By Charles Kennedy of OilPrice.com
President Donald Trump invoked emergency powers to increase U.S. critical minerals production in a bid to reduce reliance on “hostile foreign powers’ mineral production.”
In an executive order, the U.S. President invoked the Defense Production Act (DPA), which was passed in 1950 in response to production needs during the Korean War, which is the main tool at a U.S. president’s disposal to shift economic activity toward national defense priorities.
The executive order says that the Secretary of Defense may use the authority under section 303 of the DPA, for the domestic production and facilitation of strategic resources the Secretary of Defense deems necessary or appropriate to advance domestic mineral production in the United States.
“The United States possesses vast mineral resources that can create jobs, fuel prosperity, and significantly reduce our reliance on foreign nations,” the executive order says.
“The United States was once the world’s largest producer of lucrative minerals, but overbearing Federal regulation has eroded our Nation’s mineral production,” it adds.
“Our national and economic security are now acutely threatened by our reliance upon hostile foreign powers’ mineral production. It is imperative for our national security that the United States take immediate action to facilitate domestic mineral production to the maximum possible extent.”
The executive order also aims to accelerate private and public capital investment.
“The Secretary of Defense shall utilize the National Security Capital Forum to facilitate the introduction of entities to pair private capital with commercially viable domestic mineral production projects to the maximum possible extent,” according to the President’s executive order.
The US International Development Finance Corporation, working with the Department of Defense, is expected to help provide financing for new mineral production projects.
The National Mining Association (NMA) applauded the Presidential order to boost minerals production.
“By encouraging streamlined and transparent permitting processes, combined with financing support to counter foreign market manipulation, we can finally challenge China’s mineral extortion,” NMA president and CEO Rich Nolan said.
“We applaud this strong action that confronts our mineral crisis head on and we look forward to working with the administration to ensure made in America increasingly means mined in America.”
