During a Senate Energy and Natural Resources Committee hearing prior to the congressional recess, Sen. Mike Lee (R-UT) discussed the need to strengthen the nation's mineral processing industry.
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NewsTranscript
00:00Today, we'll receive testimony on six bills listed in the notice for today's hearing.
00:05All these bills address domestic mining and mineral processing, related reporting and
00:12public information.
00:14Four of these measures have bipartisan co-sponsors, and a fifth has received some bipartisan support.
00:20Having served on this committee since 2011, I'm keenly aware that the United States has
00:25fallen behind China and other nations when it comes to mining and mineral processing.
00:31Today's hearing represents a first step in developing a legislative record on measures
00:36to address this very problem.
00:39Of course, not all of us will support each measure on which the committee will hear testimony
00:43today.
00:44I don't support all the bills listed on the notice for today's hearing.
00:48For example, although I agree that America needs to process more non-fuel minerals here
00:54at home, and I appreciate that Senator Hickenlooper's bill, S-596, has Republican co-sponsors,
01:02I've got strong reservations about the pilot program that this legislation would establish.
01:07Also, I included Senator Lujan's bill, S-859, in today's hearing as a courtesy.
01:13Senators Heinrich Weiden and Padilla are co-sponsors, along with a number of Democratic colleagues.
01:20Today's hearing is reflective of my intent to sharpen the committee's focus on legislation
01:24without diminishing our other responsibilities to consider residential nominations or to
01:30conduct oversight within our committee's jurisdiction.
01:34We'll begin by moving pending nominations through the committee as soon as we have the
01:39requisite paperwork on these additional nominations.
01:44I want to thank Ranking Member Heinrich and all the members of the committee for helping
01:48identify the six bills that we will receive testimony on this morning.
01:55After I conclude my opening statement, we'll hear from Senator Heinrich for his opening
01:59statement, and thereafter, I'll introduce our distinguished panel of witnesses.
02:04We'll hear the witness testimony and then move to a round of questions from members.
02:09Members will have five minutes for their questions, and we'll alternate between senators on one
02:15side of the dais and then the other.
02:19If you're here today, it's because you understand that America's economic strength and national
02:24security hinge ultimately on securing a reliable supply of key materials.
02:31Currently, a majority of the world's mineral extraction and refinement are controlled by
02:37adversarial countries.
02:39We've seen what happens when we rely on these nations for essential resources.
02:44Supply chain disruptions, economic vulnerabilities, and ultimately, tragically, national security
02:51risks.
02:53It's time to fix that.
02:55The resources are here, right here in the United States.
02:58We just need the right policies in order for us to be able to unleash them.
03:04My home state of Utah, for example, has 40 of the 50 minerals deemed essential by the
03:10U.S. Geological Survey, yet bureaucratic delays and inconsistent regulations create often
03:17insurmountable barriers to domestic production.
03:20A 2024 S&P Global Survey found that U.S.-based mineral projects take an average of 29 years
03:30to move from discovery to production.
03:35That's the second longest timeline in the world.
03:38To put that in perspective, if a mine were needed for defense applications during World
03:43War I using today's permitting timelines, it wouldn't be operational until after World
03:48War II had come to an end.
03:51That is unacceptable.
03:53It's one of the reasons why I've introduced the Critical Mineral Consistency Act with
03:57my colleague from Arizona, Senator Mark Kelly.
04:01Right now, the Department of Energy and the Department of the Interior have separate parallel
04:07inconsistent lists of what counts as critical and what doesn't.
04:12That doesn't make any sense.
04:14In 2023, the Energy Department added copper to its list of critical materials, recognizing
04:21the metal as integral in energy technologies but also at risk for supply disruptions by
04:292035.
04:30But the U.S. Geological Survey left copper off its own list, even though it's vital for
04:35power grids, wind turbines, and electric vehicles.
04:40My bill would require these lists to match.
04:44These designations send a powerful message to investors.
04:48The U.S. government is backing these supply chains on national security grounds.
04:53If we want private investment in domestic production, we need clarity and we need consistency.
05:00That's exactly why we need to pass Senators Cortez Masto and Rish's Mining Regulatory
05:08Clarity Act to enable mining on federal land.
05:12But streamlining regulations is only part of the equation.
05:16This doesn't get the whole thing.
05:18We need to get to streamlining regulations.
05:21We need to go beyond that and to truly strengthen our supply chains.
05:26We must also reject policies that create additional burdens on domestic production.
05:33Imposing additional federal royalties would only add cost and uncertainty, potentially
05:38shutting down existing projects and driving investment overseas.
05:45These specifically to nations with far worse, far inferior environmental and humanitarian
05:51standards than what we have here.
05:53It would create redundant fees, as domestic mining projects are already subject to state
05:58and local royalties and taxes.
06:01Simply put, these proposals would make our mineral supply chains less competitive, and
06:07it would make them more vulnerable, impacting everything from economic growth to national
06:12security.
06:13We cannot afford to drag our feet any longer.
06:17China is racing ahead in mineral processing and refining.
06:21We need to move faster, smarter, and more strategically.
06:26The United States has the resources, the talent, and the technology.
06:31We just need the right policies to lead this charge.
06:35That starts here, with hearings like this one that we're having today, with legislation
06:40like what we'll be discussing at this hearing.
06:43I look forward to working with my colleagues to ensure that we have the ability to unlock
06:47our full potential and secure America's mineral future.