19–006 

112TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 1st Session 112–248 

NATIONAL STRATEGIC AND CRITICAL MINERALS POLICY 

ACT OF 2011 

OCTOBER 14, 2011.—Committed to the Committee of the Whole House on the State 

of the Union and ordered to be printed 

Mr. HASTINGS of Washington, from the Committee on Natural 

Resources, submitted the following 

R E P O R T 

[To accompany H.R. 2011] 

[Including cost estimate of the Congressional Budget Office] 

The Committee on Natural Resources, to whom was referred the 

bill (H.R. 2011) to require the Secretary of the Interior to conduct 

an assessment of the capability of the Nation to meet our current 

and future demands for the minerals critical to United States manufacturing competitiveness and economic and national security in 

a time of expanding resource nationalism, and for other purposes, 

having considered the same, report favorably thereon with amendments and recommend that the bill as amended do pass. 

The amendments are as follows: 

Strike all after the enacting clause and insert the following: 

SECTION 1. SHORT TITLE. 

This Act may be cited as the ‘‘National Strategic and Critical Minerals Policy Act 

of 2011’’. 

SEC. 2. FINDINGS. 

Congress finds that— 

(1) the availability of minerals and metals is essential for economic growth, 

national security, technological innovation, and the manufacturing and agricultural supply chain; 

(2) the exploration, production, processing, use, and recycling of minerals contribute significantly to the economic well-being, security, and general welfare of 

the Nation; 

(3) the industrialization of China and India has driven demand for nonfuel 

mineral commodities, sparking a period of resource nationalism exemplified by 

China’s reduction and stoppage of exports of rare-earth mineral elements necessary for telecommunications, military technologies, medical devices, agricultural production, and renewable energy technologies; 

(4) the United States has vast mineral resources but is becoming increasingly 

dependent upon foreign sources; 


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(5) 25 years ago the United States was dependent on foreign sources for 30 

nonfuel mineral materials, 6 of which were entirely imported to meet the Nation’s requirements and another 16 of which were imported to meet more than 

60 percent of the Nation’s needs; 

(6) by 2010, United States import dependence for nonfuel mineral materials 

more than doubled from 30 to 67 commodities, 18 commodities were imported 

entirely to meet the Nation’s requirements, and another 25 commodities required imports of more than 50 percent; 

(7) the United States lacks a coherent national policy to assure the availability of minerals essential to manufacturing, national economic well-being and 

security, agricultural production, and global economic competitiveness; and 

(8) the Nation’s ability to compete and innovate requires proper planning and 

preparation today to meet tomorrow’s mineral needs. 

SEC. 3. CONGRESSIONAL DECLARATION OF POLICY. 

(a) IN GENERAL.—It is the continuing policy of the United States to promote an 

adequate and stable supply of minerals to maintain our Nation’s economic wellbeing, security, and manufacturing, industrial, energy, agricultural, and technological capabilities. 

(b) POLICY GOALS.—Implementation of the policy set forth in subsection (a) requires that the Federal Government coordinate the Federal departments and agencies responsible for ensuring that supply, to— 

(1) facilitate the availability, development, and production of domestic mineral 

resources to meet national needs, including the demands of the Nation’s manufacturing and agricultural industries; 

(2) promote and encourage the development of economically and environmentally sound, safe, and stable domestic mining, minerals, metals, processing, 

and minerals recycling industries; 

(3) establish an assessment capability for identifying the mineral demands, 

supply, and needs of our Nation; and 

(4) minimize duplication, needless paperwork, and delays in the administration of Federal and State laws and regulations, and issuance of permits and authorizations necessary to explore, develop, and produce minerals and construct 

and operate mineral-related facilities. 

SEC. 4. SECRETARY OF THE INTERIOR REPORT ON ACCESS AND AUTHORIZATIONS FOR MINERAL DEVELOPMENT. 

