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***Protectionism Advantage
1AC Advantage
US reliance on other countries causes price spikes, trade
disagreements, efect all sectors of the economy and heg
China has a monopoly --- that causes China bashing
Parthemore, 11 Christine, Fellow at the Center for a New American
Security, Elements of Security,
http://www.cnas.org/files/documents/publications/CNAS_Minerals_Parthemore
_1.pdf
Minerals are a subject of much contention. On one hand, the United States remains less
prepared for supply disruptions, price spikes and trade
disagreements related to the global minerals trade than most experts realize.
On the other hand, public concern over reliable access to the minerals
required in key sectors of the U.S. economy , in particular those
needed to produce military equipment, is growing . Too frequently, however,
such concerns are based on inaccurate assumptions. A sober and informed analysis suggests there
are real vulnerabilities, which place critical national security and
foreign policy interests at risk . In worst-case scenarios, supplies of minerals
that the United States does not produce domestically
the heart of this growing public debate. Its 2010 cutof of rare earth
elements 2 a unique set of minerals that are difficult to process yet
critical to many high- tech applications attracted particular
attention. After Japan detained a Chinese trawler captain over a skirmish in the East China Sea,
Japanese companies reported weeks of stalled shipments of rare earths from China amid rumors of an
critical to building laser-guidance systems for weapons, refining petroleum and building wind turbines.
Defense Authorization Act required DOD to study and report on its dependence on rare earth elements
for weapons, communications and other systems. 3 During a 2009 hearing on minerals and military
rhenium we need to build a JSF [Joint Strike Fighter] engine that the stockpile becomes critically
Department of Energy (DOE) launched a multiyear effort to explore potential vulnerabilities in supply
chains for minerals that will be critical to four distinct areas of energy technology innovation.While
concern is growing, the media and policy - makers often focus too narrowly on what may
seem the most compelling indicators usually import dependence or scarcity in
prescribing solutions to reduce U.S. vulnerabilities, in particular to
supply disruptions in critical minerals such as rare earths. This focus is sparking
protectionist attitudes , with some worrying that import dependence
poses an inherent risk to the U.S. economy. Discussion of minerals also frequently
focuses on supply scarcity and resource depletion in absolute terms. However, both the rhenium and
rare earth minerals dis - ruptions of the past five years were
triggered by deliberate decisions made by political leaders to leverage their positions
of strength, not by market forces, disorder or scarcities of these minerals. Countries often
revert to hoarding , pressuring suppliers and otherwise behaving as
if scarcities are present even when they are not, based solely on concerns that shortages
are likely in the near term. In fact, neither scarcity nor import dependence alone is sufcient to signal
vulnerability, and a combination of factors including concentration of suppliers is most often required for
mineral issues to become security or foreign policy problems. This report, based on two years of
demand and
use of minerals can impair U.S. foreign relations, economic
research, site visits and discussions with stakeholders, explores how the supply,
interests and defense readiness. It examines cases of five individual min - erals
lithium, gallium, rhenium, tantalum and niobium and rare earth elements, such as neo - dymium,
samarium and dysprosium, as a sixth group in order to show the complexity of addressing these
The United States and other marketbased economies no longer determine all the rules of global trade
Central to this narrative is a conundrum for policymakers. Reserve estimates show that
global supplies of almost all minerals are ade - quate to meet
expected global demands over the long term , and for decades into the future
rare earths episode as proof of one basic tenet:
for most minerals. The U.S. Geological Survey (USGS) indicates, for example, that world sup - plies of
is responsible for 90% of the worlds rare earth metal production, and seven of these metals have been
more reliable source . Since China controls such a large share of the rare earth metal market
currently, however, trade relations with China are all the more important to the U.S. and its ability to
acquire needed resources. For this reason,
Villifying China has not worked to promote positive trade relations in the past. While
there
is a noticeable trend linking anti-China rhetoric within American
politics and protectionist trade policies within China that illustrate
how China-bashing can damage U.S.-China trade relations. For
protectionist policies within China cannot be blamed completely on rhetoric in the United States,
example, Dan Ikenson of the Cato Institute suggests that economic hardship in the US amid the recession
of 2008 created resentment at Chinas comparably better economic status at the time. A feeling among
U.S. policies had too leniently allowed for Chinas economic growth led to
calls for protectionism that strained U.S. relations with China . American
Americans that
businesses in China also began to complain about Chinese policies that favored local Chinese businesses,
leading these businesses to call for more protectionist policies. Obama acted on these sentiments by
enacting a tax on tires to protect U.S. tire manufacturers in September, 2009. Shortly after, China
threatened tariffs on American goods, such as chicken meat. This chain of events shows how an ti-
by paying more for Chinese goods that are tariffed, all so politicians can protect American industries from
Great Depression, it triggered a series of tit-for-tat economic responses, which many commentators believe
helped turn a serious economic downturn into a prolonged and devastating global disaster. But if history is
any guide, those lessons will have been long forgotten during the next collapse. Eventually, fed by a mood
of desperation and growing public anger, restrictions on trade, finance, investment, and immigration will
almost certainly intensify. Authorities and ordinary citizens will likely scrutinize the cross-border movement
of Americans and outsiders alike, and lawmakers may even call for a general crackdown on nonessential
travel. Meanwhile, many nations will make transporting or sending funds to other countries exceedingly
difcult. As desperate ofcials try to limit the fallout from decades of ill-conceived, corrupt, and reckless
that otherwise facilitates unwelcome exchanges of any kind will be viewed with suspicion and dealt with
accordingly. The rise in isolationism and protectionism will bring about ever more heated arguments and
dangerous confrontations over shared sources of oil, gas, and other key commodities as well as factors of
production that must, out of necessity, be acquired from less-than-friendly nations. Whether involving raw
materials used in strategic industries or basic necessities such as food, water, and energy, efforts to secure
adequate supplies will take increasing precedence in a world where demand seems constantly out of kilter
with supply. Disputes over the misuse, overuse, and pollution of the environment and natural resources will
become more commonplace. Around the world, such tensions will give rise to full-scale military
Independent of protectionism --- shortages and crackdowns cause war --- the US needs its own sustainable
supply
Hinten-Nooijen, 10 Professor of Economics at Tilburg University in the
Netherlands, Rare minerals The treasures of a sustainable economy,
http://www.tilburguniversity.edu/nl/over-tilburg-university/cultuur-ensport/cwl/publicaties/beschouwingen/minerals/)
Driving a hybrid car, using energy from wind turbines or solar
panels. That are choices to contribute to the transition to a
These
demand for minerals has exploded . Mining tried to meet the demand. A global
competition between countries and companies over rare mineral
resources started. Prices have shot up,
imposed export restrictions in order to secure supplies of these valuable resources. Mineral scarcity
concerning the industry seems to be more of an economic issue than an issue set by limited resources.
Minerals are getting evermore difcult to find and costly to extract - while they are the key to advanced
sustainable technologies. Talking about sustainability seems not talking about China, because China is still
building many polluting coal-fired power plants, and the social circumstances there are poor. However,
recent developments also show progress concerning sustainability. And in a country like China these
developments go faster than in many western democracies. Where we in the west talk and dawdle, they
situation in the thirties of the last century, when President Roosevelt made the so-called New Deal to
reform the economy. Many Americans do not want the government to influence the market. They radically
no neoconservative Grand Old Party that dreams of the cowboy economy. Decisions are taken quickly. And
besides, they have to feed one billion people and develop a country that lived in Mao-ist poverty before.
The Chinese are successful, after all, also in creating a sustainable economy: China does not only build old
polluting power stations but uses the latest technology, with CO2- catch and -storage. And they are
working on alternatives: windmills. In the next five years, they will build 100,000 windmills in the Gobi
desert. Did they hate the wind in that area before, now they consider it the new gold. In the north-west
area of China, the province of Gansu, the Qilian-mountains pass into the Gobi desert. There China is
building the biggest windmill and solar panel park in the world. Six windmill parks with a capacity of ten
gigawatts each are built, making China the biggest market of technology of wind energy, defeating the
United States. "Red China becomes green China", party ofcials are saying. China has to grow, and so has
the contribution of wind, water and sun at the energy market. This market would be interesting for foreign
investments. According to Chinese ofcials they are welcome and can get subsidies. But, Beijing has
decided that 70 percent of the windmills have to be made and designed in China. So it can be questioned if
European and American companies have a fair chance in tendering for a contract. China considers itself a
developing country and thinks that the western countries should contribute money to China to reduce the
CO2 discharge. While America thought that energy saving is not worthwhile, China has taken an enormous
energy-technological lead. The authoritarian and undemocratic but intelligent China exposes a variant of
In a few decades China has been flooding the market of rare metals. The legend goes that president Deng
Xiaoping had already predicted this in 1992, during a tour in the south of China: "They [the Mid East] have
oil, but we in China have rare minerals". Nowadays, China indeed has 95 percent of the global supply of
China flooded
the world market with the rare minerals, although there was not
that much demand. The west thought it okay because getting the
minerals was a very expensive production process and the
environmental legislation was very strict. The western competitors went bankrupt
rare minerals. How did it do that? It was a result of good strategy: in the nineties,
and they closed their mines. China became powerful. One of the centres of the rare mineral supply is
around the city Baotou, an industrial city of two million people in Inner Mongolia. Here the states concern
world wide demand for rare minerals are not recognised in time - as part of the stormy development of the
Chinese economy and the expansion of technical developments - and because the minerals occur in only a
few countries. Experts have predicted that in the next few decades the demand of neodymium will
year . What happens? Sudden peaks in the demand can lead to speculative
price movements and a disruption of the market. "2010 will be the year of the
raw materials", according to Trevor Greetham, Asset Allocation Director of Fidelity. Indium, a silver-white
metal, which is not found directly in nature, but is a residual product of thin and zinc, is used in LCD
displays for TVs, computers, mobile phones, and for led lights and the ultrathin and flexible solar panel.
The price of this mineral multiplied tenfold between 2003 and 2006 from 100 to 980 Dollars per kilogram.
The price of neodymium decreased from 11.7 dollar per kilogram in 1992 to 7.4 dollar in 1996. The market
volume rose. In 2006 almost all of the world production of 137,000 tons came from China. By scaling back
the export, prices rose, up to 60 dollar per kilogram in 2007. Imagine that for a hybrid car, like the Toyota
Prius or the Mercedes S 400, you need at least 500 grams of neodymium for the magnetic power of the
engine; and for the newest generation of wind turbines, the ones that are 16 meters high, you need about
1000 kilogram. That makes 60,000 dollars - for just a little bit of metal! Big business for China. At the same
time, China makes further strategic investments: it took an interest in oil and gas fields. In August 2009,
PetroChina paid 41 billion dollar to gain access to an enormous field of natural gas in front of the coast of
Australia. And in September that year, it obtained a stake of 60 percent in the exploitation of fields of tar
sand in Alberta, which might hold one of the biggest oil reserves in the world. And because China considers
titanium a growing market, it took an interest of 70 percent in a titanium mine in Kenia - not only to build
the Chinese 'Jumbojet', but also to provide Boeing with 2000 tons of titanium each year. By doing so, China
might beat the competition in the battle for the market in green technologies. The 'free' market can be
questioned. The mineral policies of China and the US both mention the usage of administrative barriers.
These nontariff barriers involve regulations that seek to protect the national mineral extraction industry. As
a result, it is much harder for foreign companies, if not impossible, to invest and gain a foothold in the
national mineral extraction industry in these countries. The search for rare metals has become a global
race: a mine in California has also been reopened, the mine of Mountain Pass. In 2008, it was bought by a
group of investors, the partnership 'Molycorp Minerals'. The process of bringing the old mines into use
costs much time and money. What does this mean for us? Do we get more dependent of China? The
'Innovationplatform' in Rotterdam planned to build a unique windmill park in the sea, further from the
coast and in the strongest sea wind than anywhere in the world. To build these windmills, we need rare
minerals, the export of which is dominated by China. Part of the project is Darwind, which designed
enormous windmills for at sea. But the umbrella company, of which Darwind is part, Econcern, was about
to go bankrupt. Then, in mid-August 2009 it was saved by the, surprisingly, Chinese XEMC.
THE
Studies' (HCSS) in its report about the scarcity of minerals (January 2010). The US, Japan and China are
making a policy that tries to secure the supply of these raw materials. That will disturb the free market
activity. HCSS thinks that large concerns will, with support of the government, compete more intensively
with each other for access to these raw materials, e.g. by direct investments in areas rich in raw materials.
While nuclear weapons exist, there remains a danger that they will
be used. After all, for centuries national conflicts have led to wars, with
nations employing their deadliest weapons. The current deterioration of U.S.
relations with China might end up providing us with yet another example of this
phenomenon. The gathering tension between the United States and China is
clear enough. Disturbed by Chinas growing economic and military strength, the U.S. government
recently challenged Chinas claims in the South China Sea, increased the U.S.
military presence in Australia, and deepened U.S. military ties with other
nations in the Pacific region. According to Secretary of State Hillary Clinton, the United
States was asserting our own position as a Pacific power. But need this lead to nuclear war? Not
necessarily. And yet, there are signs that it could. After all, both the United
States and China possess large numbers of nuclear weapons. The U.S.
government threatened to attack China with nuclear weapons during
the Korean War and, later, during the conflict over the future of
Chinas ofshore islands, Quemoy and Matsu. In the midst of the latter
confrontation, President Dwight Eisenhower declared publicly, and chillingly, that U.S. nuclear weapons
would be used just exactly as you would use a bullet or anything else. Of course, China didnt have
nuclear weapons then. Now that it does, perhaps the behavior of national leaders will be more temperate.
But the loose nuclear threats of U.S. and Soviet government ofcials during the Cold War, when both
nations had vast nuclear arsenals, should convince us that, even as the military ante is raised, nuclear
foreign secretary threatened that, if the war escalated, his country felt free to use any weapon in its
arsenal. During the conflict, Pakistan did move nuclear weapons toward its border, while India, it is
dont
nuclear weapons deter a nuclear attack? Do they? Obviously, NATO
leaders didnt feel deterred, for, throughout the Cold War, NATOs
strategy was to respond to a Soviet conventional military attack on
Western Europe by launching a Western nuclear attack on the
nuclear-armed Soviet Union. Furthermore, if U.S. government officials
really believed that nuclear deterrence worked, they would not have
resorted to championing Star Wars and its modern variant, national missile defense.
Why are these vastly expensiveand probably unworkablemilitary defense
systems needed if other nuclear powers are deterred from attacking
by U.S. nuclear might? Of course, the bottom line for those Americans
convinced that nuclear weapons safeguard them from a Chinese
nuclear attack might be that the U.S. nuclear arsenal is far greater
than its Chinese counterpart. Today, it is estimated that the U.S. government possesses
claimed, readied its own nuclear missiles for an attack on Pakistan. At the least, though,
over five thousand nuclear warheads, while the Chinese government has a total inventory of roughly three
hundred. Moreover, only about forty of these Chinese nuclear weapons can reach the United States. Surely
A
nuclear attack by China would immediately slaughter at least 10
million Americans in a great storm of blast and fire, while leaving many more dying horribly of
sickness and radiation poisoning. The Chinese death toll in a nuclear war would
be far higher. Both nations would be reduced to smoldering, radioactive wastelands .
the United States would win any nuclear war with China. But what would that victory entail?
radioactive debris sent aloft by the nuclear explosions would blot out the sun
and bring on a nuclear winter around the globedestroying
Also,
range of industries, from electronics and hybrid automobiles to petroleum and chemicals. Should the ruling
This ruling
may appear , at first glance, to be a vindication of the strategy of turning
to the W.T.O. to fight Chinese protectionism. But litigation victories
do not always translate into economic victories, especially when the
W.T.O. is concerned. In 2010, China imposed quotas and other
restraints to sharply limit exports of rare earths. Because more than nine-tenths of the
worlds production of rare earths occurs in China, price shocks hit foreign producers
who rely on the Chinese minerals. Complaining that the export restraints were
stand, China will have to dismantle the discriminatory policies or face trade sanctions.
discriminatory and illegal, the United States, the European Union and Japan all filed complaints before the
W.T.O. China defended its actions by arguing that the export limits were necessary because of the
environmental hazards associated with rare earths production. That environmental harm can occur is
undoubtedly true, but the W.T.O. panel found this was just an excuse. The export restraints, it ruled, were
designed to achieve industrial policy goals rather than promote conservation. In other words, China sought
to limit its export of rare earths to give a leg up to Chinese manufacturers. It also sought to use cheaper
domestic prices to entice foreign companies dependent on rare earths to relocate production to China.
The strategy worked. Chinese manufacturers in several industries relying on rare earths, such as wind
turbines and chemicals, made formidable inroads against their foreign competitors. Foreign companies
making products relying on rare earths, such as camera lenses and touchscreen glass, shifted some
production to China. Although the W.T.O. panel ruled against China, it did not require China to pay
compensation. By design, the W.T.O.s remedies are not retrospective. Workers who lost their jobs because
firms outsourced production to China would receive no damages. In fact, so long as China eliminates the
discriminatory elements of its policies going forward, there are no remedies available for the United States
or the other countries. The main goal of W.T.O. dispute settlement is to force compliance with the law
reading the main story Continue reading the main story It may seem as though the solution to Chinas
flouting of trade rules would be to push for more robust remedies at the W.T.O. But retrospective remedies
are not necessarily in the interest of other big countries like the United States. That is because they also
lose cases at the W.T.O. Beyond the simple calculation of whether Chinas competitors would gain or lose
the United States was ordered to pay compensation. Would the government claw back these subsidies
from cotton farmers? Or would it try to convince the American public to shoulder the burden on behalf of
strategy . The United States should employ an array of tools to ensure that, even when our
companies face discriminatory policies overseas, they are not tempted to relocate. The United
States should undertake a comprehensive evaluation of the minerals
critical for strategic interests. The government then should play a
major role in re-establishing a robust domestic supply chain for
such minerals . Such a strategy will take time to execute. In the meantime, stockpiles should be
built to guard against future attempts to use rare earths as economic leverage. The American Congress
would do well to hasten its review of the bills introduced to reduce foreign mineral dependency. Careful
consideration should be given to whether government procurement policies can be altered to dissuade
companies from succumbing to resource-based extortion by other countries. This may provide an opening
to make it clear that companies that shift technology or jobs overseas in response to discriminatory export
develop comprehensive plans beyond litigation to push back against such threats. So too should
governments. Otherwise, W
China, Lead editor at Ziff Davis, Inc. Owner at SA Holdings Past Columnist at
Tecca Editor at Aol (Weblogs, Inc) Education University of Essex Extreme Tech,
http://www.extremetech.com/extreme/111029-rare-earth-crisis-innovate-orbe-crushed-by-china
The rare earth apocalypse The doomsday event that everyone is
praying will never come to pass, but which every Western nation is
currently planning for, is the eventual cut-of of Chinese rare earth exports.
Last year, 97% of the worlds rare earth metals were produced in China but over the last few years, the Chinese government
has been shutting down mines, ostensibly to save what resources it
has, and also reducing the amount of rare earth that can be
exported. Last year, China produced some 130,000 tons of rare earths, but export restrictions meant that only 35,000 tons were sent to other countries.
As a result, demand outside China now outstrips supply by some
40,000 tons per year, and as expected many countries are now stockpiling the reserves that they have. Almost
every Western country is now digging around in their backyard for rare earthrich mud and sand, but itll probably be too little too late and anyway, due to geochemistry, theres no guarantee
that explorers and assayers will find what theyre looking for. The price of rare earths are already going
up , and so are the non-Chinese-made gadgets and gizmos that use them. Exacerbating the issue yet further, as technology grows more advanced, our
reliance on the strange and magical properties of rare earths
increases and China, with the worlds largest workforce and a fire
hose of rare earths, is perfectly poised to become the only real
producer of solar power photovoltaic cells, computer chips, and more. In short, China has the world by the
short hairs, and when combined with a hotting-up cyber front, its
not hard to see how this situation might devolve into World War III .
The alternate, ecological point of view, is that were simply living beyond the planets means. Either way, strategic and logistic planning to make
the most of scarce metals and minerals is now one of the most
important tasks that face governments and corporations. Even if large
rare earth deposits are found soon, or we start recycling our gadgets in a big way , the only real solution is
to somehow lessen our reliance on a finite resource. Just like oil and energy, this will probably require drastic technological leaps. Instead of reducing the amount of
tantalum used in capacitors, or indium in LCD displays, we will probably have to discover completely different ways of storing energy or displaying images. My moneys on
graphene.
Then there's the question of whether undersea mining of rare earths is commercially viable? It may be that
getting to these seabed deposits is so expensive as to be prohibitive. Or the discovery might lead to the
companies are going to have to relocate to China to secure access. In the wake of China's tougher
restrictions, alternative mines have been explored across the globe. However, economists predict that the
if
there are delays in the Australian and U.S. projects. James Lifton, an independent U.S.-based rare earths
analyst, told AFP, Chinas goal is to create jobs in China and create goods in China . We need to start
producing these metals here [in the United States] as we did in the past. If we dont do that,
China
China
earths after China. According to U.S. government data it holds 19 percent of the worlds 99 million tons of
commercially viable rare earths. The United States has 13 percent. Australian has five percent. Namibia,
Mongolia, Malaysia, Kyrgyzstan, Vietnam, Kazakhstan and Canada have substantial deposits as well.
Kazakhstan is the worlds second largest producer of rare earths, but it produces only about 4.5 percent of
the worlds supply. The United States and Australia mined rare earths in the past but stopped mining them
because of cheaper competition from China. Global rare earth reserves (total 99 million tons); 1) China
(36 percent ); 2) former Soviet countries (19 percent); 3) the United States (13 percent); 4) Australia (6
percent ); 5) India (3 percent ); 6) Others (23 percent). [Source: Japans Economy, Trade and Industry
Ministry, 2009] Companies in Australia, Canada and Brazil are on the hunt for rare earth sites. Heightened
interest in alternative sources has also been an impetus to plans to reopen or establish new rare earth
mines in a handful of countries around the world, including South Africa, Russia Australia and Canada. An
additional 40,000 tons is expected to come form non-Chinese sources in coming years. The Lynas Corp,
won the right to mine worlds richest non-Chinese deposit of rare earths, in Australia. It will be at least until
2012 before it is capable of mining the deposit. Other rare earth companies include China Rare Earth
Holdings, Arafura resources, Alkane resources and Greenland Minerals and Energy rare earths Brazil has
the worlds largest know deposit of niobium. It is said to be large enough supply the world for 500 years at
current consumption rates. Some in Russia claim that Yakutias Tontorskoye in Siberia is many times
bigger in volume and quality than Brazils famous deposits. The European Union said it might 1) start
stockpiling rare earths; 2) strengthen ties with African countries that have rare earth deposits; 3) take
measures to discourage speculation of rare earths; and and consider nullifying most-favored-nation
treatment to countries (i.e. China)that try to restrict supplies of rare earths and other strategically
important raw materials. Yoichi Saito of Mitsui believes that China will use it monopoly status in rare
earths to crush competition. Although other places have reserves of rare earths, few places have
significant refinery capacity. Refineries require a lot of investment to set and China could easily undercut
prices of materials produced by rival sources. Saito told Times, Many people are looking at establishing
alternative refineries and sources outside China, but the investment is not necessarily a sound one
because of the threat of price revenge by China. If new projects emerge as they have recently in Malaysia
and Australia, China could just drop its prices and rivals are out of business. China is also taking steps to
corner the marker globally. In early 2009, for example, it acquired 25 percent of Arafura Resources, a
Australian rare earth miner. Some suggest recycling existing rare earths materials---known as "urban
mining." Others are considering using substitute materials such as aluminum, copper and iron in place of
rare earths. Rare Earths in Greenland and the Sea 20111201-Molycorp Pr_214px.jpg Recently a large
source of rare earth was found in southwestern Greenland in geological strata called the Ilimaussaq
Intrusion. The find could enrich Greenland and make Chinas monopoly on rare earth a thing of the past.
The Ilimaussaq Intrusion lies on a desolate plateau and is thought to contain the largest known reserves of
rare earths. An Australian mining company has the rights to mine the site and it plans to process about
50,000 tons of rare-earth-bearing ore by 2010. In July 2011, Japan announced it had found abundant rare
earth elements on the sea floor of the Pacific ocean. The Yomiuri Shimbun reported: Mud on the seafloor
in certain areas of the Pacific Ocean contains about 800 times the amount of rare earth elements found in
deposits on land, a Japanese research team has reported in the electronic version of the British magazine
Nature Geoscience. The nine-member team, which includes University of Tokyo Associate Prof. Yasuhiro
Kato, said it located the deposits in ocean-floor mud at depths of 3,500 meters to 6,000 meters in central
and southeastern areas of the Pacific Ocean. [Source: Yomiuri Shimbun, July 5, 2011] 20111201-Molycorp
Pm_214px.jpg The group believes deep-sea mud constitutes a highly promising source of these
elements."If the technology to exploit them efciently is developed, it would be possible for the deposits to
become an alternative to land-based rare earth elements," Kato said. The group analyzed the elemental
composition of more than 2,000 seafloor sediments, sampled from a wide stretch of areas in the Pacific
Ocean during international deep-sea drilling projects in which Japan and the United States participated.
[Ibid] It found high concentrations of rare earth minerals, equivalent to those found in mines on land, in
deep-sea mud 23.6 meters thick in the central Pacific Ocean, including near the Hawaiian Islands. It also
found such deposits in southeastern waters around the French Polynesian island of Tahiti, in mud eight
meters thick. Estimating from points where the sediments were sampled, the group believes the deposits
are distributed over an area of about 8.8 million square kilometers in the central Pacific and an area of
about 2.4 million square kilometers in the southeastern Pacific. [Ibid] Rare Earths and Japan Japan
imports of rare earths from China accounted for about 82 percent of Japan's imports of rare earths in
2010.The Economist reported: Japan imports more rare earths than any other country. Its electronics, finechemicals and car industries rely on them. A disruption of supply could paralyse the Japanese economy as
much as an oil embargo or food blockade. And because Japan dominates some of the technological
processes that use rare earthssuch as polishing hard-drive platters with cerium oxide---interrupted access
would be felt worldwide. [Source: The Economist, January 20, 2011] Japan is the largest consumer of rare
earths. It uses a fifth of the worlds supply. It is predicted to face a rare shortage of 11,300 tons in 2011.
Chinas rare earth exports (50,000 tons in 2009); 1) Japan (56 percent); 2) the United States (17 percent);
3) France (6 percent); 4) Others (21 percent) [Source: Japans Economy, Trade and Industry Ministry]
Japan gets 90 percent of its rare earths from China. Hiroko Tabuchi wrote in the New York Times, Japanese
companies generally avoid discussing their mineral holdings. But experts say that some manufacturers
have been stockpiling rare earths, building inventories ranging from a few months to a years worth. In
September 2010 the Japanese trade minister, said the government was considering starting a stockpile of
rare earths as a buffer against trade interruptions. [Source: Hiroko Tabuchi New York Times, October 4,
2010] China Bans Rare Earth Exports to Japan In early September 2010, when a major diplomatic row
broke out between Japan and China over a group of disputed islands after a Chinese trawler collided with
two Japanese Coast Guard, China effectively imposed a ban on the export of rare earths and silicon--materials critical in the electronics and automobile industry and of which China is one of the sole
total annual rare earth market value---in 2011 to secure non-Chinese supplies. In October 2010, Japan and
the United States agreed to cooperate to diversify suppliers after China announced it was going to curb
exports. In February 2011, the Japanese government decided to give $360 million to 169 projects to
encourages firms to cut their use of rare earths, Japan Seeks Recycled Rare Earths from Urban Mining
The National Institute for Materials Science, a government-afliated research group, says that used
electronics in Japan hold an estimated 300,000 tons of rare earths. Though that amount is tiny compared
to reserves in China, tapping these urban mines could help reduce Japans dependence on Chinese
sources. Reporting from Kosaka, Japan, Hiroko Tabuchi wrote in the New York Times, Two decades after
global competition drove the mines in this corner of Japan to extinction, Kosaka is again abuzz with talk of
new riches. The treasures are not copper or coal. They are rare-earth elements and other minerals that are
crucial to many Japanese technologies and have so far come almost exclusively from China, the global
leader in rare earth mining. This towns hopes for a mining comeback lie not underground, but in what
Japan refers to as urban mining---recycling the valuable metals and minerals from the countrys huge
stockpiles of used electronics like cellphones and computers. Weve literally discovered gold in
cellphones, said Tetsuzo Fuyushiba, a former land minister on a visit to Kosakas recycling plant. [Source:
Hiroko Tabuchi New York Times, October 4, 2010] In Kosaka, Dowa Holdings, the company that mined
here for over a century, has built a recycling plant whose 200-foot-tall furnace renders old electronics parts
into a molten stew from which valuable metals and other minerals can be extracted. The salvaged parts
come from around Japan and overseas, including the United States. Besides gold, Dowas subsidiary,
Kosaka Smelting and Refining, has so far successfully reclaimed rare metals like indium, used in liquidcrystal display screens, and antimony, used in silicon wafers for semiconductors. The company is trying to
develop ways to reclaim the harder-to-mine minerals included among the rare earths---like neodymium, a
vital element in industrial batteries used in electric motors, and dysprosium, used in laser materials.
