a signicant reserve exists in the United States. An estimated 13 percent o the worlds

rare earth reserves are in the United States, with the worlds largest non-Chinese reserve located in MountainPass, Caliornia. While there is not a single U.S. operation actively rening oxides into pure rare earth metals,with the right steps, the United States could build a robust rare earth supply chain. By one industry calculation,North American rare earth deposits could produce up to 40,000 metric tons o rare earths a yearmorethan double the amount U.S. industries use today and enough to allow American sel-suciency in the rareearth market even as demand continues to climb. The same holds true or minerals such as zinc, nickel andplatinum group metals.

With common sense policy actions, we can increase access to our domestic resources in ways that are goodor our economy and sae or local communities, mining employees and our environment. What do theseactions look like?

To begin, we can and should modernize the permitting process to shorten the time it takes to acquire a

permit for mining.The U.S. minerals mining industry ully supports thorough review o all necessary permitsand approvals or new projects. However, it now takes ve to 10 years or a permit to be grantedanunnecessary delay caused in large part by a current process that requires redundant reviews at ederal andstate levels, oten by multiple agencies. This process and timerame is dramatically out o touch with thespeed at which the technologies that depend on minerals are being developed. More importantly, the UnitedStates standing as the worst among 25 countries or permitting delays has caused the U.S. share o globalinvestment in mining to decline over the last 20 years.

Despite the act that the permitting process has become increasingly dicult over the years, miningcompanies not only comply with ederal and state laws regarding land use, but also continue to invest heavilyin the research and development o new technologies and processes to minimize environmental impact.Today, mining companies set aside signicant amounts o money each year in the orm o bonds to pay orrestoration o mined land. While these measuresalong with a rigorous permitting processare necessary,what is ultimately needed is a streamlined permitting process that accomplishes the dual objectives oprotecting the environment and stimulating job creation and economic opportunity in the United States.

Secondly, a consistent, rigorous and sound regulatory framework is needed to encourage added

investment.Over the years, well-designed regulations have helped usher in advancements in both envi-ronmental protection and worker saetymaking the United States one o the saest and most environmentallycautious places in the world or mining.


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Arsenic (trioxide); Asbestos; Bauxite and Alumina; Cesium; Fluorspar; Graphite (natural);Indium; Manganese; Mica, sheet (natural); Niobium (columbium); Quartz Crystal(industrial); Rare Earths; Rubidium; Strontium; Tantalum; Thallium; Thorium; Yttrium

100%

Gallium, Gemstones 99%

Bismuth, Platinum 94%

Antimony 93%

Germanium 90%

Iodine 88%

Rhenium 86%

Diamond (dust, grit and powder), Stone (dimension) 85%

Potash 83%

Cobalt, Titanium Mineral Concentrates 81%

Silicon Carbide, Zinc 77%

Barite 76%

Tin, Vanadium 69%

Tungsten 68%

Silver 65%

Titanium (sponge) 64%

Peat 59%

Palladium 58%

Chromium 56%

Magnesium Compounds 53%

Beryllium 47%

Silicon (errosilicon) 44%

Lithium, Nickel, Nitrogen (xed), Ammonia 43%Aluminum 38%

Magnesium Metal 34%

Gold 33%

Copper 30%

Mica, scrap and fake (natural) 27%

Garnet (industrial), Perlite 25%

Salt 24%

Vermiculite 22%

Sulur 17%

Gypsum, Phosphate Rock 15%

Iron and Steel Slag 10%

Cement 8%

Iron and Steel, Pumice 7%

Diamond (natural industrial stone) 3%

Lime 2%

Stone (crushed) 1%

Today, more than three dozen ederal environmental laws and regulationsin addition to laws at the stateand local levelare in place, governing all aspects o mining. Such policies guarantee that mined land isreclaimed and restored to productive uses, and that air and water resources, as well as wildlie, are protected.As we look to the uture, we must ensure that regulations evolve to meet new challenges and realities.At the same time, however, we must make certain that regulations are consistently guided by sound scienceand not driven by political agendas. To keep our doors open to investment, we must ensure the systemconsistently balances environmental and social concerns with our nations economic interests.

Lastly, predictable and non-punitive economic policies are important for investment in mining to grow.

While the United States has compelling attributes, including a stable government and an educated workorce,its economic policies must remain competitive in order to attract investments. At 35 percent, the UnitedStates corporate tax rate is among the highest in the world. In addition, mining is subject to various statetaxes and levies, pays high wages and complies with strict environmental and saety requirements. These andother actors contribute to U.S. minerals minings cost burden. Nonetheless, U.S. minerals mining is committedto paying its air share and to working with local, state and ederal governments to ensure economic policiesdo not make mining in the United States ar less attractive than it could be. With these steps to encourage

investment in the nations minerals resources, with continued stewardship o the environment and with workersaety put rst, Americas minerals industry can lead the way to a more secure and more prosperous uture.

Permitting

Process Story

Mining activities are regulated by

numerous state and ederal laws and

regulationssome with overlapping

jurisdictionsthat cover how a mine

will be constructed, operated and

reclaimed ater mining ceases, and

how the mine will meet environmental

and other requirements. Because o the

complexity o the regulatory process,

it can take rom fve to 10 years to

obtain the needed permits to expand

or build a mine. For example, beore

they received a permit to operate the

mine, operators o a Nevada gold mine

worked or at least six years with 10

government agencies.

2010 U.S. Net Import Reliancefor Selected Nonfuel Mineral Materials

Source: U.S. Geological Survey


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Contact Us

Minerals Make Lie is a National Mining Association

initiative created to share inormation about mineralsmining and its importance to the economy, innovation

or the uture and national security. I you have

questions or comments, please contact:

Jamie Caswell

[email protected]

(202) 463-2667

www.mineralsmakelie.org

Twitter handle: @MiningFan


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Documents

MML Toolkit