This is a follow-up to Permitting, Economic Value, and Mining in the United States.
In that post I reported that a new report commissioned by the National Mining Association finds that our current convoluted mine permitting process can cause a mine to lose a third of its value as it waits for the numerous permits needed to begin production. These delays, combined with other risks and costs, cut the expected value of a mine in half. This often makes minerals projects economically unviable and jeopardizes an important feedstock of the manufacturing industry while discouraging investment in the U.S.
The report, produced by SNL Metals & Mining of London, can be downloaded here.
Here I present a 3-minute video featuring Mark Fellows, director of consulting at SNL Metals & Mining. He explains that of all the developed nations, the U.S. is afflicted most severely by protracted delays in obtaining mining permits, impairing and discouraging investments in mineral development projects. Companies need certainty when considering an investment. Currently the permitting process contains many uncertainties and opportunity for delay.
These delays cause manufacturers to become overly reliant on minerals imports, despite a wealth of resources in the U.S. Lawmakers must implement policies that guarantee manufacturers access to the raw materials needed to succeed. Watch to learn more. The video is followed by a new Infographic illustrating the problem.