A partial government shutdown is putting the brakes on attempts to reform the mine permitting process in the United States and could spells further delays for new projects, including a joint venture that is attempting to develop one of the world’s largest copper deposits in Arizona.
“Permitting reform is the number one issue down here for our member companies,’’ said Laura Skaer, Executive Director of the Northwest Mining Association in Spokane Washington.
Skaer said it takes seven to 10 years to permit a mine in the United States. “That is a long time to be waiting for a return on your investment,” she said.
But efforts to develop new mines are hampered by the fact that the Washington budget standoff has virtually shut down the U.S. Bureau of Land Management, the agency that is responsible for most of the mine permitting in the United States.
Affected new projects include:
Resolution Copper – a Rio Tinto Plc (NYSE: RIO, Stock Forum) and BHP Billiton Ltd. (NYSE: BHP, Stock Forum) joint venture in Arizona.
Rare Element Resources Ltd.’s (TSX: T.RES, Stock Forum) Bear Lodge rare earth minerals in northeastern Wyoming,
Midas Gold Corp.’s (TSX: T.MAX, Stock Forum) Golden Meadows gold-antimony project in Valley County, Idaho.
Midway Gold Corp.’s (TSX: T.MDW, Stock Forum) Pan Project in White Pine County, Nevada.
Pershing Gold Corp.’s (OBB: PGLC, Stock Forum) Relief Canyon gold mine in Pershing County Nevada.
Ranking as the world’s third largest undeveloped copper project, Resolution Copper is by far the biggest of the five.
However, it cannot proceed without Federal approval for land exchange legislation that would provide access to ground that is currently excluded from mining by federal law.
The proposed land swap bill was approved by the House Natural Resources Committee in May 2017.
But the budget standoff likely means efforts to gain congressional approval for the land exchange from the federal government will be delayed into 2014.
“It is not going to be this year because of the shenanigans over the debt ceiling, and the funding of the government. But hopefully we can get that done early next year,’’ said Skaer.
Meanwhile, Rare Element has just signed a deal with the U.S. Forest Service that lays out the time line for the permitting process at Bear Lodge
For its part, Midas has said it will require permits from numerous local, state and federal agencies in order to develop its Golden Meadows project.
However, Skaer said Midas benefits from its location in a historic mining camp and the presence on the property of antimony, a feature that will likely attract the U.S. Department of Defence, she said.
That’s because antimony improves the properties of alloys which are used in solders, bullets and plain bearings.
“Hopefully they [the U.S. Department of National Defense] will be helpful in nudging the project along through the permitting process,’’ Skaer said.