[Ibid] Various players have tried to recycle rare earths and metals in Japan. Last year, Hitachi began to
experiment to extract rare earths from magnets in old computer hard drives, though the company said the
project was not expected to go into operation until 2013. But it is Dowa, the company that has mined in
Kosaka since 1884, that has emerged as the fields early leader. And it could not come a moment too soon
for this town of 6,000, which is littered with the remnants of its old ore mines: tunnels overgrown with
weeds, old railroad tracks, and an abandoned bathhouse where miners once sponged off the grime from
their long days underground. The mines operated up to 1990, until a surging yen and international
competition drove operations out of business. Now, portions of the old red-brick ore processing factories
serve as part of Dowas recycling plant, which started fully operating two years ago. [Ibid] It is
important for Japan to actively tap its urban mines, Kohmei Harada, a managing director at the National
Institute of Materials Science, told the New York Times. He is an enthusiastic supporter of recycling efforts
like the one in Kosaka. Apart from rare metals and earths, Mr. Harada estimates that about 6,800 tons of
gold, or the equivalent of about 16 percent of the total reserves in the worlds gold mines, lie in used
electronics in Japan. Japans economy has grown by gathering resources from around the world, and those
resources are still with us, in one form or another, he said. But this form of recycling is an expensive and
technically difcult process that is still being perfected. At Dowas plant, computer chips and other vital
parts from electronics are hacked into two-centimeter squares. This feedstock then must be smelted in a
furnace that reaches 1,400 degrees Celsius before various minerals can be extracted. The factory
processes 300 tons of materials a day, and each ton yields only about 150 grams of rare metals. Though
Dowa does not disclose the finances of its Kosaka recycling operations, the company says that after a year
of operating at a low capacity, the factory now turns a profit. Over all, net income at Dowa Holdings, which
deals in industrial metals and electronic materials, almost tripled in the quarter ending June 30, to 6.52
billion yen, or $78.2 million, as global industrial production rebounded. [Ibid] Utaro Sekiya, the manager
of Dowas recycling plant, said, Its about time Japan started paying more attention to recycling rare
earths...If we can become a leader in this field, perhaps China will be the one coming to us to buy our
technology. Tabuchi wrote: As Dowa has turned its attention to rare earths, a priority is developing ways
to render neodymium, which is used in powerful magnets. Its extraction has proved costly. Neodymium is
found only in tiny quantities in parts used in the speakers of cellphones, for example, making it a challenge
to collect meaningful amounts, said Sekiya... Finding enough electronics parts to recycle has also grown
more difcult for Dowa, which procures used gadgets from around the world. A growing number of
countries, including the United States, are recognizing the value of holding onto old electronics. And China
already bans the export of used computer motherboards and other discarded electronics parts. [Ibid]
Rare Earths in the United States Until the 1980s, the United States led the world in rare earth production,
thanks largely to the Mountain Pass mine in California. "There was a time we were producing 20,000 tons a
year when the market was 30,000 tons," Mark A. Smith, president and CEO of Molycorp, an American
company that reopened a rare earth mine at Mountain Pass, told National Geographic. "So we were 60-plus
percent of the world's market." Tim Folger wrote in National Geographic, American dominance ended in
the mid 1980s. China, which for decades had been developing the technology for separating rare earths...
entered the world market with a roar. With government support, cheap labor, and lax or nonexistent
environmental regulations, its rare earth industries undercut all competitors. Mountain Pass was closed in
2002 after an industrial accident and because of competition from China and environmental concerns.
[Source: Tim Folger, National Geographic, June 2011 ] The California deposit was discovered in the 1940s
by uranium prospectors. It became the world's largest supplier of rare earths as the demand for europium,
which is used for color television screens, surged in the 1960s. When the mine closed it left behind mounds
of tailings, or leftover dirt, around the property.
industry shut down. In at least one case, in 2003---a time when, if you believed the Bush administration,
national security governed every aspect of U.S. policy--the Chinese literally packed up all the equipment in a U.S.
production facility and shipped it to China. [Source: Paul Krugman New York Times,
October 17, 2010] The result, Kugman wrote, was a monopoly position
exceeding the wildest dreams of Middle Eastern oil-fueled tyrants .
And even before the trawler incident, China showed itself willing to
considerations of
the U.S. House of Representatives approved a bill authorizing research to address the supply of rare
earths, saying the minerals were critical to energy, military and manufacturing technologies. The U.S. rare
earths industry is hoping domestic mines will open. The U.S. Geological Survey has identified several sites,
including Music Valley in Southern California, where rare earths could be mined. Congress is considering
proposals, some pushing for loan guarantees for rare earths suppliers, to encourage more domestic
research and production. [Source: New York Times, Los Angeles Times]
because
too many of their people cant breathe, cant swim, cant fish, cant farm and cant drink thanks to
pollution from its coal- and oil-based manufacturing growth engine. And, therefore, unless China powers its
development with cleaner energy systems, and more knowledge-intensive businesses without
smokestacks, China will die of its own development. What do we know about necessity? It is the mother of
went up again: Chinas going clean-tech. The view of China in the U.S. Congress
that China is going to try to leapfrog us by out-polluting us is out of date.
Its going to try to out-green us . Right now, China is focused on low-cost
manufacturing of solar, wind and batteries and building the worlds
biggest market for these products. It still badly lags U.S. innovation. But research will
follow the market. Americas premier solar equipment maker, Applied Materials, is about to open the
If they invest in
21st-century technologies and we invest in 20th-century
technologies, theyll win, says David Sandalow, the assistant secretary of energy for
policy. If we both invest in 21st-century technologies, challenging each
other, we all win. Unfortunately, were still not racing. Its like
Sputnik went up and we think its just a shooting star. Instead of a
strategic response, too many of our politicians are still trapped in
their own dumb-as-we-wanna-be bubble, where were always No. 1,
and where the U.S. Chamber of Commerce, having sold its soul to the old coal and
worlds largest privately funded solar research facility in Xian, China.
oil industries, uses its influence to prevent Congress from passing legislation to really spur renewables.
Hats off to the courageous chairman of Pacific Gas and Electric, Peter Darbee, who last week announced
that his huge California power company was quitting the chamber because of its obstructionist tactics.
Chinas
leaders, mostly engineers, wasted little time debating global warming . They
All shareholders in America should ask their C.E.O.s why they still belong to the chamber.
know the Tibetan glaciers that feed their major rivers are melting. But they also know that even if climate
change were a hoax, the demand for clean, renewable power is going to soar as we add an estimated 2.5
billion people to the planet by 2050, many of whom will want to live high-energy lifestyles. In that world,
E.T. or energy technology will be as big as I.T., and China intends to be a big E.T. player. For the last
three years, the U.S. has led the world in new wind generation, said the ecologist Lester Brown, author of
Plan B 4.0. By
Zhengrong, the founder of Suntech, already the worlds largest manufacturer of solar panels. Shi recalled
how, shortly after he started his company in Wuxi, nearby Lake Tai, Chinas third-largest freshwater lake,
choked to death from pollution. After this disaster, explained Shi, the party secretary of Wuxi city came
to me and said, I want to support you to grow this solar business into a $15 billion industry, so then we
can shut down as many polluting and energy consuming companies in the region as soon as possible. He
is one of a group of young Chinese leaders, very innovative and very revolutionary, on this issue.
Something has changed. China realized it has no capacity to absorb all this waste. We have to grow
The Communist party has understood for years now that rare
earths are an area of strategic advantage. Deng Xiaoping made a cryptic
opinion.
statement all the way back in 1992 about his designs for the future: There is oil in the Middle East; there
earth minerals also have the added benefit of having access to Chinas
supply at a lower cost. So medical device makers, automotive parts firms and green
energy firms have pulled up stakes around the world and relocated to
China. America needs a plan to restore our leadership. We need the
capability to mine and process the minerals here. Sadly, even the ores mined here by our domestic
producer, MolyCorp Inc., are sent to China for processing. Once our American ore is processed in China, it
becomes subject to the Chinese export restrictions. Obama has resisted developing a strategic plan, and
the reason is likely his slavish devotion to radical environmentalist interests that dislike any company with
environmental interests are always touting. Members of the Armed Forces House and Senate Committees
are deeply concerned, and they have some ideas. U.S. Senator Roy Blunt of Missouri recently said, By
contributions of Rare Earth Elements to the new economy, Investor Intel, 1010-2013, http://investorintel.com/rare-earth-intel/please-critical-contributionsrare-earth-elements-new-economy///BDS)
Let me begin by clarifying, I am not an environmentalist, unless it makes sense economically. Irrespective
of the deeply divided political squabbling in the US about the importance of renewable energy and clean
there is a strong
consensus among governments, the corporate sector, and investors
that renewable energy will drive economic growth. However, even the
technology to long-term economic and environmental challenges,
most optimistic among us regarding this developing industry (still very much in its early stages) must
acknowledge one harsh reality: the sector faces challenges. Exceptional challenges.
Long-established, highly profitable reigning industries (with tremendous influence among influencers),
coupled with challenging financing hurdles are obviously obstacles to clean-tech expansion. But another
In order to
transition towards a cleaner, healthier and more robust economy fueled by
renewable energy and clean technology, rare earth elements (or REEs, subdivided into
drawback for clean technology is one that hasnt received enough attention.
two categories; light rare earth elements or LREEs, and the more-valuable heavy rare earth elements or
HREEs)
already aware, thanks to Publisher, Editor-in-Chief and Queen of Rare Earths Tracy Weslosky, what makes
rare earths rare is not the relative scarcity (i.e. oil). Rare earth elements are considered rare because they
30 pounds of REEs (Tesla Motors wasnt able to respond by the publication deadline of this article). More
people need to know that
say we do not need more energy diversity especially in the long term?
hand, have recognized that global warming might very well become the greatest challenge ever faced by
mankind. As such, their thinking often eschews narrowly defined national interests for the greater global
good. This, though, ruffles elected ofcials whose sworn obligation is, above all, to protect and promote
American national interests. What both sides need to understand is that by becoming a lean, mean, green
fighting machine,
amounts of solar (and possibly even wind) power; efcient and cost-effective photovoltaic cells, crop-fuels,
availability of these metals will define the growth of these industry sectors.
not many alternatives , said Rob Mathlener, author of a report that urged companies to build
future strategies around recycling and reusing resources. Last December, Janez Potonik, the EU
commissioner for the environment, warned that the waste of valuable natural resources threatens to
government reports have urged an immediate increase in production of rare minerals. By mid-2012, US
mining company Molycorp Minerals aims to produce 20,000 tonnes a year of nine of the 17 rare minerals,
or about 25% of current western imports from China. Malcolm Preston, PwCs global sustainability leader,
said: Its
elements are bound for recycling at a Mitsubishi subsidiary in Japan. it, and there simply isnt the supply.
The institute opened in June, and the ofcial ribbon-cutting was in September. Its mission is to predict
which materials are going to become problems next, work to improve supply chains, and try to invent
alternative materials that dont need so many critical elements in the first place. The institute is one of a
handful of organizations worldwide trying to tackle the problem of critical elements, which organizations
like the American Physical Society have been calling attention to for years. "Its a hot topic in Europe right
now," says Olivier Vidal, coordinator of a European Commission project called ERA-MIN one of a handful
of European initiatives that are now ramping up.
two dozen elements; a modern smart phone uses more than 60. "Were making things more difcult for
ourselves," says King. Despite the relatively high concentrations of rare earths in technology, he says, its
actually chemically easier to separate them from the surrounding material in simple rocks than in
complicated phones.
***Hegemony Advantage
recent
security . Yet early indications are that DOD has dismissed the severity of the
situation to date. 6 Additionally, the Department of Energy (DOE) launched a multiyear effort to explore potential vulnerabilities in supply
chains for minerals that will be critical to four distinct areas of energy technology innovation. While concern is growing, the media and policy - makers often focus
too narrowly on what may seem the most compelling indicators usually import dependence or scarcity in prescribing solutions to reduce U.S. vulnerabilities, in
particular to supply disruptions in critical minerals such as rare earths. This focus is sparking protectionist attitudes, with some worrying that import dependence
poses an inherent risk to the U.S. economy. Discussion of minerals also frequently focuses on supply scarcity and resource depletion in absolute terms. However,
both the rhenium and rare earth minerals dis - ruptions of the past five years were triggered by deliberate decisions made by political leaders to leverage their
positions of strength, not by market forces, disorder or scarcities of these minerals. Countries often revert to hoarding, pressuring suppliers and otherwise behaving as
if scarcities are present even when they are not, based solely on concerns that shortages are likely in the near term. In fact, neither scarcity nor import dependence
alone is sufcient to signal vulnerability, and a combination of factors including concentration of suppliers is most often required for mineral issues to become security
or foreign policy problems. This report, based on two years of research, site visits and discussions with stakeholders, explores how the supply, demand and use of
minerals can impair U.S. foreign relations, economic interests and defense readiness. It examines cases of five individual min - erals lithium, gallium, rhenium,
tantalum and niobium and rare earth elements, such as neo - dymium, samarium and dysprosium, as a sixth group in order to show the complexity of addressing
these concerns. Each of these minerals is critical for defense technologies and U.S. economic growth plans. They share characteristics with minerals that have
caused important political or economic concerns for the United States in the past. Additionally, lithium is fre - quently cited in the media and in discussions of how
clean energy supply chains are critical to meeting Americas future economic, energy and environmental goals. Within the past five years, two of these cases rhenium
and rare earth minerals have involved supply disruptions or important threats of disruptions for the United States and its allies. Each of these minerals will require
federal government attention in the coming years. assessing U.S. Vulnerability Analysts vary widely in assessing the implications of U.S. dependence on critical
minerals, despite broad acceptance of the physical reality that mineral resources are finite and the economic realities that requirements are ubiquitous and demand is
growing. On one extreme, some analysts believe the 2010 incident between China and Japan sug - gests an approaching Hobbesian world in which resource
demands outstrip supplies for minerals, nonrenewable energy sources and even food sup - plies. History indicates that conflict over absolute scarcities is unlikely. At
the other end of the spectrum, many still believe that an open market and its invisible hand will continue to determine winners and losers with no serious
repercussions or the United States given its purchasing power. In between these extremes, even staunch pragmatists will point to the 2010 China rare earths episode
as proof of one basic tenet: The United States and other market-based economies no longer determine all the rules of global trade Central to this narrative is a
conundrum for policymakers. Reserve estimates show that global supplies of almost all minerals are ade - quate to meet expected global demands over the long
term , and for decades into the future for most minerals. The U.S. Geological Survey (USGS) indicates, for example, that world sup - plies of rare earths will be
adequate for more than 100 years. 13 These estimates, however, can be meaningless in the near term if supplies are insufcient, or if suppliers reduce exports
or otherwise manipulate trade. For example, most experts project that global production of rare earths will likely be insufcient to meet the worlds demand over the
next two to three years. The long-term sufciency of supplies has no practical effect because it takes years and high capital costs to start up new mining and
processing businesses for rare earths. Thus, the risks of inaction are high. A range of political, economic and geographic factors can disrupt supplies and cause price
spikes that can create rifts in bilateral relations, trade disputes, accusations of economic sabotage and instability in countries that possess rare reserves of prized
minerals. They can also give supplier countries extraordinary leverage that can alter geopoliti - cal calculations, especially when single countries control most world
example, governments counted on domestic steel production and even civilian willingness to contribute scrap materi - als for reuse and recycling for tanks and
economy . Looking to the longer term, much concern is turning toward minerals that
may see booming demand as the economy develops a greater
reliance on energy efficiency and renewable energy technologies, such
as the lithium used in advanced batteries and hybrid and electric vehicles.
U.S.
vulnerability Following these Cold War-era events, policy - makers
held hearings and commissioned studies in order to understand
which specific factors were most important in signaling that U.S.
eco nomic and security interests may be in jeopardy. American
analysts generally agreed that the following factors were the most
important to track: Level of substitutes and the uniqueness of spe - cific minerals. Level of U.S.
satellites led to a wave of congressio - nal hearings, government reports and independent analysis of the conditions contributing to
Geographic concentration of
supplies. Stability of producing countries and their region. Distances and routes of supply chains. Availability of technology to recover and process the
minerals. Economic price of the resources themselves. Inability of foreign governments to coordinate minerals policies. Level of domestic demand in
producing countries. Some of these concerns remain today, but changes in technology, economics and the international security environment will pose new
changing nature of the defense industrial base and the broader econ - omy will also affect U.S. mineral supplies in the coming decades. Looking forward, major
concerns for the U.S. government will include: Lack of suf - cient information for policymakers; understanding the evolving energy paradigm; increasing explora -
tion of space and seabed territory; and a changing defense industrial base. Poor information is a major obstacle to address - ing critical mineral
reduces options when things go wrong. 17 Four other trends are changing the ways in which minerals affect U.S. security and foreign policy interests. Rare earth
extreme conditions, the expansion of countries space capabilities over the coming decades will influence demand for critical minerals. A range of nations from
India to Iran aim to bolster their reputa - tions as space powers and develop more advanced satellite systems and launch capabilities. The U.S. government must
therefore expect demand growth (and potentially growth that is not linear or predictable) for minerals like rare earths that are critical in space technologies. On the
supply side, many countries are considering the possibil - ity of mining space objects, and even the 2010 U.S. National Space Policy suggests that the United States
supply chains
Much of todays defense equipment is purchased directly from civilian vendors and designed to meet both civilian and military needs. Consider
radically changed the ability of the United States to produce and to procure materials vital to defense needs, and that the stockpiling system is inadequate given
The beginning of a new decade presents the defense industry with challenges that arent new, but are
base was included in the Quadrennial Defense Review as a factor to be considered in its long-term
planning. Were optimistic that the next step inclusion of industrial base considerations in program plans
and policy will be executed as directed by the QDR ensuring that it becomes incorporated into long-
overcoming barriers to federal contracting and once they leave the contracting base, they and their unique
skills cannot be recovered. 2010 Aerospace Industries Association of America, Inc. 4 Along with our
The
1980s defense build-up is now 25 years old, and systems acquired
then are in need of replacement. The decade of 2010-19 is the crucial
time to reset, recapitalize and modernize our military forces. Not only are
many of our systems reaching the end of their designed lives, but Americas military forces
are using their equipment at many times the programmed rates in
the harsh conditions of combat, wearing out equipment prematurely .
Delaying modernization will make it even harder to identify and
efectively address global threats in the future . The requirements
identified in the QDR for the United States to overmatch potential
adversaries and to execute long-duration campaigns in coming years
concern about the industrial base is the long-term issue of modernizing our military hardware.
transfers and the just-in-time orders on which the manufacturing sector depends. It could even pose
threats to American lives, interrupting the transfer of medical data, disrupting power grids, even disabling
emergency communications links. In partnership with the government, our industry is on the forefront of
securing these networks and combating cyber attack. The American people also demand better security
for the U.S. homeland, from gaining control of our borders to more effective law enforcement and disaster
Recapturing Innovation and a Sound Industrial Policy. Despite the fact that industrial policy became a
Congress needs
to prevent the loss of innovation in defense-related research and
dirty word from its association with socialist governments during the Cold War,
development.
Members should already know and be alarmed that the U.S. military has no
manned aircraft under developmenta first in the history of aviation. Similarly, no surface ships or attack
submarines are in the design phase. With development cycles lasting 20 years or longer, elected
and win wars . The U.S. military has pursued this technical overmatch for decades in an attempt
to deter potential enemies from engaging the U.S. in conflict and to reduce risk and loss of life on the
battlefield. When the Cold War ended in 1991, the sudden apparent dissolution of national security threats
prompted a period of intense downsizing and consolidation. Whereas more than 50 major defense firms
dominated the market in the early 1990s, only six prime contractors remain today. Contrary to popular
perception, 60 percent to 75 percent of work programs in the aerospace and defense industries are
performed by sub-prime companies and lower-tier suppliers, not the big defense contractors. These small
The cooperative arrangements with foreign navies envisioned by the Navys cur- rent maritime strategy
may perhaps moderate problems of failing states and terror. But is this enough to manage other
challenges? Is the Navys current organization capable of addressing both conventional and asymmetric
threats? Can todays highly structured and inflexible system for designing and building ships adapt quickly
and cost-effectively to changes in the strategic environment? What, for example, do globalization, the
growing dependence of the United States on sea-borne transit for strategic resources and minerals, and
the likelihood of more dislocations such as con- tinue from Somali piracy mean for the future of US national
security? American maritime strategy has played a major role in binding together the international system
What are
the consequences for the United States and its allies if those bonds crumble
as a result of a shrinking Navy with reduced international presence, and a
weakening ability to project power, provide stabilizing presence, and respond
to serious crises? The widely-shared current assumption that the immensity of US
China trade eliminates the possibility of serious Sino-American conflict
recapitulates the United Kingdoms decision a century ago that alliance with Japan was prudent
and sufcient to secure the Crowns interests in the Far East. If this assumption proves wrong
the consequences for US influence in the Pacific would be as disastrous for us as
they were for Great Britain. The historically unprecedented half century of relative
naval peace in the Mediterranean may continue indefinitely, but such a
prolongation would be a freak of history. The re-deployment of major United States naval
that US foreign policy has aimed to establish since the begin- ning of the twentieth century.
force from the Mediterranean to support operations in the Middle East and Central Asia, added to the
declining US naval fleet would leave us with terrible choices if, for example, Tur- keys drift towards
Islamism yields a naval force with ambitions similar to those of her fifteenth century Ghazi Ottoman rulers.
What are the long-term consequences as our ability to maintain a global naval
presence which heretofore has been judged benefi- cent erodes? The size, shape, and strategy of the
US Navy are a critical element of Americas position as the worlds great
power. Our ability to protect or rend asunder the globes ocean-going lines of communication is
inseparable from our position as the worlds great power. But very few outside a small community of naval
ofcers and selected military/foreign policy analysts appreciate the strategic results of American sea-
proportions . If interest rates were to rise significantly, annual interest payments which already
are larger than the defense budget would crowd out other spending or require substantial tax increases
that would undercut economic growth. Even worse, if unanticipated events trigger what economists call a
sudden stop in credit markets for U.S. debt, the United States would be unable to roll over its
outstanding obligations, precipitating a sovereign-debt crisis that would almost certainly compel a radical
retrenchment of the United States internationally.
international order . It was the economic devastation of Britain and France during
World War II, as well as the rise of other powers, that led both countries to relinquish
their empires. In the late 1960s, British leaders concluded that they lacked the economic capacity
to maintain a presence east of Suez. Soviet economic weakness, which crystallized under Gorbachev,
contributed to their decisions to withdraw from Afghanistan, abandon Communist regimes in Eastern
the United
States would be compelled to retrench , reducing its military
Europe, and allow the Soviet Union to fragment. If the U.S. debt problem goes critical,
than ours , and this could alter the global distribution of power .
These trends could in the long term produce a multi-polar world. If U.S.
policymakers fail to act and other powers continue to grow, it is not a question of whether but when a new
application of these policies. As an example, rare earth elements (and rare earth metals) fall outside of the
scope of the Berry Amendment and the Specialty Metal provision." The primary defense application of rareearth materials is their use in four types of permanent magnet materials commercially available: Alnico.
Ferrites, Samarium Cobalt, and Neodymium Iron Boron. With the exception of Neodymium Iron Boron, all of
ihc materials are domestically produced. The United States has no production capabilities for Neodymium
Neo magnets, the product derived from Neodymium Iron Boron, and
Samarium Cobalt, are considered important to many defense products. They
are considered one of the world's strongest permanent magnets and an
Iron Boron.
Many scientific organizations have concluded that certain rare earth metals
are critical to U.S. national security and becoming increasingly more
important in defense applications.11 Some industry analysts are concerned
with an increasing dependence on foreign sources for rare earth metals; a dwindling
source of domestic supply for certain rare earth metals; and the emergence of a manufacturing supply
chain that has largely migrated outside of the United States . In July 2010, the China
Ministry of Commerce announced that China would cut its export quota for rare earth minerals by 72%,
raising concerns because of estimates that China controls approximately 97% of the global production of
rare earth minerals.11 It is also estimated that by 2012 China's domestic consumption will outpace China's
domestic production of rare earth minerals. Some experts are concerned that DOD is not doing enough to
mitigate the possible risk posed by a scarcity of domestic suppliers. As an example, the United States
Magnet Materials Association (USMM A), a coalition of companies representing aerospace, medical, and
electronic materials, has recently expanded its focus to include rare earth metals and the rare earth
2AC Deterrence
A healthy domestic industrial base is key to mobilization
and deterrence
McCormick, 8 Beth, Acting Director, Defense Technology Security
Administration, Department Of Defense, Lexis
U.S. national
security depends on a strong U.S. industrial base that can easily
The third goal of my agency is to assure the health of the defense industrial base.
97% of the global market in rare earth metals.2 China also has 35% of the worlds reserves in rare earth metals, and
supplies almost all of the worlds demand. Chinas stronghold in the rare earths market is due to strong government
support, cheap labor, and relatively loose environmental laws. These factors make it much more economical to mine and
produce rare earth metals in China. The United States has the worlds second-biggest deposit of rare earth metals.
According to the U.S. Geological Survey, the U.S. has approximately 13 million metric tons of rare earth elements,
mainly located in western states such as California, Alaska, and Wyoming.3 Until the 1980s, the U.S. was the chief supplier
of rare earth metals to the rest of the world, when production and mining facilities began to move to China.4 Today, the
U.S. no longer produces any rare earth metals, having sold off its last domestic producer of rare earth magnets (used in
smart bombs) in 2003. The last U.S. rare earth mine, located at Mountain Pass, California, closed in 2002. Before it closed,
Mountain Pass was one of the worlds largest rare earth mines. National Security Risks Many analysts fear that there will
be a shortage of rare earth metals as early as 2012, although most believe the shortage will not occur until 2014. This
makes U.S. dependence on China for rare earths extremely problematic.
A shortage
of rare earths will afect the strength and readiness of the U.S.
military until current systems are no longer in operation. However, it
will also afect future production: newer systems rely just as much, if
not more, on computers and other electronic equipment. The U.S. is developing
from7 Likewise, the U.S. does not track rare earth metals in its weapons systems or platforms.8
Advisory Council and an adjunct scholar with the National Center for Policy
Analysis (8/2/12, The Defense Implications of Rare Earth Shortages,
http://www.ncpa.org/pub/ib112, ADL)
Rare earth elements are used in everyday products: smart phones, hard disc drives, flat-screen televisions
and advanced batteries. They are essential to such green technologies as wind turbines, compact
fluorescent lights and hybrid cars. In todays world, which emphasizes cutting-edge and environmentally-
Implications of Rare Earth ShortagesRare Earth Supply Chain. During the Cold War, U.S. companies
encompassed the entire rare earth supply chain, from mining and chemical separation to metal-making
and component manufacture. The Mountain Pass mine in California dominated rare earth production and
General Motors invented the bonded neo magnet. Today, no U.S.-produced rare earth metals are sold
commercially and only two firms can produce limited amounts of rare earth alloys. Two other companies
can manufacture rare earth permanent magnets, but only of the samarium-cobalt type. Only one U.S.
company mines and separates rare earths into oxides; however, this company reportedly intends to ship to
China for processing unspecified amounts of its heavy rare earth concentrates the feedstock for
additives to samarium-cobalt and neo magnets.2 Today, as a direct consequence of active government
support for the rare earth industry since the 1980s [see Figure I below]: 3 China produces more than 94
percent of the worlds rare earth oxides, virtually 100 percent of all commercially available rare earth
metals and more than 90 percent of the rare earth alloys. China manufactures three-fourths of the worlds
equivalents was 40,000 metric tons for domestic Chinese companies, and there was no quota for joint
ventures with foreign companies. Since 2002, the quota has declined to 22,712 metric tons annually for
domestic Chinese companies and 7,472 metric tons for joint ventures.4 Simultaneously, China shifted from
offering a value-added tax rebate to export rare earths in 2005 to imposing duties of 10 percent and 25
percent for certain products, progressively including more value-added rare earth products.5 The resulting
volatility in prices, unavailability and two-tiered pricing structure (for exports versus domestic
consumption) cast doubt upon the ability of todays supply chain to fulfill U.S. commercial or military
domestic supply chain from mining to magnet manufacture could take up to 15 years and was contingent
upon capital investment and the expiration of certain patents.6 Other reports before and after the
recommissioning of the Mountain Pass mine echoed the GAOs concerns
about the
***Manufacturing Advantage
not mine any rare-earth elements in 2008 and 2009, but imported quantities worth $186 million and $84
million, respectively. U.S. reserves of these elements currently stand at 13 million tons. By comparison,
China mined 120,000 tons of rare earth elements in both 2008 and 2009, while its reserves are at 36
million tons. Ninety-one percent of U.S. rare-earth elements imports came from China between 2005 and
2008. An analysis released in July from the Congressional Research Service found that global demand for
rare-earth elements is roughly 134,000 tons per year, while production is at 124,000 tons per year.
Although stockpiles currently make up for the difference, demand is expected to rise to 180,000 tons
annually by 2012 and 200,000 by 2014, while it is unlikely that new mine output will close the gap in the
short term. At the current rates of production and consumption, a worldwide shortfall seems inevitable.
