Week-in-Review: US Becomes Minerals Exploration Deregulation Nation

Published: Feb 20, 2017 10:01
This week President Donald Trump began to deliver on his campaign promises to deregulate industry and unshackle American manufacturing, using the Congressional Review Act, a 1996 law that empowers Con

by Jeff Yoders on FEBRUARY 17, 2017

This week President Donald Trump began to deliver on his campaign promises to deregulate industry and unshackle American manufacturing, using the Congressional Review Act, a 1996 law that empowers Congress to review, by means of an expedited legislative process, new federal regulations issued by government agencies and, by passage of a joint resolution, to overrule the regulation.

First up, Congress passed a law under the CRA that rolled back an Obama administration rule that would have required oil, gas and mineral extraction companies to disclose payments made to governments. The Securities and Exchange Commission rule never went into effect and exploration companies and industry organizations such as the American Petroleum Institute, said it put natural resource companies at a competitive disadvantage to foreign firms by disclosing too much of their contract terms.

Metals producers and other companies dependent on minerals to make their products generally supported the repeal. Another potent input for the creation of metals is coal and Trump followed up the CRA action by signing a bill that quashed the Office of Surface Mining’s Stream Protection Rule, a regulation to protect waterways from coal mining waste that officials finalized in December. Regulators spent most of Obama’s administration eight years writing the Stream Protection Rule and it was effectively wiped away with the stroke of Trump’s pen thanks to the CRA.

The House has passed several CRA resolutions, and the Senate has so far sent three of them to President Trump so far, but there are at least 10 CRA bills still moving through the House and Senate. Until now, only one CRA resolution had ever been passed and signed into law: the Occupational Health and Safety Administration’s workplace ergonomics rules, in 2001.

If Trump and the republican Congress continue to use the CRA to roll back rules, they could potently erase much of the regulation that business organizations have said hamstrung them for the last eight years.

Using the CRA to roll back regulations would certainly make it easier for Trump to deliver on his promises of smarter, better regulations for industries such as manufacturing and mining. Using it also helps the Congress keep up a commitment from an early Trump executive order that it must repeal two regulations for every new one. We could see a slew of deregulation actions to allow Congress to “bank” new regulations if it needs to pass a law to, perhaps, create a new definition of what a countervailable subsidy is for companies to petition the Commerce Department to allow it to place duties on foreign imports.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or for more information, please contact: lemonzhao@smm.cn
For more information on how to access our research reports, please contact:service.en@smm.cn
Related News
Philippines' Sy family advances Tampakan copper-gold consolidation
12 mins ago
Philippines' Sy family advances Tampakan copper-gold consolidation
Read More
Philippines' Sy family advances Tampakan copper-gold consolidation
Philippines' Sy family advances Tampakan copper-gold consolidation
Dominion Holdings, controlled by the Sy family, has received board approval to merge with Indophil Resources Philippines and Sonar Holdings, securing voting rights in Sagittarius Mines, operator of the Tampakan copper-gold project. Tampakan is Southeast Asia's largest undeveloped copper-gold deposit in South Cotabato, Mindanao, valued at about US$200 billion, designed to produce roughly 375,000 tonnes of copper and 360,000 ounces of gold annually over 17 years, with operations targeted around 2028 after an initial 2026 timeline. Dominion already holds 54.48% of Atlas; the consolidation would create the Philippines' largest miner, with its shares up more than 820% in 2026.
12 mins ago
Develop Global Awards $275M EPC Contract for Yitirrti Processing Plant to GR Engineering Services
13 mins ago
Develop Global Awards $275M EPC Contract for Yitirrti Processing Plant to GR Engineering Services
Read More
Develop Global Awards $275M EPC Contract for Yitirrti Processing Plant to GR Engineering Services
Develop Global Awards $275M EPC Contract for Yitirrti Processing Plant to GR Engineering Services
According to an August 17 announcement by Develop Global, Develop has awarded the EPC contract for the design and construction of the Yitirrti processing plant (formerly known as Sulphur Springs) to leading engineering company GR Engineering Services Limited, with a contract value of A$275 million. The processing plant will have a designed capacity of 1.5 million tonnes per year and will produce separate copper-silver and zinc concentrates. Funding for the Yitirrti project will come from a US$400 million debt facility recently provided by Trafigura to Develop, Develop's existing cash resources, and cash flow generated by Develop's Woodlawn and Pioneer Dome mines. Trafigura has signed offtake agreements to purchase the copper and zinc concentrates produced by the Yitirrti project. Construct
13 mins ago
End-user purchase showed weakness, and spot premiums gradually moved down [SMM North China spot copper]
14 mins ago
End-user purchase showed weakness, and spot premiums gradually moved down [SMM North China spot copper]
Read More
End-user purchase showed weakness, and spot premiums gradually moved down [SMM North China spot copper]
End-user purchase showed weakness, and spot premiums gradually moved down [SMM North China spot copper]
In North China today, spot prices of #1 copper cathode against front-month contract were reported at an average ranging from parity to a premium of 130 yuan/mt, with an average premium of 65 yuan/mt, down 60 yuan/mt from the previous trading day; the average transaction price was 107,640 yuan/mt, up 415 yuan/mt from the previous trading day;
14 mins ago