(a) IN GENERAL.—Not later than 180 days after the date of enactment of this Act, 

the Secretary of the Interior, through the Bureau of Land Management and the 

United States Geological Survey, and in consultation with the Secretary of Agriculture (through the Forest Service Mineral and Geology Management Division), the 

Secretary of Defense, the Secretary of Commerce, and the heads of other appropriate Federal agencies, shall prepare, submit to Congress, and make available to 

the public a report that includes— 

(1) an inventory of the nonfossil-fuel mineral potential of lands under the jurisdiction of the Bureau of Land Management and the Forest Service and an 

identification of all such lands that have been withdrawn, segregated, or otherwise restricted from mineral exploration and development; 

(2) an assessment of— 

(A) the mineral requirements to meet current and emerging national security, economic, industrial manufacturing, technological, agricultural, and 

social needs; 

(B) the Nation’s reliance on foreign sources to meet those needs; and 

(C) the implications of mineral supply shortages or disruptions; 

(3) a detailed description of the time required to process mineral applications, 

operating plans, leases, licenses, permits, and other use authorizations for mineral-related activities on lands under the jurisdiction of the Bureau of Land 

Management and the Forest Service, and identification of measures that would 

streamline the processing of such applications, such as elimination of overlapping requirements or set deadlines; 

(4) an itemized list of all use authorizations referred to in paragraph (3) for 

which applications are pending before the Bureau of Land Management and the 

Forest Service, and the length of time each of those applications has been pending; 

(5) an assessment of the impact of litigation on processing or issuing mineral 

exploration and mine permits, identification of the statutes the litigation was 

brought under, and the cost to the agency or the Federal Government, including 

for payments of attorney fees; 

(6) an update of the 2009 Economic Impact of the Department of the Interior’s 

Programs and Activities report to include locatable minerals; 


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(7) an assessment of the Federal workforce with educational degrees and expertise in economic geology, geochemistry, mining, industrial minerals, metallurgy, metallurgical engineering, and mining engineering, including— 

(A) retirement eligibility and agency plans for retention, recruitment, and 

succession planning; 

(B) comparison of the existing Federal salaries and recruitment and retention bonuses with the salaries, recruitment incentives, and retention 

packages normally offered in the mineral industry; and 

(C) examination of the differences between Federal and private financial 

packages for early-, mid-, and late-career workers; and 

(8) an inventory of rare earth element potential on the Federal lands, and impediments or restrictions on the exploration or development of those rare earth 

elements, and recommendations to lift the impediments or restrictions while 

maintaining environmental safeguards. 

(b) PROGRESS REPORTS.—Not later than one year after the date of enactment of 

this Act, and each year thereafter for the following two years, the Secretary of the 

Interior shall submit to Congress and make available to the public a report that describes the progress made in reaching the policy goals described in section 3(b), including— 

(1) efforts to increase access to domestic supplies of minerals, and facilitation 

of their production; and 

(2) implementation of recommendations contained in— 

(A) the National Research Council reports— 

(i) Minerals, Critical Minerals, and the U.S. Economy; 

(ii) Managing Minerals for a Twenty-First Century Military; and 

(iii) the current workforce study authorized in sections 385 and 1830 

of the Energy Policy Act of 2005 (119 Stat. 744, 1137); 

(B) the Department of Energy Critical Minerals Strategy I and II; and 

(C) the Department of Defense assessment and plan for critical rare earth 

elements in defense applications required under section 843 of the National 

Defense Appropriations Act for Fiscal Year 2011. 

SEC. 5. NATIONAL MINERAL ASSESSMENT. 

For the first National Mineral Assessment conducted after the date of enactment 

of this Act, the United States Geological Survey shall include mineral assessments 

for those mineral commodities important to the Nation’s energy infrastructure, manufacturing and agricultural industries, and to the national defense. Priority should 

be given to minerals that are critical based on the impact of a potential supply restriction and the likelihood of a supply restriction. 

SEC. 6. GLOBAL MINERAL ASSESSMENT. 