Apart from the economic repercussions, such a shortage could also pose a risk to
U.S. defense capabilities, as the military relies on rare-earth elements for a
broad range of devices, such as missile-guidance systems, lasers
and aircraft electronics. According to the Government Accountability Ofce (GAO),
Government and industry ofcials have identified a wide variety of defense systems and components that
are dependent on rare-earth materials for functionality and are provided by lower-tier subcontractors in the
countries that depend on its exports, as Chinese consumption of rare-earth metals increases and
availability is curtailed. Last month, a political dispute led China to block all shipments of rare-earth
materials to Japan, forcing Japanese manufacturers to introduce recycling and reclamation to meet basic
production needs. Concern over Chinas hoarding of rare earths has also been spreading to the United
States, the New York Times reports. Although China has not specifically blocked shipments to any place
but Japan, it had already tightened its overall export quotas of the minerals, announcing in July that it
would reduce them by 72 percent for the rest of the year. Japan and other countries, such as South Korea,
are instituting government initiatives to secure more stable rare-earth supplies and research possible
alternatives. The U.S. is also evaluating new rare-earth elements policies ,
with Congress considering a bill known as the Rare Earths and Critical Materials Revitalization Act of 2010,
which would establish a $70 million program to conduct research and development to increase access to
these elements.
economy, creating many indirect jobs and making it a key catalyst of broad economic growth. Moreover, a healthy
manufacturing sector is central to the United States ability to reduce its large and persistent trade deficit. The changes in
the employment, industrial focus, and workforce skills associated with the new manufacturing should be viewed as the
growing pains that accompany any significant metamorphosis. The most recent evolution in manufacturing has resulted in
key differences between advanced and traditional activities. These differences have profound implications for the role of
manufacturing in our economy and the design of national policy toward manufacturing. New manufacturing thrives on and
engineers.10 Manufacturers also have unique opportunities to apply new technologies for specialized functions and
achieve economies of scale at the plant or firm,11 making the return on manufacturing R&D significant. The transition to
feedbacks between basic R&D, pre-competitive research, prototyping, product development, and manufacturing. This
opens new possibilities for product development and manufacturing.12 Because of the technological complexity of many
modern, science-based industries, technology development often requires interactions among experts from many
(PCAST), design, product development, and process evolution all benefit from proximity to manufacturing, so that new
ideas can be tested and discussed with those working on the ground.14 As a result, when a high-tech manufacturing
cluster forms, it often attracts the co-location of R&D activities and helps sustain the global competitiveness of the entire
region. This is why Intel recently decided to build a new state-ofthe- art R&D facility near Portland, Oregon where it has
long had a high-tech manufacturing presence, as well as related silicon manufacturers, suppliers, and a high-skilled
workforce.15
2AC Uniqueness
Chinas stranglehold on rare earth elements will kill the
US manufacturing supply chain
Goldenberg 10 (Suzanne, 12/26/10, Rare earth metals mine is key to US
control over hi-tech future,
http://www.theguardian.com/environment/2010/dec/26/rare-earth-metals-us,
ADL)
It's a deep pit in the Mojave desert. But it could hold the key to America challenging China's technological domination of
the 21st century. At the bottom of the vast site, beneath 6 metres (20ft) of bright emerald-green water, runs a rich seam
of ores that are hardly household names but are rapidly emerging as the building blocks of the hi-tech future. The mine is
the largest known deposit of rare earth elements outside China. Eight years ago, it was shut down in a tacit admission
that the US was ceding the market to China. Now, the owners have secured final approval to restart operations, and hope
to begin production soon. "We will probably never be the largest [mine] in the world again. It will be hard to overcome
China's status in that regard, but we do think we will be a very significant supplier," Mark Smith, chief executive of
Molycorp Minerals which owns the mine, told reporters during a tour of the site. So far as the Obama administration is
concerned, the mine can't open soon enough. A US department of energy report warned on 15 December that, in the
assistant secretary for international affairs told a seminar in Washington. For Smith, the ofcial recognition of the strategic
importance of the metals was a long time coming. "I've been going out to Washington DC every other week for about two
years trying to tell the rare earths story," he said. They are listening in Washington now. At the 15 December seminar at
the Centre for Strategic and International Studies, one PowerPoint presentation lingered on a slide that showed only the
Chinese flag. The room filled with nervous laughter. By 2015, global demand for rare earths is expected to reach 205,000
tonnes. "If
have speculated China is trying to use its control over the supply lines for political leverage. But a number of analysts say
China is trying to get better control over an expensive, dirty and dangerous mining process, and to get more factories to
set up shop inside the country. Rare earths are extracted through opencast mining and generate radioactive waste. "I
don't believe that China is trying to chop the west off at the knees but it has a growing internal market that is driving the
demand," said Gareth Hatch, an analyst at Technology Metal Research. "That reduces the amount they are willing to
export." That is where Molycorp the frontrunner for now in a global race to develop alternative production of rare earth
materials hopes to step in. Since going public last July, the company has raised more than $500m (323m) to expand its
production facilities at Mountain Pass, a collection of rusting buildings that date from the 1950s. This month, Sumitomo
Corp of Japan invested $130m in return for guaranteed supplies of rare earths for the next seven years. The company has
also applied for department of energy loans. By mid-2012, Molycorp aims to produce 20,000 tonnes a year of nine of the
17 rare earths or about 25% of current western imports from China. Smith suggested the company could possibly ramp up
production to 40,000 tonnes within the next 18 months. He says Molycorp has exposed just 55 acres of the 2,200 acre
site. But even production on that scale may not be enough to guarantee the supply of metals needed to move to a clean
just to meet the demand for wind turbines and that would mean no neodymium for motors or any other applications," said
Jim Hedrick, who until last year was the rare earth expert at the US Geological Survey. "Obviously there is a demand for 10
or 20 mines through the world to meet all the different demands for these products." Some companies, such as General
Electric, are already moving to reduce their use of rare earths. "What we are going to absolutely have to do is diversify our
sources and optimise the use of these materials in manufacturing," said Steve Duclos, who heads GE's global research
division. In Japan, meanwhile, Hitachi has started a recycling effort to recover rare earths from hard drives and other
materials. Aside from raw materials, it is also unclear whether the US still has the expertise for the complicated process of
turning minerals into usable clean tech components. Such challenges were unthinkable half-a-century ago when
prospectors looking for uranium stumbled instead on a rich deposit of rare earths about an hour's drive from Las Vegas.
By the 1960s, the mine was booming, largely through sales of europium, used to produce the bright red tones of colour
televisions. But prices fell as China came on the market, with its low production costs. A pipeline accident in the late
1990s, which leaked radioactive fluid into the desert and a nearby town, led to an expensive clean-up. The mine closed in
2002. The central pit in the 55-acre site became a pool of bright green water. White bales of minerals some mined eight
years ago were stockpiled until such time as prices would rise. This time around, however, Molycorp claims it has a
fighting chance against China, especially if it is able to meet its goal of complete mines-to-magnet processing at the
Mountain Pass facility. The company is also confident it can head off competition from a slew of new mines due to begin
coming online from Australia, Wyoming, Quebec and South Africa. "The growth in demand for these minerals is just
phenomenal," Smith said. "A 6% average growth rate for us would be very, very good but when you start adding things
like hybrid vehicles and wind turbines to the rare earth sectors now you are talking about double digit growth, and you still
don't know where that will end." At this point, though, Molycorp is not even at the beginning. "The road to the green world
of the future starts from the black earth. But first you have to get the materials out of the ground," said Hatch. "The whole
2AC Spillover IL
Manufacturing sectors are interconnected
When a Country
there are
strong reasons to co-locate R&D and production. It is a lot easier for
an engineer to walk across the street to the plant or drive down the road than to
fly halfway around the world to troubleshoot a problem. This helps to explain
production environment, you have a harder time designing the product. In these settings,
why the American company Applied Materials, a leading maker of equipment for manufacturing
semiconductors and solar panels, moved its chief technical ofcer from the United States to China.14
it makes sense
for the company to do its research close to the factories that use its
equipment. Applied Materials is now moving much of its manufacturing operations to Asia as well. In
Because most of its large customers are now in China, Taiwan, and South Korea,
chapter 4, we will offer a framework for determining when it matters whether R&D and manufacturing are
located near each and when it does not. Theme 2:
a decline of
also used in industries such as heavy equipment, scientific instruments, and advanced materials. The
their operations or their supplier base to the new commons. As they move, it is harder for existing
suppliers to sustain themselves. Ultimately, they must either close shop or move their operations. Even
move production of these mature products to Asia, who would have guessed that this decision would
influence where the most important component for tomorrows electric vehiclesthe batterieswould be
produced? But that is what happened.15 The offshoring of consumer electronics production (often
contracted to then-little-known Japanese companies such as Sony and Matsushita) led to the migration of
R&D in consumer electronics to Japan (and later to South Korea and Taiwan). As consumers demanded
ever-smaller, lighter, and more powerful (and power hungry!) mobile computers and cell phones,
electronics companies were pushed to innovate in batteries. In the process, Asia became the hub for
innovation in the design and manufacturing of compact, high-capacity, rechargeable, lithium ion batteries,
a technology that was invented in America. This explains why Asian suppliers have become the dominant
source of the lithium ion battery cells used in electric vehicles.
housing bubble almost caused the worldwide collapse of the financial system because financial markets
are now interconnected. The BP Gulf oil disaster is an example of natures interconnectedness. A toxic spill
percent in March.
and, at the same time, expose seemingly robust and secure systems to
risk to which they would otherwise not be subjected. This paper
examines several analytical methodologies for risk assessment and
management of interdependent macroeconomic and infrastructure systems.
They include models for estimating the economic impact of disruptive events,
describing complex systems from multiple perspectives, combining sparse
data to enhance estimation, and assessing the risk of cyber attack on process
control systems. 1. Introduction Critical infrastructure and industry
sectors in the United States and abroad are becoming more
interdependent due largely to the increasing integration and
application of information technology in business operations such as
manufacturing marketing and throughout the supply chain. New
sources of risk to critical infrastructures and national security emerge
from the dynamics of large-scale, complex systems that are highly
interconnected and interdependent.
could see
nanotechnology used in the cultivation, production, processing or
packaging of food," he said. "It could be used to develop new food products or, indeed, improve
existing ones." As well as reducing water use and contamination in food
processing, Jones believes nanotechnology could help make food healthier.
"In the UK, we talk a lot about what we need to take out of food, but nanotech could help us to add or
enable the release of positive foods as well," said Jones, who noted that 30% of food waste occurs in the
home and suggested that nanotech-enhanced packaging might tackle this. He also posited that
2AC Economy
Manufacturing is vital to the economy erosion of
manufacturing kills the economy
McConaghy and Swezey 11 - Ryan and Devon, respectively, of the
from other economic sectors. Most industries, including professional and business services have multipliers of less than
from 1987-2008, labor productivity in the U.S. manufacturing sector grew by 103%, nearly double the rate of 56% for the
private sector as a whole.32
2AC Hegemony
Semiconductors are key to hegemony
NDU 03 - The National Defense University ("Electronics Industry Study
Report:Semiconductors and Defense Electronics," www.dtic.mil/get-trdoc/pdf?AD=ADA524792, ADL)
Overview. Semiconductors are found in many defense related
electronics components such as computers, sensors, switches and
amplifiers. Semiconductors are critical to the way the U.S. military
fights and to the functioning of the global economy. Electronics
content in military ordnance, fighter planes, bombers, tanks,
armored personnel carriers, and a range of other weapons systems
is all increasing, according to analysts. 23 In an interesting paradox, electronics
are becoming more important to the Defense Department , while the
Defense Department is becoming increasingly unimportant to thesemiconductor industry. Estimates put
electronics as 60% of the cost of new weaponssystems, yet defense represents only .3% of the
semiconductor market
2AC Renewables
Semiconductors key to viable renewables
Backlund and Rahimo 10 - Bjorn Backlund and Munaf Rahimo of ABB
Switzerland Ltd (Power Mag, Issue 4 2010, "Power Semiconductor
Technologies for Renewable Energy Sources," www.powermag.com/pdf/feature_pdf/1283337722_ABB_Feature_Layout_1.pdf, ADL)
High power semiconductors are key components for controlling the
generation and connection to the network of renewable energy
sources such as wind-turbines and photovoltaic cells . For a highest
efficiency of the energy source, it is therefore essential to select the right device for the given
conditions. This article looks at the performance features for the available high power semiconductors of
choice and also takes a look at future device technologies and their expected impact on efciency. Bjrn
Backlund and Munaf Rahimo, ABB Switzerland Ltd, Semiconductors, Lenzburg, Switzerland
introduction of the IGCT have had a large impact on the MV-Drive design and higher ratings for them have
recently been introduced or are in development. The thyristors have also not been standing still but have
The
power semiconductors are used for two main tasks in the chain of
renewable energy sources such as conversion of the power in the
plant, as in wind-turbines, and transmission of the power to the grid.
moved from 6500 V, 2600 A to 8500 V, 4000 A devices based on 150mm silicon now in production.
The best solution to determine what semiconductors to use for these tasks is to move top-down by
following the path system requirements defining equipment requirements which in turn are defining the
power semiconductor requirements. Through this chain the requirements on the devices are determined
regarding items as required voltage and current ratings, needed degree of controllability, and operating
frequency.
***Solvency
to
recognize and rectify need for Federal Leadership Over the past year, I have
spent a significant amount of time in Washington meeting with
Members of Congress and their staffs as well as ofcials in a variety of federal
agencies to direct greater attention to this issue. Im pleased to report, just over one
year since we began our efforts, that the federal government is beginning to take
meaningful steps toward understanding and addressing our rare
earth vulnerabilities. The question remains, however, if it will be able to make its assessments, determine
that has been plagued by a history of significant environmental degradation, one that it is just beginning
the required actions, and execute them within a timeline that seems to be accelerating daily. In each of these meetings,
in tackling this pressing concern, and I believe that there are 4 areas where it can
(university-based rare earth research, development of academic curricula and fields of study, training and exposure to the
chemical and physical science related to rare earths, etc .);
3) increased interagency
collaboration at the highest levels on the impact of rare earth
accessibility on major national objectives; and 4) funding
competitive grants for public and private sector rare earth research.
Ill explore each in greater depth below: Financing support: Given the size, scale, ambition, and necessity of Molycorps
redevelopment efforts, we submitted an application for the Department of Energys Loan Guarantee Program (LGP). We
believed that the program was well-suited for our project, particularly given that the projects substantial implications
closely match the programs paramount objectives. Traditional bank financing in the current climate with very short
repayment periods and interest rates near double digits is not economically feasible. The LGP offers longer term
financing and lower interest rates and would allow Molycorp to accelerate development in the near-term while ensuring
rare earth resource availability in the long term. However, the DOE summarily rejected our application in December,
saying that the project did not qualify as a New or Significantly Improved Technology. We reviewed the relevant portion
of the Rule, Section 609.2, and our project meets every one of the stated criteria. We requested further discussion with
the DOE to understand how it came to its conclusion and how Molycorp might proceed. After almost two months, the DOE
finally responded to our request. During the meeting, the DOE contended that this project goes too far upstream and
that the program was not intended to cover mining projects. We have yet to find the legislative or regulatory language
that provides such a limitation. However, it appears we may need to ask Congress for legislative direction or possibly new
legislative language specifically authorizing the use of loan guarantees for strategically important projects like this. Our
frustrations with the loan guarantee notwithstanding, I still believe that this kind of financing support is exactly what a
project like ours needs. We will be in a very strong position to both raise our portion of the capital to execute the project
and repay the loan well-within the required timeline. We will continue to pursue this financing support despite the DOEs
current position. Rebuilding the rare earth knowledge infrastructure: The United States used to be the worlds
preeminent source of rare earth information and expertise, but it has ceded that advantage over the past decade, as its
The federal
government, and the House Science and Technology Committee in
particular, can play a pivotal role in reestablishing that institutional
knowledge and expertise and sharing it with a wider audience of researchers, scholars, and
position in the industry has become subordinate to China and other countries in East Asia.
practitioners here in the U.S. and abroad. At Molycorp, we are fortunate to have a team of 17 rare earth researchers and
technologists who are second to none in the world, but almost all of them had no previous expertise in rare earths prior to
joining Molycorp. It will be difcult for the U.S. to
effort to attract the brightest scientists and researchers to the field of rare earths. Rebuilding the
knowledge infrastructure and the research support will go a long way toward that goal. Dr. Gerschneidner, who Im
honored to testify with today, is regarded as the father of rare earths, and his work at Ames Laboratory and Iowa State
University as well as the great work being done by Dr. Eggert and his colleagues at the Colorado School of Mines can
serve as the foundation on which to expand Americas rare earth expertise. As a reminder of the rest of the worlds
interests and actions in this regard, the Korea Times recently reported that Korea is developing rare earth metals for
industrial use at a government-funded research center. Interagency Cooperation: Over the past several months, we
have been very pleased to learn about efforts within many federal agencies to direct specific attention to rare earth
issues. We have been in direct contact with the Departments of Defense, Commerce, and State, and each is examining
this issue within the unique context of their agencies work. It is also worth noting that the Commerce Department
convened a group of stakeholders from both the government and the private sector in December, 2009, which included
representatives from DoD, GAO, USTR, and OSTP. We have also had multiple discussions with the Ofce of Science and
Technology Policy directly and have been very appreciative of their engagement on this issue. In fact, OSTP, along with
Commerce, is facilitating interagency collaboration going forward. While we are encouraged by these recent efforts, it is
our hope that the agencies and the White House recognize that the global supply-demand challenges are approaching at
an increasingly rapid pace and that their efforts should reflect the requisite urgency. Funding support for rare earth
research: Part of Chinas success in growing and dominating the market for rare earths can be attributed to their efforts to
2AC Licensing
The Bureau of Ocean Energy Management, part of the
Department of Interior, is responsible for ofshore leasing
Virginia Places, 9 Virginia and the Outer Continental Shelf (OCS),
http://www.virginiaplaces.org/boundaries/ocs.html
Federal agencies issue permits for species harvest and mineral
extraction, beyond state waters, to the limit of US claims. For example,
the Bureau of Ocean Energy Management, a part of the Department
of the Interior, is responsible for ofshore leasing outside of state
waters.
2AC Naitilus
Naitilus plan uses two cutters, collector, and a pump
system
Goodier, 11 Rob, Journalist, Why Deep-Sea Rare-Earth Metals Will Stay
(titanium), and others. Lode deposits are likely to include barite and copper, lead and zinc (as sulf ides),
and molybdenum, while deposits of chemical precipitates of uranium-bearing minerals are probable in
On the continental shelf, the Panel believes that initial mining operations in the production of
sand and gravel will continue to be conducted with rather conventional equipment (Table 1). On a
smaller scale, and with similar conventional equipment, other resources,
such as rare earth sands, barite, coal, tin, and phosphate rock have already been
produced from shelf deposits in various parts of the world. Such activities are expected to
increase as technological capability and economic rewards increase. Unlike the area
underlying the deep ocean, the question of ownership of much of the
continental margins of the world is well-defined under existing
international law.
(Marc Humphries is a , September 30th, 2010, Rare Earth Elements: The Global
Supply Chain, Congressional Report Service)
establish an R&D program within the DOE to assure longterm supply of rare earth materials. The R&D program would, among
other things, seek to identify and test potential substitutes, improve
extraction, processing, recovery, and recycling technology of rare
earth materials. The Secretary of Energy would establish an R&D Information Center and
The bill would
collaborate with members of the European Commission to coordinate activities of mutual interest. The
five years after H.R. 6160 would be enacted into law. The authority to enter into loan guarantees would
expire in 2018. The bill would also amend sections 3, 4, and 5 of the National Materials and Minerals Policy
Research and Development Act of 1980.
BOEM 12 (BOEM Ocean Science, Winter 2012, No author, The Marine Minerals Program:
Meeting the Needs of Our Nations Coastline,
http://www.boem.gov/uploadedfiles/boem/newsroom/publications_library/ocean_science/os_12_
oct_nov_dec.pdf)
concept is not new. In fact, BOEM (then MMS) looked into leases for offshore mining of these resources on
the Hawaii, California, and Oregon OCS during the mid- to late 1980s. The marine minerals of interest were
cobalt-rich manganese crusts in Hawaii and massive sulfide deposits offshore Oregon and California.
During that period, two task forces were established with the States, one with Hawaii and the other with
Oregon and California, to assess the economic, engineering, and environmental aspects of ocean mining A
three-year program to assess the mineral and biological resource potential of the Gorda Ridge was
completed in 1986. The program discovered large polymetallic sulfide deposits on the Gorda Ridge,
located approximately 150 miles offshore northern California and southern Oregon in water depths
between 10,000 and 11,000 feet. Task Force sponsored surveys also resulted in the discovery of cobalt-rich
manganese crusts on seamounts in the Hawaiian OCS, and US territories and possession. In both cases,
MMS opted not to offer the areas for lease due to the adequacy of existing onshore mineral supply sources,
market conditions, and consultations with mining companies that expressed the opinion it was premature
The U.S. Geological Survey estimates that global reserves of 110 million tons are found mainly in China,
although Japanese researchers say they have discovered vast deposits at 78 locations on the Pacific Ocean
floor at depths of 11,500 to 20,000 feet below the ocean surface in international waters east and west of
Hawaii and east of Tahiti. Mining offshore REE deposits would likely be costly, but it doesnt appear that
consumption of products containing REEs will decline any time soon. Global demand for REEs may reach
210,000 tons per year by 2015, according to one estimate (see Rare Earth Elements: The Global Supply
Chain). Only time will tell whether mining the sea floor can be commercially viable off our Nations coasts
in the Pacific Region and elsewhere. If so, BOEMs Marine Minerals Program will ensure it is carried out
without damaging the diverse life forms found in these delicate offshore ocean environments.
(Bureau of Ocean Management is a section of the department of the interior responsible for
all ocean based drilling and mining projects, January 2014, Marine Minerals Program Fact Sheet,
http://www.boem.gov/uploadedFiles/MMP-Fact-Sheet.pdf)
BOEM is the agency within the U.S. Department of the Interior which
manages the responsible exploration and development of ofshore
energy and marine mineral resources on the U.S. Outer Continental
Shelf (OCS). The bureau promotes energy independence, environmental protection and
economic development through responsible management of these
resources based on the best available science. Although the largest component
within BOEM is the exploration and development of oil and gas resources, the Marine Minerals
Program (MMP) is responsible for managing non-energy minerals
(primarily sand and gravel) on the ocean floor. As stewards of these resources,
BOEM must ensure that the removal of any mineral resource is
conducted in a safe and environmentally sound manner, and that
any potentially adverse impacts on the marine, coastal, or human
environments are avoided or minimized For over 20 years, BOEM has provided OCS
sand resources to complete 42 projects and convey more than 77 million cubic yards of material to coastal
communities. That amount of sand, in cubic feet, would circle Earths equator 15.85 times. What are the
primary uses of marine minerals? Marine minerals are used primarily in coastal restoration projects,
including beach nourishment and wetlands restoration. Beach nourishment is the replenishment of beach
sand by natural or artificial means.
These facts suggest that we may soon face and underwater gold rush, but in most citizens minds deep-
recovery system; a crawler with a mining head, centrifugal pump and vertical transport system; and
compelling animations.
in the water around the source vent. (Herzig and Petersen, 2000). Locating inactive vents is
teams use side-scan sonar, seismic surveyors,
and deep-tow video systems to find the telltale features of an SMS mound (Herzig and
occur
The amount of
gold processing and the resultant cyanide settling ponds have been the source of some of the worst
environmental mining catastrophes (i.e., Summitville Mine in Colorado, Marcopper Mine in the Philippines,
or Omai Gold Mine in Guyana). Processing methods of massive sulfide deposits typically recover only 40%
of the gold (INEEL, 2005). Much of the losses are because the gold particles in the sulfide ore are too fine
(<10 microns) whereas the average particle size used in ore processing slurries is 70 microns (Newmont).
This leaves much of the gold on the inside of the ore particle, unavailable to the cyanide molecules during
leaching. The gold left in the particle ends up in the tailings, considered too uneconomical to recover. The
polymetallic nature of the SMS deposits may further complicate processing, though dore bullion (gold
A
potential solution to cyanide tainted sulfide tailings disposal may be
the ocean. The basic design involves a pipe from the processing
plant out to a slope on the seafloor that falls to a kilometer depth.
The technique relies upon anoxic conditions at the bottom to be
sufficient to inhibit the formation of sulfuric acid and heavy metal
dissolution and transport associated with terrestrial acid mine drainage problems. There are
26 such tailings disposal operations in the world and the majority
are found in the Asia-Pacific region (Pearce, 2000).
bullion with other metallic impurities such as Zn, Cu, or Ag) can be separated further during smelting.
***AT: Topicality
***AT: Disads
(Marc Humphries is a , September 30th, 2010, Rare Earth Elements: The Global
Supply Chain, Congressional Report Service)
questions about Chinas near dominance of the rare earth industry and the implications for U.S. national
the crisis for many policymakers is not the fact that China
has cut its rare earth exports and appears to be restricting the
worlds access to rare earths, but the fact that the United States has
lost its domestic capacity to produce strategic and critical materials,
and that the manufacturing supply chain for rare earths has largely
migrated to outside the United States. Still others are concerned about
the impact of a potential supply chain vulnerability of materials critical for
defense systems. Additionally, some Members of Congress have questioned the lack
of knowledge of what specific materials are needed for defense
purposes, which materials are strategic and critical to national security, and what steps might be
taken to increase the domestic capability to produce these materials. In January 2011, three
Members of Congress wrote a letter to Secretary of Defense Robert
M. Gates outlining their concerns over what they perceived as a lack
of action on DODs part to ensure that adequate supplies of rare earths were available. They
security. Yet
(Green Car Congress is a website specializing in bills related to renewable technology, 2/8/14,
Senators introduce bill to encourage US production of thorium and rare earth minerals,
http://www.greencarcongress.com/2014/02/20140208-blount.html)
US Senators Roy Blunt (Mo.) and Joe Manchin (W. Va.) introduced
the National Rare Earth Cooperative Act of 2014 this week,
bipartisan legislation to encourage US production of rare earth
(Andrew Topf is a exclusive writer for Rare Earth Investing News, 9/23/14, House Passes Critical Minerals
Act, Rare Earth investing News, http://rareearthinvestingnews.com/16395-house-passes-critical-minerals-act.html)
a similar bill. The act would give federal agencies a maximum 30 months to decide on whether to approve
or reject permits for exploration and mining, and it limits the ability of opponents to use courts to stop
mining. Get the latest Rare Earth Investing News articles delivered to your email inbox. Learn more Email
foreign countries for these raw ingredients. As China continues to tighten global supplies of rare earth
elements,
renaissance
Investment is
growing, but also environmental concern. Deep sea mining is at present a small but
increasingly significant element of that economy . What is changing? The oceans cover
arising from the EU opportunity alone at 500 billion, rising to 600 billion by 2020.
an area of about 360 million km2, at an average depth of about 3800 metres, and contain the worlds most
active volcanoes, highest mountains and deepest valleys. At present, only about 5% of the ocean bed is
accurately mapped, but the advent of new deep sea robotic submersibles as well as ever more
sophisticated survey ships and even satellites is beginning to address the challenge. But it will be a long,
technologies and the growing demand for and price of many mineral resources are changing the
equations. Copper, zinc, manganese and gold among many others are all to be found in deep sea
deposits, many of which are said to produce far higher levels of purity than their land based equivalents.
Global metal and mineral mining output was valued at $644 billion in 2010 ;
but even land based mining is facing challenges as resource extraction moves to remoter and more
inhospitable locations. Deep sea mining today provides almost none of that global supply, but by 2020 it
could be providing 5%, 10% by 2030, valuing it at $65 billion in 2010 prices. However, to put the scale of
deep sea deposits in perspective, the estimated value of deep sea gold deposits alone has been put at
$150 trillion at todays prices. But it is very early days. To date, 12 exploratory permits have been issued
and one area of active mining is underway off the coast of Papua New Guinea. However, controversy is not
far away. The Papua New Guinea government is challenging the terms of the deal and environmentalists
are challenging the adequacy of the environmental impact assessment. Exploration continues. Why is this
important?
The potential rewards are enormous . In coming years we may witness a new
try to establish technological leadership to
capture as much of the market not just for the minerals, but for the technologies needed to
locate and extract them. Aerospace and oil industry companies, electronics and
robotics suppliers, marine and mining specialists all stand to gain as they
transfer their various areas of expertise to this new frontier . Governments too are
gold rush as nations and companies
investing heavily including many emerging nation economies. Depending on whether the scale of the
deposits lives up to expectations and our ability to extract them proves technically and economically as
For example,
deep sea mining may break the relative stranglehold China has on supplies of
rare earths, essential for mobile phones and clean technologies. Demand for gold has been increasing
well as environmentally viable, deep sea mining could change the mineral supply base.
to offset fears of inflation and financial uncertainty, but also in consumer markets such as India; a
significant increase in supply could destabilize price structures.
How would new international toll refining change REE pricing? Would there still be a Chinese domestic
price and a different international price? JL: Yes. At the moment the export prices are set by tax.
Domestically, Chinese REEs are much cheaper than internationally posted prices because of the large
export tax. There's a cap on volume as well as a large tax. The prices we see for cerium or lanthanum in
North America, for example, are Chinese domestic prices plus export duties and transport. The problem for
a new REE producer iswhich price is it that you're going after? For example, say I can buy lanthanum in
Chicago for the Chinese export price of $20/kg. Suppose I can produce lanthanum in New Jersey for
$10/kg. That looks like a solid profit. The problem is "where is your market?" Yes, $10/kg is great if you're
going to sell this into a North American market and the Chinese maintain their export duties. That is fine,
except that there's no real market for these materials in North America. There's no total supply chain
outside of China. China is the main place where the raw materials get turned into finished product. China is
the only location of an existing "mine to magnet" total supply chain. Better than even, "mine to magnet,"
China has "mine to vacuum cleaner," "mine to car," and "mine to washing machine." They've got
everything. As a North American producer of lanthanum, I'm going to have to sell into China at the
domestic price, and pay the import duty and cover transport costs. These are all issues that junior miners
do not think about. But these issues matter if you are trying to finance a $1B refinery. Is there a market at
the price you're going to produce? It's not just about your costs per kilogram. When there is an accidental
or intentional monopoly player like China, there are substantial additional factors to consider. And we
haven't even mentioned the possibility of import quotas. And then there is the uncertainty. . .everything
could change tomorrow. The
large competitive advantage because of its extant investment and China is not trying to take it away.
