Pressure Builds to Reshore American Manufacturing - Cannot Happen Without Mining
There is an emerging consensus that the United States must rehabilitate its industrial base for national security reasons. A form of "closed loop mining-to-manufacturing" will be essential.
Shawn Ryan’s recent interview with Palmer Luckey surfaced several vital issues that companies with mining and mineral assets in the United States should pay close attention to. The mining industry will need to engage people like Palmer to help them realize that reshoring manufacturing is a pipe dream without a massive increase in the volume and range of raw materials mined, processed, and refined within the U.S.
Palmer is an entrepreneur who founded Oculus VR, which was sold to Facebook (Meta) in March 2014 for US$2 billion. Palmer’s share of the proceeds was reported to be $700 million, which he deployed to found military technology company Anduril, which has an estimated valuation of at least $10 billion.
In his discussion with Ryan, Luckey emphasized the critical need for the United States to revitalize its manufacturing capabilities to maintain national security and economic stability.
Manufacturing Capacity: Luckey points out that China has significantly more shipbuilding capacity than the United States - 350 times greater. With the Chinese merchant marine fleet built to military specifications for dual-use purposes, the disparity poses a severe threat in potential conflict scenarios. China can outproduce the U.S. in military assets.
Civil-Military Fusion in China: Similarly, Chinese law mandates that all civilian technology be available for military use, enhancing China’s ability to convert commercial manufacturing to military production rapidly. This policy gives China a strategic advantage regarding manufacturing flexibility and capacity.
Historical Context: Luckey draws parallels to World War II, where the U.S. rapidly transformed its economy to become a manufacturing powerhouse. He argues that the U.S. can achieve similar feats today by prioritizing reshoring and rebuilding its manufacturing base.
Skilled Workforce: He stresses the importance of training and developing a skilled workforce in manufacturing. The decline in U.S. manufacturing has led to a shortage of qualified workers, which needs to be addressed to rebuild the industry.
Defector Visas: Luckey proposes the idea of “defector visas” to attract top talent from adversarial countries like China. By bringing skilled engineers and managers to the U.S., the government can weaken its adversaries’ capabilities while bolstering its own.
Economic and National Security: He argues that relying on foreign manufacturing, especially from potential adversaries, undermines U.S. economic and national security. A foreign power's ability to disrupt the U.S. economy by cutting off manufacturing ties is a significant vulnerability.
Corporate Responsibility: Luckey criticizes the past behavior of U.S. tech companies, which prioritized entering the Chinese market over supporting U.S. national interests. He calls for a realignment in which American companies work more closely with the U.S. government and military to ensure national security.
The Missing Link - Mining
Strangely, Luckey did not discuss mining or raw materials at any point in the interview. He is laser-focused on revitalizing American manufacturing to maintain national security and economic stability. However, national security remains vulnerable without a secure supply of a broad spectrum of minerals that are refined and processed locally.
Chamath Palihapitiya is a tech entrepreneur and investor in Luckey’s orbit. We wrote last week about Palihapitiya’s big bet on investing in a domestic supply of rare earth materials to reduce U.S. reliance on China. He has grown disillusioned with the adverse American regulatory environment for mining.
The industry needs to be more active in lobbying reshoring and domestic supply advocates like Luckey and Palihapitiya to collaborate to DOGE the intricate layers of logjams that are delaying or preventing mining and mineral processing from reaching commercial production. The Trump administration represents an unusually favorable tailwind, and it is time for action to make the U.S. a more hospitable jurisdiction for the full mining stack.
B.C. Gets It
British Columbia has already reacted emphatically to current circumstances by fast-tracking 18 resource projects to reduce reliance on trade with the United States. These projects are a blend of energy, mining, and critical mineral projects that are already on the books but have been slowed by government and social license lassitude.
Among the projects earmarked for fast-tracking are:
Newmont’s Red Chris gold and copper mine expansion in the same region.
Skeena’s Eskay Creek Gold/Silver project is revitalizing a historic mine site in the far northwest of B.C.
Centerra’s Mount Milligan gold and copper mine in Fort St. James, west of Prince George.
Teck’s extension of the Highland Valley Copper mine in Logan Lake, in southwest B.C.
Enbridge’s Aspen Point program includes pipeline and power lines in the Chetwynd and Hudson's Hope regions of northeast B.C..
Haisla Nation (50.1%) and Pembina Pipeline’s (49.9%) Cedar LNG natural gas export facility in Kitimat, near B.C.'s North Coast.
