KEY POINTS
- Trump advisers propose waiving environmental reviews for U.S.-backed mining projects.
- Industry sees the move as a boost, but critics warn of environmental risks.
- Proposal could expedite U.S. production of critical minerals, reducing reliance on China.
Advisers to incoming U.S. President Donald Trump have proposed waiving environmental reviews for mining projects receiving federal support, according to a document seen by Reuters. The proposal aims to boost domestic production of critical minerals used in electric vehicles, electronics, and defense equipment.
If adopted, this plan would significantly alter how mining projects on federal lands are reviewed under the National Environmental Policy Act (NEPA), a landmark environmental law requiring assessments for major projects.
Supporters argue that fast-tracking these projects will reduce U.S. dependence on China, the world’s top miner and processor of essential minerals like lithium and cobalt.
The advisers, selected by Trump’s transition team to develop policy ideas for electric vehicle supply chains, have recommended that the administration exempt critical minerals production, battery facilities, and magnet production from NEPA’s extensive review process. This would remove the requirement for oversight from multiple federal agencies, which typically slows down project approvals.
Jason Miller, a senior adviser on the transition team, clarified that Trump has not taken a stance on the proposal. He noted that these recommendations came from “outsiders who have no role in charting administration policy.”
Industry welcomes potential boost, but critics raise environmental concerns
Mining companies have long expressed frustration with the delays caused by NEPA reviews, which can stretch project timelines for years due to legal challenges and multi-agency oversight.
Companies like Antofagasta, Rio Tinto, and Lithium Americas have had proposed U.S. mining projects under regulatory review for over a decade.
The proposal to waive reviews could expedite billions of dollars in U.S.-backed projects, including lithium mines and processing plants. This would give U.S. miners an edge over rivals in China, which dominates the critical minerals supply chain.
However, environmental and conservation groups argue that the NEPA process ensures fairness and accountability, giving communities a chance to voice concerns. Critics warn that fast-tracking mining projects could result in environmental damage and reduced public oversight.
“NEPA helps ensure all voices are heard and requires the consideration of climate change and environmental justice,” said a statement from a conservation group. Opponents argue that federal grants and loans for mining projects effectively sidestep NEPA reviews, allowing companies to exploit public lands without due process.
Potential benefits for U.S. miners amid global mineral race
If Trump embraces the proposal, it could bring a significant financial boost to U.S. miners. The plan would fast-track federally backed projects for critical minerals, potentially leveling the playing field with China, which dominates the global critical minerals market.
During his first term, Trump made similar efforts to speed up permitting, capping NEPA review documents at 300 pages and shortening timelines for completion. These changes were later rolled back under President Joe Biden.
While mining firms generally support permit reform, some executives warn against a “sledgehammer approach” that could trigger international backlash. Industry leaders have called for balanced reforms rather than blanket exemptions to avoid harming trade relations.
