July 18 (Reuters) - It takes an average of nearly 29
years to build a new mine in the U.S., the second-longest in the
world behind only Zambia, hampering Washington's efforts to
boost output of lithium, nickel and other metals for the energy
transition, a report said on Thursday.
The report by consultancy S&P Global ( SPGI ) comes amid
rising pressure on U.S. officials to streamline what is seen by
mining companies and some policymakers as a confusing and
lengthy process to obtain a mining permit that harms efforts to
offset China's near-total control of the critical minerals
sector.
S&P studied 268 mining projects across the globe from when a
metal deposit was first discovered until production began. The
report found the development timeline in copper- and cobalt-rich
Zambia to be the longest in the world at roughly 34 years, five
years longer than the U.S.
Canada, Argentina and Mongolia - where Rio Tinto
developed the Oyu Tolgoi copper project -
rounded out the top five longest development periods.
Ghana, the Democratic Republic of Congo and Laos had some of
the shortest development times in the world, at roughly 10 to 15
years, while Australia at 20 years was the best among countries
most comparable to the U.S.
The report, which did not offer policy recommendations, was
paid for in part by the National Mining Association, a U.S.
industry trade group. S&P Global ( SPGI ) said the NMA did "not provide
data or substantive input."
The NMA is helping lead a campaign to convince Washington to
revive the long-dormant U.S. Bureau of Mines, Reuters reported
this month. The S&P report noted that Canada and Australia have
federal-level mining offices.
Data on Rio and BHP's Resolution Copper project in
Arizona and Northern Dynasty's Pebble copper and gold
project in Alaska - neither of which are permitted - were
included in the report, which assumed they would open by 2030.
Both projects have faced Indigenous and environmental opposition
that the report did not offer suggestions to overcome.
The report did not discuss how increased use of copper
leaching by Freeport-McMoRan ( FCX ) and others - processes that
do not require new permits - could affect U.S. output of that
key metal.
A high rate of litigation against U.S. mining projects, the
report found, has dampened exploration budgets, with companies
with projects in Canada and Australia spending 81% and 57% more,
respectively, to find new deposits than those in the U.S. in the
past 15 years.
That was despite the U.S. having more than twice the copper
and lithium reserves and resources of those countries, S&P data
show.
The 28-page report also found that, globally, gold mines are
developed the fastest, at an average of 15.2 years, with nickel
mines developing the slowest, at an average of 17.5 years.