However, REE permanent magnets are a different business because the refined elements from a company
like Rhodia have to go to metal maker, an alloy maker and then a magnet maker. While they have these
The
Chinese dominate the HREEs because there are no sources outside
China. There are still no mines outside of China that are producing
significant quantities of HREEs. The Chinese still supply 100% of the
world production. The locations of the REE survivors will determine where the toll refining
industries in Europe, there is not enough capacity to satisfy all European industrial demand.
business opportunities will happen. Ucore is in Alaska, Rare Element Resources in Wyoming. The American
political climate is such that exporting natural resources to China, especially ones that have been as hyped
as REEs, is not very likely to get the support of the government. Therefore, I think there is a strong
possibility of a REE toll refinery being built in North America. Tasman is located in Sweden and does not
have to deal with the U.S. political climate. In this case, there is a strong possibility that HREE concentrates
will be sold to China, for processing inside China. Other than Rhodia and perhaps two other small facilities
in Japan, there's no HREE processing capability outside of China. While
Tasman could ship ore or concentrates to China for the dysprosium content, the company wouldn't make
any money doing it. Tasman is under review by several European companies as a source for potential
feedstock into their vertical supply chain. That would be one path to the creation of a central European
domestic demand for the indefinite future . Thus the only markets
available to non-Chinese light rare earth producers are those outside
of China and these account today for at most 20% of global demand, 2. The
same is most likely true also for Chinas domestic total supply chain and
demand for the SEG (samarium, europium, and gadolinium) rare earths, 3. The total
global demand for primary HREEs is today essentially Chinas
domestic manufacturing market, However, from my own background knowledge and
experience, and my personal research in China, I believe that China does not have
sufficient economically practical (profitable) or environmentally safe to
mine supplies of new HREEs (I define these as terbium, dysprosium, and yttrium) to
satisfy even its near-term domestic (and currently the global) demand. Its
not that the Chinese ion-adsorption clays are played out; its that their continued legal production
is likely to be dramatically reduced by environmental and regulatory
restrictions in the new era in China of the nations switch from
export and savings driven GDP growth to that of domestic
consumption as the principal driver. 4. It is my further opinion that if it were not for the
fact that the Chinese rare earth processing industry is already
massively recycling HREE bearing waste streams from industrial processing and end of
life industrial components there would already be a shortage within China of
the HREEs. As it is, and as I stated above, I believe that new production of terbium,
dysprosium, and yttrium from the Chinese adsorption clay deposits are
diminishing due to the crackdown on illegal mining and on the issue
of environmental pollution. Thus the rare earth market is truly segmented. On the one hand
the two large non-Chinese producing primary rare earth mines, Mountain Pass and Mt Weld,
overwhelmingly contain and produce just the light rare earths. Those deposits that are relatively rich in the
HREEs, and are today in operation to produce HREEs, are the very low grade adsorption clays in southern
China. The HREE separation and refining market within China has or seems to have vast overcapacity. This
would seem to be an ideal situation for non-Chinese producers of mixed rare earth concentrates that have
the last several years simply assuming the they could ascribe the market value or a high proportion of it to
their models of the values for the mixed rare earth process leach solutions derived from their mechanically
beneficiated ore concentrates. The primary error in this reasoning is the assumption that the discount from
market pricing would be only 40%. In fact the principle and majority OPEXs are incurred downstream of
this point which involves processing the PLS all the way to the fabricated metallic forms or specified
chemical blends required by the actual consuming industries. Among other glossed over expenditures are:
The costs added for removing and disposing of radioactive components from the PLS are not just CAPEX
and OPEX chemical but must also include future regulatory costs, which are today purely speculative, at
best, The costs of separating the desired rare earths from each other involve substantial initial CAPEX
and OPEX but most of the juniors have even so vastly overestimated such costs while simultaneously
trivializing the costs discussed in factor 1 above, The cost of obtaining the latest, most efcient and
competitive, supply chain component technology, such as those for separation, purification, metal making,
and alloy making, The cost in time and manpower (person-power) to bring a total supply chain or enough
of its components into operation to make a rare earth venture profitable from the start, and The cost of
finding the people for and setting up a marketing organization to convince end users that they should risk
adding a vendor to their procurement profile. Note well that this process normally takes up to three years!
labor cost exporter. The Chinese mining industry and its downstream
value chain are part and parcel of this shift in emphasis. Lets see how
exactly this is affecting the rare earth supply chain in China and how this will affect any forecast of future
China
today, notwithstanding the entry of both Molycorp and Lynas into the light rare earth supply market,
remains the overwhelmingly largest supplier of light rare earths in
the world. I estimate that during the last 12 months China has produced and sold 90% of the worlds
global demand for the rare earths collectively and individually. First of all please note that
legally traded light rare earths. I say sold to emphasize that Molycorp has stated that it has built a large
inventory of material and it is not clear to me how much has been actually sold into the market. Lynas,
hopefully due to start up issues, has so far produced almost nothing in finished goods (at its entry point
a speaker from
Baotou dramatically emphasized that his company is the worlds
largest vertically integrated producer of light rare earths all the way
through to metals, and that, by itself, Baotou could easily supply the
worlds demand for such products indefinitely. Keep in mind that of the 200 or so
into the market). Three weeks ago when I was in China at the ICRE in Ganzhou
people in that audience only a dozen, at most, were not Chinese. Ganzhou is the heavy rare earth
Interestingly enough there was a list shown of the individual capacities of the 38 rare earth separation
plants in the region. The largest was of 5000 tons per annum capacity, the smallest was 1000 tons, and
the average was 2000 tons. There are a small, relative to the total, number of much larger light rare earth
separation plants in China. Notably in Baotous home, the Autonomous Region of Inner Mongolia. I was told
that China Minmetals, now appointed as a rare earth consolidator, for example, is building a new 10,000+
ton per year capacity SX plant. The statement was made in the conference that 90% of Chinas rare earth
There is
clearly a vast excess rare earth separation and refining capacity in
China and there is clearly a bloodbath underway among them to see
which will survive. These communists are doing a very good job of using market capitalism to
sort out a problem. When this type of behavior occurs in a free market
economy it normally results in temporary low prices during the
oversupply period followed by price stability as inefficient companies
fail and then price rises by the winners to compensate for their
losses in the battle for survival . I think this is exactly what were seeing today in the,
refining is done by the largest 6 SX plants and that 97% is done by the top 20 SX plants.
Overheated rare earth production in China during the 1990s and the early 2000s
generated a fragmented industry with thousands of mines, many
engaging in reckless mining and illicit production. In order to maximize profits,
these small companies often ignored safety and environmental
regulations and fiercely competed with each other for export deals. In addition to environmental
degradation in China, this overcrowded rare earth sector and often intense
competition sharply drove down rare earths prices and. therefore, further pressed
producers to cut corners in order to secure their already thinning profit margins. Local governments, which
discrepancies between the ofcial statistics and the actual data of rare earth production and exports in
ofcials concerned that such a disproportionately high level of output could soon deplete their resources.
southern provinces such as Guangdong and Jiangxi.37 hi the southern provinces, rare earths can be found
saw an
explosion of the number of poorly constructed and maintained local
mines that were both polluting and wasteful, leaving behind
contaminated soil and water. In November of 2011, during a product quality inspection,
in high concentration in clays and soil a few feet underground. As a result, the 1990s
China's General Administration of Quality Supervision found that 19 of 85 tea products contained excessive
levels of toxic rare earths, including a batch of Lipton tea produced and sold in China by Unilever. Unilever
later stated that the rare earth metals had come from the soil where the tea was grown and had nothing to
world market. China adopts a "market for technology" strategy (Mu and Lee, 2005) to introduce direct
investment projects from the US and guide technology transfer. In this manner, China has enhanced its
energy efciency schemes and developed its strengths in research and development During the Obama
Research Croup of China Energy Fund predicts that if the US lifts its restrictions on exports, China can
import American energy and environmental protection technology worth hundreds of billions of dollars.
technology into the United States at the expense of domestic companies and the economy. n25 This
important subject is worth a full treatment in its own right, as it is inextricably bound up in a much broader
it is
worth noting that growth in China's renewable power sector need not
be viewed as a zero-sum game. Precisely the opposite may well be true. Chinese and
discussion about multilateral trade relations. I will touch upon it briefly in this article. For now,
Western companies have begun to and China are much more complex than they are often made out to be.
analysis of those challenges, set against the legal, political, and financial environment for renewable
energy deployment in China. Beginning with China's governmental structure, I note that its unique
characteristics pose special challenges for increasing the deployment of renewable energy.
The race is all rhetoric because its actually zero sum and
the US would win anyways
Christina Larson, journalist focusing on international environmental issues,
based in Beijing and Washington, D.C. contributing editor at foreign policy,
Americas Unfounded Fears of A Green-Tech Race with China, Yale
Environment 360, 8-2-2010,
http://e360.yale.edu/feature/americas_unfounded_fears_of_a_greentech_race_with_china/2238///BDS)
At a factory in Wuxi, China, workers lift solar panels onto conveyor belts, while others in white lab coats move between
machines as they check on a process for etching and engraving silicon wafers to form solar cells. This scene in itself isnt
remarkable. But there is a new sort of excitement about the work. Chinas production of solar panels has grown quickly in
the past two years; it is it now the worlds leading exporter. When Matt Lewis, a representative of the California-based
nonprofit ClimateWorks, visited the factory in October, he said it reminded him of his native Silicon Valley: The workers,
even ordinary line workers, had a sense that they were part of building the future, the hot new industry. This comparison
makes some in the United States, and especially in Washington, nervous. Thomas Friedman has used the bully pulpit of
his China Production Line influential New York Times column to warn that the United States is engaged in a global greentech competition with China, whose potential dominance represents a new Sputnik. (How do you say clean your clock
in Chinese? he wrote.) This notion, conjuring residual memories of the days in which U.S. rivalry with Soviet Union was
crystallized in the space race when the word Sputnik, the name of the Soviet space program, inspired quivers of
anxiety about Americas political and economic prowess and its existential place in the world has today struck a
resonant chord in Washington, drawing upon existing fears and mistrust of China. While some U.S. politicians and
commentators still paint China as the global pollution villain, especially after the disappointing outcome at Copenhagen,
others are beginning to take green China seriously as a threat. Last fall, for instance, when Senator Charles Schumer
got wind of a planned wind farm in west Texas, announced by a partnership of American and Chinese companies, that
would use some wind equipment made in China and potentially create new jobs across the Pacific, he recommended
blocking stimulus money from the project, rather than help boost green China. The stimulus money is supposed to create
jobs in America, he wrote in a letter to Energy Secretary Steven Chu. (The new wind farm would also have created 300
jobs in Texas, but Schumer was worried that a greater number could be created in China.) Last month, a front-page
Sunday piece by Keith Bradsher of the New York Times took the competition metaphor a step further and declared that
China was in fact already winning the green-tech race. The article, China Leading Race to Make Clean Energy, made the
rounds in Washington with its assertion that China had passed the U.S. and several western European countries to become
the words top manufacturer of both solar panels and wind turbines; it quoted the CEO of a private equity firm in Beijing
saying, ominously, Most of the energy equipment [of the future] will carry a brass plate, Made in China. The Times
article also raised another spine-tingling geopolitical comparison this time not likening Beijing to the latter-day USSR,
but to the modern-day Middle East. [Chinas] efforts to dominate renewable China will gain thousands of jobs, but not
necessarily at Americas expense. energy technologies, Bradsher wrote, raise the prospect that the West may someday
trade its dependence on oil from the Mideast for a reliance on solar panels, wind turbines and other gear manufactured in
China. In other words, China might become the Saudi Arabia of alternative energy; the implication seems to be that not
only might green China pose an economic threat, but the sheiks of Beijing might soon wield undue political influence over
in the world will the U.S. remain a global leader in innovation? And the third is about leverage will the U.S. control its
future, or be beholden to a foreign energy gatekeeper, one that exerts undue pull on its economic or foreign policy? Even
the world for much the same reasons it has long been the TV and t-shirt factory to the world: lower wages, lower land
shouldnt be
seen as a reversal of the status quo. Whats changed most dramatically in
the last five years has been growing global demand. With significant government investment, Chinese
prices, fewer regulatory and other requirements, etc. This isnt particularly surprising, and it
factories have planned for and stepped up production accordingly. Yes, this is bad news for U.S. cities like Detroit, where
planners have recently been retrofitting old hot-rod factories into wind-turbine factories, such as an old Ford Thunderbird
plant in Michigan thats being converted into a green-tech manufacturing center in a bid to boost the local economy.
Who will be responsible for the innovation that drives the low-carbon future?
At present, America still has significant advantages including the worlds
leading university system and the entrepreneurial culture and
venture-capital spigots of technology hubs, particularly Silicon Valley.
Intellectual property rights have done a lot to hamper Chinas development
of green technology, says Linden Ellis, U.S. director of nonprofit China Dialogue. People would
rather come to Silicon Valley and develop a technology where they know it will be
protected by the law, right down to every line, than go to China and try to develop a technology there where
enables it.
maybe the components will be cheaper and there is a lot of interest, but people do not trust that their findings will be
Similar concerns have, for the past two decades, grounded Beijings
attempts to build a domestic airline industry, considered the pinnacle of high-tech
manufacturing. Foreign companies and top-notch engineers have simply been
unwilling to share technology with China (Boeing has even avoided building factories in
protected.
China, for fear of commercial espionage). The result: Planes that fly from Beijing to Shanghai today are still built by Boeing
and Airbus. Of course, most green-energy equipment wont match the complexity of assembling something like Boeings
863 Programs track record should certainly dispel Western assumptions that
also disproves the notion that money alone
can clone a Steve Jobs or Bill Gates or Sergey Brin. This should allay
some anxiety in Washington about America having fallen behind, but
it is not a reason to become complacent. America has neither
relinquished, nor is forever assured, her innovation crown. Meanwhile,
folks in the green-tech and environmental frontlines as opposed to politicians and
commentators dont see a race at all. I do not see such a pattern
exists, says Wen Bo, a Beijing environmentalist. The clean-tech war is
overblown from the start, says Richard Brubaker, an American environmental
entrepreneur in Shanghai. To them, the green-tech race is not one that one
side wins and the other loses, but a scenario where partnerships are
sought out and the final equation doesnt have to be a zero-sum
spacecraft. While the
curb global warming could stall and neither country will maximize its
gains in terms of green jobs, new companies, and energy security.
The risk is real. Electrified vehicles, carbon capture and storage (CCS), and concentrated solar power,
among other emerging green
products, including electric-drive (or hybrid) vehicles, batteries, charging stations, and so on. But the two
governments can no doubt create the conditions for both of them to succeedfor example, by setting
coordinated product and safety standards across the two markets, funding the rollout of infrastructure,
sponsoring joint R&D initiatives in select areas (such as new materials for car parts), ensuring that trade
policies support rather than hinder the development of a global supply chain for the sector, and providing
consumers with financial incentives to buy the new models. More immediately, the two governments could
pick matching cities in China and the United States for electrified-vehicle pilots that could be used to
collect standardized data on real electrified-vehicle consumer adoption, infrastructure costs, and driving
and the United States would also ensure that the companies and jobs associated with it would be created
in both countries sooner. Oil consumption will fall more quickly as well: today, about 50 percent of Chinas
oil importsand 80 percent of Americasare used to fuel vehicles. In other words, one plus one would
equal three. Such momentum would also likely spark Europe into competing in a global electrified-vehicle
technology to coal-fired plants to capture the emitted greenhouse gases is expensive. CCS technology also
uses a lot of energy to capture the emissions, thereby making plants less efcient. And fundamental
questions about how the captured emissions are to be stored still need addressing. Neither nation is
pursuing this expensive, uncertain emissions reduction technology quickly, but they would improve their
chances and their options if they pooled costs and knowledge. Together,
could fund demonstration plants in China and the United States, jointly evaluate
technologies available from vendors, set standards, and drive down costs. By using the pilot plants as
research labs to learn more about the challenges CCS faces and how to overcome them, the governments
could share the information with companies entering the CCS business, advancing learning in this industry
at a quicker pace. Assuming engineers find solutions to the technical and storage hurdles, we estimate
that by 2030 this technology could clean 17 percent of coal power in the United States and 30 percent of
Chinas coal power, reducing total combined emissions by as much as 7 percenta significant benefit to
technology, CSP requires both technical progress and massive investments that only the largest economies
can support. CSP technology uses sunlight to create and store steam power to drive turbines that transmit
electricity on a larger scale more easily than they could using photovoltaic technology (which uses flatscreen receptors that turn sunlight into power). If clean concentrated solar power is scaled to generate 22
percent of total power in China and the United States by 2030, it could create over half a million jobs in
each country. Setting common standards, coinvesting in pilot projects and R&D, and undertaking other
joint initiatives are the way to get this started. There are other benefits to joint action on clean energy
Cooperation on tangible
actions that result in positive improvements for each country could
help to foster trust between governments that have real diferences
on other political and economic issues. In addition, meaningful reductions in
oil consumption by the worlds two largest importers of oil could
ease pressure on future global supply and demand imbalances of the
fossil fuel. It wont be easy for countries and companies to work in common to make these
besides reducing oil imports, cleaning up the air, and creating jobs.
technologies real. The challenges to cooperation are numerous. Companies in both nations will be wary
about what information they share with partners and competitors. Real cooperation between the two
countries on technology initiatives is limited, so both sides will have to work hard to build relationships. In
addition, they will need to create institutional frameworks for implementing and managing projects, as well
as cofinancing mechanisms, partnership rules, and governance models. US companies will be concerned
about protecting the intellectual property (IP) technologies that they use in pilot projects in China. The two
governments will need to cleanly separate bilateral initiatives on clean-energy development from broader,
none of these
challenges are showstoppers. Negotiations between the two countries could
address nearly all these issues comprehensively. Even the thorniestIP protectionis
multilateral agreements on emissions reductions. The list goes on. But
manageable. Because companies from many nations would contribute to making these three big
technologies a success, IP agreements should be international. On that front, China will need to improve its
ability to enforce global IP rules. Most critical, however, is the leadership that will be needed to surmount
these obstacles. A commitment at the top levels of both governments to set a joint course for making
these technologies real would be the signal of a real beginning. From there the impulse for collaboration
may well filter down through the public and private sectors in the two countries to make research,
investment, and policy a cooperative agenda.
(Kevin Yao, June 23, Analysis: China economy resilient, for now,
http://www.reuters.com/article/2011/06/23/us-china-economy-growth-idUSTRE75M1AO20110623) RA
BEIJING (Reuters) China's growth is slowing under the weight of Beijing's anti-inflation campaign and
later this year as expected, reducing the need for fresh monetary tightening measures, analysts say.
"The economy is set up for growth. You've still got urbanization and
industrialization to come and all the incentives at local government levels are
still to do with encouraging growth," said Stephen Green, an economist at
Standard Chartered Bank in Hong Kong. "People always over-worry about a
China hard landing. Clearly there are a lot of problems with the economy but people may
underestimate the government's ability to muddle through." Green expects some
policy relaxation later this year as price pressures start to moderate. NO HARD LANDING? Global investors
are unnerved by any sign of a slowdown in China, a key global growth engine, even as the U.S. economic
recovery loses momentum and Europe struggles with a sovereign debt crisis. An abrupt slowdown in China
could hammer international financial markets and stifle demand for commodities from iron ore to
soybeans. The economy has expanded at an average annual pace of 10 percent in the past three decades.
Fears of a hard landing have gained traction as a recent stream of data showed the turbo-charged
the success of that scheme, many economists say the spending binge also sowed the seeds of inflation
and created excesses such as unrestrained lending and property bubbles which are aggravating
imbalances in the economy, leaving it more vulnerable if the current "soft patch" in Western demand turns
out to be a prolonged downturn. MORE STIMULUS? Policymakers will certainly have more room to consider
fresh pump-priming if inflation peaks in June or July near 6 percent, as widely expected, and then
moderates steadily in the second-half of the year. Dong Tao, an economist at Credit Suisse, believes the
central bank will not rush to relax policy for fear of fueling further property price rises, but said the
"Should the
threat of a hard landing emerge, we would expect fiscal stimulus to come to
the rescue, instead of monetary easing. Providing funding to policy housing
and speeding up infrastructure projects would be the easy options, " he said.
government will unleash its spending power to prevent growth from slowing too much.
China has already announced an ambitious plan to start building and upgrading 36 million affordable
homes between 2011-2015, with 10 million to be completed this year, to quell growing public discontent
more than 9 percent in the second quarter from a year earlier compared with 9.7 percent in the first
all, a gentle easing in growth is exactly what Beijing wants and is in line with its policy to priorities' efforts
to cool inflation. "The slowdown is essentially part of the deal. you need to a slowdown to reduce excesses
and control inflation," said Kevin Lai, economist at Daiwa Global Markets in Hong Kong.
Morgans Hands-On China Series, Google, Debunking the myth of a China collapse) RA
There have always been cynics regarding Chinas economic growth and without joining the ranks of the
doomsayers, it is easy to veer towards pessimistic conjecture simply by observing the changing landscape
in Chinas rapidly developing cities. Any casual visitor will marvel at the sprawling complexes of newly-built
apartments and ofce towers admittedly many units at these developments are typically owned by
speculative investors holding out for capital appreciation. The worst-case fears concerning Chinas
property market are based upon a layer of truth and we ourselves have highlighted the untenable nature
of price increases in some big Chinese cities, as well as the possibility that last years property boom was
partly fuelled by misdirected bank loans. However,
real estate has inspired just as much concern, with prices rising 16% in 2009, despite low rental yields and
prime ofce vacancy rates as high as 21% and 14% in Beijing and Shanghai, respectively. However
occupancy and rental rates have started to pick up for prime properties many of the current vacancies
Chinas
urbanization process is far from over and vacant space will be absorbed over
time. The crux of the problem with the Chinese real estate sector is that property is seen by the countrys
are at the lower end. While returns for new projects may end up lower than expected,
investing class as a store of value, within an economy that offers its citizens persistently low deposit rates
and limited investment options. The absence of a recurring property holding tax allows speculative
homebuyers to disregard rental yields in hopes of reaping capital appreciation in the nottoo-distant future.
We share many of the concerns about flawed incentives and overheating in the Chinese property market
even if property prices were to undergo a correction, this would not trigger
the type of economic and financial devastation that might arise in an overbut
China's ability to
regulate its economy has far reaching implication s for global markets. One
must not underestimate the scale of future demand in a country that is
urbanizing at a rate of 15 million people a year. Today, many observers are
concerned that Chinas economy has grown too rapidly, and are all too-ready
to point to pockets of overcapacity as proof of an imminent system-wide
collapse. While we agree that certain vulnerable areas of the economy
deserve closer monitoring, we find little support for the sceptics' views of an
imminent crisis.
As a pillar of demand for a number of economies and for the commodities complex,
The plan is net better than status quo mining and could to
lead to environmental protection
UNEP 12 (United Nations Environmental Programme, Green Economy in a
Blue World, http://www.unep.org/pdf/Green_Economy_Blue_Full.pdf)
2.2 Environmental Opportunities It may at first glance appear that deep-sea mining
offers very few environmental 'opportunities ' but advocates of deep-sea mining have
argued that focusing mineral exploration on the deep sea is significantly better for
the environment than the continued exploitation of minerals on land {Branan,
2007 and Schrope, 2007). The reasons put forward include less waste, smaller mine
footprint, reusable infrastructure, lower greenhouse gas generation and
easier site remediation. The trend of terrestrial mining to exploit ores of
increasingly lower grades results in larger and larger amounts of waste material
being generated. The comparatively high grade of deep-sea ores and the general absence of
overburden means that, in comparison toon-land mining, there is likely to be a much smaller
mine footprint and much less waste generation {Scott, 2001). Historically mining waste
has often caused serious pollution - contamination of waterways, increased sedimentation and acid mine
policy actions are implemented to limit or at least charge for environmental impacts associated with
Deep-sea mining activity may provide environmental spinoffs, which include increased knowledge of deep-sea biological communities .
mining (see text box).
For example, private company funded research in the Manus Basin, Papua New Guinea, has already
produced a significant body of literature on vent communities and the physio-chemical conditions
surrounding hydrothermal systems. The value of these scientific discoveries is difcult to quantify, but it is
clear that the costs of conducting such research in the absence of commercial exploration would be high
and therefore may not occur. Increased knowledge assists with the management and conservation of
require drilling. The ore deposits are in nodules strewn across the
rolling plains of sediment that carpet the ocean floor.
Oceanographers say they resemble knobbly black potatoes, ranging in size
from a couple of centimetres to 30cm. Mining companies say it may be possible to
scoop them up with giant tongs and then siphon them up to vessels
waiting on the surface.
No risktheir studies are all hype.
Begley 10 (Sharon Begley is a environmental writer for Newsweek, 9/20/11, Is Deep-Sea Mining Bad
for the Environment?, http://www.newsweek.com/deep-sea-mining-bad-environment-71983)
3,000 feet down off Papua New Guinea called Solwara 1, where Nautilus expects to begin mining in 2012,
deposits contain 6.7 percent copper. That compares with 0.46 percent for typical deposits on land. Pound
for pound, seafloor ore also has more gold, zinc, and silver than land deposits do. Thats why seafloor
mining should make economic sense in the first place. Its also why, to extract a given quantity of metal,
Begley 10
(Sharon Begley is a environmental writer for Newsweek, 9/20/11, Is Deep-Sea Mining Bad
for the Environment?, http://www.newsweek.com/deep-sea-mining-bad-environment-71983)
vent within two years, as larvae from neighboring vents arrived and
set up housekeepin g. (Of course, if larvae from a species different from the one wiped out
arrive first, the new colony will differ from the original, with unknown consequences for deep-sea
biodiversity.) That
after the mining operation moves on , too, though only for vents on tectonically active
sites such as that where the eruption occurred. Vents such as those on the Mid-Atlantic Ridge, for example,
are not likely to be frequently overrun by lava and are relatively far apart, suggesting they may be less
has died . Nautilus has not agreed to that, but says it will take steps to preserve
vents. Weve put in place a number of measures to ensure that
ecosystems and biodiversity are maintained, says Smith. It plans to use
undersea robots to move some vent animals away from the area being
mined, establish refuges from which vent creatures can seed
ecosystems recovering from mining,
mining before the company tackles adjacent sites.
AT: Midterms
No one cares about rare earths
Dobranksy 13
fully by Americans ,or by the rest of the world. Many politicians and corporate
executives have transnational interests and cannot argue for more aggressive policies without risking
possible severe consequences.
REE s and, thus have not demanded redress of the issue. Political
scientists and other scholars in general have not been attuned to
the REE issue
and, therefore, have not made any significant attempt to examine the issue, let
alone make recommendations. A number of journalists and think tank members have been lighting the
torch and waving it to get others attention but so far few people have taken notice. With such relatively
the REE issue is riding below the political radar screen to the grave
disadvantage of all. This issue has the potential to bring down America and greatly undermine its well-
it will ensure that most high-end and valuable products with REEs will be manufactured eventually in China
and, thus, much of the worlds wealth will shift to China and be utilized there. China, then, will attain the
level of the newand, possibly, solesuperpower in the world in the coming decades.27
***AT: CPs
Improving how the U.S. government handles mineral issues should not
must be better understood for effective management of California's ocean resources. Soon after the
founding of the United States, the newly formed federal government asserted sovereignty over a territorial
the
Outer Continental Shelf Lands Act of 1953, establishing federal
ownership of the lands and resources out to three nautical miles from shore). Also enacted was
the
CZMA allows the U.S. Department of Commerce to override a state's
those activities are not consistent with the federally approved state coastal program. However,
http://www.virginiaplaces.org/boundaries/ocs.html
In 1953 Congress also passed the Outer Continental Shelf (OCS) Land Act, endorsing the
national government's claim to the ocean resources issued originally by
President Harry Truman. International claims of rights to control navigation, fishing, and economic development of mineral
adopted the mean lower low water (MLLW) line, as drawn on National Oceanic and Atmospheric Administation (NOAA) National Ocean Service nautical charts, as the coast line. (NOAA uses the average of the lower low water height of each
tidal day to draw the the mean lower low water or MLLW line.) Because the boundary changes as storms, currents, or even
1953 to clarify the relative power of the states/Federal government over the Outer Continental Shelf, beyond the 3
international treaty. President Clinton signed the Convention on the Law of the Sea treaty in 1994, after it was modified to
resolve President Reagan's concerns regarding international controls on deep sea mining of polymetallic (iron/manganese)
nodules. However, Senate approval is required to finalize the US commitment to the treaty. Congress has never ratified it,
declining once again in 2012 due in part to concerns that the International Seabed Authority could limit US sovereignty.
(The International Seabed Authority is headquartered in Kingston, Jamaica, and is not part of the United Nations.) 10
Consistent with the treaty (even though Congress has not ratified it), the United States claims a Territorial Sea for 12
nautical miles offshore. The starting point for defining offshore vs. inland waters is the "baseline," defined by the US as the
line of mean low low water (MLLW) as mapped on the most-detailed (large scale) NOAA nautical charts.11 The US
exercises sovereignty over its Territorial Sea, the air space above it, and the seabed and subsoil beneath it, but foreignflag ships enjoy the right of innocent passage. The Federal government also claims a Contiguous Zone out to 24 miles (12
miles further than the Territorial Sea), allowing enforcement of federal customs, fiscal, immigration, and sanitary laws (but
otherwise the US does not exercise sovereignty in the Contiguous Zone). Finally, the US claims an Exclusive Economic
Zone (EEZ) extending from 12-200 nautical miles offshore, with exclusive rights to develop and manage marine resources
- including energy and mineral resources on the seabed, such as oil/natural gas and iron/manganese nodules. While
Coastal states own the land in their territorial sea, which includes all lands permanently or periodically
covered by tidal waters . . . seaward to a line three geographical miles distant from the coast line of
companies, Nautilus Minerals; UK Seabed Resources (the British division of Lockheed Martin); and
DeepGreen Resources, plan to mine the sea floor under the Pacific Ocean (most notably in the Bismarck
Sea off Papua New Guinea) using a combination of remotely operated or autonomous underwater vehicles,
pumps, suction and riser pipes to extract the minerals. papua mines These REEs, with odd monikers like
lanthanum, cerium, praseodymium, promethium, neodymium, samarium, europium, gadolinium, terbium,
dysprosium, holmium, erbium, thulium, ytterbium, and lutetium, are not household names, but what they
do makes every householdand the people in those householdslive better lives. For example, most of
Better
yet for this Pacific sea hunt, the REEs arent alone on the sea floor:
staggering levels of magnesium, gold, silver, cobalt, nickel and
copper are there for the taking as well; much of which are easy
pickings as mineral-rich nodules scattered over the sea bottom .
our fancy electronic gadgetslike our Smartphones and laptopsdepend on REEs to operate.
Frontrunner: Nautilus Minerals Of the three contenders, the Canadian company, Nautilus Minerals
(TSX:NUS), is the more ready to mine. Nautilus plans to deploy three machines, operated by remote
control. Operators sitting on a ship stationed above the deposit will control mine-bots on the seafloor: an
initial cutter for clearance; a bulk cutter to do most of the work; and a machine to collect and transport the
material to a pumping station. slurry ship The material will then be pumped up in slurry form to the ship,
where it will be de-watered and set to shore for processing. For nodules, robots will roam the seabed.
