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Appendix I STATEMENT OF WILLIAM P. PENDLEY. DEPUTY ASSISTANT SECRETARY--ENERGY AND MINERALS DEPARTMENT OF THE INTERIOR BEFORE THE COMMITTEE ON SCIENCE AND TECHNOLOGY JULY 28. 1981 Mr. Chairman and members of the committee: It is a pleasure to appear before you today to discuss the implementation of P.L. 96-479, the "National Materials and Minerals Policy, Research and Development Act of 1980." The 1980 Act sets this nation on a new and stronger course in the development of its minerals policy. Its provisions will help broaden and deepen our knowledge of minerals and materials, better coordinate mineral policy development with the organizations and agencies of the Executive Branch, and will provide greater awareness of the fundamental role minerals and materials play in the development of a vigorous economy and strong national defense. This committee should be commended for the lead role it took during the last session of Congress to make this legislation a reality. I wish to particularly compliment you, Mr. Chairman, for your perseverance and personal effort in the speedy and timely enactment of this legislation. I think the record is clear that the 1980 Act has the strong support of this Administration. The development of a comprehensive strategic material policy is one of the chief tasks and major challenges the President has placed before his Administration. We are working hard and, I believe, successfully in carrying out the mandate of the new law. Allow me first to describe the actions we have taken within the Department of the Interior to carry out our responsibilities under the Act. Then I would like to briefly describe the coordination of other related activities called for in the law that are being carried out elsewhere in the Executive Branch. The 1980 law requires the Secretary of the Interior to do three things: first, to improve the capacity of the Bureau of Mines to assess international minerals supplies; second, to increase the level of mining and metallurgy research by the Bureau in critical and strategic minerals; and third, to improve the availability and analysis of mineral data in Federal land use decision making. A report on our actions in carrying out these responsibilities is due to the Congress by October 21 of this year. First, to improve the Bureau's capacity to assess international minerals supplies, we are strongly supporting the Bureau's efforts to evaluate mineral properties located throughout the world and to develop worldwide supply availability curves based on mineral property evaluations. The worldwide engineering and cost evaluations of all 74

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75 major mineral properties for the 23 most critical mineral commodities will be completed by the end of FY 1983 and worldwide supply availability curves based on these data should be completed by FY 1984. To improve the analysis of some foreign and domestic mineral data, we have proposed in the FY 1982 budget request that a mineral policy analysis office be established within the Bureau. This new office will be the focal point within the Bureau for addressing mineral policy issues and will serve as a mechanism for joint analytical efforts with other agencies. In addition, the Department initiated a review by the Office of Mineral and Policy Research Analysis regarding the various mineral data systems now in use in an attempt to ensure compatibility and utility and reduce duplication. Finally, the Bureau is now inventorying all mineral data systems within the Executive Branch, and is identifying the location, the currency, and the relevancy of the data systems for policy related analysis and decision-making. An interagency Minerals Information Coordinating Committee, chaired by the Bureau, is now carrying out this task. To fulfill the second requirement of the Act to increase the level of research related to critical and strategic minerals, we have revised the Bureau's 1982 budget request and moved $8.3 million from environmentally oriented research to other studies more directly related to improved recovery of and substitution for critical and strategic minerals. While operating under the very tight restraints necessitated by the need to curtail Federal spending generally, this re-direction of research will enable the Bureau to perform additional research involving the recovery of cobalt, chromium, manganese, nickel, zinc, tin, and titanium from domestic resources, and involving the development of substitutes for those materials that are, for the most part, imported. Third, to improve the availability and analysis of mineral data in Federal land use decision-making, Secretary Watt has directed the Department to take the steps necessary to improve decision-making relative to the utilization of our nation's lands. Adequate minerals information for balanced land use decisions, as essential as it is, is the most difficult part of the land planning process. The very history of mining is that new mineral deposits are often found where we had no previous hint of their existence. Discovery is often made only after repeated exploration efforts, sometimes spanning many years. While we can identify some areas of potential, we are never 100 percent sure. We simply do not know nor will we ever completely know where all of our mineral deposits lie. Neither can we easily predict the technological and economical--and sometimes political--circumstances that make mineral deposits mineable. Ironically, because most of our knowledge on the mineral character of public lands is largely the result of exploration and mining by the private sector, the availability of new information becomes a factor of decisions that affect the private sector's accessibility to such lands. A major step in the right direction, I believe, will be to re-examine the responsibility of government as to its management of the public lands to assure that minerals receive proper consideration. This process is now under way at Department of the Interior.

