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Navigating Change: Critical Mineral Policy Shifts and What They Mean for Your Business

Written by Industry Intelligence | April 08, 2025 10:00 AM

On March 20, 2025, President Trump signed Executive Order 14241, titled Immediate Measures to Increase American Mineral Production. The order aims to boost U.S. mineral production, reduce dependence on foreign sources, and ensure the availability of minerals crucial for defense, technology, infrastructure, and energy. The executive order (EO) lays out measures to expedite permitting processes, increase public and private investments, and enhance regulatory clarity, targeting critical minerals such as rare earth metals, uranium, and copper.

Beyond National Security: Unlocking the Economic Potential of Domestic Mineral Production

The EO seeks to address vulnerabilities in the U.S. supply chains for critical minerals, which are essential for industries such as defense and renewable energy. The U.S. is heavily reliant on imports for key minerals like rare earths and uranium, which poses risks to national security. By ensuring a stable and secure supply, the EO aims to position domestic mineral production as vital to national security, rather than just an economic concern. A key feature of the EO is the invocation of the Defense Production Act (DPA), which grants the President authority to prioritize domestic mineral production for strategic sectors.

Decoding the EO: Key Changes That Will Reshape Your Operations

The EO mandates several actions across federal agencies to facilitate domestic mineral production:

  • Expediting Priority Projects: Agencies must prioritize mineral production projects for expedited approval and permitting.
  • Federal Lands for Mineral Production: The Department of the Interior will identify federal lands with mineral deposits and prioritize them for mineral production.
  • Clarifying Regulations: The EO clarifies regulations under the Mining Act of 1872, particularly regarding waste disposal.
  • Mobilizing Capital: The EO seeks to increase investment in mineral projects through funding mechanisms like the DPA and initiatives by the U.S. International Development Finance Corporation (DFC) and the Export-Import Bank (EXIM).

Key Implementation Dates:

  • March 20, 2025: Trump signs executive order "Immediate Measures to Increase American Mineral Production"
  • March 30, 2025: National Energy Dominance Council (NEDC) receives list of mineral production projects
  • March 30, 2025: Secretary of the Interior identifies list of Federal lands known to hold mineral deposits and reserves
  • March 30, 2025: Assistant Secretary of Defense convenes buyers and end-users of critical minerals to form a bid request for domestic supply
  • April 4, 2025: NEDC submits mineral production projects to Permitting Council to establish expedited review schedules
  • April 19, 2025: Department of Defense adds mineral production as a priority industrial capability development area
  • April 19, 2025: Departments of Defense, Interior, Agriculture, and Energy identify sites on Federal land suitable for mineral production enterprises
  • May 4, 2025: Small Business Administration (SBA) submits recommendations for legislation to support small-business financing in mineral production

Accessing Capital: EO’s Funding Mechanisms for Domestic Mineral Projects

The EO directs various federal agencies to provide favorable terms for private entities involved in domestic mineral production. Notably, the DFC will issue direct loans and guarantees for such projects, while a new platform called the National Security Capital Forum (NSCF) will connect investors with U.S. mineral projects. EXIM is tasked with supporting domestic mineral production by securing raw material feedstock for processing. The SBA will also make legislative recommendations to support financing for domestic small businesses in mineral production.

Who Wins? Industries Poised to Capitalize on the Coming Mining Boom

The EO primarily targets minerals critical to national defense, energy, and technology sectors, such as antimony, cobalt, copper, gold, lithium, nickel, potash, rare earth elements, and uranium.

Furthermore, the order provides flexibility that allows for the inclusion of other elements, compounds and materials not yet listed in the U.S. Geological Survey (USGS) Critical Minerals List, and encourages stakeholders to lobby the NEDC for inclusion.

Mining companies, equipment suppliers, and mineral refineries stand to benefit, alongside businesses involved in land clearing, transportation, and environmental remediation. Additionally, sectors such as defense, energy, advanced technology, industrial machinery, and infrastructure, as well as investment firms specializing in mineral projects, are well-positioned to capitalize on the heightened emphasis on domestic mineral production.

Navigating the Hurdles

Despite its ambitious goals, the EO faces challenges, particularly regarding funding. The EO does not allocate new funds, relying instead on existing legislative initiatives and congressional appropriations. Additionally, offtake agreements, which guarantee future mineral purchases, may face uncertainty due to volatile commodity prices and geopolitical risks, according to an assessment by the Center for Strategic & International Studies (CSIS). Mining companies may be reluctant to commit to long-term projects without risk mitigation measures, such as price floors and tax incentives.

Progress vs. Preservation: Addressing the Environmental Concerns

Environmental groups have raised concerns about the EO’s potential impact on public lands and ecosystems. Mining operations often lead to pollution and habitat destruction, particularly in sensitive areas. Chris Hill, CEO of the Conservation Lands Foundation, has criticized the EO for prioritizing mining over other uses of public lands, such as recreation, hunting, and ranching. He argues that the EO risks harming rural communities that rely on natural landscapes for their livelihoods.

Legal challenges are also possible, according to law firm King & Spalding LLP, especially since the EO targets minerals found in areas previously opposed by Native American tribes and rural communities. The EO’s expedited permitting and regulatory changes may also face opposition on environmental grounds.

Forestry at the Crossroads: Anticipating the Impact of Increased Mineral Production

EO 14241 closely follows the signing of another executive order, EO 14225, titled Immediate Expansion of American Timber Production. While both orders share the common objective of securing critical materials domestically, they may inadvertently lead to conflicts in the future.

Timber production involves cyclical harvesting and replanting, while mineral extraction is typically a one-time process that can lead to permanent changes to the landscape.

Mining companies may compete with timber companies for access to land and resources. A surge in mining operations in areas near forests could result in habitat destruction and soil erosion as mining companies establish extraction sites. In the long run, as mining activities encroach on forestry interests, the availability of land for sustainable timber production could decrease, potentially driving up timber costs in the region.

Multi-Agency Coordination to Balance Competing Interests

Federal land use decisions that take into consideration of needs and impacts from different angles require coordination among multiple federal agencies:

  • The U.S. Forest Service (USFS), under the U.S. Department of Agriculture, manages national forest lands for timber, forest health, recreation, and mineral development.
  • The Bureau of Land Management (BLM), under the Department of the Interior, oversees public land use for mineral extraction, recreation, grazing, and wildlife habitat.
  • The Environmental Protection Agency (EPA) ensures compliance with environmental standards and handles impact assessments for activities like mining.

The Ripple Effect of Government Efficiency

The DOGE-led government layoffs and field office closures have reduced Mine Safety and Health Administration (MSHA) oversight, sparking concerns about the impact of severe government cuts on miners’ safety. A recent Trump-ordered hiring freeze cut off the hiring process for 90 new recruits and over 120 employees took a voluntary resignation offer. With fewer inspections and less regulatory enforcement, mining operations face heightened risks of accidents and structural failures.

Moreover, land-use decisions are case-by-case, balancing needs, potential impacts and federal management goals, with public input and legal challenges often shaping outcomes.

Governmental office closures and mass layoffs could delay or compromise land use planning and inter-agency coordination, as agencies would have less capacity to conduct comprehensive analyses. In areas needing collaboration, agencies may find it difficult to share data, align priorities, and develop integrated solutions for complex land-use issues, resulting in fragmented or inconsistent policies.

Looking Ahead

The executive order highlights the growing urgency to secure America's industrial future and supply chain independence in an increasingly competitive global landscape.

The implementation of the order will be closely monitored by industry stakeholders, environmental groups, and the public. The success of the EO depends on tight collaborations among different governmental agencies and continued investment via private-public partnerships.

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