Report Shows U.S. Mining Projects Face Nearly 29-Year Delay
A recent report by consultancy S&P Global reveals that it takes nearly 29 years on average to develop a new mine in the United States, making it the second-longest process worldwide, behind Zambia's 34-year timeline. This extended timeframe hinders U.S. efforts to increase production of critical metals like lithium and nickel, essential for the energy transition.
The S&P Global study, which examined 268 mining projects from discovery to production, highlighted that Zambia's extensive copper and cobalt resources contribute to its lengthy mine development period. Other countries with long development timelines include Canada, Argentina, and Mongolia. In contrast, Ghana, the Democratic Republic of Congo, and Laos have some of the shortest development periods, averaging 10 to 15 years. Australia, at 20 years, is the quickest among nations comparable to the U.S.
The report underscores mounting pressure on U.S. policymakers to streamline the complex and protracted mining permit process, which many in the industry view as detrimental to efforts aimed at reducing China's dominance in the critical minerals market. The National Mining Association (NMA), which partially funded the report, is actively campaigning for the revival of the U.S. Bureau of Mines to address these permitting challenges.
Data from significant U.S. projects like Rio Tinto and BHP's Resolution Copper project in Arizona and Northern Dynasty's Pebble project in Alaska were included in the report, which assumes these projects will commence operations by 2030. Both projects have encountered significant Indigenous and environmental opposition, with the report not providing solutions to these issues.
Additionally, the report noted that increased litigation against U.S. mining projects has negatively impacted exploration budgets. Over the past 15 years, companies in Canada and Australia have spent 81% and 57% more, respectively, on finding new deposits compared to U.S. firms, despite the U.S. possessing more substantial copper and lithium reserves.
Globally, the report found that gold mines develop the fastest, averaging 15.2 years, while nickel mines are the slowest, taking around 17.5 years to reach production.
