Photo illustration: Shoshana Gordon/Axios. Photo: Marcus Yam/Los Angeles Times via Getty Images
American mining is struggling to meet its goals under the Biden administration, leading some in the industry to point the finger at a fragmented industry advocacy presence in D.C.
Why it matters: The U.S. is extremely reliant on foreign nations for high-demand metals, presenting what experts warn is an economic risk amid high geopolitical tensions.
- Yet most of what companies with U.S. mining operations want — tariffs, permits and direct investments in projects — isn't happening, except for occasional fistfuls of cash.
- An industry source who spoke on condition of anonymity said, "I think any time there's fragmentation, and there's a lack of a united front, interests are going to have a hard time in D.C."
Driving the news: The U.S. mining sector has suffered loss after loss despite a growing list of industry-focused trade groups and lobbyist-led "coalitions."
- Some of these losses have been under President Biden's direct control, like his administration's recent rejection of the Ambler mining road in Alaska.
- But not all losses have been related to permits.
- Low metal prices have left work idling at what was supposed to be the first U.S. cobalt mine in decades and significant layoffs at a Biden-backed lithium processing plant in Tennessee.
Between the lines: Several government affairs executives, who spoke anonymously to avoid blowback, said the minerals lobby has become so fractured it has difficulty achieving policy victories.
- Multiple executives said there's essentially a vacuum in leadership, with one prominent organization, the National Mining Association, making it difficult for ESG-minded companies to work with because of its coal mining members.
- That's despite NMA's active relationship with some arms of the Biden administration.
- Ben Youriev, who talks with some of the world's largest mining companies through Climate Action 100+, said companies and executives voice dissent over trade groups "quietly, without saying anything publicly."
Zoom in: NMA has long opposed U.S. climate policies that would phase out coal.
- Mining giant and NMA member Rio Tinto said in a report last year that the group's approach to climate was "on balance not aligned" with Rio Tinto's own policy on the matter.
- "Although there are many areas of agreement on issues … there is a significant departure on climate and energy policy positions between the NMA and Rio Tinto," the company stated in the report, adding it would review its membership on an annual basis.
How it works: One recent mining advocate is the Zero Emission Transportation Association, which focuses on making EVs, charging stations and batteries.
- ZETA comprises many U.S. companies that aren't NMA members, including Albemarle, owner of the nation's sole operating lithium mine.
- And many informal "associations" have cropped up in recent years via lobbying firms — the Battery Materials & Technology Coalition, the Key Minerals Forum and the Coalition for American Battery Independence.
- Some members of these ad hoc assemblages also aren't in NMA, including one of the world's largest mining companies, BHP Group, which has a vested interest in a large Arizona copper mining project.
- "This is a whole new cottage industry that has sprung up," said one industry source who spoke on condition of anonymity.
One executive whose company is an NMA member said it appreciates the trade group's staff, calling them "incredibly competent and incredibly knowledgeable."
- "But," the executive said, "putting coal and hardrock together has always been uncomfortable."
The other side: The NMA said it speaks "with one voice for American mining."
- Spokesperson Ashley Burke said its membership is "firmly aligned around core issues such as common-sense regulation, land access, permitting, safety and health, infrastructure and more."
- It provided a statement from Mitchell Krebs, CEO of precious metals mining company Coeur Mining, who the group said founded its ESG task force that produced the group's 2020 policy statement on climate.
- Krebs said NMA "has collaboratively worked with its minerals members to develop a strategy to advance our collective priorities and is executing to great effect."
