According to MiningWeekly, citing Reuters, U.S. Interior Secretary Doug Burgum called on the mining industry to accelerate mineral exploration and development on federal lands during CERAWeek.
His remarks align with former President Donald Trump’s agenda to streamline approvals for fossil fuel and metal production projects.
Burgum, the former Governor of North Dakota, a major oil-producing state, emphasized that companies engaged in exploration and development on federal lands and waters pay royalties to the U.S. government, which helps reduce national debt.
Federal Royalties and Energy Sector Dynamics
According to the Government Accountability Office (GAO), between 2012 and 2022, oil exploration and development companies paid $75 billion in royalties to the U.S. government. However, this amount is relatively small compared to the current $36.2 trillion national debt.
Under Democratic President Joe Biden, U.S. oil and gas production reached record highs, but oil prices recently fell to a three-year low, creating uncertainty about whether energy companies will increase investment.
Regulatory Cuts and Critical Minerals Strategy
Burgum suggested that a Trump administration could cut regulations by 20-30%, significantly reducing oil production costs.
He also stated that accelerating permitting for energy and mining projects is a top priority for the U.S. Energy Committee, which he leads to coordinate government policies aimed at maximizing production.
Energy Infrastructure and AI Competition
Burgum stressed that expanding U.S. power generation and transmission capacity is key to winning the global AI arms race.
Additionally, he advocated for sanctions against Iran, suggesting that cutting OPEC member Iran’s oil exports to zero could end its funding of terrorist organizations.
Strengthening Domestic Critical Mineral Supply Chains
Burgum revealed that the Energy Committee is prioritizing increasing U.S. production of critical minerals like lithium and nickel.
He hinted at major initiatives, including:
A proposed U.S. sovereign wealth fund to support the mining industry
Enhanced cooperation with allied nations
However, he did not clarify whether the sovereign wealth fund would directly invest in mining projects.
“We’ve allowed our major competitors to control 80% of critical mineral processing, putting ourselves in a very dangerous position,” Burgum warned.
Trump Administration’s Potential Move
On Monday, Reuters reported that Trump’s administration is considering building metal smelting facilities on military bases as part of efforts to expand domestic mineral production.
[Source- 上海有色网] 美国推进联邦土地上的矿产勘查开发 https://news.smm.cn/news/103227134
