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U.S. lawmakers are poised to introduce a bill on Tuesday that seeks to amplify the nation’s involvement in deep-sea mining, marking a significant step towards diminishing China’s dominance over critical mineral supplies.
The initiative, as reported by The Wall Street Journal, underscores a strategic shift towards tapping into the ocean’s mineral wealth and boosting country’s independence on these key resources as an alternative to reliance on foreign entities.
Aiming for Strategic Independence: Dubbed the Responsible Use of Seafloor Resources Act of 2024, the proposed legislation, spearheaded by Rep. Carol Miller (R., W.Va.) and Rep. John Joyce (R., Pa.), is designed to provide a robust framework for American engagement in deep-sea mining. This includes a comprehensive package of financial, diplomatic, and infrastructural support aimed at bolstering the collection, processing, and refining of seafloor nodules—rich in essential minerals such as nickel, manganese, and cobalt, vital for electric-vehicle batteries and defense technologies.
Reducing Dependency On China: China’s current stronghold on the global critical mineral market is significant, with the nation controlling approximately 60% of global critical mineral production and over 85% of the refining capacity. The new bill aims to confront this challenge head-on by encouraging the development of alternative supply sources and reducing U.S. dependency on adversarial nations for critical minerals.
Rep. Miller stressed the importance of the legislation, noting its critical role in lessening America’s reliance on China for essential minerals. She pointed out that the Responsible Use of Seafloor Resources Act aims to diminish supply chain vulnerabilities, enhance American manufacturing and employment, and counteract China’s dominance in the production of critical minerals.
Balancing Economic Interests And Environmental Concerns: While the bill presents a forward-looking approach to securing mineral independence, it also acknowledges the environmental concerns associated with deep-sea mining.
Organizations like Greenpeace have voiced opposition, citing potential irreversible harm to marine ecosystems. In response, the proposed legislation includes directives for the Commerce Department and the White House Office of Science and Technology Policy to conduct comprehensive reports and analyses.
The SPDR Metals & Mining ETF (NYSE:XME) traded 1.5% lower Tuesday, reacting to a higher-than-expected inflation data.
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Posted In: XME
