The once beleaguered US mining industry is seeing a flurry of indications that the sector is headed for an upward swing; efforts to move toward a low carbon economy, combined with pro-mining legislation are causing excitement within the industry, promising long awaited growth in many sectors.
Factors Influencing US Mining Growth
While the US mining industry has long been on a downward slope, a number of factors are creating optimism within the industry, with many seeing potential for a substantial turnaround. Among them:
Executive Order Calls for Reduced Dependence on Imports
A recent executive order from President Trump is looking to make the US less dependent on imports of materials that are key to economic and national security.
The order comes on the back of a report carried out by the U.S. Geological Survey, in which 23 materials deemed as “critical minerals” were analyzed. The report notes that the U.S. has been growing increasingly dependent on mineral imports since the early ‘70s. The report goes on to say that these materials – for which there are no substitutes – are all critical in a variety of applications in high-tech industrial, energy, defense, and even medical fields.
Both existing and emerging technologies are demanding an increase in these critical minerals, while geopolitical factors make relying on imports increasingly risky and less reliable.
The executive order aims to reduce dependence on such mineral imports by encouraging increased domestic mining through a number of avenues, including improved permitting processes, identification of new resources, and expansion of accessible electronic data.
In a U.S. Interior Department press release, President Trump states, “This executive order will prioritize reducing the Nation’s vulnerability to disruptions in our supply of critical minerals safely and [responsibly] for the benefit of the American people.”
Improving US Infrastructure
Aging American infrastructure is calling for a nationwide revamp of roads, waterworks, rail lines, and more. In accordance with this, President Trump has announced a 1.5 trillion USD infrastructure plan aimed at rebuilding the dilapidated framework we rely on every day.
Implementation of new and improved infrastructure will undoubtedly require an increase in the use of raw materials.
In a recent press release, Hal Quinn, National Mining Association President and CEO stated, “While plans are underway to spend more than $1 trillion for the nation’s roads, bridges, transit and other projects, what is rarely recognized is that none of these projects are possible without the raw materials made available through mining.” Quinn goes on to emphasize the need to modernize the permitting process within the mining industry.
Growing Mining Activity
In addition to the objectives listed above, recent actions by the Administration have also indicated that they intend to bring mining home:
National Monuments Open to Mining
In an unprecedented move, President Trump has reduced the size of some national monuments. In December of 2017, Bears Ears National Monument – a known source of uranium – was reduced by more than 85%, while the Grand Staircase-Escalante National Monument – home to a known coal deposit – was reduced to around half its existing size. The move puts previously protected resource rich areas outside the off-limits zones.
According to Reuters, the administration claims that the action was not intended to bolster mining activity, but the reduction of these lands opens the doors for staking claims for hard rock mining under the General Mining Law of 1872.
Under the law, prospectors need merely pound stakes into the ground accompanied by a written claim, followed by recording the claim with the local Bureau of Land Management within 30 days in order to “stake claim.” In addition to uranium and coal, the previously protected areas can now be claimed for gold, silver, and copper as well.
Similarly, while the US Court of Appeals for the 9th district upheld a 20-year ban enacted in 2012 to restrict uranium mining around the Grand Canyon, it has granted Energy Fuels Resources, a uranium producer, permission to open their Canyon Mine in the Kaibab National Forest, just six miles south of the park.
Midwest Mining
Activities around mining resources in the Midwest have also picked up, particularly in Michigan’s Copper Country. The region of the Upper Peninsula is known as such for its pure copper, which spurred a booming economy in earlier years.
Against the backdrop of increasing copper demand, in Gogebic county, Michigan, Highland Copper has been drilling exploration holes in the Porcupine Mountains Wilderness State Park. Including the Copperwood project, Highland manages a total of three projects in the region – White Pine North and Keweenaw. All three projects will yield both copper and silver.
Legislation in Michigan was recently amended to allow smaller, native operations to be regulated separately from larger ones. Senate Bill 129, proposed by Michigan State Senator Tom Casperson, makes the area more accessible to smaller operations, which were previously held to the same standards as larger operations posing greater risks.
In Minnesota, PolyMet’s NorthMet copper-nickel mine is also making headlines in the region. The project is currently in the approval process, with many optimistic that it will proceed. In addition to copper and nickel, the NorthMet mine would also produce cobalt.
Recently, Twin Metals Minnesota was also re-granted permits for copper exploration near the Boundary Waters Canoe Wilderness area, after the company’s lease agreements had been withdrawn under the previous administration.
Frac Sand
In addition to the above mentioned materials, the frac sand mining industry is seeing significant activity, as producers look to pump more of the proppant sand down wells in efforts to maximize oil and natural gas extraction.
While the frac sand boom a few years ago was focused on extracting the Midwest’s northern white frac sand, this time the boom is happening closer to wells. Frac sand mines are cropping up all over Texas and in surrounding states to provide a convenient and more cost effective source of sand for nearby wells.
Conclusion
The prospect of a booming mining industry is likely to have widespread economic impacts for everyone in the supply chain, as well as outside of it. Equipment suppliers, surrounding communities, and more are all slated to benefit from a boom. FEECO has witnessed this first-hand, with a number of inquiries increasing around frac sand dryers, copper pugmill mixers, gold ore agglomeration drums, and more.
FEECO provides custom processing equipment to the mining industry, including rotary dryers and coolers, rotary kilns, pugmill mixers and pin mixers, disc pelletizers, and more. Additionally, we offer comprehensive batch and pilot scale testing services for process development endeavors in our unique testing facility, The Innovation Center.
For more information on our custom mining equipment, contact us today!