S&P Global report reveals lengthy delays in US critical mineral mine development

While the US government has invested billions and introduced major new policies in a bid to develop its critical minerals supply chain, a new report has found the nation languishing near the bottom of the heap in bringing new mines into production.

Concerned about China’s dominance in the production of critical minerals and rare earths, recent US presidents have made improving the nation’s supply chain in those areas a major priority.

However, according to a new report by S&P Global, the US has the second-longest lead times in the world for developing a new mine for critical minerals.

Three-decade wait

The S&P Global study estimated that the development of a new US mine—from discovery to production—takes nearly 29 years on average, longer than any other country except Zambia.

“This new analysis underscores a fundamental challenge for the energy transition,” said S&P Global vice chair Daniel Yergin.

“Building the new infrastructure and adopting new technologies in the pursuit of net-zero 2050 goals will greatly depend on reconciling surging demand with long lead times and other challenges presently encountered in scaling up the supply of critical materials.”

Major resource base

Mr Yergin said that, while the US lags near the rear in critical mineral project lead times, it has the resource base to meet the demands of its government.

For example, the US has more than 275 million metric tons of copper reserves and resources, ranking it alongside powerhouses like Canada and Australia.

S&P Global said the US has the copper reserves to satisfy domestic demand for the foreseeable future but they must be developed in a timely manner.

It is a similar story for lithium, with the US holding more than 43Mt of reserves and resources—more than twice that of Australia, which currently accounts for half of the world’s lithium production.

Lack of progress

S&P research found that only three mines have come into production in the US since 2002, while ten additional non-operating projects have remained in development for decades—one since 1978.

“This latest research further illustrates that the United States has a vast reserve of critical minerals,” said executive director of S&P Global Market Intelligence Mohsen Bonakdarpour.

“The pre-production value of the ten US mines still in development, though not yet operating, represents more than $150 billion worth of copper, gold, lithium and zinc.”

S&P also noted that the US is suffering from a decline in exploration spending.

Exploration investment over the past 15 years has been 57% higher in Australia and 81% higher in Canada than it has been in the US.