Minerals Management at the Department of the Interior Needs Coordination and Organization

Growing national awareness of the strategic importance and uncertain sources of some minerals is leading to development of a strategic minerals policy. In 1980, Congress enacted the National Materials and Minerals Policy Research and Development Act. The Act establishes the Executive Office of the President as the focus of policymaking in this area. Any national policy for assuring availability of such strategic minerals as cobalt, tin, chromium, and platinum must be formulated in light of the potential of federally controlled resources and the ramifications of Federal land use decisions for domestic supply of these commodities.

There is a need to improve access to Federal lands for mineral exploration and development while continuing to protect social and esthetic values. Improving access for mineral prospectors and mining operations will best take the form of clarifying the conditions under which exploration and development will be allowed to occur for all types of minerals. GAO found that the Department of Interior does not have an adequate minerals management policymaking process. Decisions affecting exploration and development of mineral resources are made without reference to larger strategies for affected commodities or markets and the satisfaction of strategic supplies. Not having a minerals management policymaking process has contributed to: (1) a lack of a a clear understanding of the public interest in federally owned mineral resources; (2) the potential for large Federal outlays to acquire valid mineral rights to resolve land use conflicts; (3) a disregard for the repercussions of decisions to limit mineral activities on affected industries; and (4) a limitation of acquisition of mineral resource information for areas closed to private industry, uncertainty as to the conditions for access and tenure needed to encourage investment in mining ventures, and delays in reaching decisions affecting access to Federal lands for mineral exploration and development. Secure sources and stable prices for mineral commodities can be overlooked or inadequately assessed. Access and tenure should be denied only where an identifiable public interest would be unnecessarily or permanently damaged.

Recommendations

Our recommendations from this work are listed below with a Contact for more information. Status will change from "In process" to "Open," "Closed - implemented," or "Closed - not implemented" based on our follow up work.

Director: John W. Sprague Team: General Accounting Office: Energy and Minerals Division Phone: (202) 512-7783