House GOP looks to speed US mining of rare-earth minerals

By Pete Kasperowicz - 07/05/12 03:40 PM ET

The House is poised to pass legislation aimed at streamlining the approval process for permits to mine for rare-earth minerals, a bill that responds to increased demand for rare earths around the world, as well as China's export restraints for these minerals.

The National Strategic and Critical Minerals Production Act, H.R. 4402, could come up as early as next week, as the House Rules Committee has set an amendment deadline for next week on the bill. The committee may also prepare a rule for floor consideration, although no meeting for that purpose has been scheduled yet.

The bill notes that 25 years ago, the United States depended on foreign sources for 30 minerals, but that in 2011, U.S. demand for 67 minerals is satisfied through trade. And increasingly, foreign production, particularly in China and India, is making it harder to secure these minerals.

The bill seeks to solve this problem by making it easier to produce these minerals in the United States. Under the bill, the lead government agency in charge of mining permits would have to streamline the approval process, including by allowing for concurrent rather than sequential reviews, and reaching time agreements with companies on when certain stages of the permitting process will be complete.

It also allows for flexibility for compliance with the National Environmental Policy Act, including by allowing state standards to be deemed as meeting certain environmental conditions. It also seeks to prioritize the maximum recovery of these rare earths.

"In developing the mineral exploration or mine permit, the priority of the lead agency shall be to maximize the development of the mineral resource, while mitigating environmental impacts, so that more of the mineral resource can be brought to the market place," the bill says.

Rare-earth minerals are widely seen as a set of 17 minerals used in defense and by high-tech manufacturers, and are increasingly seen as a strategic asset both for economic and national security reasons. But the bill defines "strategic and critical minerals" as any needed for national defense and security, energy infrastructure, manufacturing or to secure the nation's "economic security and balance of trade."

The World Trade Organization is planning a meeting next week to discuss China's export rules for rare-earth minerals, and whether they violate international trade rules.