The United States Geological Survey is directed to expand the current Global 

Mineral Assessment to include mineral assessments for rare earth elements and 

other minerals that are critical based on the impact of a potential supply restriction 

and the likelihood of a supply restriction. Assessments conducted under this section 

shall include an analysis, developed with participation by the National Minerals Information Center and in consultation with appropriate agencies, of the rare earth 

elements or other critical minerals supply chain and associated processes and products, including mining, processing, recycling, separation, metal production, alloy production, and manufacturing of products sold to end users. In conducting the assessment, the United States Geological Survey should coordinate with the heads of foreign geologic surveys when possible. 

SEC. 7. DEFINITIONS. 

In this Act— 

(1) INVENTORY.—The term ‘‘inventory’’ means an accounting of known mineral 

occurrences and mineral deposits, including documentation of identified resources. 

(2) MINERAL ASSESSMENT.—The term ‘‘mineral assessment’’ means an assessment of undiscovered mineral resources that includes a qualitative assessment 

and a quantitative assessment of such resources. 

(3) QUALITATIVE ASSESSMENT.—The term ‘‘qualitative assessment’’ means a 

geologic-based delineation (mapping) of areas permissive for the occurrence of 

undiscovered mineral resources, based on all available geotechnical data including geology, geophysics, geochemistry, remote sensing, and mineral localities 

data. 

(4) QUANTITATIVE ASSESSMENT.—The term ‘‘quantitative assessment’’ means a 

probabilistic estimate of the quantity and quality by tonnage and grade of undiscovered mineral resources in areas delineated as permissive for occurrence 

in a qualitative assessment. 


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SEC. 8. APPLICABILITY OF OTHER STATUTORY MINING POLICIES. 

Nothing in this Act shall be construed as affecting any provision of or requirement 

under the Mining and Minerals Policy Act of 1970 (30 U.S.C. 21a). 

Amend the title so as to read: 

A bill to require the Secretary of the Interior to conduct an assessment of the 

capability of the Nation to meet our current and future demands for the minerals 

critical to United States manufacturing and agricultural competitiveness and economic and national security in a time of expanding resource nationalism, and for 

other purposes. 

PURPOSE OF THE BILL

The purpose of H.R. 2011, as ordered reported, is to require the 

Secretary of the Interior to conduct an assessment of the capability 

of the Nation to meet our current and future demands for the minerals critical to United States manufacturing and agricultural competitiveness and economic and national security in a time of expanding resource nationalism. 

BACKGROUND AND NEED FOR LEGISLATION

Strategic and critical minerals are essential to our economy, livelihood and national security. Renewable energy, national defense 

equipment, agriculture and everyday items such as televisions, 

telephones, computers and light bulbs are all dependent on minerals. Currently the United States relies on foreign sources for a 

majority of our non-fuel mineral materials and, according to the 

United States Geological Survey, is 100 percent dependent on foreign sources for rare earth minerals. 

Mining of mineral resources creates tangible value, introducing 

new money into the Nation’s economic system. Additional tangible 

value is added to the raw mined product through manufacturing, 

construction, and other uses. Harvesting domestic mineral resources contributes to local economies, and to the Nation’s overall 

economic security. 

According to the National Research Council, one of the primary 

advantages the United States possesses over its strongest industrial competitors is its domestic resource base. The United States 

is among the world’s largest producer of many important metals 

and minerals, particularly copper, gold, lead, molybdenum, silver, 

and zinc; and it still has substantial domestic reserves of these 

metals. Yet U.S. mineral exploration stagnated or declined during 

most of the 1990s and 2000s while global mineral exploration 

trends were strongly positive. 

In the early 1990s, the U.S. received 20 percent of the worldwide 

exploration budget; today it hovers around eight percent. Without 

increased domestic exploration, significant declines in U.S. mineral 

production are unavoidable as current reserves are exhausted. 