Critical to high-tech everything REEs are metals with unique physical, chemical and light-emitting
properties vital to hybrid vehicles, rechargeable batteries, wind turbines (renewable energy) mobile (cell)
phones, compact fluorescent light bulbs, laptop computers, disk drives, catalytic converters, and LED,
Plasma, and LCD display panels. Neodymium, for example, is responsible for ensuring that the likes of
Far
from abundant on land With over 30 percent of the worlds known
REE deposits and by far the cheapest extraction process, China
supplies 95 percent of the worlds REEs. However, China, with a rising
middle class and booming domestic market, is steadily reducing
export quotas. The Word Trade Organization (WTO), of which China is a member, ruled in March of
Smartphones, hard drives, earphones, even MRI scanners, do the job they are designed to do.
2014 that China was hoarding and taking unfair advantage of the market. That decision was two years in
coming, and now China will appeal the current WTO judgment, which might take another two years. Byron
Capital analyst, John Hykawy said Ive heard from so many critical materials buyers at large
$13 Kg. However, the battery in a Toyota Prius hybrid requires more than 10kg of lanthanum. Now multiply
$130 times millions of Toyotas and the need for lots of lanthanum comes into focus. Stephen Ball, chief
communications industries, among others, reports Lockheed Martin. The Japan Agency for Marine-Earth
down, the Japanese scientists claim the deposits to be approximately 6.8 million metric tons of rare
earths, equivalent to 230 years of local demand. subsea mining Although subsea mining at depths of 500
Minerals, with subsea robot mining tools built by technology partners like Soil Machine Dynamics. Then
too, there are plenty of environmental issues about the potential impact on an ecosystem 3-miles deep
the flora and fauna of that lightless place we know little to nothing about. An adverse report was published
in 2012: Out of our Depth: Mining the Ocean Floor in Papua New Guinea. Also, according to Mining
Magazine, The UNs International Seabed Authority (ISA) is involved, reporting that these new sea floor
mining areas provide the habitat for a variety of animal life previously unknown to science, and that over
500 new species have been discoveredand are of great interest to science. Yet the ISA didnt say no to
the Bismarck Sea (Solwara I) operation. The ISA basically said be careful: The uniqueness and fragility
of this geographically fragmented ecosystem, and the value it holds for fundamental biological studies of
metabolism, evolution and adaptation, will have to be taken into account in planning for mineral
exploration and exploitation. Below is a Nautilus-produced video that explains the Solwara I mining
venture in depth. . About Nautilus Minerals: A Canadian registered company, Nautilus is listed on the
Toronto Stock Exchange TSX:NUS. Its corporate ofce is in Brisbane, Australia. Its major shareholders
include MB Holding Company LLC, an Oman based group with interests in mining, oil & gas, which holds a
28.00% interest, Metalloinvest, the largest iron ore producer in Europe and the CIS, which has a 20.75%
holding and global mining group Anglo American, which holds a 5.95% interest.
Although Wang Jianguo knows little about rare earths mining, he is an accidental expert on its
consequences. A short walk from the 43-year-old former farmer's dilapidated brick home in Xinguang
Number One Village, is the world's largest rare earths mine tailings pond an endless expanse of viscous
restricting and taxing its rare earths exports, ostensibly to improve its environmental record. In 2010, the
US, European Union and Japan long accustomed to China's inexpensive supply lodged a complaint with
the World Trade Organisation. China, they argued, was simply encouraging domestic consumers to pick up
the slack. In late October, the organisation ruled that China's export restrictions violated its regulations.
China is expected to appeal. In 2009, Baotou Steel began relocating farmers from villages around the
tailings pond to resettlement sites on the city's outskirts; it has set up a waste managing warehouse
staffed by 400 employees. Yet the pond is still a reminder of how far China's cleanup effort has to go.
Surrounding villages are decimated. Stray dogs amble through dessicated corn and wheat
fields, the rusted frames of dismantled greenhouses arching above tangles of discarded plastic bags. "In
market the year prior, he found that many of the animals had two rows of teeth, some so long that they
couldn't close their mouths. Other countries have become less dependent on China's rare earths supply
dependent industries are learning to recycle. A hard hat-wearing mechanic outside a tightly-guarded
refinery near Baotou's tailings pond said the declining demand has hurt his job prospects. The man,
surnamed Li, said a few hundred of his colleagues had been laid off over the past few months. When asked
about the plant's environmental impact, he shrugged his shoulders. "We don't understand these things,"
he said. "We're just here to make a living."
The
hypocrisy here is impressive , particularly considering the myriad
restrictions our own government puts on the exploration for and
mining of, nearly everything . What the Obama administration is doing
here is the equivalent of China going to the WTO with a lawsuit
demanding that we open up more of Alaska and other oil rich locales
controlled by the U.S., not to mention reduce the various regulations
controlling the mining of other commodities that the U.S. is rich in. If the Chinese
were to do so, theres no telling what the negative reaction would be from
the U.S. political class, not to mention its citizenry . Wed be rightfully offended
U.S. and others are telling China the country that it must sell more of what is endemic to China.
for another country nosing in on what should be a U.S. matter. Its arguable that what makes the U.S. great
is our collective lack of self-awareness that often reveals itself through some of the most disruptive
coasting along for the ride. This is one area where the U.S. has made progress. . . . Finally,
agreements must be ambitious, opening foreign markets and helping
U.S. workers, farmers, manufacturers and service providers increase
exports. . . .
growth can only be sustained by deep sea mining. Nautilus argues that
deep sea mining is needed now more than ever to drive the growth
towards developing clean technologies such as solar and wind
energy. To build just one wind turbine requires 500kg of nickel plus 1000kg of copper. This means that
a single turbine requires 12 times more copper to create 1 kilowatt of power than fossil fuels, Dr Smith
said. To put things into perspective,
the
green economy will be driven by the use of renewable energy
sources that has seen developed countries investing in new
technology that seeks to make them become less dependent on
rates, of the equivalent of 75 cents to $1.25 per gallon of gasoline. The rationale used is that
fossil fuels for their energy supplies, building electricity based infrastructure for
transportation. In-order to convert wind and solar energy directly into
electric energy requires large amounts of metals whose terrestrial
extraction have been cause of much destruction of natures biodiversity.
According to a technical report prepared by SRK consulting (Australasia) Pty Ltd released May this year for
Nautilus Minerals Inc, it has made applications for prospecting licenses and mining leases in PNG, Solomon
Islands, Fiji, Vanuatu, Tonga and New Zealand. Applications were made through Nautilus Minerals Offshore,
a company registered in Vanuatu and fully owned by Nautilus Minerals Inc. Nautilus has 41 granted
Prospecting Licenses in Vanuatu covering an area of 3630km2 on the eastern side of the main islands while
there are 14 further Prospecting License applications covering 1247km2 Safe and environmentally friendly
Deep Sea Mining has been hailed as the new frontier and the Solwora 1 site at the bottom of the
Bismarck Sea is the experimental site and the new Wild West that needs to be conquered and subdued. Dr.
at the Solwora 1 site in the Bismarck Sea goes down to a depth of 30 to 50 meters, however, there was
enough deposits on the surface to sustainably produce enough without having to dig. When pressed about
the drilling below the seabed to meet global demands she responded: Even
if we have to
drill, 50 meters is not deep enough into the earths crust to trigger of a
volcanic eruption, an earthquake or tsunami. The Solwara 1 deposit is a
stratabound seafloor massive sulphide that occurs on the flank and crest of a sub-sea volcanic mound
which extends about 150m to 200m above the surrounding seafloor. Despite the safety assurances,
opposing groups argue that there is too much that is unknown about seafloor mining to guarantee a full
proof protection against any form of destruction of the marine biodiversity and ecosystems. The irony of
deep sea mining as a green solution to terrestrial mining is that after we have extracted all minerals,
leveled mountains and dig deep holes towards the earths crust to milk every last bit of rock, we now want
to shift into the sea which truly remains as the last frontier. Perhaps after we have depleted all mineral
resources at the bottom of the ocean, the new frontier will become the moon and Mars. Capitalism,
modern consumerism and our desire and wants to have more, bigger, better, faster, smaller and efcient
has a funny way of justifying greed for profit in a green growth and
green economy framework.
year. Samantha
that
mining should take place will undoubtedly intensify as the global population
continues to climb. Its getting harder to develop mines on land and
there are fewer places left on the planet where you can establish a
mine without afecting people, Johnston said. Nonetheless, it is
critical that marine ecosystems are aforded equal respect to those
on land. In this regard, binding frameworks for deep-sea mining,
environmental best practice and monitoring should be formally
codified sooner rather than later. By striking the right balance now,
future mineral rewards from the deep will be both great and good
Resting deep on the seabed of the Pacific are two symbols of oceanic politics, one decaying as time ticks
by; the other slowly growing at a pace measured in millions of years. The first symbol is the salvage site of
Soviet submarine K-129. Once it prowled the seas with three nuclear missiles, but suddenly she and her
crew were lost to the depths. After sinking mysteriously in 1968, the diesel-powered submarine became
the object of an expensive and elaborate operation of the Cold War. The Central Intelligence Agency and
Howard Hughes devised a cover story about deep-sea mining to recover it secretly. The operation, run by
former CIA Director William Colby, was trying to determine the state of Soviet nuclear weapons prowess.
After a string of near mishaps, the mission recovered only part of the sub. The other symbol is a
widespread deposit of potato-sized rocks rich in manganese and other minerals. Called polymetallic
nodules
are the prizes of a very real, but hardly less complicated, search of the ocean
floors. The stories of the sunken Soviet sub and the polymetallic nodules are intertwined in history,
nodules, these rocks were the original fictitious prey of the CIAs cover story. But today those
technology and politics. Deep-sea mining is on track to become a reality soon despite serious questions
about its environmental consequences. The linkage began soon after the United States found the lost
Soviet submarine. A CIA plan codenamed Project Azorian oversaw the design and construction of the
Hughes Glomar Explorer, a ship of unprecedented design and cost. The ships goal was to lift a 1,750-ton
submarine, armed with nuclear missiles and torpedoes, off the seabed and into the belly of a huge oceangoing vessel. The CIA buried the operation in code names like AZORIAN, DESKTOP and JENNIFER. Only a
few years later, the very same ship that had pretended to look for deep sea minerals was in fact employed
after
four decades of international treaty negotiations, scientific studies,
technological progress and roller coaster-like business cycles of
metal prices, the polymetallic nodules still sit silently on the
seafloor. Interested parties around the globe are debating both economic and environmental
concerns. But the interest in deep sea mining of these mineral resources is
intensifying, and by 2016 remote controlled vehicles could be crawling
the ocean floor environment, cutting into or scooping from the seabed, and pulling up
ore that is richer in bounty than many mining resources that
by Lockheed Martin to developed modern technology for pulling nodules off the seabed. Now,
The polymetallic nodules are not the only treasure deep sea miners will be
pursuing. Seamounts formed by underwater volcanoes and cobalt-rich crusts are also being studied
intensively for commercial exploitation.
(Heydon, 2005), and 3) India and China will both need large amounts of copper to build power-
grid infrastructure, driving the metals market to deep-sea mining (Yamazaki, 2005b).
projects have gone into production yet, he argues its not too late to push for stronger reporting,
transparency, and compliance guarantees: The door hasnt closed yet. But with the rush for mining
leases on, it is beginning to close. And at stake is a strange world we have only barely begun to
understand.
The treatys fans also argue that it will secure U.S. rights
to extract natural resources from its continental shelf. As with navigational
rights, the United States already exercises sovereignty over its continental
shelf to a distance of 200 miles from shore; and other countries, after initially contesting
the U.S. claim, adopted the policy themselves. America could similarly claim rights over
its continental shelf beyond 200 miles and work out its diferences
with the individual nations afected by such a claim. By ratifying
rights, it is redundant.
LOST , however, it
is forced to surrender
half the royalties earned from mining and drilling in the extended
continental shelf . Although LOST supporters say U.S. accession to
the treaty is necessary for American companies and their investors
to feel confident that their claims to deep seabed mining sites will
be recognized internationally, Rabkin observed, It remains a fair question
whether a complex U.N. regulatory bureaucracy especially one
that counts international wealth redistribution as one of its
functions is a reassuring presence for investors . Knowing that the
seemingly profitable site in which they are considering investing stands a good chance of being stolen by the Enterprise
profits generated from the site the company is allowed to mine not to mention
may be similarly confiscated, why would
investors take such a risk?
and that any
Zenko 3/24/14-Micah, Douglas Dillon fellow with the Center for Preventive
Action at the Council on Foreign Relations (How to Avoid a Naval War with
China, Foreignpolicy.com,
http://www.foreignpolicy.com/articles/2014/03/24/how_to_avoid_a_naval_war_
with_china) patel
Most countries, including the United States, agree that territorial waters
extend 12 nautical miles from a nation's coastline, while EEZs extend much
further -- usually up to 200 nautical miles. There is also consensus that while
the United Nations Convention on the Law of the Sea (UNCLOS) established
EEZs as a feature of international law and gives coastal states the right to
regulate economic activities within them, it does not provide coastal states
the right to regulate foreign military activities in their EEZs beyond their 12nautical-mile territorial waters. However, China and some other countries like
North Korea interpret UNCLOS as giving coastal states the right to regulate all
economic and foreign military activities within their EEZs.
when he stated that the convention was "the greatest environmental treaty
of all time." Indeed, the treaty states that convention participants must
"takeall measures consistent with this Convention that are
necessary to prevent, reduce, and control pollution of the marine
environment from any source," (Article 194). This provision goes on to
require that such measures address "all sources of pollution of the marine
environmentincluding those from land-based sources, from or through the
atmosphere, or by dumping." Signatories are also required to "adopt laws
and regulations to prevent, reduce and control pollution of the marine
environment from or through the atmosphere" (Article 212). The
convention's provisions and mandatory dispute resolution
mechanisms will create new opportunities for environmental
activists and like-minded governments to bring action against the
U.S. for violating the Kyoto Protocol, even though America is not a
party to that accord. American opponents of the Kyoto Protocol should be
under no illusion: U.S. accession to this convention risks embroiling the U.S.
in a plethora of legal actions, even if the Senate does not ratify Kyoto. Reason
#3: America Should Not Participate in Yet Another U.N. Bureaucracy.
International institutions created by multilateral treaties spawn
unaccountable international bureaucracies, which in turn inevitably infringe
upon U.S. sovereignty. The convention creates a bureaucracy known as
the International Seabed Authority Secretariat. Like all international
bureaucracies, the Secretariat has a strong incentive to enhance its
own authority at the expense of state sovereignty. When international
bureaucracies are unaccountable, they-like all unaccountable institutionsseek to insulate themselves from scrutiny and thus become prone to
corruption. The International Seabed Authority is vulnerable to the same
corrupt practices that have riddled the U.N. for years. The United Nations Oilfor-Food scandal, in which the Iraqi government benefited from a system of
bribes and kickbacks involving billions of dollars and 2,000 companies in
nearly 70 countries, is a prime example. Despite ample evidence of the U.N.'s
systemic weaknesses and vulnerability to corruption, the U.N. General
Assembly has resisted efforts to adopt serious transparency and
accountability reforms. Reason #4: American Participation Will
Undermine U.S. Military and Intelligence Operations. Under the
convention, the United States assumes a number of obligations at
odds with its military practices and national security interests,
including a commitment not to collect intelligence. The U.S. would
sign away its ability to collect intelligence vital for American security
within the "territorial waters" of any other country (Article 19).
Furthermore, U.S. submarines would be required to travel on the
surface and show their flags while sailing within territorial waters
(Article 20). This would apply, for example, to U.S. submarines maneuvering
in Iranian or North Korean territorial waters; they would be required to sail on
the surface with their flags waving. Reason #5: The U.S. Does Not Need the
Convention to Guarantee Navigation Rights. The U.S. enjoys navigation
rights by customary international practice. The fact that the U.S. is
not a convention member does not mean that other states will begin
to demand notification by U.S. ships entering their waters or
airspace. Indeed, the U.S. is not a signatory to the convention today
and yet has freedom of the seas because current participants are
required to grant the U.S. navigation rights aforded by customary
international practice. In addition, these states have reciprocal
interests in navigation rights that will discourage them from making
such demands on American ships in the future.
neighbors who fear the Beijing doctrine may be veering toward realpolitik. For
its part, the United States has expressed its support for the Philippines'
submission. President Barack Obama's visit to the Philippines in late April will
provide an opportunity to reafrm the importance of such a rules-based
approach to managing the dispute. Yet that largely depends on how Beijing
responds. To be sure, nationalist public sentiment stoked by Beijing may have
painted China into a corner. Hours after the Philippine Foreign Secretary
announced the Memorial's submission on March 30, the Chinese Foreign
Ministry responded that it did not accept the Philippines' submission of the
dispute for arbitration and called on the Philippines to return to bilateral talks.
With its Foreign Minister stating that China will never accede to
"unreasonable demands from smaller countries" in the South China
Sea, its Defense Minister stating that China will make "no
compromise, no concessions," and official media outlets wading in
with criticism of the Philippines' "unilateral" actions in filing its
Memorial, it will be that much harder to backtrack. Yet submitting to
an international tribunal is by no means beyond the pale for Beijing.
China regularly engages in the WTO dispute settlement system and
has a relatively strong compliance record in the face of adverse
rulings, largely due to the reputational costs of non-compliance.
Arbitrating the South China Sea dispute is assuredly more fraught
than commercial disputes, grating as it does on China's rawest
nerve: territorial sovereignty. That is why it must be complemented by all
claimant states exploring the equivalent of an amicable settlement: shelving
questions of who owns what and focusing on joint development of resources
for which compelling precedent exists. For now, however, Manila's lawyers
have staked out important legal ground in the South China Sea. Beijing
should consider meeting them there.
document for ITLOS exactly what its ship was doing in exactly which
waters could very well compromise sensitive U.S. intelligence
gathering operations. It is not even clear that the United States
would benefi t from having the option to pursue its own claims. In a
direct confrontation over a seizure, the United States has considerable
resourcesnaval, diplomatic, and economicto unilaterally pursue
its demands for immediate release. But having subscribed to
UNCLOS, the United States would have much more difficulty wielding
such pressures, if the state which efected the seizure insisted that
the matter should be taken to ITLOS for resolution. UNCLOS seems to
provide protection against these concerns by stipulating that states may opt
out of its compulsory arbitration requirements when disputes concern
military activities...by government vessels and aircraft engaged in noncommercial service.6 At its narrowest reading, this provision might mean
only that ITLOS will avoid intervening in full-scale confrontations between
opposing battle fleetsa situation that would create problems far beyond
those of dispute resolution. At its broadest, this exemption might mean that
any seizure could be excluded from ITLOS review, since seizures are never
effectuated by unarmed commercial vessels, which would entirely negate the
provision bestowing mandatory jurisdiction on ITLOS for seizures at sea. So
which is it? The only thing certain is that it will be up to ITLOS to
decide how far it wants to intrude into U.S. naval strategy. The State
Department has proposed ratification with an understanding that
the military exemption will be read broadly. (Sec. 2, Par. 2 of Text of
Resolution of Advice and Consent to Ratification, printed with Treaty Doc.
103-39 in Hearings on the Un Convention on the Law of the Sea, Ot. 21, 2003,
along with Statement of William H.Taft, Legal Adviser to the Department of
Stat) But UNCLOS itself stipulates that states may not attach reservations
to their ratifi cation.7 Again, it will be up to ITLOS to decide what signifi
cance, if any, should be accorded such unilateral U.S.
understandings. And the courts composition is not encouraging. As
of September 2005, a clear majority of the courts 21 judges were
from states that cannot be supposed to be friendly to American
naval actionincluding Russia, China, Brazil, Cameroon, Ghana,
Senegal, Cape Verde, Tunisia, Lebanon, Grenada, and Trinidad. The
earlier round of UNCLOS negotiations in the 1950s proposed, in addition to
specifi cations of transit rights and delimitations of coastal waters, a separate
treaty obliging signatories to refer disputes about these matters to the
International Court of Justice (ICJ) in the Hague, the Netherlands. The United
States welcomed clarifi cation of the basic rules but successfully resisted the
proposal that all disputes be referred to the ICJ. In the mid-1980s, infuriated
by the ICJs handling of a case launched by the Marxist Sandinista
government in Nicaragua, the U.S. withdrew its previous commitment to
respond to claims before the ICJ by any state which agreed to open itself to
all such claims in turn. And, of course, the United States has resisted
urgings to submit its military personnel or any other U.S. citizens to
judgments of the International Criminal Court. UNCLOS has packaged
improved rules for the seas with the requirement that major
disputes about these rules will go to a permanent international
court, thus deemphasizing freedom of the seas in favor of claims
Bolton and Blumenthal 11 John and Dan (9/29/11, Time to Kill the Law of
the Sea TreatyAgain, WSJ,
http://online.wsj.com/news/articles/SB1000142405311190483610457656093
4029786322)patel
The Law of the Sea Treaty (LOST)signed by the U.S. in 1994 but never
ratified by the Senateis showing some signs of life on Capitol Hill, even as
new circumstances make it less attractive than ever. With China emerging
as a major POWER , ratifying the treaty now would encourage SinoAmerican strife, constrain U.S. naval activities, and do nothing to
resolve China's expansive maritime territorial claims. At issue is
China's intensified efort to keep America's military out of its
"Exclusive Economic Zone," a LOST invention that afords coastal
states control over economic activity in areas beyond their
sovereign, 12-mile territorial seas out to 200 miles. Properly read, LOST
Thirty years ago, President Ronald Reagan asked me to meet with world
leaders to represent the United States in opposition to the United Nations Law
of the Sea Treaty. Our efforts soon found a persuasive supporter in British
Prime Minister Margaret Thatcher. Today, as the U.S. Senate again considers
approving this flawed agreement, the Reagan-Thatcher reasons for opposition
remain every bit as persuasive. When I met with Mrs. Thatcher in 1982, her
conclusion on the treaty was unforgettable: "What this treaty proposes is
nothing less than the INTERNATIONAL nationalization of roughly twothirds of the Earth's surface." Then, referring to her battles
dismantling Britain's state-owned mining and utility companies, she
added, "And you know how I feel about nationalization. Tell Ronnie
I'm with him." Reagan had entered ofce the year before with the treaty
presented to him as a done deal requiring only his signature and Senate
ratification. Then as now, most of the world's nations had already approved it.
The Nixon, Ford and Carter administrations had all gone along. American
diplomats generally supported the treaty and were shocked when Reagan
changed America's POLICY. Puzzled by their reaction, the president was said
to have responded, "But isn't that what the election was all about?" Yet, as
the Gipper might have said, here we go again: An impressive coalition
including every living former secretary of Statehas endorsed the Obama
administration's goal of ratifying the treaty. The U.S. Navy wants to "lock in"
existing and widely accepted rules of high-seas navigation. BUSINESS groups
say the treaty could help them by creating somewhat more certainty. Can so
many people, organizations and countries be mistaken? Yes. Various
proponents have valid considerations, but none has made a
compelling case that the treaty would, on balance, benefit America
as a whole. Though a 1994 agreement (signed by some but not all
parties to the treaty) fixed some of its original flaws, the treaty
remains a sweeping power grab that could prove to be the largest
mechanism for the world-wide redistribution of wealth in human
HISTORY. The treaty proposes to create a new global governance
institution that would regulate American citizens and businesses
without being accountable politically to the American people. Some
treaty proponents pay little attention to constitutional concerns about
democratic legislative processes and principles of self-government, but I
believe the American people take seriously such threats to the foundations of
our nation. The treaty creates a United Nations-style body called the
"International Seabed Authority." "The Authority," as U.N. bureaucrats
call it in Orwellian shorthand, would be involved in all COMMERCIAL
activity in international waters, such as mining and oil and gas
production. Pursuant to the treaty's Article 82, the U.S. would be required to
transfer to this entity a significant share of all royalties generated by U.S.
companiesroyalties that would otherwise go to the U.S. Treasury. Over
time, hundreds of billions of dollars could flow through the Authority
with little oversight. The U.S. would not control how those revenues
are spent: The treaty empowers the Authority to redistribute these
so-called INTERNATIONAL royalties to developing and landlocked
nations with no role in exploring or extracting those resources. This
would constitute massive global welfare, courtesy of the U.S.
taxpayer. It would be as if fishermen who exerted themselves to catch fish
on the high seas were required, on the principle that those fish belonged to
all people everywhere, to give a share of their take to countries that had
nothing to do with their costly, dangerous and arduous efforts. Worse still,
these sizable "royalties" could go to corrupt dictatorships and state
sponsors of terrorism. For example, as a treaty signatory and a
member of the Authority's EXECUTIVE council, the government of
Sudanwhich has harbored terrorists and conducted a mass
extermination campaign against its own peoplewould have as
much say as the U.S. on issues to be decided by the Authority.
Disagreements among treaty signatories are to be decided through
mandatory dispute-resolution processes of uncertain integrity. Americans
should be uncomfortable with unelected and unaccountable tribunals
appointed by the secretary-general of the United Nations serving as the final
arbiter of such disagreements. Even if one were to agree with the principle of
global wealth redistribution from the U.S. to other nations, other U.N. bodies
have proven notably unskilled at financial MANAGEMENT. The U.N. Oil for
Food program in Iraq, for instance, resulted in hundreds of millions
of dollars in corruption and graft that directly benefited Saddam
Hussein and his allies. The Law of the Sea Treaty is an opportunity
for scandal on an even larger scale. The most persuasive argument for
the treaty is the U.S. Navy's desire to shore up INTERNATIONAL navigation
rights. It is true that the treaty might produce some benefits,
clarifying some principles and perhaps making it easier to resolve
certain disputes. But our Navy has done quite well without this
treaty for the past 200 years, relying often on centuries-old, wellestablished customary international law to assert navigational
rights. Ultimately, it is our naval power that protects international
freedom of navigation. This treaty would not make a large enough
additional contribution to counterbalance the problems it would
create. In his farewell address to the nation in 1988, Reagan advised the
country: "Don't be afraid to see what you see." If the members of the U.S.
Senate fulfill their responsibilities, read the Law of the Sea Treaty and
consider it carefully, I believe they will come to the conclusion that its
costs to our security and sovereignty would far exceed any benefits.
the crises the Authority has confronted: In April 2002 the Jamaican
government turned off its air conditioning, necessitating urgent
consultations with the Ministry of Foreign Affairs and Foreign Trade. A year
later Jamaica used the same tactic in an ongoing battle over Authority
payments for its facility. Oh yes, half of the Authority members are behind on
their dues. Were seabed mining ever to thrive, a transparent system
for recognizing mine sites and resolving disputes would be helpful.
But the Authoritys purpose isnt to be helpful. It is to redistribute
resources to irresponsible Third World governments with a sorry
history of squandering abundant foreign aid. This redistributionist
bent is reflected in the treatys call for financial transfers to
developing states and even peoples who have not attained full
independence or other self-governing status-code for groups such
as the PLO. Whatever changes the treaty has undergone, a constant has
been Third World pressure for financial transfers. Three voluntary trust funds
were established to aid developing countries. Alas, few donors have come
forward to subsidize the participation of, say, sub-Saharan African states in
the DEVELOPMENT of ocean mining. Thus, the Authority has had to dip into
its own budget to pay into the funds. Why, given all this, was the Senate
Foreign Relations Committee eager to sign on? The treaty is not without
benefits. Provisions regarding the ENVIRONMENT, resource management, and
rights of transit generally are positive, though many reflect what is now
customary international law, even in the absence of U.S. ratification. Lugar
notes that law and practice with respect to regulation of activities off our
shores is already generally compatible with the Convention. This would
seem to be an equally strong argument for not ratifying the treaty. Most
influential, though, may be support from the U.S. NAVY, which is enamored of
the treatys guarantee of navigational freedom. Not that such freedom is
threatened now: The Russian navy is rusting in port, China has yet to
develop a blue water capability, and no country is impeding U.S.
transit, commercial or military. At the same time, some ambiguous
provisions may impinge on freedoms U.S. shipping now enjoys. In
Senate testimony last fall, State Department legal adviser William H.
Taft IV noted the importance of conditioning acceptance upon the
understanding that each Party has the exclusive right to determine
which of its activities are military activities and that such
determination is not subject to review. Whether other members will
respect that claim is not at all certain. Admiral Michael G. Mullen, the vice
chief of naval operations, acknowledges the possibility that a Law of the Sea
tribunal could rule adversely and harm U.S. operational planning and
activities, and our security. Moreover, at a time when Washington is
combating lawless terrorism, it should be evident that the only sure
guarantee of free passage on the seas is the power of the U.S. Navy,
combined with friendly relations with the states, few in number, that sit
astride important sea lanes. Coastal nations make policy based on perceived
national interest, not abstract legal norms. Remember the luckless USS
Pueblo in 1968? International law did not PREVENT North Korea from seizing
the intelligence ship; approval of the Law of the Sea Treaty would have
offered the Pueblo no additional protection. America was similarly unaided by
international law in its 2001 confrontation with China over our downed EP-3
surveillance plane. Nor has signing the Law of the Sea Treaty prevented
Brazil, China, India, Malaysia, North Korea, Pakistan, and others from making
ocean claims deemed excessive by others. INDEED, last October Adm. Mullen
warned that the benefits he believed to derive from treaty ratification did not
suggest that countries attempts to restrict navigation will cease once the
United States becomes a party to the Law of the Sea Convention. Critics of
the U.S. refusal to sign in 1982 predicted ocean chaos, but not once has an
American ship been denied passage. No country has had either the incentive
or the ability to interfere with U.S. shipping. And if they had, the treaty would
have been of little help. In 1998 Law of the Sea Treaty supporters agitated for
immediate ratification because several special exemptions for the United
States were set to expire; Washington did not ratify, and no one seems to
have noticed. Now Lugar worries that Washington could forfeit our seat at
the table of institutions that will make decisions about the use of the oceans.
Yet last October Assistant Secretary of State John F. Turner told the Senate
Foreign Relations Committee that America has had considerable success in
asserting its oceans interests as a nonparty to the Convention. Law of the
Sea Treaty proponents talk grandly of the need to restore U.S.
leadership, but real leadership can mean saying no as well as yes.