NorthRiver Midstream’s NEBC Connector seeks to build two 213-kilometre pipelines from the Montney region of northeast B.C. to transport natural gas liquids and condensate to Alberta.
The C$36 billion B.C. Hydro-led transmission line to supply energy to northwest B.C..
American Projects
There are many U.S. Projects that would benefit from a similar fast-tracking initiative. In no particular order:
Pebble Copper-Gold Project (Alaska):
Although highly controversial and facing significant environmental opposition, Northern Dynasty’s Pebble Project in Southwest Alaska near Bristol Bay has been in the development phase for years. It aims to mine copper, gold, molybdenum, and silver. The project's future remains uncertain due to regulatory vetoes and ongoing legal battles.
Mountain Pass Mine (California):
The Mountain Pass Mine, located in San Bernardino County, California, is one of the world's most significant rare earth element (REE) deposits. MP Materials Corp. operates it and has been revitalizing it to bring it back to full production levels after years of reduced activity.
Copper World Complex (Arizona):
Hudbay Minerals has plans for this complex near Tucson, Arizona, which would include the development of several deposits, including the Rosemont asset. The project has been tied up in permitting delays but is anticipated to significantly boost copper supply once operational due to recent discoveries expanding its resource potential.
Carolina Lithium Project (North Carolina):
Piedmont Lithium is developing this project in Gaston County, North Carolina. It aims to become one of North America's largest lithium hydroxide producers, processing spodumene concentrate from its mining operations. The project has faced local opposition and regulatory scrutiny but has received its mining permit. It's designed to support the U.S. electric vehicle supply chain by producing lithium hydroxide for batteries.
Florence Copper Project (Arizona):
Taseko Mines Ltd. is developing this project in Pinal County, Arizona. It's unique in that it proposes using in-situ copper recovery, which would have a much smaller environmental footprint than traditional mining methods. The project is in the final stages of permitting, with plans to start production in late 2025, potentially adding 85 million pounds of copper to annual production.
Perpetua Resources’s Stibnite Gold Project (Idaho):
This project is considered one of the "top ten" gold deposits in the US, with gold and antimony assets. Antimony is highly valued in defense and technology applications.
Lithium Americas’s Thacker Pass Lithium Project (Nevada):
Located in the McDermitt Caldera, this project boasts a significant lithium reserve, estimated at 40 million tons. It could be a key lithium battery player, potentially challenging China's dominance in this sector.
Quartz Mines (North Carolina):
While not a new development project, the quartz mines in Spruce Pine, North Carolina, particularly those operated by Sibelco and The Quartz Corp., have been dealing with recovery efforts post-Hurricane Helene. This region is crucial for high-purity quartz, which is essential for semiconductor production, and the mines are working towards resuming full operations, which could involve further development or expansion in the future.
Tonopah Flats Lithium Project (Nevada):
American Battery Technology Company (ABTC) is developing this project, one of the largest known lithium deposits in the U.S., with an estimated 15.8 million tons of lithium carbonate.
Resolution Copper Project (Arizona):
This project aims to develop one of the world's largest untapped copper deposits. It's a collaboration between Rio Tinto and BHP, and although it's in the development stage, its scale makes it considered pivotal for future copper supply.
PolyMet Mining Project (Minnesota):
Focused on extracting copper, nickel, and precious metals, this project could produce 32,000 tons of copper and 15,000 tons of nickel per year once operational. However, it faces significant environmental concerns and regulatory hurdles.
Graphite Creek Project (Alaska):
Graphite One Inc. is developing this project near Nome, Alaska. It's one of the largest graphite deposits in the U.S.. With substantial investment from the U.S. Department of Defense, it aims to establish a domestic supply chain for graphite, which is crucial for lithium-ion batteries.
Treasure Creek Antimony Project (Alaska):
Felix Gold is exploring this project near Fairbanks, Alaska. It focuses on antimony, critical for military applications and renewable energy technologies. If it moves to production, this project could become one of the few domestic sources of antimony.
Estelle Antimony Project (Alaska):
Nova Minerals is developing this project with initial startup costs estimated at $25 million and potential first production within 18 months of securing funding. It's a much smaller-scale project than others, but still significant for its strategic mineral, antimony.
Spruce Ridge Nickel Project (Oregon):
Spruce Ridge Resources is working on this project, which could become one of the country's few domestic nickel suppliers, which is crucial for battery production.
