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Policy measures contained in the latest US government spending bill could be a boon for miners.
The new bill was released Tuesday night, and according to a report from Reuters, it contains several changes that will affect the US Environmental Protection Agency’s (EPA) authority over mining projects.
For starters, the bill will cut the EPA’s budget by $60 million. That brings the total to $8.1 billion, as per an overview of the bill by the Washington Post, and GOP aides told the publication that the funding decrease will force the EPA to reduce its staff to the lowest levels since 1989.
The funding cut alone might seem like a jab at the EPA, but Reuters reported that the bill also “rein[s] in [the agency’s] regulatory overreach.” Specifically, it includes provisions that will see increased “congressional oversight of EPA’s review of mining permits.”
It will also make funding for work to clarify the legal definition of “fill material” more difficult. Having that defined would make waste disposal more difficult for miners.
Notable issues
Of course, at this point it’s unclear how the changes may affect mining projects in the US; however, one relevant issue is the continued standoff between Northern Dynasty Minerals (TSX:NDM) and the EPA over the miner’s Pebble project in Alaska. Northern Dynasty recorded a victory at the end of last month when the Pebble Partnership was granted a preliminary injunction against the agency, but lawsuits are still ongoing between the two parties.
According to another piece from the Washington Post, the $1.01-trillion bill is expected to pass within the next few days. Certainly, resource investors will be watching to see what effects the changes will have on the mining industry.
Securities Disclosure: I, Teresa Matich, hold no direct investment interest in any company mentioned in this article.
Related reading:
Preliminary Injunction Halts EPA Process at Northern Dynasty’s Pebble Mine