Federal Officials Push Permitting Reform to Unlock Alaska's Critical Minerals

Federal energy officials told an Alaska conference Tuesday that the state holds 95 percent of critical minerals designated by the Department of the Interior. The officials said permitting timelines must be reduced to unlock production that could rival world leaders.

Alaska holds the largest graphite deposit in North America and leads in zinc, copper, tungsten, and antimony. Graphite powers batteries for electric vehicles and energy storage systems. Antimony is required for defense systems and ammunition production.

The United States imports most of its critical minerals from China and other nations. Domestic mining has declined over three decades as environmental reviews and legal challenges extended project timelines. No major hard rock mine has opened in Alaska since the Red Dog zinc mine began production in 1990.

A Department of Energy official said current permitting timelines of 15 to 18 years prevent business planning and hinder development despite national security needs. No business can plan on an 18-year cycle, the official said. Things change too quickly.

The Department of Energy has issued over $1 billion in funding opportunities for Alaska projects to reduce dependence on foreign supply chains. The official said Alaska could lead the world in production of materials necessary for artificial intelligence and modern technology. But the state must be able to permit and process, and that requires energy, the official said.

Another speaker said permitting reform and legal protections are essential to attract capital investment. Mining and processing require huge capital investments with long durations, similar to oil and gas. Investors cannot commit in an environment where a new administration can reverse course two years later, the speaker said.

The speaker said lawsuits must serve a genuine purpose for protecting human life and health rather than being used to delay projects until investors withdraw. Congress must act on lawfare and permitting, the speaker said.

The Department of Energy official said artificial intelligence can help maximize energy efficiency, site selection, and environmental considerations for processing facilities. Subsurface innovation in mining will allow operations to target specific ore bodies more efficiently, the official said.

The official said regulatory bodies must execute at high standards of protecting communities and the environment while speeding up permitting. Workforce development was identified as a separate challenge that must be addressed alongside permitting and energy issues.

The remarks came during a panel discussion at an Alaska energy conference.