Donlin Gold Project (Alaska):
Located in Southwest Alaska, this project is one of the largest known undeveloped gold deposits globally. It's a partnership between NovaGold Resources and Barrick Gold Corporation. The project aims to produce about 1 million ounces of gold annually over an expected 27-year mine life. It has faced significant environmental and cultural opposition but continues to progress through the development stages.
Manh Choh Gold Project (Alaska):
Kinross Gold is developing this project in partnership with Contango ORE Inc. It's located about 250 miles southeast of Fairbanks. Ore from Manh Choh will be trucked to the Fort Knox mill for processing. The project is notable for its high-grade gold and is expected to enter production soon.
Ambler Mining District (Arctic and Bornite Projects, Alaska):
Ambler Metals LLC, a joint venture between Trilogy Metals and South32, is developing these projects in Northwest Alaska. They focus on copper-rich deposits, with Arctic being the more advanced of the two. The development of the Ambler Road is critical for accessing these remote areas, which continues to be a contentious issue among stakeholders.
Palmer Project:
American Pacific Mining Corp., in collaboration with Dowa Metals & Mining Alaska Ltd., is advancing this volcanogenic massive sulfide (VMS) deposit in Southeast Alaska. The project is rich in zinc, copper, silver, gold, and barite. It's currently in the exploration and development phase with plans for a preliminary economic assessment.
Johnson Tract Project (Alaska):
Now under the management of Contango ORE Inc., this project in Southcentral Alaska explores for gold, copper, silver, and zinc. It's notable for its high-grade gold potential.
Cactus Mine Project (Alaska):
Arizona Sonoran Copper Company operates the project, including open-pit and underground mining operations near Casa Grande. The project has an estimated resource of 6.5 billion pounds of copper. It leverages infrastructure from the former ASARCO operation, providing a head start on development.
Big Sandy Lithium Project (Arizona):
Arizona Lithium is developing this lithium project in partnership with Navajo Transitional Energy (NTEC). It aims to produce lithium for batteries, with NTEC managing various aspects from permitting to mine development. This project is part of the broader push to develop domestic sources of lithium for the electric vehicle industry.
Gunnison Copper Project (Arizona):
Excelsior Mining Corp. owns a project in Cochise County that uses in-situ recovery for copper extraction. The project has completed its preliminary economic assessment (PEA) and is moving towards the final feasibility stages. Once in production, it's expected to create jobs and generate significant tax revenues.
South32's Hermosa Project (Arizona):
While parts of this project, focusing on zinc, lead, and silver, are already in operation, the manganese component is still in development. This project near Patagonia, Arizona, is significant for potentially producing manganese, a critical mineral for electric vehicle batteries, but it has stirred environmental concerns regarding air and water quality.
Tennessee Lithium Project (Tennessee & North Carolina):
Although primarily located in Tennessee, this project by Piedmont Lithium also involves operations in North Carolina for the mining and initial processing of spodumene. The lithium hydroxide production will occur in Tennessee, but the mining in North Carolina remains in development.
Heavy Minerals Exploration in Coastal Plain (North Carolina):
Exploration for heavy minerals like ilmenite, rutile, and zircon in counties like Wilson, Nash, and Halifax has been noted. Southeast Tisand and RGC (USA) Minerals, Inc. have been evaluating deposits for possible development, which could lead to new mining operations if viable reserves are confirmed.
Paradox and Green River Lithium Projects (Utah):
Located in the Paradox Basin near Moab and in the Green River Area, these projects by Anson Resources aim to extract lithium from brine. The company plans to use direct lithium extraction (DLE) technology, which is environmentally less invasive. The project includes constructing evaporation ponds and a processing plant, with a significant water usage component that has stirred environmental concerns.
Velvet-Wood Uranium Project (Utah):
Anfield Energy is working on this project in San Juan County, Utah. It involves developing uranium resources to restart uranium production. Anfield has submitted plans for operation but is still in the permitting phase.
Harts Point Uranium Project (Utah):
Atomic Minerals Corp., in partnership with Kraken Energy, is exploring this uranium project in San Juan County. The project is in the drill permitting process and aims to tap into the historical uranium-rich region of the Colorado Plateau.
Centennial Uranium Project (Colorado):
Located in Weld County, this project by Azarga Uranium (now part of enCore Energy) aims to use in-situ recovery for uranium extraction. It's in the advanced stages of permitting, with significant resources identified.
