A New Era of US Mineral Mining Must Put Communities First

"White Sulphur Springs, Montana"

Posted by World Resources Institute • Image by Cheri Alguire

A New Era of US Mineral Mining Must Put Communities First

The area around California’s Salton Sea is incredibly rich in lithium — enough to support over 375 million electric vehicle batteries. A new mine, dubbed Hell’s Kitchen, plans to tap this vast mineral wealth. Once completed, it will be among the largest lithium producers in the world.

Hell’s Kitchen is one of several new mines that have been fast-tracked by the U.S. federal government as part of an ongoing push to scale up domestic critical mineral supplies. Demand for these minerals — which include lithium, cobalt, rare earth elements and others — is surging both in the U.S. and globally, in part thanks to the rise of clean energy technologies like electric vehicles, utility-scale energy storage and solar panels. This rising need is rapidly outpacing U.S. production, meaning the country will have to both increase imports and scale domestic mining in the coming years.

While critical minerals are essential to securing a clean energy future, mining is an extractive practice with environmental and social risks that has historically done more harm than good. This legacy, especially for Tribal Nations and Native communities, has created deep distrust and widespread opposition to new projects in the U.S.

The Salton Sea is no stranger to these pitfalls. For all the area’s mineral riches, it is economically poor. It’s seen a long history of one-sided extraction projects that have largely failed to improve the lives of working people.

These concerns are at the fore for many as the U.S. enters a new era of mining. Some projects are already facing significant opposition and litigation, delaying development and increasing financial risks for developers.

Meaningful community engagement will be crucial moving forward — not only to unlock development and meet the country’s resource needs, but to avoid harm and provide tangible benefits to the communities hosting these projects.

 

Strategies for Robust Community Engagement

Improving regulation to give communities a seat at the table

Most states require mining companies to obtain various permits that involve mandatory public notice and comment periods. This gives community members a chance to provide input to state agencies.

However, Montana has gone a step further: Its Hard Rock Mining Impact Act (HRMIA) is considered unique in that it gives communities formal standing and leverage to address mining impacts.

HRMIA requires any developer of a large-scale hard rock mine to prepare an impact plan that describes its expected social and economic impacts on local government entities — such as counties, cities and school districts — who can then negotiate with the mining company for funding to address them. This might include money for things like new infrastructure, public health services or road maintenance. In 2020, for example, Meagher County and the City of White Sulphur Springs received $437,000 from Black Butte copper mine’s developer. This kind of upfront funding is intended to address infrastructure and service needs and financial gaps before the expanded tax base from the mining operation begins to provide revenue.

Montana created a Hard Rock Mining Impact Board that reviews impact plans for compliance and can adjudicate disputes between local governments and companies. The five-member board balances local government, community, industry and finance interests by mandating that at least three members must be from an area affected by large-scale mining development, one member from the hard rock mining industry, and one from a major financial institution in the state.

A companion law, the Property Tax Base Sharing Act, ensures that 35% of metal mines tax revenues are allocated to local governments to mitigate the fiscal impacts of mining operations. The state law also requires counties to place at least 37.5% of that allocation into a designated savings account: a “rainy-day” fund to be used in the event of a mine shutdown or major workforce reduction.

Montana’s framework, especially its provisions for mitigating local fiscal and infrastructure impacts from large mines, can be a model for other states and the federal government.