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May 13, 2005
U.S. behind the mineral eight-ball
By ERIK LACAYO In the past year, China has surpassed the United States in copper consumption, and is about to overtake it in use of a variety of other metals, said Gibbons, R-Nev., chairman of a House minerals subcommittee. While China's demand is driving up prices, U.S. producers are not in a position to profit, he said at a panel hearing. "We have allowed our domestic energy and mineral policies to languish over the years, driving investment overseas and increasing our reliance on foreign sources of energy and mineral resources," Gibbons said. According to U.S. analysts, China's rising consumption has raised prices and lowered stocks of aluminum, copper, gold, iron ore, nickel, platinum metals and tin. Gibbons and experts at the hearing said the government must find ways to promote mineral exploration and production in the United States. "The U.S. is no longer first in line for mineral resources," said Ann Carpenter, a Nevada geologist who testified before the subcommittee. She spoke for the Women's Mining Coalition, an Elko-based group of mine owners and workers. Carpenter said government regulations discourage exploration and production of coal and hard rock minerals. For instance, she said, the mining industry has been hampered with an undeserved reputation as a major polluter because government rules characterize earth moving as "toxic releases" in annual reports. "Exploration is very weak here. Only seven to eight percent of the world's exploration is spent in the United States," said Carpenter, who lives in Reno. Gibbons agreed the United States could become more competitive in mining production. Gibbons said he was frustrated that mining companies find Canada, South America and Africa more desirable places to explore. "In my prior life as an exploration geologist, I spent many days roaming remote places of Nevada, and I can say for certain that Nevada is abundant in minerals just like much of the United States," Gibbons said. Rep. Eni F.H. Faleomavaega, D-American Samoa, said the mining industry is unfairly blaming government regulations for its problems. He said mining companies are moving overseas because of lower labor costs. Carpenter responded a company must invest up $100 million to open a new mine so the cost of labor is not a big enough factor to risk investment in countries with unstable economies. |
