DON YOUNG, CHAIRMAN
BACKGROUND MEMORANDUM

TO:	Members, Subcommittee on Energy and Mineral Resources
FROM:	John Rishel, Legislative Staff
DATE:	February 19,1999
SUBJECT:	Subcommittee Oversight Hearing on "Mining, the American Economy and National Security -- The Role of Public Lands in Maintaining a National Asset"

The Subcommittee an Energy and Mineral Resources is scheduled to meet on Tuesday, February 23, 1999 at 2:OOP.M. in Room 1324 Longworth HOB to hold a hearing on "Mining, the American Economy and National Security -- The Role of Public Lands in Maintaining a National Asset."

BACKGROUND

The Subcommittee on Energy and Mineral Resources is holding this oversight hearing to gather factual information on the state of domestic mining, including trends in domestic mineral exploration, production and reserves. Mining is a basic economic activity which supplies the strategic metals and minerals that are essential for agriculture, construction and manufacturing. A recent study by the National Research Council concluded that one of the primary advantages that the United States possesses over its strongest industrial competitors, Japan and Western Europe, is its domestic resource base. The domestic mining industry provides about 50 percent of the metal used by U.S. manufacturing companies.

The United States is among the world's largest producers of many important metals and minerals, particularly copper, gold, lead, molybdenum, silver and zinc and still has substantial domestic reserves of these metals. Twelve western states containing more than 92 percent of U.S. public land account for nearly 75 percent of U.S. domestic metal production. Thus, much of the United States future mineral supplies will likely be found on public lands in the West.

Evidence is mounting that while global mineral exploration trends are strongly positive, U.S. mineral exploration has entered a protracted downward spiral. Continuation of this trend in domestic mineral exploration raises serious concerns that as known reserves are exhausted, significant declines in domestic mineral production will occur. A long term decline in U.S. domestic mineral production could result in the loss of thousands of high-paying, skilled jobs in the domestic mining, mineral processing and manufacturing industries and increase reliance on foreign mineral supplies, increasing a worrisome national trade deficit.

The Subcommittee will calI witnesses from a national mining trade association, a consulting firm, the U.S. Geological Survey, a professional society and an enviroranental group to hear testimony on the following issues: (1) the domestic mining industry's contribution to U.S. economic strength and national security, (2) the current levels and trends in domestic mineral exploration efforts, (3) reliance on imported minerals, and (4) the role of mining on public lands in connection with the aforementioned issues.

For further information, please contact Bill Condit at x59297 or John Rishel at x60242,

Attachments: Witness List