H.R. 5929: Critical Minerals Supply Chain Resiliency Act

This bill, titled the Critical Minerals Supply Chain Resiliency Act, proposes a change to how certain actions related to critical minerals are treated under federal permitting processes. Its main objective is to support and enhance the domestic production capabilities of strategic and critical materials in the United States.

Key Provisions

The bill outlines specific actions that will be classified as "covered projects." The actions it includes involve those taken by the Secretary of Defense under a specific Presidential determination aimed at bolstering domestic mineral production. Here are the major elements:

• Treatment as Covered Projects: Actions related to domestic production capabilities for strategic minerals will be treated as covered projects for federal permitting purposes. This means they will be included in certain expedited processes without going through all the usual requirements.
• Permitting Dashboard Inclusion: These actions will also be included in a Permitting Dashboard, which tracks the status of various projects to enhance transparency and streamline the permitting process.

Types of Actions Covered

The bill specifies the types of actions that will be included as covered projects:

• Feasibility Studies: This involves supporting studies for mining, processing, and producing critical minerals.
• By-product and Co-product Production: It allows production from existing mining operations, which can involve reclaiming mine waste.
• Modernization Efforts: The bill encourages updating methods for mining and processing to improve efficiency, environmental standards, and workforce safety.
• Other Authorized Activities: It includes any additional activities authorized under the Defense Production Act relevant to this area.

Exceptions

There is a provision that allows a project sponsor to opt out of having their action treated as a covered project. If they request this, their action will not be included in the Permitting Dashboard or classified accordingly.

Implementation

Ultimately, the goal of the bill is to strengthen the supply chain for critical minerals, which are essential for various industries, including technology and defense. The changes aim to facilitate quicker federal approval processes and support the development of domestic capabilities in these strategic areas.

Relevant Companies

• MP Materials (MP) - This company is involved in mining and processing rare earth minerals, which may directly benefit from expedited permitting processes for mining and production improvements.
• Vale S.A. (VALE) - As a major player in the mining industry, Vale could be impacted by incentives for new mining and processing initiatives related to critical minerals.
• Lithium Americas Corp. (LAC) - With a focus on lithium production, the company may see benefits from supportive measures for expanding domestic mineral production capabilities.