U.S. miners tout environmental credentials in wake of Biden victory

Texas Mineral Resources

12/11/2020 11:00

By Ernest Scheyder
    Nov 12 (Reuters) - U.S. mining companies are moving fast to
align themselves with Joe Biden's climate change agenda, saying
the lithium, copper and other metals they produce can help the
president-elect achieve his ambitious goals to slash carbon
emissions and electrify the nation's automobiles.    
    With Biden proposing to hasten the demise of coal and other
fossil fuels with his $2 trillion climate plan, miners of
so-called strategic metals are hoping Biden's team sees them as
partners, not foes.
    Within hours of U.S. networks calling the race last
Saturday, the National Mining Association trade group
congratulated Biden on his victory and reminded him that the
country's 600,000 miners supply products used to make bridges,
cell phones, solar panels and myriad other goods.
 urn:newsml:reuters.com:*:nL1N2HV2FC urn:newsml:reuters.com:*:nL1N2HD0RW
    "You might not want to extract coal, but you should want to
extract lithium," said Michael Silver, chief executive of Los
Angeles-based American Elements, which makes performance
materials from a range of metals. "Biden could change the
zeitgeist in the county on mining." 
    The miners' approach aims to supplant the common view of
mining as environmentally harmful, for that of a core provider
of the materials necessary for a low-carbon future, even though
some controversial practices - including open-pit mines -
remain. 
    The tack could prove especially helpful for proposed mines
on federal land, including projects from Rio Tinto Plc  RIO.L ,
BHP Group Plc  BHPB.L , ioneer Ltd  INR.AX  and Lithium Americas
Corp  LAC.TO , and as the world's largest miners tie their
futures to the United States.
    "You can have a mining operation that is carbon neutral,"
said Stephen Gill of Switzerland-based Pala Investments, the
largest shareholder in Nevada Copper Corp  NCU.TO , which last
year opened the first new U.S. mine in decades. 
    Biden and Vice President-elect Kamala Harris have said they
would slow fracking on federal lands, though they have not
publicly addressed mining. The transition team did not respond
to requests for comment.
    
    LEGISLATION
    Biden's transition team is considering legislation that
could penalize carbon emissions and increase financial
incentives for EVs, steps seen as boosting metals demand.
 urn:newsml:reuters.com:*:nL1N2HU04M
    Republicans, who are expected to retain control of the U.S.
Senate, likely would oppose EV tax rebates but support
legislation that would require products bought by the U.S.
government - including its fleet of 8.1 million automobiles - to
be built with domestically-sourced metals, Congressional aides
say.
    "That would be really helpful," said Keith Phillips, chief
executive of Piedmont Lithium Ltd  PLL.AX , which is building a
lithium mine in North Carolina.  urn:newsml:reuters.com:*:nL2N26A19N
    Miners are also hoping the coronavirus pandemic highlights
the value of closer supply chains and curbs dependence on China,
the world's largest producer or consumer of lithium, rare
earths, copper, iron ore and other metals.  urn:newsml:reuters.com:*:nL5N2CA8MT
    "I don't think the American people are interested in letting
that be the status quo," said James Calaway, chairman of ioneer,
which is developing a lithium and boron mine in Nevada.
 urn:newsml:reuters.com:*:nL1N2CH33Y
    New regulations depend on who Biden appoints to run under
consideration to run the U.S. Environmental Protection Agency
the U.S. Environmental Protection Agency. One candidate under
consideration tweeted  https://twitter.com/MaryNicholsCA/status/1203198504945864705?s=20support
 https://twitter.com/MaryNicholsCA/status/1203198504945864705?s=20
 last year for Rio Tinto's California lithium project, though
other candidates have opposed some U.S. mining projects https://www.coastalreview.org/2015/11/epa-warns-state-on-permit-cases
 in the past on environmental grounds.  urn:newsml:reuters.com:*:nL2N26V1YP
    In the meantime, miners say they plan to show these new
regulators their embrace of renewable energy-powered equipment
and other changes they see as boosting their environmental
credentials.

 (Reporting by Ernest Scheyder; additional reporting by Simon
Lewis
Editing by Marguerita Choy)
 ((ernest.scheyder@thomsonreuters.com; Twitter: @ErnestScheyder;
+1-713-210-8512; Reuters Messaging:
ernest.scheyder.thomsonreuters.com@reuters.net))