Government Minerals Policy Assailed at AMC Conference

"Lax, misguided, and dangerous" is Rep. James Santini's description of the official US position on strategic nonfuel minerals. Santini (D-NV), chairman of the House Mines and Mining Subcommittee, criticized the Interior Department for "its long record of benign neglect" regarding the domestic minerals crisis. Santini made his remarks at a news conference at the American Mining Congress convention in San Francisco, where he released his subcommittee report "US Minerals Vulnerability: National Policy Implications." The report-said to be the first major congressional study of the minerals issue by a committee of jurisdiction is the result of a two-year inquiry. The investigation was undertaken, according to the chairman, "because no person or agency in the executive branch of government fully grasps the critical importance of nonfuel minerals to the nation's economy, defense, and quality of life." The report also urges a larger role for the Department of Defense, which has "stood passively by for many years as a consuming by-stander," according to the report. President Carter's incomplete Non-fuel Minerals Policy Review also drew the committee's ire; Santini calls it "a tragic waste that cost tax-payers $3.5 million and the loss of some 13,000 person-days." The subcommittee examined the following issues for its report: • The US minerals industry's inability to meet national raw material needs under a "hodgepodge of contradictory, restrictive, and irrational" federal regulations; • Dependency on foreign sources of strategic minerals in times of "increasing resource nationalism" and "Soviet mineral expansionism;" • National security needs for foreign mineral resources that do not have effective substitutes; • The US government's approach to national minerals policy "amid a growing realization that such a policy does not exist." The subcommittee report includes an analysis of public and private studies on nonfuel minerals and discusses a series of policy problem areas that negatively affect domestic production. Capital formation disincentives, tax policies, antitrust enforcement, environmental laws, health and safety regulations, technical problems, and restricted access to federally-controlled public lands contribute to what Santini calls a "tragic irony." "The irony is that we are a nation vastly rich in mineral resources yet our own government chooses to stifle development of these critical raw materials and thereby increase offshore reliance. The tragedy is that we also are ensuring US vulnerability to severe economic dislocations and a weakening of our national security." In just six years, from 1973-1978, the US trade deficit in nonfuel minerals rose from $2 billion per year to $8 billion, according to the report. The country imports more than 50% of 23 critical minerals, including 100% of its manganese, chromium, cobalt and platinum. The US is promoting its dependence on foreign mineral sources at the very time the security of many of those sources is becoming less certain, the report notes. Santini said the subcommittee investigation revealed a vulnerability that may be more serious and pervasive than that of foreign oil. The US may be able to develop alternate energy resources, but there are no effective substitutes for many nonfuel minerals. The report also discloses that US stockpiles of critical and strategic minerals are of inadequate supply and quality. Holdings of some vital minerals are far below present objectives, and for some there are no holdings at all, according to Santini. To resolve the current crisis, the report makes the following recommendations: • Complete immediately President Carter's Interagency Nonfuel Minerals Policy Review; • Implement (throught the Interior Department) the 1970 Mining and Minerals Policy Act; • Create an Office of Energy and Minerals with the same stature, power, and oversight responsibilities as the Council on Environmental Quality; • Ease federal restrictions on mineral exploration and development on public lands and implement a complete review of public land use policies; •Fund for and fulfill US nonfuel minerals stockpiling objectives; •Increase federal funding for non-