Ronald Reagan was right to torpedo the Law of the Sea Treaty two
decades ago. Creating a new oceans bureaucracy is no MORE
attractive today.
the Area, the ISA has granted seventeen contracts either directly to
countries or to companies sponsored by a country (this is a
requirement of the ISA). ISA contracts are for exploration; contracts
granted in respect of mining in territorial waters may include rights
to exploit the resource (this is the case with the lease granted by Papua
New Guinea to Nautilus Minerals). The result of all of this is that both
governments and private industry have interests in the development
of seabed mining in territorial waters and beyond. All this interest in
seabed mining arises from a number of sources, two of which are the world
need for more metal (including rare earth metals) and the possibilities of
financial benefits for the countries that possess the metals. Using copper as
an example, the US Geological Survey has estimated that world
consumption of copper over the next 25 years will exceed all of the
copper metal ever mined to date. The average reserve grade of land
based copper projects as of 2009 stood at .61 %. Nautilus has estimated that
the grade available in its Papua New Guinea seabed project is 7.2 %. As a
potential beneficiary the Cook Islands estimate that mining the minerals in
their waters has the potential to increase their GDP a hundred fold. The UN
estimates that the current per - capita income of the Cook Islands is $12,200.
Seabed mining is not unlike other new industries attempting to
establish themselves. In order to prosper there must be a legal
framework in place and industry must have a social license from the
relevant stakeholders. With a new industry in uncharted waters the
attainment of a social license involves the development of a consensus that
the activity is safe and that it does not adversely affect the environment in
which it is conducted. This is frequently a substantial hill to climb for
industries in new areas. The seabed is one such area. Mining for shale
gas faced much the same developmental issues and one expects
that methane hydrate mining will encounter similar hurdles. The
complete legal framework for seabed mining is not yet in place,
what currently exists is a developing framework. There is no
exploitation code for seabed mining in areas regulated by the ISA.
Many ISA exploration licenses expire in 2016 and the current
licensees will require guidance on an exploitation framework. The
ISA has recently published a study describing what might be
included in a regulatory framework for exploitation but currently it is
just that, a study. In the South Pacific very few of the island nations have
mining codes, although some are in progress, such as the Cook Islands. Part
and parcel of the establishment of the regulatory framework is the
development of a taxation/royalty regime to provide certainty for a developer
assessing its risks. For activities in territorial waters this may be negotiated
between the developer and the coastal state. The Finance Minister for the
Cook Islands, Mark Brown, has recently stated that the Cook Islands would
expect to receive stakes in mining companies for free as the price for
granting rights to exploit the resources of the Cook Islands. In the case of ISA
regulated leases one expects that a generic regime, including a royalty
structure, will be developed to cover production in all ISA regulated areas.
This will probably be a regime bereft of any individual negotiation between
ISA and its individual licensees. It will be interesting to see whether the
companies who have leases in ISA areas as a result of state sponsorship have
the staying power to await an ISA articulated mining regime.
accession to LOST. Those concerned about U.S. sovereignty and fearful of transferring more power to
unaccountable international organizations will have to work just as hard to ensure that if and when the treaty finally does
come up for a vote,
the Senate has the guts to tell the globalists to get lost.
significant. The risk to see this activity starting and developing outside of any international regulation is
This
kind of pollution is expressly referred to in Article 208 U.N.C.L.O.S. which
requires coastal states to adopt laws and regulations in order: "to
Martinus Nijhoff (2010). 5 pollution resulting from exploration and exploitation of the seabed continues to spark little interest.
approaches fail. If your fish move in and out of your patch it will
always pay to catch them now, rather than let them go to be caught
by someone else, or risk them moving to another area and not
returning. The noble savage living in balance with nature is simply a
romantic Victorian construct. Archaeological evidence shows clear over
exploitation of fisheries resources by Stone Age peoples. The worlds
fish catch peaked in the 1980s; even from the 1960s on it was clear
many stocks were severely over exploited. In the 50 years since then
we have seen proposal after proposal to save the seas reduce
pollution, introduce Marine Protected Areas, extend Exclusive
Economic Zones to 200 miles, and others. None has really delivered.
Speaking as an ecologist, the answer is simple we need to reduce fishing.
We need to do this urgently, make a significant change, and in one or two
decades we might have healthier stocks which can then sustain catch rates
similar to now. But talk of privatizing the sea is just another example
of how politicians are unwilling to face the challenge head on.
the
private sector responded by providing some capital for a domestic
mining operation to resume. This does not always solve the foreign
policy and geopolitical challenges the U.S. government experiences. In particular, for minerals
that private companies will not reliably produce or more defensespecific applications, U.S. government interests may be at stake
easy to predict and in which the need for federal government intervention (or nonin - tervention) is not always obvious. In the recent rare earths case,
exposed to the environmental damage, geopolitical scares and price shocks that come with being reliant
on rare earths.
Its actually getting much harder to recycle electronics, says Alex King of the Ames Lab in Ames, Iowa, and director of
the Critical Materials Institute a U.S. Department of Energyfunded Innovation Hub focused on strategies for ensuring
the supply of five rare earth metals identified by the government as critical. We used to have cell phones where you
could snap out the battery, which is probably the biggest single target for recycling. With smartphones, those things are
some around 65 in total. (For comparison, all of industry uses only about 85 different elements.)
This makes the powder a more complicated mixture to separate than it was with older phones. Its easier to
separate rare earth elements from rocks than from cell phones , King
says.
the materials back . As of 2011, less than 1 percent of rare earths were recycled. People tend to
Cars , which may have more than two dozen rare-earth-containing
motors in them driving everything from windshield wipers to the rear view mirror adjustment, are not
recovered formally. Many electronics end up in developing countries
hoard or toss their old phones.
where they may ultimately be dismantled in unsafe or inefcient ways. And even fluorescent light bulbs,
which are supposed to be recycled by law because of the mercury in the tubes,
tubes.
Some companies are now recovering these. While LED lights may be taking off in popularity,
there will be plenty of fluorescent and compact fluorescent bulbs in use for decades to come, Peterson
says, so they remain good targets for recycling. LEDs use rare earths, too, but in much smaller amounts
than fluorescent bulbs and in ways that make them more difcult to recycle.
I am not
right now.
meaning almost
none is yet ready for recycling . In one recent study, Jelle Rademaker of the Green
Academy in the Netherlands and colleagues calculated the potential for rare earth
recycling from magnets in computer hard drives, hybrid cars and
wind turbines, assuming 100 percent recovery in each case. They found
that the amount available for recycling could be at most 10 to 15 percent of the demand between now and
2015. The
percentage dips even further toward 2020 , as demand takes off but
From our smartphones to our latest weaponry, the technology that underpins modern life would be
***Neg
***Privatization CP
1NC CP
Text: The United States federal government should reform
the cooperate tax system and repeal laws that drive up
company costs
Picking winners and losers fails and turns the af only
reforming policies and regulations solve
U.S. Joint Economic Committee (June 22 2011, "MANUFACTURING IN
THE USA: WHY WE NEED A NATIONAL MANUFACTURING STRATEGY,"
www.gpo.gov/fdsys/pkg/CHRG-112shrg67529/html/CHRG-112shrg67529.htm,
ADL)
What is good for the manufacturing industry is good for all businesses in the U.S.. Our trading
partners are not gaining ground on U.S. manufacturing because our
manufacturing sector is declining; they are gaining ground because
our current economic policies are failing U.S. manufacturers and businesses
in the U.S. We cannot use targeted and excessive regulations and policies
that actively engage in picking winners and losers in the economy in
order to compete globally. If we wish to continue to attract and
retain innovative and successful companies, we need to reform
many of the federal policies that are hampering U.S. companies.
forward by the DOE to make businesses and homes more energy efcient. The same reasoning holds true
for why Congress should not extend the wind production tax credit. An extension would perpetuate
Americas addiction to energy subsidies and create technological stagnation that adversely affects the
long-term competitiveness of the wind industry. Providing another year of tax credits would be a $12 billion
taxpayer-funded mistake that would further distort the electricity markets and, on net, cause economic
harm by shifting labor and capital toward windmill production and away from more economically valuable
All of these
subsidy programs continually ignore the fact that we are always going to
have a demand for electricityand we have ample supply from a variety of
sources to meet that demand. The resources and technologies that can
most efficiently meet that demand will all almost certainly have one
thing in common: They wont need a government program to be
successful.
investments. If the windmills add value to the economy, they wont need the subsidy.
Rebooting U.S. production Molycorp owns a mine in Mountain Pass, CA, that was shut down over 10 years
ago due to soaring extraction and production costs in direct competition with Chinese mining companies.
also the heavy rare earths needed in defense, industrial, and consumer goods technology. Within 3-5 years
then, Molycorp and Ucore can enjoy the profits of being the only companies capable of meeting technology
demand in U.S. domestic and export markets.
Few, if any, substitutes are available. Where there are substitutes, it is commonly one REE replacing another. Consider the
applications and you get an idea of the potential for future growth in the market. Each typical disk drive has two magnets
utilizing an alloy of Neodymium (Nd), a rare earth. According to Takehisa Minowa, of Shin-Etsu Chemical Co Ltd, a
conference presenter, 500 million drives are sold each year. That's 1 billion magnets, for a single high tech product. Rare
earths are also needed in air conditioners, wind turbine generators, and hybrid cars. The motor for the Prius hybrid car
uses 1 kilogram of Nd, and the battery uses 10-15 kg's of Lanthanum (Ln), another rare earth. Multiply that by a car
market which may potentially reach 5 to 6 million hybrid cars by 2018, an optimistic figure in a presentation by Olivier
Touret, Rhodia Electronics, and you have a very big demand number. On top of that, new applications are being
discovered every year, as technological innovation constantly requires smaller and lighter components. Overall annual
growth rates in consumption have mostly fallen in the range of 9% to 22% per annum, according to Baotou Research
Institute of Rare Earths (BRIRE.) In a paper prepared by Ms. Song Honghang, Director; and presented by her colleague
Wang Yan, a review of 60 years of history showed China's remarkable role in taking production from just 1,000 tons 1978,
to 2,500 in 1980, and then 20,000 in 1989. After that rapid pace, and a slowdown in 1990 from the Asian Crisis, growth
resumed. From 1991 to 1995, growth was again back over 20% per annum. Over the past decade, growth has been much
closer to 10% annually, which is still rapid on this bigger base. Total demand for Rare Earth Oxides was near 130,000
tones in 2008. While 2009 is a clear down year, thanks mainly to a big destocking in Japan, the potential for high growth
over the rest of this decade is excellent. Our green dreams cannot be realized without ongoing growth in production of
these unique metals. The political reality (which I discussed in an article last year*) is that the world is highly dependent
on China for Rare Earths. Something like 90% of annual production comes from that country, and that the Chinese are
using more domestically and tightening their export quotes. BRIRE's figures show that Rare Earth Oxide ("REO") exports
peaked at 55,000 tons in 2005, and have been falling as quotas are tightened. (REO figures are slightly deceptive, since
the oxide is about 5-10% heavier than its REE content.) Some industry sources estimate that as much as 10,000 tons of
"gray" material leaves the country outside the quotas. But this is conjecture, and the Chinese government is aiming to
restrain this. This nervousness over supply sources has brought about a race for new sources of production. Manufacturers
in Japan, Europe, and the US all want to see diverse sources for these critical elements, as they launch new products with
Prices are down year-on-year, but a mania for the Rare Earth
miners was ignited by story coming out of one of the Chinese
ministries in the Spring of 2009 that China was considering a complete ban on
the export of certain rare earths in their raw form , preferring export value-added
products and keep growing the jobs in China. This report was later "clarified" in the summer, but it was
followed by recommendations from various stock brokers and
analysts that Rare Earth related mining stocks were a good way to
play the emerging green energy boom, since new mines were needed to counter a possible
stranglehold by the Chinese. In fact, with a 2008 demand for 130,000 tons of REO, a
resumption of 10% plus growth could add 15,000 - 20,000 tons annually to
demand. That would essential require perhaps one new world class
Rare Earths mine being added each year for the foreseeable future.
REE content.
Fortunately, there are two giants waiting in the wings, and they are both outside China. Lynas Corp's (LYC.au) Mount Weld
deposit in Western Australia is a high grade carbonatite deposit. According to the presentation from the company's Vice
President, Matthew James, the project is progressing well again. The key step was raising A$450 Million to fund remaining
construction costs. In late April, China Non-Ferrous Metals agreed to invest A$252 Million for a majority stake. But the
terms were not approved by the Australian government. So the company turned to the equity markets, and completed a
financing at A$0.45 in October. This will allow them to complete the mine and related infrastructure, and build a large
processing facility in Malaysia, where they will have access to cheaper power. Mr. James expects production to commence
in the first half of 2011, initially at an annual rate of 11,000 tons. Later, they will ramp up to 20-22,000 tons, which would
give them perhaps 14% of the global market in REO. The second major project in the pipeline is a mine reopening for
Molycorp Minerals.
producer and holds a 30 year mining permit, and a completed environment impact statement, needing only minor
revisions. But prior to full reopening, a new state-of-the-art processing plant is being built at a cost of $250 million or
more. The plant will permit far higher recoveries, with less waste, and 99% purity. Once in full operation in 2012, they will
have 1,000 employees and production of 20,000 tons of REO per annum, which is almost fully covered by long term sales
contracts. The higher efciencies and better recoveries may allow production to be ramped up to 40,000 tons without a
new mining permit. Geoff Bedford of Neo Material Technologies (NEM.v) spoke about the "rollercoaster ride" of 2009, and
how some market participants may have over-reacted to some misinformation about falling Chinese export quotas. He
does not expect a full ban on any REO exports, but rather that the Chinese will accomodate changes in demand. He also
spoke of his company's involvement in the Pitinga project in Brazil, where his company is assisting a mining company,
Taboca, in investigating whether their existing producing tin mine will undergo some changes in its extraction and
reached about halfway "on a 5 to 10 year journey to production." The company finished a scoping study in 2007, and
undertook extensive delineation drilling in 2008. They have a deposit of 64 million tonnes, with 20% Heavy Rare Earth
Elements (HREE), at over a 2% grade, with a 1.6% cutoff. This appears to be commercial, but there are still tests
underway to see if transport and processing methods are workable. After a capital investment of $300 - 400 million, it
could be in production by 2012 - 2013.
has the Bear Lodge carbonatite deposit in Wyoming, which will be the subject of a
scoping study in 2010. Also at an advancing stage is Arafura's (ARU.au) Nolans project, which Chairman Nick Muir spoke
about. They have an approximate 30 million ton deposit, right in the "center of Australia." They have a pilot plant funded
by the government, and are facing a capital expenditure of perhaps A$400 million to put a mine into production. They will
be replacing their CEO, who has recently resigned, and seeking possible strategic partners. Ian Chalmers of Alkane
Resources (ALK.au) described his company's Dubbo project in New South Wales, which is a Zirconium and HREE project,
which was the subject of a feasibility study in 2002, and has also received a government grant to build a pilot plant, which
went into operation in 2008. Prospective buyers are presently evaluating output products. The economics of starting up an
enlarged mine will be improved if zirconium, niobium, and yttrium prices line up, and allow them to sign long term offtake
agreements at prices which will permit construction of an expanded mine. Brief presentations were also given by:
privately-owned Frontier Minerals which has the high grade Zandkopsdrift arbonatite deposit, in the Northern Cape
province of South Africa, Greenland Minerals (GGG.au) with its Kvanefjeld deposit in the country with the same name,
privately-owned Mongol Gazar with a deposit in Mongolia, and Trevor Blench spoke about his company's "small but very
high grade" project at Steenkampskraal in South Africa which needs a renewal of a mining license to be restarted.
Beyond these, but not presenting are dozens of companies, with Rare Earth
projects. Industry expert, Dudley Kingsnorth mentioned that there
were 57 Rare Earth projects on the go, but another conference delegate told me that is figure was over 120
projects, including some newly added ones, which are based upon only "a handful of grab samples." If history is any
guide, and the market stays keen, a number of the new companies will raise enough
capital to progress their projects. But how can anyone, especially an
investor new to this sector be expected to pick the winners , in what is
becoming a crowded field at the early stage end? The old formula: go for size and grade may not work, because the
development of RE deposits is a highly complex matter. Evaluating the potential for a gold deposit with straightfoward
picking
winners in the Rare Earths sector may be the most difficult games of
all. That is because there are so many diferent elements involved each
with their own supply, demand and pricing dynamics . And then there are the
metallurgy is relatively easy. A poly-metallic deposit which complex metallurgy is more difcult, but
problems which begin as you mine the deposit. The rare earths must be extracted and separated from each other. But
then there is the "dirty secret" of rare earths, virtually every deposit is radioactive with a significant concentration of
thorium or uranium bound up with the Rare Earths. This makes the separation and handling of the materials even more
complex and critical and is why the price tags for capital expenditures are so very high. The other problem is the timeline.
It can take 5 to 10 years to bring one of these deposits into production. Dudley Kingsnorth provided a list of 10 steps to
production, showing that it is longer and more expensive than most think. Compared with other mining projects, there are
some added steps, like: defining the extraction and separation process, and running a pilot plant. And because of the
radioactivity, the environmental approvals can be difcult to obtain. Kingsnorth estimates the cost of a pilot plant and
preparing a banking feasibility study could be in the region of $40 to 60 Million. And that is for a project that will only have
"proven" itself on a benchtest, and so there is a risk that the money may be wasted. A typical process might involve as
many as 1,000 steps. And even when the pilot plant is operating well, prospective buyers will want to evaluate the output
products from the plant, and see how well they can be incorporated into their own manufacturing process. Running a pilot
plant can take years ("5 - 6 years" is the figure I have in my notes), until buyers are found that are willing to sign the long
term offtake agreements that banks may require to provide financing for capital expenditures. With such long time
There is
no doubt that the Rare Earths mining sector has a bright future. The
frames, Kingnorth's notion that the limited capital must be allocated selectively takes on special urgency.
usual gold rush that we saw after the nickel discovery at Voisey's Bay and the uranium price boom of 2007 may come to
2NC Solvency
Private interest in Mining exists now, only a question of
funding and regulations
Vic Kolenc, Reporter referencing an interview, $8 billion worth of rare earth
minerals in Sierra Blanca area mountain, company says, El Paso Times, 1-262014, http://www.elpasotimes.com/business/ci_24993344/8-billion-worthrare-earth-minerals-sierra-blanca//BDS
A fledgling Sierra Blanca company is trying to raise $20 million to
continue developing plans for its proposed open-pit mine on a
mountain near the West Texas town to produce billions of dollars of rare
earth minerals that federal agencies have deemed critical to make cleanenergy products and weapons. "We're going to put Hudspeth County on the
map," said Anthony Marchese, 50, a New Jersey investment banker and board
chairman for Texas Rare Earth Resources Corp., which trades on the Over-theCounter, or penny, stock market under the TRER symbol. "This could be a
very large opportunity for the area, including El Paso." China supplies
more than 90 percent of the world's rare earth minerals. Besides, energy and
defense applications, the minerals also are used in electronic devices, lasers,
in oil and gas drilling, water treatment, and other uses. Texas Rare Earth
Resources holds two state leases to explore and develop a 950-acre
rare-earth minerals deposit in the almost mile-high Round Top
Mountain, located eight miles northwest of Sierra Blanca and about 85 miles
southeast of El Paso. The company this month released an updated
economic assessment, which estimated Round Top could produce about $8
billion worth of rare earth minerals over a 20-year mine life. It would cost
almost $293 million to build the mining facility and go into
production, the assessment concluded. The company has spent more
than four years and about $20 million so far in developing its plans,
Marchese reported. It's now trying to raise about $20 million, which could be
done by attracting a partner, Marchese said. It needs about $13 million to do
a year-long feasibility study. The goal is to have the mine operating in three
years, Marchese said. Nick Pingitore, 69, a geologist at the University of Texas
at El Paso, said the mountain's resources have been known for about 30
years, but they didn't become important until recent years. "The demand
for rare earth materials was very small in the past and now they are
incredibly important in the modern world in various applications," he said.
Pingitore and Phil Goodell, another UTEP geology professor, are Texas Rare
Earth shareholders and members of the company's board of directors. The
minerals are called rare, not because they are hard to find, but because they
are found in small concentrations that are difcult and often costly to extract
from the ground. There are 17 rare earth elements divided into two groups
light, and heavy. The heavy group of elements are in shorter supply and thus
considered more valuable, Marchese said. Round Top has 10 heavy and five
light rare earth minerals, he reported. The Sierra Blanca company isn't the
only one trying to cash in on the rare earth market. Molycorp Inc., a Denverbased mining company, has spent more than $1 billion in recent years to
reopen, modernize and expand its rare earth mining facility at Mountain Pass,
Calif., Molycorp financial documents show. It also has rare earth mining
facilities in China. The California mine has been producing light rare earth
minerals, and in 2012 the company reported it began operating new facilities
at Mountain Pass to produce heavy rare earth minerals. Marchese said he
doesn't see Molycorp competing against Texas Rare Earth because, he said,
Round Top has a larger heavy rare earth deposit than he's seen reported by
Molycorp for its California mine. Molycorp's heavy rare earth minerals are
coming from its China operations, he said. Australia also has mines producing
rare earth minerals. Texas Rare Earth has identified five other rare
earth mining projects proposed by companies in the United States
and Canada. But those projects are either not in good locations or are on
federal property, which makes getting mining permits difficult, Marchese
said. Hudspeth County Judge Mike Doyal said poor and sparsely populated
Hudspeth County needs an economic boost, but, he said, he also wants to
make sure the mine wouldn't hurt residents' health. "They're talking about
some low-grade uranium there, which raises some concern about dust, and
everything they pull out of there will use an acid wash to purify it," Doyal
said. "I can't say one way or the other about the operation. I don't know
enough about it." That's why he invited the company to make a presentation
at Hudspeth County Commissioners Court on Tuesday. UTEP's Pingitore said
Round Top has a small amount of uranium, which is found in "virtually any
rare earth deposit." "The uranium is a sellable material if we can separate it"
from the rock, he said. Laura Lynch, 55, a Texas Rare Earth executive, board
member, and shareholder, whose family has operated a ranch in Hudspeth
County for more than 70 years, said she has yet to find opposition to the
mine. Almost 90 people attended an open house at its Sierra Blanca ofces
this month, she reported. Jim Suydam, a spokesman for the Texas General
Land Ofce in Austin, which in 2011 granted Texas Rare Earth two, 19-year
leases for Round Top, said the company's proposed mine has great
potential. But the agency doesn't study a lease holder's plans except to
make sure it follows applicable state and federal laws, he said. Marchese said
the state would get about $490 million over 20 years if the mine operates as
proposed. Money from state mineral leases goes into the state's education
fund. Texas Rare Earth raised $17.5 million from a stock offering several years
ago when the stock was at $2.50 per share, Marchese said. But the stock has
dived to around 40 cents per share today. The drop is largely due to New York
investment fund Libra Advisors, which held almost 10 percent of the
company's stock, selling most of its shares last year as part of its plan to
liquidate the fund, he said. The fund now holds about 2 percent of the
company's shares. The company has about 700 shareholders, Marchese said.
Almost 40 percent of its stock is owned by eight board members and three
executive ofcers, two of whom are also board members. The company
recently hired KLR Group, a New York investment bank, to help identify
financing for the project. Texas Rare Earth CEO Daniel Gorski, with more than
40 years experience in the mining industry, said in a recent conference call
with investors that all financial options are being considered. Those include
joint ventures, and the "outright sale of the company," he said. UTEP's
Pingitore said he bought shares in the company about three years ago but
got heavily involved with the company after he became unhappy with its very
expensive plan for extracting the rare earth minerals from rocks. He is
Despite their name a holdover from the 1800s and early 1900s rare earths aren't particularly rare;
they're much more common than gold, and some are nearly as common as lead. They're found in relatively
low concentrations, however, requiring the processing of lots of rock. Ten states are known to have
significant rare-earth deposits, according to a 2010 study by the USGS. Most are in the western U.S., but
the Pea Ridge deposit has the highest grade of any site in the country, averaging 12 percent rare earth
and existing infrastructure, why isn't Pea Ridge already producing rare earths? There's a catch. Along with
heavy rare earths at Pea Ridge are found intermingled with thorium, a
radioactive element that requires special processing and cleanup . Hoping to turn
iron, the
this into a positive, Kennedy is drumming up support for thorium as an alternative energy source, namely
powering molten salt reactors that could be scattered throughout cities. " When
production. He wants to build a pipeline to ship iron ore to the Mississippi River 44 miles to the east, where
he already has a permit for a processing facility and barge port. Pea Ridge will be the only domestic
producer of merchant pig iron, which is used to make steel. Currently, American mills import pig iron from
countries like Brazil and Sweden. Just like in its past, iron will be the mine's main motivation, Kennedy said.
But the almost-forgotten rare earths could be the icing on the cake.
2)
Congress should reform our corporate tax system . The United States has
the second highest corporate income tax rate in the world.
Congress should reduce the after-tax cost of
new investment by
expensing most equipment and shortening the depreciation
schedules for
buildings. Congress should move to a territorial
tax system. Until then, Congress should act now to allow
U.S.
corporations to repatriate stranded American profits to invest
in new jobs, research, investment,
and financial stability here
at home.
3) To find new customers for American manufacturers, farmers,
and service companies, Congress should immediately approve the
three outstanding free trade
agreements with Colombia, Panama,
and South Korea and seek more opportunities to open growing
4) To reduce unit costs and keep American
companies located in America, Congress should repeal laws that
markets to American workers.
drive up costs --such as the new national health care law and unnecessary federal
regulations. To help erase the estimated 18 percent disadvantage in costs for U.S. manufacturers
compared to their
these
economic policy changes would benefit U.S. manufacturers, their
customers, their suppliers, and their workers far more than any
national manufacturing strategy.
reform our tort system to reduce the
RATE Coalition and former White House adviser to President Bill Clinton and Vice President Al Gore. In
1986 Democratic and Republican leaders worked together to enact tax reform that led to more than a
decade of strong economic growth. Policymakers have another such opportunity today to create jobs and
once again make the United States the top nation in which to grow a business. The corporate tax reform
Democratic Platform:
committed to reforming the corporate tax code to lower tax
rates for companies in the United States, with additional relief for those locating
sections of the Democratic and Republican platforms can be found below.
We are also
manufacturing and research and development on our shores, while closing loopholes and reducing
incentives for corporations to shift jobs overseas. There is more to do. We Democrats support lowering
the corporate tax rate while closing unnecessary loopholes, and lowering rates even further for
manufacturers who create good jobs at home. Republican Platform: American businesses now
face the worlds highest corporate tax rate. It reduces their worldwide competitiveness, encourages
corporations to move overseas, lessens investment, cripples job creation, lowers U.S. wages, and fosters
the avoidance of tax liability-without actually increasing tax revenues. To level the international playing
National Commission on Fiscal Responsibility and Reform, as well as the current Presidents Export Council,
to switch to a territorial system of corporate taxation, so that profits earned and taxed abroad may be
repatriated for job-creating investment here at home without additional penalty.
A.C.T. and R.A.T.E., representing different businesses and corporate interest groups. These
groups seek to rebrand and build momentum for a corporate tax
reform that benefits corporate rather than public interests . In this report
we identify the nine lobby groups most actively and publicly advocating
for business interests in the corporate tax debate: the Alliance for
Competitive Taxation (ACT), Businesses United for Interest and Loan
Deductibility (BUILD), Campaign for a Home Court Advantage (a campaign by
the Business Roundtable), Coalition for Fair Efective Tax Rates, Fix the Debt,
Let's Invest for Tomorrow (LIFT) America, Reforming America's Taxes
Equitably (RATE), Tax Innovation Equality, and the WIN America
Campaign. We also identify the ten U.S. corporations most aggressively pursuing tax reform through
these groups based on each of the companys participation in four or more such coalitions. Though the
specific goals of these groups vary, there are common threads between them. For example, five of the nine
groups explicitly support moving to a territorial tax system, which would exacerbate corporate tax
avoidance overseas and promote the offshoring of jobs. Four of the groups explicitly support revenueneutral tax reform. And, the WIN America Campaign, BUILD, and TIE each support either protecting or
implementing very specific tax breaks that would benefit their corporate backers. For a full inventory of
the groups' policy positions see Table 1. Based just on the lists of corporate members released by these
corporations are actually supporters of two or more of these corporate tax lobbying efforts, with 31
supporting as many as 3 or more of these groups. See Table 2 for breakdown of the most active
corporations and which groups they belong to.
***States CP
2NC Follow-On
States can successfully shape federal law
Carlson and Mayer, 13 Ann E. Carlson is the Shirley Shapiro Professor
of Environmental Law and the co - Faculty Di rector of the Emmett Center
on Climate Change and the Environment. Andrew Mayer is a 2012 graduate
of the UCLA School of Law and is currently an associate at a law fi rm. We
thank Rich Ambrose, William Boyd, Megan Herzog, Jon Michaels, Jon Varat,
Jonathan Z asloff, participants in workshops at the University of Colorado -
Duke Environmental Roundtable and the UCLA School of Law School, and
research assistant Will Marshall, Reverse Pre-Emption,
http://www.boalt.org/elq/documents/Carlson_Mayer_Reverse_Preemption.pdf
Many states appear to use their reverse preemption power under
the CZMA robustly and successfully to challenge federal actions as
inconsistent with their coastal plans. Although states find that
proposed projects are consistent with the applicable CZMP about
95 percent of the time, findings of inconsistency have been used to
block a significant number of large energy infrastru cture projects . Even when a
consistency finding is appealed as described above, 131 many appeals are settled before final
coastal zone, the consistency requirement can be an effective tool for states to bargain for mitigation, or
even to block the project altogether
***LOST CP
1NC Solvency
LOST is a prerequisite to gaining access to resources and
space especially in the artic
Langer 12 (Andrew Langer is the president of the Institute for Liberty, The
Case for Ratification of the Law of the Sea Treaty, November 28, 2012,
http://www.realclearpolitics.com/articles/2012/11/28/the_case_for_ratification_
of_the_law_of_the_sea_treaty_116272-2.html) patel
Russia and China, two of Americas most powerful strategic foes, are actively
exploring the Arctic and Pacific for oil, gas and seabed mineral riches. The
U.S. is not. Why? Because, Russia and China have ratified the Law of the Sea
Treaty and the U.S. hasnt. Without ratifying LOTS, the U.S. has no
standing to apply for mining and drilling permits under international
law. Bottom line: there is a new Cold War taking place, and America is not
winning. The seabed holds trillions of dollars of mineral resources. According
to RT, a Russian/English news channel, Russian Foreign Ministry ofcial
Alexander Gorban last month stated his hope that there will never be a war
for resources or an even hotter conflict in the Arctic Region. In the
next breath, he then went on to reiterate that Russia is indeed "trying to
fight for the Arctic shelf Gorban is a close Putin ally and his
acknowledgement that Arctic conflict is possible demonstrates the global
stakes in play. Russia is not alone in recognizing the value of the LOTS
in the fight for global resource dominance. Five countries border the
Arctic: Russia, the U.S. (via Alaska), Canada, Norway and Denmark
(via Greenland). However, only one country is ineligible to mine or
drill those resources -- the U.S. Thats because the U.S. is not a
member of the international body that grants title, or property
rights, to countries to engage in the exploration of seabed
resources. That body is called the International Seabed Authority (ISA).