Dewey-Burdock Uranium Project (Colorado & South Dakota):
enCore Energy’s project straddles the South Dakota-Colorado border but has significant operations planned in Colorado. It's one of the more extensive uranium deposits in the U.S., with permits granted, but it awaits final regulatory approval for operations.
Lithium Nevada Project (Nevada):
Ioneer Ltd. is developing this project for lithium and boron. The project is notable for its potential to supply lithium for the electric vehicle battery market and boric acid for agriculture and glass manufacturing applications. It's in the permitting phase, with significant attention due to its environmental considerations, particularly concerning wildlife.
Twin Metals Minnesota Project (Minnesota):
Located near Ely, this project by Twin Metals Minnesota LLC (a subsidiary of Antofagasta) focuses on copper, nickel, cobalt, and platinum-group metals. However, the project has been mired in controversy over its environmental impacts on the Boundary Waters Canoe Area Wilderness, leading to lease cancellations and ongoing legal challenges.
Rare Element Resources Bear Lodge Project (Wyoming):
Rare Element Resources Ltd. owns the project and seeks to extract rare earth elements crucial for technology and defense industries. Located near Sundance, it's one of the few potential sources of these minerals within the U.S. The project is in the development phase, focusing on obtaining permits and conducting feasibility studies.
Santa Cruz Copper Project (New Mexico):
The Santa Cruz deposit near Santa Fe, developed by South32, is another significant copper project. It's moving towards feasibility with plans for both open-pit and underground mining. The project is notable for its high-grade copper resources.
Salton Sea Lithium Project (California):
Controlled Thermal Resources is working on extracting lithium from geothermal brines at the Salton Sea. This project could transform lithium supply by utilizing an environmentally friendly method of extraction from geothermal power production's waste streams.
Black Butte Copper Project (Montana):
Located near White Sulphur Springs, this project by Sandfire Resources America is advancing through environmental reviews and permitting. It's notable for its high-grade copper content and for being an underground mine, which can have a smaller environmental footprint.
Jervois Global's Idaho Cobalt Operations (Idaho):
Previously known as the Sunshine Mine, this project aims to produce cobalt, crucial for batteries. While it has historical significance, Jervois is focusing on restarting operations with modern mining and environmental practices.
Spruce Ridge Resources Maine Lithium Project (Maine):
Exploration for lithium pegmatites in Maine by Spruce Ridge Resources. This project is in its early stages, but Maine has a history of lithium mining, which could be revisited with modern techniques.
Black Canyon Mica Project (Arizona):
Western Sierra Resource Corporation is exploring Maricopa County for high-quality mica. Mica is crucial for various industrial applications, including electronics and paints.
Stateline Copper Belt (Colorado & Utah):
Cloudbreak Discovery and Alianza Minerals are exploring for copper in the Paradox Copper Belt, which crosses Utah and Colorado. Early drilling has shown signs of copper mineralization, potentially leading to new discoveries in this historically productive region.
Lemhi Pass Thorium Project (Idaho):
U.S. Rare Earths is exploring for thorium at Lemhi Pass, which could be significant for nuclear energy applications if thorium-based reactors become more common. Thorium also has potential in other industries like aerospace and medical devices.
Kipnik Nickel Project (Alaska):
Alaska Energy Metals Corp. is exploring for nickel in the state’s southwest. The project has shown promising nickel-copper-cobalt mineralization. Although in the early stages, it could add to the U.S. supply of these critical minerals.
Luna County Lithium Brine Exploration (New Mexico):
Standard Lithium is exploring lithium brine in Luna County, employing direct lithium extraction technologies. This project is in the very early stages but could tap into the growing demand for lithium in batteries.
Stardust Power Lithium Refinery (Oklahoma):
Stardust Power is constructing a lithium refinery of 50,000 metric tonnes per annum in Muskogee, Oklahoma. The refinery will supply the EV and battery manufacturing sectors, securing part of North America's lithium supply chain.
Ioneer's Rhyolite Ridge Lithium Project (Nevada):
While primarily a mining project, it includes plans for on-site processing of lithium-carbonate, supported by a DOE conditional loan.
Westwin Elements Nickel Refinery (Project location not explicitly stated but with US focus):
Westwin Elements, backed by the U.S. Department of Defense, is developing a nickel refinery to produce battery-grade nickel from domestic sources, aiming to reduce reliance on foreign supply.
Mangrove Lithium's Electrochemical Refining Facility:
Located in North America (the exact location not specified in public documents but aimed at the U.S. market), this project will be the first electrochemical lithium refining facility focusing on sustainable lithium production for batteries.
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