New Market Perspective
  • Business
  • Politics
  • Investing
  • World
  • Business
  • Politics
  • Investing
  • World

New Market Perspective

Investing

S&P Global: US Outpaced by Most Other Countries in Mine Development Times

by admin July 23, 2024
July 23, 2024
S&P Global: US Outpaced by Most Other Countries in Mine Development Times

A report published by S&P Global Market Intelligence reveals that the US lags significantly behind other countries in mine development times, impacting its ability to build strategic mineral resources.

The document reveals that it takes nearly 29 years on average for a US mine to progress from discovery to production, compared to 27 years in Canada and 20 years in Australia. Only Zambia takes longer at an average of 34 years.

This extended timeline puts the US at a disadvantage, especially as demand for the critical minerals needed for energy transition continues to rise. The report points out several key factors behind the delays.

Regulatory hurdles and litigation hinder mine development

S&P Global states that prolonged mine development timelines in the US can be partially attributed to complex regulatory frameworks. The firm notes that while Canada and Australia also face lengthy mine development processes, their mines reliably enter production, which is not always the case in the US.

For instance, the Lithium Nevada project, discovered in 1978, has not yet entered production. Projects like Michigan-based Copperwood and Maturi in Minnesota are also nearing two decades without reaching the production phase.

Litigation is also a significant hindrance for companies looking to bring US mines into production. The country has logged more legal disputes against mining projects than Canada and Australia combined.

US lags behind Canada, Australia on exploration budgets

The uncertainty in the US and risk of litigation have led to investors to lean more toward Canada and Australia, with exploration budgets being higher by 81 and 57 percent, respectively, over the last 15 years.

This underinvestment in the US is particularly concerning given its substantial endowments of critical minerals like copper, lithium, nickel and palladium, which are essential for the growing energy transition movement.

Notably, S&P Global points out that even though Australia is the world’s top lithium producer, the US has more than twice the amount of lithium reserves and resources.

Domestic supply chains key for security

As global demand for critical resources surges, the US’ reliance on foreign sources poses a strategic risk.

Currently, the US depends heavily on countries like Chile and Australia for its mineral needs. For instance, Chile alone accounts for nearly 70 percent of US imports of refined copper.

Without domestic supply, the US remains vulnerable to supply chain disruptions and geopolitical tensions.

With that in mind, the Biden administration has recognized the need to secure domestic sources of important commodities and has taken steps to address lengthy mine approval timelines.

For example, the Infrastructure Investment and Jobs Act includes provisions that prioritize energy and critical minerals research, and also allocates funds for mineral extraction.

In addition, the US has started trying to decrease its reliance on foreign imports, notably uranium, by allocating over US$2.7 billion to start up its domestic nuclear fuel supply chain.

S&P Global’s report includes several recommendations to further strengthen the US’ position.

One key suggestion is to streamline the regulatory framework, which could involve establishing a single, coordinating federal agency to oversee the entire mine approval process, reducing overlapping jurisdictions and minimizing delays.

The firm believes that increasing transparency and predictability in the permitting process would also help attract more investment and decrease uncertainty among investors.

Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.

This post appeared first on investingnews.com

0
FacebookTwitterGoogle +Pinterest
previous post
Brunswick Exploration Outlines New Spodumene Rich Boulder Trains at Mirage and Launches Summer Drill Campaign
next post
Grande Portage Resources Files on SEDAR+ the Mineral Resource Estimate for the Herbert Gold project Detailing Indicated Resources of 1,438,500 Ounces at 9.47gpt Gold and Inferred Resources of 515,700 Ounces at 8.85gpt Gold

Related Posts

First Helium: Advanced Stage, high-Value Oil, and Helium-enriched...

October 3, 2024

Skyharbour and JV Partner Orano Commence 2024 Exploration...

April 4, 2024

Tartana Drilling to Verify Upgrading of 45,000 Tonne...

May 1, 2024

Top 5 Canadian Biotech Stocks in 2025

April 23, 2025

Maverick Metals Secures US$19 Million to Fast Track...

April 9, 2025

1911 Gold Intersects up to 14.97 g/t Gold...

April 1, 2025

Danielle DiMartino Booth: Trump, Powell and US Recession...

November 24, 2024

Rule, Kiyosaki, Spina and Clark Share Mining Stock...

February 4, 2025

Element79 Gold Corp. Provides Chachas Community update

March 29, 2025

SAGA Metals Announces Assay Results from Radar Titanium-Vanadium...

October 22, 2024

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest

    • White House reveals highest-paid staffers–and 8 taking no salaries

      July 3, 2025
    • Trump $3.3T megabill sets House record for longest vote in history

      July 3, 2025
    • Iran nuclear program set back 2 years after US strikes: Pentagon

      July 3, 2025
    • Airlines secretly sold US travelers’ data to Homeland Security

      July 3, 2025
    • White House reveals highest-paid staffers – and 8 taking no salaries

      July 3, 2025
    • Jeffries stalls Trump’s ‘big, beautiful bill’ for hours after House GOP mutiny breakthrough

      July 3, 2025

    Popular

    • 1

      Top 5 Junior Copper Stocks on the TSXV in 2023

      December 22, 2023
    • 2

      Crypto Market 2023 Year-End Review

      December 22, 2023
    • 3

      Canada Silver Cobalt Begins Drilling at Lowney-Lac Edouard in Quebec, Targeting Nickel-Copper-Cobalt Mineralization

      December 22, 2023
    • 4

      10 Top Oil-producing Countries (Updated 2024)

      October 19, 2024
    • 5

      Top 10 Uranium-producing Countries (Updated 2024)

      April 18, 2024
    • 6

      Powered by rain, this seed carrier could help reforest the most remote areas

      December 19, 2023
    • 7

      A troubling theory about traders profiting from Hamas’ attack on Israel drew much attention. Why it may not be so simple.

      December 13, 2023

    Categories

    • Business (1,397)
    • Investing (3,435)
    • Politics (4,507)
    • World (4,410)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: newmarketperspective.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.


    Copyright © 2025 newmarketperspective.com | All Rights Reserved