The lack of exploration expenditures and other factors has led to 

an increased import dependency for non-fuel mineral materials. For 

example, 25 years ago the United States was dependent on foreign 

sources for 30 non-fuel mineral materials, six of which were entirely imported to meet the Nation’s requirements and another 16 

of which were imported to meet more than 60 percent of the Nation’s needs. By 2010, U.S. import dependence for non-fuel mineral 

materials more than doubled from 30 to 67 commodities: 18 commodities were imported entirely to meet the Nation’s requirements, 


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and another 25 commodities required imports of more than 50 percent. 

Factors contributing to the decline in domestic mineral exploration activities and other downward trends in the domestic mining 

industry during the late 1990s are directly related to the regulatory 

and administrative changes made during that time, including revisions to the 3809 Regulations and the Millsite and Ancillary Use 

Opinions. 

Working through the permitting process also became more cumbersome, as federal and state agencies with land management and 

regulatory responsibilities over mineral exploration and development projects worked at cross purposes to one another. Legal challenges to Records of Decision by anti-mining groups also contributed to the delays and uncertainties in obtaining the necessary permits for exploration and development. Because of these impediments, the United States is ranked 25th out of 25 major mining 

countries in permitting, averaging 7 to 10 years for final approval. 

Currently the United States lacks a coherent national policy to 

assure domestic availability of minerals essential for national economic well-being, national security, and global economic competitiveness. H.R. 2011 will help remedy this by providing essential 

facts to help us strengthen and improve our national mineral policy. 

COMMITTEE ACTION

H.R. 2011 was introduced on May 26, 2011, by Congressman 

Doug Lamborn (R–CO). The bill was referred to the Committee on 

Natural Resources, and within the Committee to the Subcommittee 

on Energy and Mineral Resources. On June 3, 2011, the Subcommittee on Energy and Mineral Resources held a hearing on the 

bill. On July 20, 2011, the Natural Resources Committee met to 

consider the bill. The Subcommittee on Energy and Mineral Resources was discharged by unanimous consent. Congressman Steve 

Southerland (R–FL) and Congresswoman Kristi Noem (R–SD) offered an amendment; the amendment was adopted by unanimous 

consent. Congressman Doug Lamborn (R–CO) offered an amendment; the amendment was adopted by unanimous consent. The bill, 

as amended, was then ordered favorably reported to the House of 

Representatives by unanimous consent. 

SECTION-BY-SECTION ANALYSIS

Section 1. Short title 

This Act may be cited as the ‘‘National Strategic and Critical 

Minerals Policy Act of 2011.’’ 

Section 2. Findings 

The bill includes the following findings: The industrialization of 

China and India has driven demand for nonfuel mineral commodities, sparking a period of resource nationalism exemplified by China’s reduction and stoppage of exports of rare-earth mineral elements necessary for telecommunications, military technologies, 

medical devices, agricultural production, and renewable energy 

technologies. The availability of minerals and metals is essential 

for economic growth, national security, technological innovation, 


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agriculture, and the manufacturing supply chain. Exploration, production, processing, use, and recycling of minerals contribute significantly to the economic well-being, security, and general welfare 

of the Nation. 

Section 3. Congressional declaration of policy 

It is the continuing policy of the United States to promote an 

adequate and stable supply of minerals to maintain our Nation’s 

economic well-being, security, and manufacturing, industrial, energy, agricultural, and technological capabilities. 

Section 4. Secretary of the Interior report on access and authorizations for mineral development 

Subsection (a) directs the Secretary of the Interior to coordinate 

a government-wide inventory of the Nation’s non-fuel mineral resources and to identify any restrictions that may inhibit development of the resources required to meet current and future strategic 

and critical mineral needs. 

These requirements are similar to Section 604 of the Energy Policy and Conservation Act of 2000 (EPCA), as amended by Section 

364 of the Energy Policy Act of 2005, which required an inventory 

of all onshore federal lands to identify U.S. Geological Survey 

(USGS) estimates of the oil and gas resources underlying federal 

lands and the extent and nature of any restrictions or impediments 

to the development of the resources. 

The Department of the Interior owns the analytical tools developed for the EPCA studies and can use those tools to implement 

these provisions. 

