H.R. 8797: Army Organic Industrial Base Mineral Partnerships Act of 2026

This bill, titled the Army Organic Industrial Base Mineral Partnerships Act of 2026, proposes to allow the U.S. Army to form cooperative partnerships with private entities for the purpose of mineral extraction at Army-controlled industrial facilities. Below are the key components of what the bill would do:

Cooperative Partnerships for Mineral Extraction

The bill amends existing laws to authorize the Army to enter into contracts or cooperative arrangements with non-Army entities for mineral extraction activities. This includes:

• Extracting, processing, and handling strategic or critical minerals using facilities and land controlled by the Army.
• Using byproducts and waste streams generated by Army facilities to support mineral extraction operations.

Regulatory and Environmental Compliance

Any mineral extraction activities conducted under this bill would have to comply with:

• All applicable federal, state, and local environmental regulations.
• Specific responsibilities for environmental protection and mitigation assigned to the non-Army entities involved in the mineral extraction.

Consideration and Payment Structures

The Army must receive reasonable compensation for allowing mineral extraction operations. The bill allows for various forms of compensation, including:

• Cash payments.
• In-kind compensation such as minerals, services, and improvements to facilities.
• Any combination of the above.

Cash payments received by the Army could be retained and used for the operation and maintenance of Army facilities without needing further approval from Congress.

Reporting Requirements

The Secretary of the Army is required to submit an annual report to Congress that details:

• The number of cooperative agreements entered into regarding mineral extraction.
• The types of minerals being extracted as part of these agreements.

Definitions

The bill provides specific definitions related to mineral extraction, including:

• Mineral extraction operations: Refers to activities related to the removal and processing of minerals and their byproducts.
• Strategic or critical minerals: Includes minerals deemed essential for national defense or advanced manufacturing, such as rare earth elements and lithium.

Exemptions from Existing Laws

The bill clarifies that mineral extraction operations pursuant to this bill would not be subject to the regulations detailed in the Mineral Leasing Act for Acquired Lands.

Limitations

The bill specifies that the Army itself will not directly engage in mineral extraction operations, maintaining a clear distinction between Army activities and those of the contracted non-Army entities.

Annual Review

There is a requirement for a review of the contracts or partnerships established under this act to ensure they are in the best interest of the Army without interfering with its mission.

Relevant Companies

• ALB (Albemarle Corporation) - A producer of lithium and other industrial chemicals that may seek partnerships for obtaining lithium from Army facilities.
• MP (MP Materials Corp) - Engaged in rare earth mining which could coincide with the Army's need for strategic minerals.
• HEXO (Hexo Corp) - Involved in the extraction of critical minerals which may align with partnerships proposed under this bill.