Admittance into that body is accomplished via ratification of the Law of the
Sea Treaty. China is also utilizing LOTS and the ISA to aggressively
pursue the wealth of the Arctic. According to a report by Elisabeth
Rosenthal in the New York Times last month, The Arctic has risen
rapidly on Chinas foreign policy agenda in the past two years, said Linda
Jakobson, East Asia program director at the Lowy Institute for International
Policy in Sydney, Australia. So, she said, the Chinese are exploring how they
could get involved. China is already playing the role of the Russia of
the Pacific. Right now, China is exploring U.S.-based mineral claims
in the Pacific and there is nothing the U.S. can do about it. China is
acting within the framework of international law and the U.S., because we
have not ratified LOTS, has no standing in the International Seabed Authority
to challenge Chinas abuses. Another concern about Russia and China centers
on rare earth minerals which are found in abundance in the seabed. The U.S.
requires an incredible number of military products for which rare
earth minerals are essential. Those products have historically been
manufactured here in the U.S., and ought to be. The U.S. also faces a
serious munitions problem: today, a tremendous number of our
bullets are manufactured in Chinameaning that if we find ourselves
cross-wise with the Chinese, they can cut of our supply of bullets.
2NC Solvency
The CP provides the legal certainity necessary for
companies
Clinton 12 Hilary (5/23, Clinton's Testimony on the Law of the Sea
Convention, May 2012, http://www.cfr.org/global-governance/clintonstestimony-law-sea-convention-may-2012/p28340) patel
U.S. oil and gas companies are now ready, willing, and able to
explore this area. But they have made it clear to us that they need
the maximum level of international legal certainty before they will or
could make the substantial investments, and, we believe, create
many jobs in doing so needed to extract these far-ofshore
resources. If we were a party to the convention, we would gain
international recognition of our sovereign rights, including by using
the convention's procedures, and therefore be able to give our oil
and gas companies this legal certainty. Staying outside the
convention, we simply cannot. The second development concerns
deep seabed mining, which takes place in that part of the ocean
floor that is beyond any country's jurisdiction. Now for years,
technological challenges meant that deep seabed mining was only
theoretical; today's advances make it very real. But it's also very expensive,
and before any company will explore a mine site, it will naturally insist on
having a secure title to the site and the minerals that it will recover. The
convention offers the only effective mechanism for gaining this title. But only
a party to the convention can use this mechanism on behalf of its companies.
So as long as the United States is outside the convention, our companies are
left with two bad choices either take their deep sea mining business to
another country or give up on the idea. Meanwhile, as you heard from
Senator Kerry and Senator Lugar, China, Russia, and many other countries
are already securing their licenses under the convention to begin mining for
valuable metals and rare earth elements. And as you know, rare earth
elements are essential for manufacturing high-tech products like cell phones
and flat screen televisions. They are currently in tight supply and produced
almost exclusively by China. So while we are challenging China's export
restrictions on these critical materials, we also need American companies to
develop other sources. But as it stands today, they will only do that if they
have the secure rights that can only be provided under this convention. If we
expect to be able to manage our own energy future and our need for rare
earth minerals, we must be a party to the Law of the Sea Convention. The
third development that is now urgent is the emerging opportunities in the
Arctic. As the area gets warmer, it is opening up to new activities such as
fishing, oil and gas exploration, shipping, and tourism. This convention
provides the international framework to deal with these new opportunities.
We are the only Arctic nation outside the convention. Russia and the other
Arctic states are advancing their continental shelf claims in the Arctic while
we are on the outside looking in. As a party to the convention, we would have
a much stronger basis to assert our interests throughout the entire Arctic
region. The fourth development is that the convention's bodies are now up
and running. The body that makes recommendations regarding countries'
having been made. Now some continue to assert we do not need to join the
convention for U.S. companies to drill beyond 200 miles or to engage in deep
seabed mining. That's not what the companies say. So I find it quite
ironic, in fact somewhat bewildering that a group, an organization,
an individual would make a claim that is refuted by every major
company in every major sector of the economy who stands to benefit
from this treaty. Under current circumstances, they are very clear.
They will not take on the cost and risk these activities under
uncertain legal frameworks. They need the indisputable,
internationally recognized rights available under the treaty. So
please, listen to these companies, not to those who have other
reasons or claims that are not based on the facts. These companies
are refuting the critics who say, "Go ahead, you'll be fine." But
they're not the ones the critics being asked to invest tens of
millions of dollars without the legal certainty that comes with joining
the convention.
Pincus 12 Walter, reports on intelligence, defense and foreign policy for The
Washingon Post covered numerous subjects, including nuclear weapons and
arms control, politics and congressional investigations, awarded the 2002
Pulitzer Prize for national reporting, other honors were the 1977 George Polk
Award for articles exposing the neutron warhead, a 1981 Emmy from writing
a CBS documentary on strategic nuclear weapons, and most recently the
2010 Arthur Ross Award from the American Academy for Diplomacy for
columns on foreign policy (5/28/12, The Washington Post, Fine Print: Treaty
on the seas is in rough Senate waters,
http://www.washingtonpost.com/world/national-security/fine-print-treaty-onthe-seas-is-in-rough-senate-waters/2012/05/28/gJQAzCyFxU_story.html) patel
Supporting the latter argument, she said, previously U.S. energy
companies werent technologically prepared to take advantage of
the provisions that allow a country to claim economic sovereignty to
600 nautical miles from its coasts. Thats far beyond the current 200
nautical miles. U.S. oil and gas companies are now ready, willing
and able to explore this area, she said, but they need
international legal certainty from the treaty before they will or
could make the substantial investments ... needed to extract these
far ofshore resources. Clinton described arguments against the treaty as
being based on ideology and mythology, not in facts, evidence or the
consequences of continuing failure to accede to the treaty. For example,
Sen. James M. Inhofe (R-Okla.) raised the prospect that under this treaty,
any country could sue the United States in the International Tribunal Law of
the Sea, not in the U.S. courts, or take the U.S. before binding arbitration,
under provisions designed to reduce and control pollution of the maritime
environment. Inhofe went on to cite an article by William C.G. Burns which,
he said, named the United States as the most logical state to bring action
against. Burns, however, in his 2006 article, adds that the convention does
not impose an absolute prohibition against pollution and that it would be
difcult to succeed with such legal action. Sen. Bob Corker (R-Tenn.) raised
another concern, repeating an argument that the treatys language about
abating air pollution would enforce the Kyoto Protocol, which the United
States has not ratified. A lot of people believe ... the administration wants to
use this treaty as a way to get America into a regime relating to carbon, since
its been unsuccessful doing so domestically, Corker said. Clinton responded,
It is our legal assessment that there is nothing in the convention that
commits the U.S. to implement any commitments on greenhouse gases under
any other regime. ... It doesnt require adherence to any specific emission
policies. Sen. James E. Risch (R-Idaho) raised one of the critics major
arguments: money paid to the International Seabed Authority as royalties for
extraction of resources from the deep sea are to be distributed by the
authority. Why do we as Americans, give up our taxing authority, handing
money over to the United Nations to develop some kind of formula that we
have no idea what its going to? Risch said. Clinton noted that its not a tax
but a royalty arrangement, similar to those that exist on land and sea. The
royalty doesnt start for five years, she added, then rises at 1 percent each
year until it caps at 7 percent. One of the 1994 modifications to the
convention gives the United States a permanent seat on the Council of 36
signatories that sets the policies for royalties as well as approves their
distribution. Those decisions must be made by consensus, meaning
unanimous approval. We would have a permanent veto power over
how the funds are distributed, and we could prevent them from
going anywhere we did not want them to go, Clinton said. She later
the South China Sea. "The Convention codifies navigation and overflight
rights and high seas freedoms that are essential for the global mobility of our
armed forces," the Joint Chiefs of Staff wrote in a June 2007 letter to Senate
leadership. LOST has even managed to unify environmental groups and deepsea miners, who both see something to gain in the treaty. "We gain
sovereignty, we gain territory, we gain access to places that we have
not had access to as easily," said Don Kraus, president of Citizens for
Global Solutions, a group that advocates strengthening international
institutions. "We don't stand to lose anything."
Bower and Poling 12 Ernest, Gregory (5/25/12, Center for Strategic and
International Studies, Advancing the National Interests of the United States:
Ratification of the Law of the Sea, http://csis.org/publication/advancingnational-interests-united-states-ratification-law-sea)patel
The Law of the Sea has been ratified by 162 countries, including every other
member of the UN Security Council and every other industrialized nation on
the planet. It undergirds the modern international order in the maritime
domain, an order built by the United States and its allies. It is the only
comprehensive treaty recognized worldwide that lays out the rules for vessels
on the high seas. The U.S. Navy and U.S. Coast Guard, recognizing its
value, operate under its guidelines even in the absence of
ratification. So why has it repeatedly failed to receive Senate approval?
Opponents have presented four general arguments: The Law of the Seas
restrictions would interfere with U.S. military interests. The International
Seabed Authority (ISA), which determines rights to seabed mining, would
block U.S. economic interests. The Law of the Seas taxation scheme for
exploitation of resources within a nations exclusive economic zone would
redistribute revenues unfairly. The treaty would limit U.S. sovereignty.
Fortunately for the laws proponents, each of these ideological battles has
been fought and won, especially following the treatys renegotiation. The
first objection has largely been dropped in the face of more than two
decades of overwhelming support from every branch of the U.S.
military. The second is clearly not a concern to the U.S. industries
actively pushing U.S. ratification. The ISAs 39 staf and narrow
jurisdiction have little chance of bullying the United States or
anyone else. U.S. mining interests meanwhile are sitting on the
sidelines while the oceans resources are claimed by others, and U.S.
telecom companies lack the protections and dispute resolution
mechanisms for undersea cables that all their international
competitors enjoy. Regarding the third concern, the taxation on
resource extraction in exclusive economic zones amounts to just
over 2 percent on average, a price that mining and hydrocarbon
companies have signaled they are willing to pay as the worlds
energy markets hunger for new resources and prices of commodities
climb. As for revenue redistribution, opponents too often overlook
the fact that following renegotiation of the Law of the Sea, the
United States is guaranteed the only permanent veto on how funds
are distributed. It is also exempt from any future amendments to the
treaty without Senate approval. In other words, the United States
would enjoy a position of unequaled privilege, not unfair treatment,
within UNCLOS. The final, and currently most prominent, argument against
ratification surrounds sovereignty. Opponents say that, by limiting itself to a
200 nautical mile exclusive economic zone and whatever extended
continental shelf it can claim, the United States is restricting its jurisdictional
sovereignty. What this argument misses, however, is that the United
States continental shelf is the largest of anyup to 600 miles
ofshore in the Arctic alone. John Norton Moore of the University of
Virginia School of Law has argued that ratification would massively
increase [U.S.] sovereign jurisdiction by more than the size of the
Louisiana Purchase and Alaska combined. The arguments against
ratification have been steadily weakened in the last three decades
and were overwhelmingly addressed in 1994. The most important
reason, however, for U.S. accession has remained unchanged for 30 years: a
rules-based international order is in the United States interests. The current
global order and the U.S. preeminence within it are built upon legal norms
and rules. Those rules do not unfairly constrain the United States. They
constrain those that would overturn the system, and they prevent a return to
an earlier era of great-power competition and might-makes-right diplomacy.
General Dempsey said May 9 at a forum on the Law of the Sea, Force of
arms should not be our only national security instrument. [A] stable legal
framework has never been more important to the United States.
and his disapproval now forms the political backbone against UNCLOS
ratification. The Law of the SeaModern Debate In June of 2012, the
Senate Foreign Relations Committee held an array of hearings on
UNCLOS to drum up congressional support for the Conventions
ratification. Senator John Kerry lead the charge and invited key
players from the oil and gas, telecommunications, ofshore mining,
manufacturing, shipping, environmental, and tourism industries.
Their argument was straightforward: without a universally
recognized legal regime governing the exploitation of the mineral
resources of the deep-sea beyond the zones of national jurisdictions,
US companies would not assume the investment rights associated
with such projects until it was clear who had clear legal title to the
resources extracted. Uniformly, these industry leaders testified that
accession to UNCLOS would provide such clarity, which would
subsequently create jobs, protect the environment, and ultimately
lead to a stronger US economy. To drive the point home, Kerry also
invited senior members from every branch of the US armed forces to testify
that accession would increase national security. The US military supports
the Convention because it ensures unimpeded access to travel
through and over the worlds oceans. Even former Vice President Dick
Cheney and Defense Secretary Leon E. Panetta support ratification
declaring accession will increase the United States sovereign right
to the outer continental shelf, which, in Alaska, extends six hundred
miles ofshore, instead of the current two hundred-mile limit. Yet,
despite the overwhelming support and expert testimony of our
nations military, industrial, and political leaders, the Senate pushed
back. Senator Jim DeMint, a conservative Republican from South Carolina
and prominent figure of the Tea Party movement, led the opposition. DeMint,
armed with Reagans reservations about UNCLOS, resurrected congressional
fears that accession will erode US sovereignty by subjecting it to the
authority of the ISA. DeMint also propagated Reagans ideological concerns
over the deep seabed mining provisions, which DeMints supporters tagged
as socialist. DeMint and his fellow conservatives even promoted the slogan,
What would Reagan do? By playing the Reagan card, DeMint secured the
signatures of thirty-four other Senators, which scuttled Kerrys attempt to
ratify the Convention. Why UNCLOS Matters Now DeMints concerns are
noble, but they are misguidedaccession to UNCLOS will not erode
US sovereignty, but solidify it. First, under UNCLOS, the United
States is entitled to permanent seat on ISAs Council, which provides
the United States with veto power over any decisions or policies it
finds objectionable. This seat at the table is a seat the United States
does not have but desperately needs. Countries like China and Russia
are now aggressively pursuing ofshore mining leases within the
parameters of the Convention. As of September of 2013, China is
now the only nation authorized by the ISA to explore the deep
seabed for as many as three major types of minerals. Would the
United States have allowed such a sweeping grab of minerals rights
if it were a member of the ISA Council? Likely not, but without UNCLOS
membership, the United States has no voice. Second, there is no universally
recognized legal regime governing the navigational rights of nations beyond
Lobe 12 Jim, American journalist and the Washington Bureau Chief of the
international news agency Inter Press Service (U.S.: Law of the Sea Treaty
Ratification Faces Unsettled Waters,
http://www.globalissues.org/news/2012/06/05/13919)patel
Successive administrations both Democratic and Republican led
negotiations for the treaty from the late 1960s onward. But when
completed in 1982, then-President Ronald Reagan, under pressure
from big U.S. mining and ENERGY COMPANIES, rejected it, citing its
provisions for deep-sea mining, particularly its requirement that
mining claims be regulated by a Jamaica-based International Seabed
Authority (ISA). Nonetheless, Reagan ordered the government to abide by
all other sections of the treaty, which amounted essentially to a codification
of existing international customary and maritime international law. In 1994,
the seabed provisions of the treaty were amended to satisfy
Reagan's objections. Both Bill Clinton and George W. Bush - the
latter, however, only in his second term - subsequently supported its
ratification. In 2007, it was approved by the Senate Foreign
Relations Committee by a lopsided 17-4 vote but was never sent to
the floor for final action. After Obama took ofce in 2009, his
administration listed LOST as one of a half-dozen treaties, including the 1979
Convention on the Elimination of Discrimination Against Women (which has
been ratified by 185 countries), as priorities for ratification. None, however,
have yet made any headway on Capitol Hill due to opposition by Republicans,
a growing number of whom have argued that international treaties unduly
constrain Washington's freedom of action in the world and threaten its
sovereignty. All branches of the U.S. armed services, particularly the
Navy, have long supported the treaty because of its recognition of
navigation rights for vessels engaged in military activities. In
addition, the same U.S. mining and energy interests that had
previously opposed the treaty because of its possible interference
-heg
-manufacturing
-economy
-access to minerals
Grady et al 12- Jim, CEO of LighTec Inc. in Merrimack, Republican state Sen.
Gary Lambert of Nashua is a colonel in the U.S. Marine Corps Reserve, Larry
A. Mayer is director of the Center for Coastal and Ocean Mapping at the
University of New Hampshire (Sea treaty a must for U.S.,
http://www.concordmonitor.com/news/4218363-95/kellyayottejeanneshaheen-lawoftheseetreaty)
Commissioned by President John Adams in 1800, the Portsmouth Navy Yard
has built the ships that delivered more than a century of U.S. maritime
dominance. New Hampshire was also at the forefront of America's industrial
revolution, and the Granite State remains home to a vibrant high-tech and
manufacturing ECONOMY. U.S. Sens. Jeanne Shaheen and Kelly Ayotte have
an unprecedented opportunity to advance New Hampshire's industry and
help maintain U.S. sea power by supporting ratification of the Law of the Sea
Treaty. Currently under consideration in the U.S. Senate, this U.S.initiated treaty would help drive investment, economic growth and
job creation in New Hampshire and across America. By ratifying the
treaty, America would gain exclusive sovereign commercial rights to
the full U.S. outer continental shelf, which, in some areas, extends
up to 600 miles beyond the coast - three times the current 200-mile
limit. The University of New Hampshire's own Center for Coastal and Ocean
Mapping has been deeply involved in mapping unexplored regions of the
Arctic seafloor in support of potential U.S. claims under the Law of the Sea
Treaty. UNH is home to some of the world's leading experts in hydrographic
and seafloor mapping, and they've spent months at sea in support of
expanded U.S. claims that can only be realized if the country becomes a
party to the treaty. Former U.S. senator Judd Gregg was instrumental in
ensuring UNH researchers had the resources they needed to pursue their
exploration. With ratification, U.S. companies would gain exclusive
access to vast oil, gas and mineral resources in the deep seabed of
America's shores - including rare earth minerals that New
Hampshire's high-tech manufacturing businesses depend on. These
minerals are used in a wide spectrum of high-tech products that will
be increasingly important to the Granite State's ECONOMY. On the
national security front, perhaps no one stated the benefits of the
treaty better than the chairman of the Joint Chiefs of Staf, General
Martin Dempsey, who explained to the Senate Foreign Relations
Committee in May how Law of the Sea would affirm critical
navigational freedoms and reinforce the sovereign immunity of U.S.
warships as they conduct naval operations around the world. The
Law of the Sea would guarantee international legal recognition of
the right of America's armed forces to move unencumbered
throughout the world's oceans. Moreover, ratifying the treaty would give
the United States access to an internationally recognized system for resolving
commercial disputes in foreign waters while protecting America's exclusive
right to address military disputes directly and on its own terms. Opponents
of the treaty argue that it would somehow weaken U.S. military
strength and that U.S. companies could reap the benefits of the
deep seabed without it. Those arguments don't hold water - and the
people who would know - our military and business leaders - have
made that clear. The treaty strengthens our military posture and
ofers additional protections to our armed forces overseas. That is
why all living former U.S. presidents and secretaries of state, as well
as current and former Army, Marine and Air Force generals and Navy
and Coast Guard admirals, have endorsed ratification. No American
company will make an investment in deep seabed mineral recovery
without international legal recognition of its right to do so. Thomas
Donohue, president and CEO of the U.S. Chamber of Commerce, testifying
before the Senate Foreign Relations Committee in June said, 'Accession
benefits the U.S. economically by providing American companies the
legal certainty and stability to do what they do best: putting people
to work by creating new and innovative goods and services.' Jay
Timmons, president and CEO of the National Association of Manufacturers,
testifying before the same committee said, 'Other nations are actively
seeking to knock us from our mantle of economic leadership, yet, too often,
we remain on the sidelines. Manufacturers can't aford for the U.S. to
sit on the sidelines when it comes to the Law of the Sea.' American
companies have President Ronald Reagan to thank for the treaty's extremely
favorable deep seabed mining provisions. Reagan's efforts to secure a better
deal for America led to changes that granted the United States a permanent
seat - with veto authority - on the council that governs seabed mining.
Reagan held out for amendments that eliminated mandates that would have
required the United States to share technology and revenue from deep
seabed mining. But the U.S. Senate must act to secure all of these important
economic and national security benefits for America. Without treaty
ratification, America stands to lose out to claims from nations that are
parties to the treaty and want to encroach upon the vast seabed
mineral wealth of U.S. shores. By endorsing the Law of the Sea
Treaty, Shaheen and Ayotte can help support the Granite State's
high-tech and manufacturing industries - and create jobs for New
Hampshire workers - while strengthening American sovereignty and
providing important legal recognition for the navigation rights of
America's armed forces
shelf extends beyond the EEZ. By joining the treaty, the U.S. could extend its
EEZ off the coast of Alaska by 400 nm. Russia has already submitted a claim
for half of the Arctic, and Canada intends to put forth a large claim that could
encroach upon the U.S.s EEZ. We believe that it is now time for action on
the Law of the Sea (Convention). The U.S. can no longer aford to wait to
secure access to the vital resources that lie within its extended
continental shelf, Jack N. Gerard, president and chief executive of
the American Petroleum Institute, wrote in a letter to Sen. Lisa
Murkowski, then the Republican senator from Alaska, in 2011. Until
recently, seafarers followed a general set of ethical guidelines on the open
ocean, said Caitlyn Antrim, executive director of the Rule of Law Committee
for the Oceans in Washington, D.C. It was generally accepted, she said, that
ships could sail anywhere without interference from neighboring countries.
That system worked well for hundreds of years, but President Harry Truman
muddied the waters in 1945 when he laid claim to Americas entire
continental shelf for oil and gas exploration. Hundreds of other countries soon
followed suit, both to gobble up underwater oil reserves and to protect their
fisheries. The first Law of the Sea conference was held in 1958, but delegates
couldnt figure out how to best carve up the ocean, so they let the question
hang. By the mid-1960s, a more comprehensive solution was clearly needed.
After almost a decade of negotiations lasting from 1973 to 1982,
delegates drafted a comprehensive document laying out how
member countries should use the worlds oceans and established the
framework for the EEZ. Article 87 codified key freedoms on the high
seas, including a countrys right to navigate and fly over the worlds
oceans, lay cables and pipelines, fish and conduct scientific
research. Articles 192 through 237 spelled out extensive rules on
pollution prevention and protection of the marine environment.
UNCLOS established an international tribunal to moderate disputes
between countries. UNCLOS was simply intended to be the suitcase, if you
will, that you could put a lot of (maritime) topics in, said Clay Maitland,
chairman of the North American Marine Environment Protection Association
and former delegate to the Law of the Sea Convention. When UNCLOS first
came up for Senate ratification in the early 1980s, President Ronald Reagan
laid out six areas of concern. He was particularly worried that the treaty did
not adequately protect U.S. mining interests in the deep sea. As it stood,
any country could hire a company to scope out areas in the high
seas thought to be rich in precious metals. That meant that one
country could pay for all the prospecting only to have another
country come in and start mining right next to them. By the 1990s,
policymakers had addressed all of Reagans concerns. Notably, the
U.S. was guaranteed a permanent seat with veto power on the
International Seabed Authority, the agency responsible for
governing actions, including mineral extraction, in the deep sea. By
then, after garnering the necessary 60 votes, the treaty was already
in efect globally. But the Senate has never been able to muster the
67 votes (two-thirds majority) necessary for ratification. In 2007,
Antrim and others went to scores of senators offices pushing the
case for ratification. Backers of ratification included industry reps
from mining and oil and gas companies, various environmental
http://www.islandsbusiness.com/news/environment/950/pacific-region-facesseabed-mining-challenge/) patel
Minerals, such as rare earth metals, are increasingly becoming an
important commodity in a resource-constrained world economy. As a
result new frontiers both onshore and offshore, to the depths of the ocean,
are emerging around the world. The Pacific region stands at the forefront of
this pioneering venture. Yet concerns abound about the environmental
impacts of future offshore mining projects on deep sea ecosystems. With
limited experience in managing extractive resources and embryonic
capacities to oversee offshore activities, Pacific Island governments must
remain cautious in making decisions about whether to engage with seabed
mining activities, and consider how to do so in the best and long-term
interest of their nations. Conscious of the opportunities but also the risks,
states in the Pacific Islands region have recently embarked on a regional
initiative. This initiative is the development of policy and legislative
regimes to manage seabed mining activities, with the assistance of
the Secretariat of the Pacific Community and the European Union.
Seabed minerals: a new frontier The recent discovery of rare earth
elements in the deep seabed by Japanese interests, and the granting
by Papua New Guinea of a pioneering ofshore mining license for
seabed mineral deposits 1500m below sea-level, has drawn renewed
international attention to the Pacific region. Resource competition
continues to intensify for rare earth metals critical to the new hightech and ''green'' economies, whereas China still maintains a near
monopoly on current world supplies. Global demand for various
other metals found within deep seabed mineral resource samples copper, gold, manganese, cobalt, nickel and other strategic metals is on an upward trend, sustained by the industrialization of the
BRICS countries (Brazil, Russia, India, China and South Africa) and
other emerging economies. Since the discovery of polymetallic
nodules in the abyssal plains of ocean basins in 1873, the deep
seabed has been viewed as a potential new mining frontier. Marine
mineral exploration in the 1970s and 1980s highlighted two additional
seabed mineral types: cobalt-rich crusts found on the flanks of submerged
volcanic islands and seamounts throughout the world's oceans (at depths of
400 - 4,000 meters), and seafloor massive sulfides (SMS) (or 'black smokers')
that form along seabed ridges in water depths ranging from 450 to 5,000
meters. A 21-year seabed mineral prospecting program run by the
government of Japan in collaboration with the South Pacific Applied
Geoscience and Technology Commission (SOPAC) investigated the
seabed minerals potential in the Exclusive Economic Zones (EEZs) of
12 countries in the Pacific region. A number of Pacific Island
countries (PICs) have since issued exploration licenses within their
EEZs to exploration companies. In a pioneering move, in January 2011,
the government of Papua New Guinea granted Canada's Nautilus Minerals Inc
the rights to extract SMS deposits containing gold, copper, silver and zinc
from the Bismarck Sea under its ''Solwara 1'' tenement: a world-second
deep sea mining license to be issued. The copper grades of SMS are
found to be several times the grades currently mined onshore. From
the early 2000s, increase in metal prices on global markets have
Kiribati. Potential for development in PICs With some of the world's largest
EEZs and known seabed mineral potential, Pacific Island countries stand at
the forefront of this new industry. But concerns are voiced regarding
national regulatory capacities, particularly given the lack of
scientific consensus on the risks to marine ecosystems and
biodiversity associated with deep sea minerals. To secure national
development from resource extraction, a range of factors are at play
including efective macroeconomic management and high quality
governance institutions characterized by transparency and the rule
of law. Comprehensive and well implemented legal and regulatory
frameworks for deep seabed mining are a requirement of UNCLOS,
and equally important to attract responsible foreign investors into a
state jurisdiction. For projects that entail such high risks, consistency of
regulation and security of tenure would be a prime expectation for any
creditable operators in this pioneering field. How states (and the ISA)
formulate fiscal regimes for seabed mining taxes and royalties will also be
key. Facilitating a viable industry must be balanced against securing
appropriate return to the states (or for ''mankind'' in general) whose
resources are being exploited. As the SPC-EU Deep Sea Minerals Project
assists PICs with the development of legal and regulatory frameworks to
govern deep sea minerals activities, prospects are taking shape for a new
economic opportunity for the Pacific region. But lessons must be learnt from
history: from decades of negative social and environmental impacts from illmanaged onshore mining operations, and from failure to maximize returns to
the state from the exploitation of other natural resources - on-land mining,
logging and fisheries. Pacific states now have the opportunity of a new start,
developing well-thought-out, precautionary, proactive policies and dedicated
seabed minerals legislation before any mining activities commence. The Cook
Islands and the Kingdom of Tonga have taken the lead amongst PICs to
establish national legislative regimes to complement the ISA's efforts at the
international level - designed to uphold international law standards, minimize
adverse social or environmental impacts, and the realization of economic
benefits. All parties recognize, however, that the implementation of such
regimes will be a challenging ''ask'' of small island governments. Looking
ahead, and building on the work of the regional SPC-EU Deep Sea Minerals
Project, there is conceivable benefit to PICs adopting a collaborative approach
at the regional level. Strengthening regional capacity to oversee and assist
with legal and technical matters, and the setting of minimum standards on a
regional basis, for the management and monitoring of DSM activities is
recommended. A coordinated negotiating bloc of PICs, using pooled capacity
for regulatory mechanisms, could support equitable and sustainable
development across the region, rather than mere exploitation of those nonrenewable resources. A different kind of ''race to the bottom'' could be
avoided if PICs coordinate, rather than compete, to attract investors.
impinged on oil- and natural gas-rich Norwegian claims (claims that have long
been widely, if informally, acknowledged as belonging to Norway) in the
Barents Sea. Though Norway's claim, released in late 2006, is in some ways
more realistic, it appears to have been drafted to meet Russia's aggressive
claim in kind. With Russia increasingly aggressive in its use of oil and
natural gas as a lever against Europe, it will fall in part to UNCLOS
(and possibly the CLCS) to make decisions that will afect the
reserves and production potential of Norway and Russia. As it stands
now, the CLCS is highly unlikely to support one side over the other, and it will
throw the decision over the extent of continental shelf ownership to the two
countries to negotiate, a resolution that bodes ill for Norway. Treaty
advocates say this would not necessarily be the case if the United States
were involved in the organization. National security-focused advocates in the
United States say the country's nonparticipation in UNCLOS shuts out
Washington from being able to meaningfully influence how UNCLOS resolves
the disputed claims. Industry, from oil and natural gas producers to their
major customers in the chemical and transportation industries, also wants the
United States to have a seat at the table.
