Exclusive: Biden campaign tells miners it supports domestic production
of EV metals
Send a link to a friend
[October 23, 2020]
By Ernest Scheyder
(Reuters) - Joe Biden's campaign has
privately told U.S. miners it would support boosting domestic production
of metals used to make electric vehicles, solar panels and other
products crucial to his climate plan, according to three sources
familiar with the matter, in a boon for the mining industry.
The Obama administration enacted rigorous environmental regulations that
slowed U.S. mining sector growth during its time in office. Biden, who
served as Obama's vice president and is well-regarded in conservation
circles, has been expected to continue in that vein.
The U.S. Democratic presidential candidate also supports bipartisan
efforts to foster a domestic supply chain for lithium, copper, rare
earths, nickel and other strategic materials that the United States
imports from China and other countries, the sources said.
President Donald Trump, Biden's Republican opponent in the Nov. 3
election, has issued executive orders to encourage U.S. mining.
In a sign that miners are betting on a friendly reception from Biden,
executives at Glencore Plc <GLEN.L>, which controls PolyMet Mining Corp
<POM.TO>, view its Minnesota copper mine project as a long-term
investment and have no plans to scale back if Biden wins, a source
familiar with the company's thinking told Reuters.
The project had been considered one that could have been hurt in a Biden
administration that mirrored Obama's environmental stance.
PolyMet, Glencore and the Biden campaign declined to comment.
Washington has been forced to rethink its long-term U.S. sourcing
strategy as China has become the world's largest producer or consumer of
nearly all the metals used to make EVs, cell phones, weapons and other
high-tech equipment.
"A Biden administration would emphasize green energy, and in order to
get more solar panels, you need more raw materials," said one of the
sources, speaking on the condition of anonymity. "These materials don't
come out of a test tube."
Biden agrees with the broad intent of Trump's orders to encourage
domestic mining, but opposes Trump's anti-China rhetoric and his
attempts to streamline federal permitting, two of the sources said.
Biden has said he plans to spend $2 trillion on EV infrastructure and
other green projects should he win.
ScotiaBank analysts project the Biden plan will spark a multi-year boon
for copper, one of the best electrical-conducting metals. EVs use twice
as much copper as internal combustion engines.
That could bolster efforts by Chilean miner Antofagasta Plc's <ANTO.L>
Twin Metals subsidiary to secure federal permits to build a Minnesota
copper mine.
[to top of second column]
|
Democratic presidential candidate Joe Biden delivers remarks at a
voter mobilization event at Riverside High School in Durham, North
Carolina, U.S., October 18, 2020. REUTERS/Tom Brenner/File Photo
Twin Metals said it is confident it can safely develop the mine.
Lithium miners including Lithium Americas Corp <LAC.TO>, Albemarle
Corp <ALB.N>, Standard Lithium Corp <SLL.V> and others, especially,
are seen as additional winners in a Biden presidency, as the white
metal is key to build EV batteries.
Donations by employees at U.S. lithium miners to Democrats this year
have nearly doubled from 2016 levels, according to campaign
disclosures.
"Building back better involves miners," said Rich Nolan, head of the
National Mining Association, an industry trade group. "The Biden
campaign understands the need for domestic supply chains."
GREEN PUSHBACK
Biden's planned support for mining will create tension with his
environmental supporters who oppose new mines.
Environmental groups across Minnesota, Nevada and Arizona - three
battleground states that employ thousands of miners - told Reuters
they will lobby Biden strongly to oppose new mines should he defeat
Trump.
Biden declined this year to commit to opposing copper mining in
Minnesota. Environmentalists said this stance seemed born from
political calculation rather than a desire to skirt the issue.
PolyMet has secured federal permits already, though a court
challenge could force Washington to reconsider that decision. Twin
Metals is locked in a more-acrimonious debate over permitting for
another project that opponents say would damage wetlands near
Minnesota's border with Ontario.
In Arizona, the Resolution copper mine from Rio Tinto Plc <RIO.L>
and BHP Group Plc <BHPB.L> faces stiff opposition from Native
American tribes.
"There are places that are too special to mine," said Jeremy Drucker
of Save The Boundary Waters, which opposes the Twin Metals project
and has declined to endorse a presidential candidate. "Mining
companies have been using EVs and climate change as a cover to push
their own agenda: profit."
(Additional reporting by Pratima Desai and Trevor Hunnicutt; Editing
by Amran Abocar and David Gregorio)
[© 2020 Thomson Reuters. All rights
reserved.] Copyright 2020 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content. |