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USA MINING "While we are blessed with world class mineral resources, we are cursed with a third-world permitting system—one that takes seven to 10 years to obtain all authorizations to proceed." Metals and Minerals As for our metals and minerals sector, the obstacles that stand in the way of performing to our potential are different—but the results are quite similar. Where energy policy might be characterized as a product of misunderstanding and mischief, our minerals policy is a product of misunderstanding and neglect. These are dangerous and costly liabilities in today's world. Our minerals sector supplies the materials that are transformed into products responsible for 15% of our GDP. As global competition for these minerals becomes fiercer, our nation continues to place more mineral-rich lands off-limits and to make more difficult obtaining the permits and authorizations necessary to explore and develop our mineral wealth. Consider: • Half of the public lands where much of our resource lies remains either off-limits or highly restricted for mining. Nonetheless, we empower our agencies to withdraw more lands with minimal consideration of what the cumulative impact means to our future mineral needs. • While we are blessed with world class mineral resources, we are cursed with a third-world permitting system—one that takes seven to 10 years to obtain all authorizations to proceed. The U.S. has the unacceptable distinction of being second-to-none when it comes to having the most inefficient and protracted process—one that is fraught with duplication, overlap and lack of accountability. Many of our policymakers cannot seem to make the connection between the upstream part of the supply chain and the downstream industries that depend on us. They see resources locked underground but fail to understand that mining capital is free to go wherever returns are greatest. It is hardly coincidental that as our challenges with access and permitting grow, so does our increasing import dependence on key minerals and the continuing deterioration in exploration investments that serve as the future project pipeline. The lack of urgency here in America stands in sharp contrast with that of other mineral rich nations. Take Canada and Australia for example—two nations that fully understand how an efficient regulatory regime can provide a competitive advantage in the global competition for mining investment. Both countries already have efficient permitting systems—yet remain eager to stay out front. Canada recently enacted reforms called "one-project, one review." Australia has established a commission to seek out further streamlining opportunities. They are preparing to meet the challenges for the new global reality where demand will soar and supplies will become increasingly difficult to obtain. These are just a few of the more troublesome examples of how public policy is not aligned with our industry's potential to 80 E&MJ; • AUGUST 2013 grow our economy and create high-wage employment. For these and other disabling policies we should expect a more thoughtful approach from our elected representatives. Making Progress Nonetheless, in this regard, I believe we have made some progress—slowly of course, but hopefully, steadily. We have had success recently in the courts setting aside several of the more egregious policies that impede our performance. I hope those legal victories will give the administration an opportunity to pause and rethink its approach to energy and mineral policies. We have also been successful in securing the introduction and advancement of legislation to correct bad policies before they inflict more bad consequences. The House of Representatives Natural Resources Committee reported legislation to streamline the permitting system for metal and mineral mines. The legislation incorporates best practices for coordination among state and federal agencies, reduces duplication and inserts accountability into the process. It assures that valid concerns about environmental protection are fully considered and addressed. At the same time, it will not allow such concerns to serve as an excuse to trap mining projects in a limbo of duplicative, unpredictable and endless review without a decision point. Similar legislation passed the House of Representatives last year on a bipartisan basis and we expect the same result later this year. Its future will reside in the Senate where we will urge the leadership to give it prompt attention. This brings us back to Arizona. This great mining state, like the rest of this great mining nation, once recognized the enormous value of its mineral wealth. It's time America re-discovered that value. The world is becoming a far more competitive place. The U.S. faces new rivals that for the first time will challenge our economic supremacy. There is no doubt that American mining is adequate to the task if we find a willing partner with our government. There is growing awareness that for our nation to succeed, our mining industry needs to be successful. Now, as you can see, the public policy "ratios" we face are steep. We have a lot of material to move before we can extract the right policies that will enable us to perform to our potential. So, I'm in the right place today. Bring us your shovels, trucks, dozers and plenty of belt line to help us move it. Hopefully, at your next conference in two years, I can return what I borrowed and report that greater opportunities lie ahead for mining here in America. "We have had success recently in the courts setting aside several of the more egregious policies that impede our performance. I hope those legal victories will give the administration an opportunity to pause and rethink its approach to energy and mineral policies." www.e-mj.com