The top Republican on the Senate Natural Resources Committee has introduced a bill which would take a giant step toward the formation of a domestic rare earth elements industry.

Author: Dorothy Kosich
Posted: Wednesday , 23 Jun 2010

RENO, NV -

U.S. Senate Energy & Natural Resources Committee Ranking Member Lisa Murkowski, R-Alaska, Tuesday introduced legislation to promote the domestic production of Rare Earth Elements.

Her legislation comes on the heels of Colorado Congressman Mike Coffman's companion measure HR 4866, the Rare Earths Supply-Chain Technology and Resources Transformation Act of 2010 (RESTART Act), which was introduced in the U.S. House on March 17th.

Two resolutions have been passed by the Alaska Legislature urging Congress to advance development of new rare earth reserves in the United States.

Murkowski's Rare Earth Supply Technology and Resources Transformation Act (RESART) is believed to be identical to the House REE legislation.

‘Rather than further restrict mining in this country, the industry could be creating American jobs and protecting minerals that are essential to clean energy technologies," Murkowski declared in a news release. "Unless action is taken, we will trade our dependence on foreign oil for an equally unsettling dependence on foreign minerals."

National Mining Association CEO Hal Quinn said Murkowski's RESTART Act "provides a needed blueprint for meeting this nation's technology and security needs by focusing on our near-total reliance on imported rare earth elements."

"Rare earths are merely one example of this nation's increasing reliance on outside sources to supply U.S. manufacturers and technology providers," Quinn said. "America's drift away from greater self-sufficiency for the basic building blocks of our economy undermines our commitment to jobs creation and increased exports and ignores this country's rich reserves of metals and minerals."

"By promoting domestic production of rare earths and other minerals, U.S. policy makers can ensure greater control of our economic destiny, creating good-paying American jobs and retain innovative know-how and skills in this country, rather than allowing these benefits to move offshore," he added.

The U.S. Geological Survey says that between 2005 and 2008, 91% of U.S. REE consumption came from China, which is now reducing its REE exports.

The Coffman and Murkowski bills would, through a series of assessments and specific programs, attempt to re-establish a competitive domestic rare earth supply chain. The measures would create a federal REE working group to assess strategic needs, create a national defense stockpile, evaluate international REE trade, establish a China Rare Earth OPEC, and facilitate loan guarantees for U.S. supply chain development.

The legislation would also require the Secretary of Energy to establish REE industry loan guarantees, while the Secretaries of Commerce, Defense, Energy and Interior would be required to provide R&D funding to academic, government labs, corporate R&D, non-for-profit research and development, and industry associations for REE projects.