Subsection (a) further requires the Secretary of the Interior to 

evaluate factors impacting domestic mineral development, including workforce, access, permitting and duplicative regulatory requirements, as well as identify areas for improvement. 

The section directs the Secretary of the Interior to assemble the 

report within six months to include a specific inventory of the rare 

earth element potential on federal lands, impediments or restrictions on the exploration or development of rare earth elements, and 

recommendations to lift the impediments or restrictions while 

maintaining environmental safeguards. 

Finally, the section requires an annual progress report, beginning one year after the date of enactment of the Act, for the following two years, outlining the progress made in reaching the policy goals described in the bill and National Research Council, Department of Energy and Department of Defense reports on aspects 

of domestic mineral policy. 

Section 5. National Mineral Assessment 

USGS is currently developing models to be used in its upcoming 

National Mineral Assessment scheduled to begin in Fiscal Year 

2013. This section provides guidance to USGS on what mineral 

commodities to focus on for the upcoming planned assessment. 

Section 6. Global Mineral Assessment 

USGS is currently working on a Global Mineral Assessment. 

This section directs USGS to expand its Global Mineral Assessment 

to include ‘‘rare earth elements and other minerals that are critical 


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based on the impact of a potential supply restriction and the likelihood of a supply restriction.’’ 

Section 7. Definitions 

This section defines the following terms: ‘‘inventory,’’ ‘‘mineral 

assessment,’’ and the components of a ‘‘mineral assessment’’— 

‘‘qualitative assessment’’ and ‘‘quantitative assessment.’’ These definitions were included to clarify the requirements of Sections 4, 5 

and 6. 

Section 8. Applicability of other statutory mining policies 

This section declares that this Act will not affect any provision 

of the Mining and Minerals Policy Act of 1970 (30 U.S.C. 21a). 

COMMITTEE OVERSIGHT FINDINGS AND RECOMMENDATIONS

Regarding clause 2(b)(1) of rule X and clause 3(c)(1) of rule XIII 

of the Rules of the House of Representatives, the Committee on 

Natural Resources’ oversight findings and recommendations are reflected in the body of this report. 

COMPLIANCE WITH HOUSE RULE XIII

1. Cost of Legislation. Clause 3(d)(1) of rule XIII of the Rules of 

the House of Representatives requires an estimate and a comparison by the Committee of the costs which would be incurred in carrying out this bill. However, clause 3(d)(2)(B) of that rule provides 

that this requirement does not apply when the Committee has included in its report a timely submitted cost estimate of the bill prepared by the Director of the Congressional Budget Office under section 402 of the Congressional Budget Act of 1974. Under clause 

3(c)(3) of rule XIII of the Rules of the House of Representatives and 

section 403 of the Congressional Budget Act of 1974, the Committee has received the following cost estimate for this bill from the 

Director of the Congressional Budget Office: 

H.R. 2011—National Strategic and Critical Minerals Policy Act of 

2011 

Summary: H.R. 2011 would require the Secretary of the Interior 

to assess the capability of the United States to meet the demand 

for certain minerals used for manufacturing, agricultural, and national security purposes. The bill also would require the Secretary 

to complete a comprehensive report related to domestic production 

of certain minerals. 

Based on information provided by the United States Geological 

Survey (USGS) and the Bureau of Land Management (BLM), CBO 

estimates that implementing the legislation would cost $18 million 

over the 2012–2016 period, assuming appropriation of the necessary amounts. Enacting the bill would not affect direct spending 

or revenues; therefore, pay-as-you-go procedures do not apply. 

H.R. 2011 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act (UMRA) 

and would not affect the budgets of state, local, or tribal governments. 

Estimated cost to the Federal Government: The estimated budgetary impact of H.R. 2011 is shown in the following table. The costs 


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of this legislation fall within budget function 300 (natural resources 

and environment). 

