Press Releases

FOR IMMEDIATE RELEASE: May 26, 2011

CONTACT: Stefani Zimmerman, 202-225-2315

“Natural Resources Committee Holds Hearing Highlighting the Growing Need to Develop Domestic Resources in order to Put People Back to Work, Improve U.S. National Security and Further Energy Independence”

Testimony from industry experts highlight the need for swift action on Gosar jobs bill

This week, the Natural Resources Subcommittee on Energy and Mineral Resources held a hearing on “Strategic and Critical Minerals Policy: Domestic Minerals Supplies and Demands in a time of Foreign Supply Disruptions.”  U.S. Congressman Paul Gosar, DDS (AZ-01) questioned the witnesses on the United States heavy reliance on foreign nations for minerals and the cost that has on the American taxpayer and national security.  

Gosar, who recently introduced H.R. 1904, legislation aimed at opening up one of the nation’s largest copper reserves in Southeast Arizona, expressed concern about our nation’s reliance on foreign nations for important minerals such as copper, and the cost it has to American taxpayers when other nations artificially inflate the price.  During the hearing, several of the witnesses spoke of the importance of minerals, such as copper, and how the United States has increased its reliance on foreign nations for their supply, rather than use domestic natural resources.

Daniel McGroarty, President of American Resources Policy Network:

“Copper continues to be a critical material in electronics, building construction, durable goods and automobiles.  In the last category, for instance, hybrid vehicles require double the amount of copper as gas-fueled automobiles. . . Department of Defense reports show that, by volume, copper ranks second- behind aluminum- in annual consumption for defense industrial applications. . . In 1993, U.S. Mines produced 1.8 million metric tons of cooper- roughly 60% more than in 2010.  Our net import dependency was 7%- not 30% as it is today.  Half of what we did import came from Canada.  Today 60% of our copper imports come from Chile, Peru, and Mexico.  While total reserves are not a perfect proxy for exploration efforts, nonetheless- since 1993, world copper reserves have declined- from 15% of the world total, to just over 5%.”

Hal Quinn, President and CEO of National Mining Association:

“According to the United States Geological Survey, when it comes to copper, silver and zinc and other key minerals ‘what is left to be discovered in the U.S. is almost as much as what has been discovered. . . while the United States has one of the world’s greatest mineral repositories, our ability to get these minerals into the supply chain to help meet more of America’s needs is threatened.  Numerous public policies have placed high hurdles in our lane of the global race to remain competitive. . . Here in the United States, we more often see proposals that would add additional taxes or fees on mining and eliminate the percentage depletion allowance that allows us to secure the enormous financial commitments necessary for capital intensive enterprises.  The federal regulatory burden has recently been estimated to cost the U.S. economy $1.75 trillion annually.”

Video of Congressman Gosar can be found here http://www.youtube.com/watch?v=kGMgv0rx1-E&feature=channel_video_title  and here http://www.youtube.com/watch?v=x7aM_57BLok&feature=channel_video_title.

Congressman Gosar reaffirmed his growing concern that the permitting process in the United States is often long and burdensome that many countries move their operations overseas.  He also highlighted the critical national security needs of using domestic resources to supply the increasing demand in the United States for minerals such as copper.  Witnesses agreed that when environmental procedures are continually changed that it hurts the American taxpayer as other nations will artificially drive up the cost of these minerals.  Gosar is an advocate of an “all of the above” energy approach and believes that domestic production of critical minerals are vital to renewable energy production, as well as create good paying jobs and decrease the nation’s reliance on foreign energy. 

###