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76 As I hope you can detect, Mr. Chairman, the Department of the Interior has made major progress in implementing the 1980 law--particularly when one considers the start-up time involved in the change of administrations. Our work is far from complete in carrying out the letter of the new law, but I believe we have demonstrated a compliance with the spirit of that law. In addition to these efforts within the Department and related activities mandated by the law for other agencies, the Cabinet Council of Natural Resources and the Environment has been given the responsibility for formulating a National Materials Policy by the President. In carrying out this responsibility, the Council has established a Strategic Materials Policy Working Group, I have the privilege to chair. The working group contains participants from eighteen different agencies and organizations and has divided its tasks into eight separate issue areas. One of the eight issue areas deals specifically with compliance with the provisions of the 1980 Act and coordination of the various actions called for by the law. The other seven issue areas under study by the working group, related directly to the 1980 Act, and are thus an essential part of our response. Mr. Trimble: I am Mr. Trimble from the Department of Defense. I have a prepared statement which I would like to enter into the record. Before commencing, I would make the observation that the Department of Defense generally does not buy basic raw materials. Rather, we do buy the finished product, many of which are extremely important to the defense of the country. We have a very high regard for the criticality of this matter of the shortage of materials and minerals. To support the important objective that has been set forth to improve our posture regarding materials and minerals, the Department of Defense is enthusiastically fulfilling its responsibilities under the act of 1980. The following are actions that we have taken or are taking. One, we have established a Department of Defense (DOD) team of senior professionals who are assigned to our industrial resources and our research and development offices to assume the responsibility of all tasks required to meet both the spirit and letter of the law. This team is working closely with the Departments of Interior, Commerce, and State, the Central Intelligence Agency, National Security Agency, and Federal Emergency Management Agency to ensure that we have a coordinated Government-wide plan for the resolution of problems relating to minerals and materials. They are also working with the White House Council on Natural Resources and Environment in an effort to develop a unified position under Public Law 96-479. Two, we have tasked the Institute for Defense Analysis, a local not-for-profit studyhouse that works almost exclusively for the Department of Defense, to provide us with information on which we can assess our need for minerals, materials. We have asked for research and development, in which we can develop appraisals for policy options. Three, we have renewed and updated the charter and objectives of the Interagency Materials Availability Steering Committee which was established in 1974. Four, we are assessing, with the assistance of the military departments, the impact of import dependency on specific weapon

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77 systems, subsystems, intermediate products, and structures. Five, we have completed a proposed DOD-wide research and development plan for satisfying DOD critical and strategic materials requirements. This plan proposes a long-range Department of Defense-wide material substitute research and development program to assess our most critical needs. This plan is currently under review by the Joint Chiefs of Staff and will be reviewed by the Interagency Materials Availability Steering Committee. Six, we conducted a DOD-wide metal matrix composites conference in May of this year and also conducted a Department of Defense-chaired OSTP committee on materials, rapid solidification technology working group conference in July. Both conferences addressed the potential of these material technologies for developing substitute materials. Seven, in May of this year we conducted a 3-day industry conference workshop in conjunction with the American Defense Preparedness Association and secured industrial inputs to our overall materials situation assessment. This completes the summary of the actions that we have taken, and I am pleased to say that we have noted in all cases, Mr. Chairman, great enthusiasm on the part of Government agencies and industry groups to attempt to help us resolve the problem of our materials shortages. We are also at this time identifying those sources of materials and processing sequences which need to be imported.