Democrats seek probe of foreign mining on public lands

The request comes as the House prepares to debate a contentious mining bill.

May 08, 2024

House Natural Resources ranking member Raúl Grijalva and a number of other Democrats are planning to ask Congress' watchdog to investigate the extent to which foreign-controlled companies are extracting minerals from public lands, and whether those entities are complying with U.S. environmental and human rights standards.

Grijalva (D-Ariz.) and five of his colleagues will ask the Government Accountability Office on Wednesday to probe how much is known about foreign investment in mining of federally managed lands, and how closely the federal government tracks exports of minerals extracted from public lands.

“The House Natural Resources Committee has received information that U.S. mineral supply chains lack the necessary oversight and regulation to ensure that U.S. companies are in compliance with U.S. laws,” the lawmakers wrote in a letter to Comptroller General Gene Dodaro.

“Additionally, there is evidence that U.S. companies seeking mineral leases on federal lands may be subsidiaries of foreign companies, including adversarial countries, accused of serious human rights and environmental violations,” they wrote.

Democratic Reps. Jared Huffman of California; Melanie Stansbury and Teresa Leger Fernandez of New Mexico; Joe Neguse of Colorado; and Raja Krishnamoorthi of Illinois, ranking member of the Select Committee on the Strategic Competition Between the United States and the Chinese Communist Party, also signed the request.

The Democrats noted GAO has previously said there are more than 700 operations authorized to mine hardrock minerals on federal lands, but little is known about the amount produced.

"We do not know how many foreign-owned mining companies, some based in adversarial countries with histories of illegal mining practices and environmental violations, take our minerals for free and too often leave the cost of cleanup and perpetual pollution control to the American people," they wrote.

House bill

The letter comes as a growing number of lawmakers call for ramped-up mining on federal lands to meet climbing demand for minerals like lithium, cobalt and nickel needed for energy, defense and other technologies.

Also, the House on Wednesday will debate Republican-led H.R. 2925, which would allow mining companies to store waste on land that doesn't have economically recoverable minerals.

The bill is sponsored by Nevada Republican Rep. Mark Amodei but counts Alaska Democratic Rep. Mary Peltola as a co-sponsor. A Senate companion enjoys bipartisan backing, as well.

Still, the Democratic lawmakers in the letter warned that the bill will make it easier for foreign adversaries or other bad actors to tie up public lands with mining claims.

"Calls to expand production on federal lands as a solution to foreign dependence have not addressed the extent to which bad actors are controlling and profiting from domestic mineral extraction," the lawmakers wrote. "If the U.S. is to combat human rights violations and environmental damage across the supply chain, it must begin at home."

Leger Fernandez wanted an amendment to prevent companies with headquarters in adversarial nations from mining on U.S. public lands. Republicans blocked it from floor debate.

Members of parties have increasingly pointed the finger at each other over policies that may benefit countries like China and Russia.

Republicans have repeatedly accused Democrats and the Biden administration of fueling China's mineral dominance through the Inflation Reduction Act.

The administration unveiled final rules for Inflation Reduction Act electric vehicle tax credits meant to strengthen U.S. supply chains. Notably, the regulations included one particular hard-fought concession for automakers, which allowed companies to continue using graphite from China through 2026.


By:  Hannah Northey
Source: E&E Daily