By fiscal year, in millions of dollars— 

2012 2013 2014 2015 2016 2012– 

2016 

CHANGES IN SPENDING SUBJECT TO APPROPRIATION 

Mineral Assessments: 

Estimated Authorization Level ............................................. 3 3 3 3 3 15 

Estimated Outlays ............................................................... 3 3 3 3 3 15 

Mineral Report: 

Estimated Authorization Level ............................................. 1 1 1 0 0 3 

Estimated Outlays ............................................................... 1 1 1 0 0 3 

Total Proposed Changes: 

Estimated Authorization Level .................................... 4 4 4 3 3 18 

Estimated Outlays ...................................................... 4 4 4 3 3 18 

Basis of estimate: For this estimate, CBO assumes that the legislation will be enacted near the end of 2011 and that the necessary 

amounts will be appropriated for each fiscal year. Estimated outlays are based on historical spending patterns for similar USGS activities. 

H.R. 2011 would require USGS to expand its ongoing global mineral assessment and its upcoming national mineral assessment to 

include certain minerals used for manufacturing, agricultural, and 

national security purposes. USGS began working on the global assessment in 2001, it will include assessments of three mineral commodities, and will be completed in 2012 under current law. The bill 

would require the agency to complete a global assessment of at 

least six additional commodities. Based on information from the 

agency regarding the cost and time required to complete the ongoing global assessment, CBO estimates that expanding that assessment would cost about $3 million a year over the next 10 years and 

$15 million over the 2012–2016 period. Those amounts would be 

used to pay for additional staff, contract costs, and international 

travel. 

The bill also would require the Department of the Interior to 

gather data related to mineral production from multiple federal 

agencies and to complete a report that would be updated annually 

through 2014. Based on information regarding the costs of similar 

activities and assuming appropriation of the necessary amounts, 

CBO estimates that implementing this provision would cost about 

$1 million a year over the 2012–2014 period. Those amounts would 

be used to develop data tracking systems and to hire additional 

staff to gather, input, analyze, and update the data. 

Pay-As-You-Go considerations: None. 

Intergovernmental and private-sector impact: H.R. 2011 contains 

no intergovernmental or private-sector mandates as defined in 

UMRA and would not affect the budgets of state, local, or tribal 

governments. 

Estimate prepared by: Federal costs: Jeff LaFave; Impact on 

state, local, and tribal governments: Melissa Merrell; Impact on the 

private sector: Amy Petz. 

Estimate approved by: Peter H. Fontaine, Assistant Director for 

Budget Analysis. 

2. Section 308(a) of Congressional Budget Act. As required by 

clause 3(c)(2) of rule XIII of the Rules of the House of RepresentaVerDate Mar 15 2010 05:37 Oct 15, 2011 Jkt 019006 PO 00000 Frm 00008 Fmt 6659 Sfmt 6602 E:\HR\OC\HR248.XXX HR248

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tives and section 308(a) of the Congressional Budget Act of 1974, 

this bill does not contain any new credit authority, or an increase 

or decrease in revenues or tax expenditures. Based on information 

provided by the United States Geological Survey and the Bureau 

of Land Management, CBO estimates that implementing the legislation would cost $18 million over the 2012–2016 period, assuming 

appropriation of the necessary amounts. Enacting the bill would 

not affect direct spending or revenues; therefore, pay-as-you-go procedures do not apply. 

3. General Performance Goals and Objectives. This bill does not 

authorize funding and therefore, clause 3(c)(4) of rule XIII of the 

Rules of the House of Representatives does not apply. 

EARMARK STATEMENT

This bill does not contain any Congressional earmarks, limited 

tax benefits, or limited tariff benefits as defined under clause 9(e), 

9(f), and 9(g) of rule XXI of the Rules of the House of Representatives. 

COMPLIANCE WITH PUBLIC LAW 104–4

This bill contains no unfunded mandates. 

PREEMPTION OF STATE, LOCAL OR TRIBAL LAW

This bill is not intended to preempt any State, local or tribal law. 

CHANGES IN EXISTING LAW

If enacted, this bill would make no changes in existing law. 

Æ 


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