Trump’s support for mining can benefit developing countries

More active US engagement on critical minerals projects globally is to be welcomed

This is my last column during the Biden administration. In a few days Donald Trump will be inaugurated, ushering in a new era in the US and for the world. Here’s a preview of what I’m thinking about from my office in Washington. 

 First, remember his “Drill, baby, drill” line? Turns out that’s not just for oil, but will also apply to minerals. We’re going to see a lot of progress on the mining front, with a Trump administration slashing the bureaucracy around getting a mine up and running.

 Establishing a new mine in the US takes an average of 29 years, making it the second-longest process globally. Gaining approval to operate a mine requires navigating federal, state and local permits, while adhering to overlapping regulations. A single project may need as many as 30 permits, with many being repetitive.

 Trump has announced the creation of a National Energy Council to address the bottleneck. The council will work with all departments engaged in the permitting, production, generation distribution, regulation and transportation of all American energy. “This council will oversee the path to US energy dominance by cutting red tape, enhancing private sector investments across all sectors of the economy, and by focusing on innovation over long-standing, but totally unnecessary, regulation,” Trump said. 

 I expect the new administration’s support for mining to go beyond American borders. It was actually during Trump’s first term that the Development Finance Corporation (DFC), the US government’s financing agency for projects overseas, was established. The DFC has provided finding for a number of mining projects in Africa, including SA, Mozambique, Angola and Uganda.