The Economist writes on the challenges that mining companies face.
- The world will need to rapidly ramp up mining in order to source the minerals that are needed to power green technology, but mining companies have been reluctant.
- One reason for this, especially in the United States, is permitting and regulations which make it very difficult to extract resources.
- Delaying these projects increases costs, which hurts investor confidence.
- Lawmakers should look for ways to streamline the permitting process to allow mining to happen in the U.S.
“Another reason for miners’ lack of investment is woefully lengthy permit processes, which delay projects and add uncertainty. In America obtaining permits often takes between seven and ten years, with companies required to consult a variety of government agencies and other interested parties. In some countries environmental concerns have led to approvals being withdrawn. The Serbian government revoked the licence of Rio Tinto, another mining behemoth, for a $2.4bn lithium mine after environmental protests broke out in the country in 2022.”
Read the full article here.
The views and opinions expressed are those of the author’s and do not necessarily reflect the official policy or position of C3.
