The Strategic Pivot: From Reliance to Reshoring
Recent world events impacting the import restriction of strategic metals and minerals have reshaped the Federal Government’s perspective of domestic mining.
Not only is the Government now expressing ardent support for the location and development of strategic minerals/metals here in the United States, but it has also taken an active role in the purchase of significant interest in several such projects and prospects here at home. Several billion dollars have been committed to purchasing stock in rare earths and lithium companies, in particular.
Key Projects in Motion
Projects that are in negotiations or have already secured federal support represent a wide range of natural resources and their resulting finished products. Here are a few of the projects publicized to date.
“The DOE Office of Critical Minerals and Energy Innovation has committed $20 million to establish ACCENT (Advancement & Acceleration of Cement & Concrete Engineering Technologies) – part of a $155-million program bearing grants for 16 projects aimed at enhancing U.S. National Laboratories’ capacity to develop technologies that improve the efficiency and competitiveness of American industry.”
(Cement News Line)
“USA Rare Earth confirmed this week that it has a letter of intent with the federal government that gives the company funding access to $1.6 billion and the administration a 10% stake.”
(Miners News Global)
“MESC (Office of Manufacturing and Energy Supply Chains)” is announcing its intent to issue a NOFO (Notice of Funding Opportunity) of up to $500 million to expand U.S. critical mineral and materials processing and derivative battery manufacturing and recycling.”
(Dept. of Energy)
“The DOE’s Loan Programs Office approved a $2.26 billion conditional loan to support the Thacker Pass lithium mine in northwest Nevada — one of the largest lithium deposits in the Western Hemisphere.”
(Elective.com)
Financial and Logistical Incentives
Other incentives generated by the federal government to encourage the location and development of strategic minerals include tax incentives, low interest loans, access to Department of Energy research and resource assessments and mapping grants.
Some of the States benefiting from federal assistance to date include Nevada, California, Idaho, Colorado, New Mexico, Wyoming, Montana, Louisiana, North Carolina, Alaska and Virginia.
The refinement of federal regulations has considerably improved the ability of a mining company to locate, permit and begin production in a more defined period of time. In some cases, time to permit has decreased from years to months or even weeks making this an opportune time to be involved in the natural resources industry in the United States. This change alone can have significant impact on project profitability and ultimate success.
A Unique Opportunity
Whether the interest is that of a major mining company, a materials or service provider or simply as an investor, the industry of natural resources has been catapulted to a position of unusual opportunity given the federal government’s high profile financial support of domestic mining and manufacturing. From government support and incentives to the dramatic increase in demand for domestically produced natural resources, this is a unique and potentially quite profitable opportunity in America.
Here in BCLS Natural Resources we help natural resources projects secure funding and accelerate development.
Get in touch to explore how we can help you build next critical resource project.
📧 info@bendercareycap.com
📞 +1 844-562-2748