1NC Enviro NB
LOST provides environmentally friendly standards
1NC Multilat NB
Ratification supports a multipolar world
Scott G Borgerson May 2009 former Liuetenant of Coast Guard, fellow for
ocean governance at the Council on Foreign Relations (CFR) and an adjunct
senior research scholar at Columbia Universitys Center for Energy, Marine
Transportation, and Public Policy (Council on Foreign Relations, The National
Interest and the Law of the Sea,
http://www.cfr.org/content/publications/attachments/LawoftheSea_CSR46.pdf)
patel
In many ways, the arguments surrounding the treaty are emblem- atic of the
broader debate about the role of U.S. diplomacy in the post- 9/11 world.
Skeptics of the convention believe it is not needed, given the
hegemonic strength of the U.S. Navy. And, they ask, why does the
United States need to join this international agreement if it has
gotten along fine so far without it? They also worry that the United
States will undermine its sovereignty by incurring additional treaty
obligations to international bodies established within the United Nations'
svstem. In a fast-changing world, with new threats confronting the
United States all the time, this camp holds that the United States
needs to be able to respond as nimbly as possible, unencumbered by
lengthy legal conven- tions that might restrict its freedom of action.
Supporters of the convention counter that the principles embodied
in the treaty are the cornerstone of U.S. naval strategy and create
the rule of law for prosecuting pirates and the growing number of
other threatening nonstate actors. They argue that the convention is
impor- tant for economic reasons as well, as it creates legal
certainty for all kinds of commercial ocean uses, from ofshore oil
and gas to undersea cables to deep-seabed mining, that favor U.S.
interests. They also argue, from an ecological perspective, that the
convention helps the United States assume a leadership position for
dealing with collapsing fishing stocks, pollution from land-based
sources and ships, and the growing danger of ocean waste.
Convention advocates highlight how oceans are, by their very
nature, international and thus require a regime of international law
and collaborative approaches to their management. They point to the
1995 UN Fish Stocks Agreement as a prime example of how a carefully
constructed international accord negotiated within the framework of the
convention can provide for a legally binding conservation regime.
Recognizing the utility of this specific fisheries management tool, the United
States rapidly ratified this additional instrument as soon as it was possible to
do so in 1996. Lastly, supporters ask that if the United States is not
willing to accede to a convention that it requested, funda- mentally
shaped, and subsequently caused to be modified in order to address
its own concerns, then why in a multipolar world should other
countries follow its diplomatic leadership? In such a context, how
will expressions of U.S. commitments to the rule of law abroad be
heard?
well. The height of hubris is not that the United States might govern the
world, at least in part. This is a fact of international politics. Rather, hubris
arises in the belief that the virtue of its people and leaders will
restrain the United States sufficiently such that other peoples will
voluntarily cede a measure of their sovereignty to it. 50 Politicians and
peoples may occasionally be saintly, but it would be folly to rely on this
quality at home or abroad. Recognizing the universal need to
restrain authority, the United States should, in its own self-interest,
lead the way to a new world order.
2NC Multilat NB
UNCLOS shows commitment to multilateralism
Scott G Borgerson May 2009 former Liuetenant of Coast Guard, fellow for
ocean governance at the Council on Foreign Relations (CFR) and an adjunct
senior research scholar at Columbia Universitys Center for Energy, Marine
Transportation, and Public Policy (Council on Foreign Relations, The National
Interest and the Law of the Sea,
http://www.cfr.org/content/publications/attachments/LawoftheSea_CSR46.pdf)
patel
Opponents or the convention argue that there is no need to join the treaty
because, with the world's hegemonic navy, the United States can treat the
parts of the convention it likes as customary international law, following the
convention's guidelines when it suits American inter- ests and pursuing a
unilateral course of action when it does not. They also argue that the
convention is an unforgivable forfeiture of U.S. sovereignty to states that
mean American interests harm. Supporters counter by saying that the
convention expands the rule of law over the vast expanse of the
world's oceans and contains provisions that could actually extend
U.S. sovereignty. They also believe that shunning the convention is a
tone-deaf response to the spirit of multilateralism and that, beyond
undermining specific ocean policy issues and freezing the United
States out of the convention's decision-making bodies, it tar- nishes
America's diplomatic reputation at a critical moment in international relations.
Scott G Borgerson May 2009 former Liuetenant of Coast Guard, fellow for
ocean governance at the Council on Foreign Relations (CFR) and an adjunct
senior research scholar at Columbia Universitys Center for Energy, Marine
Transportation, and Public Policy (Council on Foreign Relations, The National
Interest and the Law of the Sea,
http://www.cfr.org/content/publications/attachments/LawoftheSea_CSR46.pdf)
patel
The 1982 Convention on the Law of the Sea may seem an obscure agreement
to nonexperts. That is not the case. The convention is a care- fully
negotiated international agreement numbering several hundred
pages that covers a host of measurable national security, economic,
and environmental issues of vital strategic importance to the United
States. By remaining a nonparty to the convention, the United
States not only forfeits these concrete interests but also undermines
something more intangible: the legitimacy of U.S. leadership and its
international repu- tation. For example, American pleas for other
nations to follow pollu- tion and fishing agreements ring empty when
the United States visibly rejects the Law of the Sea Convention.
Remaining outside the con- vention also hurts its diplomatic hand in
other international forums, as well as the perceptions of other states
about U.S. commitments to multilateral solutions. As former
Supreme Court justice Sandra Day O'Connor has noted, "The decision
not to sign on to legal frameworks the rest of the world supports is
central to the decline of American influ- ence around the world."2
Given the unprecedented challenges, threats, and opportunities the
United States currently faces, it is as important as ever at this
critical juncture to strengthen American influence and diplomatic
leadership. Historically, one of the underlying foundations of U.S. global
leadership has been a perceived commitment to the international rule of law
and willingness to build international institutions that create a predictable
international order from which all peace-loving countries can benefit.
Acceding to the Law of the Sea Convention will help undergird
contin- ued U.S. leadership, by sending a tangible signal that the
United Statesremains committed to its historic role as an architect
and defender of world order. From this perspective, acceding to the
convention is low-hanging fruit to advance a much broader U.S.
foreign policy agenda. It has the broadest bipartisan domestic
support; supplies the most direct national security, economic, and
environmental benefits for the United States; and has genuine
global reach. A committed political effort to join the convention during 2009
will provide a highly visible demonstration to a world audience that U.S.
leadership has the resolve to match words with actions, especially when
domestic follow-through means expending political capital. Breaking the
fifteen-year stalemate in the Senate on the convention will be a
strong signal that the United States is committed to multilateral
agreements, especially those whose development both Republican and
Democrat presidents and a strong bipartisan caucus in Congress cham- pion.
Therefore: 1. The central and strongest recommendation of this report is that
the Senate should exercise its constitutional authority by offering its consent
for the United States to formally join the 1982 Convention on the Law of the
Sea.In doing so, the Senate should consider the carefully worded and
painstakingly crafted text resolution of advice and consent sub- mitted as
part of the SFRC Executive Report in December 2007 (Appendix III). This draft
resolution chooses arbitration for dis- pute settlement and makes other
important declarations, under- standings, and interpretations that safeguard
U.S. interests. These details are not insignificant, specifying U.S. exemption
from man- datory dispute settlement in certain cases; requiring legislation for
implementation in U.S. waters and to guide interpretation in U.S. courts; and
preserving Senate oversight over any future amend- ments to the
convention. If the Senate takes the convention up again this year, it
would also have another opportunity to revisit this text of advice
and consent and could make additional decla- rations,
interpretations, and understandings needed to safeguard U.S.
sovereignty. For the reasons listed in this report, the president should
consider making U.S. accession to the convention a leading foreign policy initiative in 2009.
Panchyson 13- Dorian (12/19/13,UNCLOS-er than ever; why the U.S. should
learn to stop worrying and love the law of the sea
http://www.nationalsecuritylawbrief.com/unclos-er-than-ever-why-the-u-sshould-learn-to-stop-worrying-and-love-the-law-of-the-sea/) patel
Preliminary studies indicate the U.S. extended continental shelf totals close to
one million square kilometers an area approximately double the size of
California, with a large portion in the Arctic Sea north of Alaska. As
knowledge of these areas expands through ambitious mapping
projects such as Ballards and other joint-government projects, the
U.S. is likely to encounter increasingly tense negotiations over
disputed areas. Without the adjudication mechanism ofered by
UNCLOS, the U.S. may be forced to settle disputes through
diplomacy, or alternatively, assert the claims unilaterally. Given that
all other Arctic Council member countries have ratified UNCLOS, the U.S.
should make UNCLOS ratification a key security priority moving forward.
Presidential Proclamation granted the U.S. sovereignty over its marine
holdings rather than international law. In 1983, President Reagan signed
Proclamation 5030, declaring sovereignty over the 200 nautical miles
extending from the continental U.S., as well as its overseas territories and
protectorates. This came a year after the U.S. declared it would not ratify
UNCLOS, as Part XI was seen to be unfavorable to free-markets and counter
to U.S. security interests. Despite support from both the Clinton and George
W. Bush administrations, ratification was unreachable as a result of
Congressional resistance. However, a recent support has been driven by
recognition that UNCLOS could be in the national interest in a variety of
areas. Supporters cite the need to establish additional mechanisms
to counter Chinas increased unilateralism in the South China Sea,
while securing rights for U.S. commercial and naval ships, amongst
Borgerson May 2009 Scott G former Liuetenant of Coast Guard, fellow for
ocean governance at the Council on Foreign Relations (CFR) and an adjunct
senior research scholar at Columbia Universitys Center for Energy, Marine
Transportation, and Public Policy (Council on Foreign Relations, The National
Interest and the Law of the Sea,
http://www.cfr.org/content/publications/attachments/LawoftheSea_CSR46.pdf)
patel
Opponents for the convention argue that there is no need to join the treaty
because, with the world's hegemonic navy, the United States can treat
the parts of the convention it likes as customary international law,
following the convention's guidelines when it suits American interests and pursuing a unilateral course of action when it does not.
They also argue that the convention is an unforgivable forfeiture of U.S.
sovereignty to states that mean American interests harm. Supporters
counter by saying that the convention expands the rule of law over
the vast expanse of the world's oceans and contains provisions that
could actually extend U.S. sovereignty. They also believe that
shunning the convention is a tone-deaf response to the spirit of
multilateralism and that, beyond undermining specific ocean policy
issues and freezing the United States out of the convention's
decision-making bodies, it tar- nishes America's diplomatic
reputation at a critical moment in interna- tional relations. Debating
the wisdom of whether to enter into international agree- ments is as old as
the nation itself. Stung by the controversy over the 1794 Jay Treaty and the
emergence of bitter partisanship between anglophile Federalists and
francophile Democratic-Republicans (who felt the United States betrayed its
French midwife when negotiating with the British in light of the 1778 treaties
of Amity and Commerce), George Washington warned in his 1796 farewell
address against "per- manent alliances." In the centuries that followed,
two distinct camps emerged in the American foreign policy tradition:
one was isolation- ist, seeking to hide behind the Monroe Doctrine
and remain aloof from corrupt, European deal-making; the other was
more internationalist, seeking a more active United States in world
afairs.1'' Debates for and against the convention roughly fit within
these two categories. Proponents of the convention, who can be assumed
to include almost all Democrats and moderate Republicans (by most
accounts, a large enough bloc to achieve a two-thirds majority, as required by
the Constitution for the United States to join the convention), have
been frustrated to date by a passionate minority that strongly
believes it is not in U.S. interests to join the convention. Opponents of
the treaty argue that the convention unnecessarily commits the United States
to follow rules designed by states hoping to constrain American free- dom of
action. Their specific objections to the convention are crystal- lized in the
minority views submitted for the record the last time the convention was
favorably voted out of the SFRC in December 2007: "[CJertain provisions of
the [convention], particularly those dealing with navigation, have merit," but
overall and especially in regard to the dispute resolution, "[i]t is puzzling why
we would want to submit to a judicial authority selected by the United
Nations, given the organiza- tion's corruption scandals, and the fact that of
the 152 countries Party to the treaty, the median voting coincidence with the
United States in the General Assembly was less than 20 percent. This treaty
subjects the United States to a governing body that is hostile to American
inter- ests." 16 Other provisions found objectionable included "taxes"
assessed to outer continental shelf activities; fear of judicial activism by the
Law of the Sea Tribunal, especially with regard to articles relating to landbased sources of pollution that are called a "backdoor Kyoto Protocol"; and a
belief the convention will severely curtail U.S. intelligence-gath- ering
Agreement entering into force because the United States has not
signed UNCLOS. 128 Pioneer investors are those states that are
signatories to UNCLOS III and have the opportunity to explore the
deep seabed.129 The new agreement allows U.S. companies to have
the same rights as pioneer investors if they meet certain technical
requirements.130 In this instance, the United States was put in the same
position as potential deep seabed-mining states.131 The United States is also
guaranteed a position on the Council should it sign UNCLOS. There are
many misconceptions as to what the signing of UNCLOS would mean
for the United States and deep seabed mining. It is argued that by
ratifying UNCLOS, including the Agreement, states will inevitably
have to discontinue their unilateral attempts at deep seabed
mining.133 However, this is unfounded as the law of the deep seabed was
intentionally not settled in order to produce solid negotiations of the sort that
resulted in UNCLOS.134 Most, if not all, of the potential deep seabed mining
nations are dedicated to the adoption of UNCLOS and the Agreement.135
The potential deep seabed mining countries understand that there is
a lack of economic viability in the present deep seabed mining
industry, and it is inconceivable that the necessary financial
markets would support unilateral mining if it is contrary to the
principles of UNCLOS.136 The other issue that could present slight
problems in the deep seabed mining framework is the dual regimes
developed under UNCLOS and the Agreement.137 Some states
adopted the original Part XI, whereas others, such as the United
States, negotiated and adopted the 1994 Agreement.138 However,
the dual system is unlikely because most nations supported the
1994 Agreement and no state voted against it.139 The only
possibility of a dual regime will arise if the United States fails to
ratify the Agreement and then unilaterally attempts to subsidize its
own industry.140 The question then arose as to the accessibility of the
nodules of the deep seabedparticularly the unlimited access of private
entities not signatories on UNCLOS.141 The fear was that such unlimited
access would create a shift in the market, eroding the stability of the
seabed market.142 Developing nations were opposed to the limited
access provisions because they would drive a technological and
economic gap between the developed and developing nations.143 In
this instance, those nations already producing land-based minerals would
most likely choose to protect themselves from the unlimited supply of deep
seabed minerals by lowering the prices of the land-based minerals.144 Most
of the G-77 considered political control of economic activity to be the solution
to the instability of the seabed market; many nations consequently requested
production controls.145 However, those countries already involved in mining
supported a free market system because of the uncertainty in the deep
seabed potential market.146 The rift in the negotiations occurred when the
potential miner nations feared great political constraints to limit the
possibility of failure would create a less friendly market.147 However, other
nations feared that ocean mining would be overburdened and force mineral
prices to fluctuate.148 Because of this fear, these nations required a limited
market in which the political entity would rule on the matter as circumstances
arose, leaving the political entity rather than the demand for the minerals as
the driving force in the market.149 Part XI of the Convention pertains directly
to individual seabed mining companies.150 If a company is sponsored by
a member state, state sponsorship presupposes some general
supervisory duties, allowing a company to apply for exclusive or
exploitation rights to mine along the international seabed.151 The
private property rights of those companies depend on the authority
of international law to grant these exclusive and/or exploitation
rights.152 Granting of these rights was in response to the position
that exclusive mining rights over a particular length of time and area
are a necessary precondition to private investment in the
development of nonliving resources found in the seabed.153 The
grant of private access to international organizations for the
attainment of mining rights induces more provisions for property
and economic rights of the private entities.154 In order to explore
the continental shelf, mining companies must acquire exclusive
mining rights of a specific area through a contract.15
***NEPA CP
significant use of chemicals (e.g. acids, alkalis, solvents) (ii) the presence of significant Th
concentrations in REE ores and concentrates, and to much a lesser extent U, and the radioactive nature of
majority of the REEs; their uses mean that the majority of REE demand is for high-purity single REEs.
Hence, the processing of REE ores does not simply involve the concentration of ore minerals such as
sulphides or native metals (as is the case for many base and precious metals), but instead required the
selective separation of each individual REE from the hosting minerals and subsequent production of a
single clement concentrate or product. The highly variably nature of REE minerals (e.g. Table 2), again
sharply contrasts with both base and precious metal resources where commodities of interest are hosted
variety of REE
minerals means that the REE extraction and processing is problematic and
can be time-consuming. This, combined with the fact that the REE are chemically similar (i.e. have
similar properties and behaviors) means that REE mineral processing techniques are both
energy and chemically intensive. The difculties and expenses in REE extraction and
processing also means that these processes can have significant environmental
impacts. The relatively small and somewhat poorly documented (compared to, for
example, Cu processing by smelting or Au processing using cyanide , both of which are
harmful but with more well-known and more easily remediated impacts) nature of global REE
production means that little research to date has focused on the life cycle
environmental impacts of REE production, including the impacts of REE mine site,
by one or two relatively easily processable minerals in any given deposit. The
processing, production, manufacturing and recycling (or lack thcrcoi) processes on the environment. In
China Daily (Jiabao and Ji, 2009). This report indicates that the production of a single tonne of refined REE
oxide from Bayan Obo, the world's most important REE deposit, also produced 63 000 m3 of harmful Sand F-bcaring gases, 200 m3 of acidic water, and 1 -4 t of radioactive waste (especially Th-related
wastes).
pneumoconiosis as well as potential occupational poisoning from Pb, Hg, benzene, and phosphorous.
In addition, the costs and likelihood of successful rehabilitation of affected mining and processing sites
need to be considered during mineral exploration and within feasibility studies; to date, these have not
been significant factors given the low number of REE mines globally, although the increased demand for
the REE means that these impacts need to be considered in detail in the very near future. At present, there
is a dearth of literature linking REE deposit mineralogy, processing routes and waste management
methods to environmental risks through formal methodologies such as life cycle impact assessment (LCA).
2NC Solvency
CP is a pre-requisite to deep sea mining and causes a spur
of technological innovation critical to Af solvency
Halfara and Fujita 02 (Jochen and Rodney, Marine Policy, Volume 26
Issue 2 pg. 103-106,
http://www.sciencedirect.com.turing.library.northwestern.edu/science/article/p
ii/S0308597X01000410) It is well known that terrestrial and aquatic ecosystems can
impacts related to the mining activities will likely be needed. New discoveries of rich and massive mineral deposits could spur a great
deal of investment in deep-sea mining. Historically, environmental regulations have followed the development of new technologies
and industries, rather than anticipating and guiding them. Massive
water
***Misc CPs
Substitutes CP
Text: The USFG should provide incentives to develop
substitute and recycling technology for REMs
CP solves the price disruptions by reducing demand
Parthemore, 11 Christine, Fellow at the Center for a New American
Security, Elements of Security,
http://www.cnas.org/files/documents/publications/CNAS_Minerals_Parthemore
_1.pdf
The U.S. government should create incentives to reduce
consumption when its interests are on the line. This report focuses
primarily on the nature of current and potential supply challenges,
but solutions must also include reducing demand for minerals that
see major disruptions or erratic prices . Policymakers can maximize
the potential of substitution and recycling by clearly identifying the
minerals for which U.S. government interests are afected most
directly, and then ofering incentives to develop substitutes for
these minerals. Developing efcient solutions, however, will require addressing the daunting
information chal - lenges discussed earlier
Recycling CP
The United States Federal Government should expand its
e-recycling programs for rare earth collection.
E-recycling solves short term market problems and avoids
the link to the DA
Cho 12 (Renee Cho is an environmental writer for the Earth Institute, Rare Earth Metals:
recycling ewaste cannot satisfy the rapidly growing demand for rare earth
metals, it is one way to help alleviate the shortage . Recycling and
reusing materials also saves the energy used in mining and
processing, conserves resources, and reduces pollution and
substitute metals. E-waste recycling in Ann Arbor, MI. Photo: George Hotelling Though
greenhouse gas emissions . The U.S. Environmental Protection Agency reports that in 2009,
2.37 million tons of electronics were discarded, but only 25 percent was recycled. The
European Union recently enacted new e-waste recycling rules requiring member states to recycle 45
percent of all electronic equipment sold starting in 2016, rising to 65 percent by 2019. (Find out where you
can recycle your e-waste.)
electronics recycling. The study was released to lawmakers today. Ask as they may, the U.S. House of
Representatives seems unlikely to oblige. The House majority's FY 2011 discretionary budget proposal
dramatically reduces government spending for the sciences by 33 percent, the APS reports. House
Republicans have committed to cut US$100 billion in government spending, with the possibility of further
cuts to come. Washington's nascent austerity politics puts the experts at loggerheads with policy makers:
the study saw no away around greater government involvement. The Associated Press quoted Robert Jaffe,
co-chair of the joint study group and professor at Massachusetts Institute of Technology, as saying, "We do
not recommend economic stockpiling, which we believe is a disincentive to innovation and has backfired in
the past." Jaffe continued, "After all,
response. In December, a rare earth mine reopened in California. Rare earth minerals belong to a family of
elements that are used to manufacture many staples of the modern world - ranging from electronics,
hybrid cars, solar panels and wind turbines to guided missiles. China is the worlds leading source of rare
***China DA
1NC China DA
Current Chinese monopoly over the REM industry is
critical to maintain stable control of Clean Tech
Leadership
China has thus become the de facto producer, user, and exporter of
REEs (Kingsnorth. 2011), with the USA. Japan. Germany and France as the key
importers (see Fig. 2) (BGS. 2011; UN Comtrade, 2009) . The problematic nature of this importdependency is accentuated by China's questionable control of corruption, regulatory quality political
stability, voice and accountability as measured by the worldwide governance indicators, where China ranks
between the 25th and 50th percentile, with an average of 29.7/100 (Kaufmann et al., 2010). Based on such
the Chinese Society of Rare Earths and UK-based Roskill (Zhanheng, 2011) with data from the United
States Geological Survey (USGS) on proven reserves (Long et al., 2010). While the definition of proven and
anticipated reserves differs, the various sources seem to distribute responsibility in different ways through
the use of different reserves definitions. Following Zhanheng (2011) China holds less than 23% of global
reserves and Brazil holds almost 32.5%. Long et al. (2010) argue that China holds about 36% of global REE
reserves and attribute only 0.05% to Brazil. Korinek and Kim (2010) discuss the reserve base for rare
earths as well as state that 57.71% is to be found in China, 13.62% in FSU and 9.1% in the USA. This
suggests a varying distribution of responsibility from the actors involved. China's data suggest that Brazil's
anticipated reserve quantities have the potential to be exploited, thus reducing the current reliance on
The USGS data, on the other hand, suggests that China's proven
reserve dominance warrants their role as global provider of rare earths
(Long et al., 2010; see Fig. 3). Despite these differences, it is unanimously agreed that
China produces 95-97 percent of REEs used in downstream end-user
products. It is also generally accepted that the deposits in China are plentiful in heavy rare earths, and
estimated to contain 80 per cent of the world's heavy rare earth element s
(BGS, 2011; Long et al.. 2010; USGS, 2011). With the relatively recent boom in the use of
China.
There is also evidence that Chinese firms are not yet competitive in
certain market segments. Some provincial utilities in China have
chosen Western wind turbines over products from domestic firms due to
superior control systems and longer experience with manufacturing larger turbine sizes.77 The
quality of some Chinese greentech is often not yet as strong as that of
foreign products.78 As recently as 2009, Chinese wind turbines were less
capable than their foreign counterparts,79 as measured by lower capacity factors (the
percentage of time that the turbines operate to generate electricity).80 One article on the wind industry
Chinese
firms have grown rapidly through acquiring manufacturing equipment
and capitalizing on advantages such as their lower cost of labor.83 As a
technology patents that would enable them to develop more sophisticated equip- ment.82
result, they have quickly ascended into a leadership position in "downstream" areas of the PV production
chain, including cell production and module assembling, but lag behind in "upstream" areas requiring more
Chinese
companies have a rapidly increasing number of patents, but to date,
the companies are "relatively weak" in terms of the patents they hold
on more sophisticated technology.85 A Chinese observer notes that "[i]n quantity, China
has become a great solar energy patent country but power does not mean technical power."86 In 2009 ,
American companies held the top ten cited patents worldwide in solar
technological skill, such as silicon purification, ingot, and wafer manufacturing.83
technology.87 Government research and development support is aimed at closing this technology
gap.88 However, funding from the central government may be inefcient because it focuses too little on
it is only a matter of
time before Chinese greentech improves through the well-known
Chinese propensity to grow domestic companies by innovating, based at
first on importing foreign technology and assimilating it . As energy policy analyst Julian
basic research.89 Still, many who are familiar with China believe that
Wong observes: One of the historical features of China's technology innovation is the role of foreign
China's
government has adopted a model of "import-absorb-digest-reinnovate." Thus, the early stages of all technology development include heavy reliance on foreign
technology in the innovation chain. To achieve its goals of indigenous innovation,
technologies.90 Over time, much as Japanese and Korean automakers have evolved over the past few
Chinese greentech firms may eventually close the gap and sell
more sophisticated products. Even if Chinese solar and wind technology improves, however,
the greentech industry in the United States is hardly standing still. Unlike
decades,
a moribund Rust Belt industry ripe for trampling by foreign companies, it is growing and providing more
products to the domestic and global markets.91 The cost advantages of Chinese firms may eventually
fade,92 or the gap may close. Chinese workers increasingly are demanding higher wages and better
working conditions.93 Foreign firms are increasingly taking another strategy to cut costs: building their
own manufacturing plants in China 94 Some greentech, like the larger components of wind turbines, is
heavy and expensive to transport.*5 In the American market, the costs of shipping large turbines from
may or may not be accurate, the real question may be whether it matters. Americans may perceive, rightly
or wrongly, that Chinese firms are about to dominate this sector. There is obvious concern at the highest
levels of the United States government, as the USTR investigation and high-level discussions and trade
missions involving the American and Chinese governments suggest.97 Some retort that fear of Chinese
firms is as overblown as rhetoric in the 1980s claiming that mighty Japan was about to dominate the world
economic scene 98 Who is correct? The picture is muddled and leaves room for arguments based on fear
of what the Chinese firms might do. Setting up China as an economic bogeyman has a potential drawback:
American
companies' biggest fear is being shut out of the Chinese green- tech
market, portraying Chinese companies as participants in a competition
can easily lead to an arms race where each nation erects protectionist barriers to the
other's firms. In this zero sum game, there may be one winner. or none at
all. Some have argued that for this reason alone, it would be best to drop the rhetoric about a green
it could imperil the bumpy economic relationship between the two nations. If
energy race."
balancing act , it has to balance the desire of many Chinese to live a Western lifestyle, together
with its high energy consumption and waste, with the need to preserve the environment, since China,
and the world , would sufer enormous damage if 1.3 billion people
got all their energy needs from coal and oil, the two most widely used fossil fuels.
The debt crisis in the West means that it is very hard for Western
green energy companies to find financing for their technologies , then
to market them as finished products. New energy technologies are highly
risky, and initial investments are by no means guaranteed. Because they
are considered high-risk and require high capital expenditure (unlike Internet technologies which are very
cheap and practically commoditized), banks are reluctant to finance them unless they
are able to find government-secured financing. Because most U.S. banks are recapitalizing their businesses
then manufacture
these new
of energy released when coal or oil is burned, the new green technologies are still way behind. This means
that, at least in the early stages of adoption, Chinese businesses will still be reliant on coal and oil to
bridge that energy chasm before the new energy technologies become economically competitive. Much
depends on how much the Chinese government is willing to spend to promote and incentivize these new
Foreign Policy at the Council on Foreign Relations, Only Makes You Stronger,
The New Republic, 2/4/9, http://www.tnr.com/story_print.html?id=571cbbb92887-4d81-8542-92e83915f5f8
The greatest danger both to U.S.-China relations and to American power itself is probably not that China will rise too
far, too fast; it is that the current crisis might end China's growth miracle. In the worst-case scenario, the
turmoil in the international economy will plunge China into a major economic downturn . The Chinese financial
system will implode as loans to both state and private enterprises go bad. Millions or even tens of millions of
Chinese will be unemployed in a country without an effective social safety net. The collapse of asset
bubbles in the stock and property markets will wipe out the savings of a generation of the Chinese middle
class. The political consequences could include dangerous unrest --and a bitter climate of anti-foreign feeling that
blames others for China's woes. (Think of Weimar Germany, when both Nazi and communist politicians blamed the
West for Germany's economic travails.) Worse, instability could lead to a vicious cycle, as nervous investors moved their money
out of the country, further
2NC Uniqueness
Chinas leading the globe in clean tech competitiveness
Yu 12 Hongyuan, professor and deputy director of the Institute for
Comparative Politics and Public Policy, Shanghai Institutes for International
Studies, 12/28/12, A revolution is here, and clean energy is the spark,
http://europe.chinadaily.com.cn/epaper/2012-12/28/content_16065380.htm
Technological innovation is critical in the energy structure and, furthermore, nextgeneration energy will determine not only the future of the international economic system but shifts
in political power. Since the modern international system was set up, the energy chain has undergone two
important changes. The first was during the Industrial Revolution in the 1860s, ushered in by Britain, which was marked by
a transition from the era of fuel-wood, or the bio-fuel era, to the era of coal. The second change was the second industrial
revolution, in the United States in the 1920s, which saw a transition from the era of coal to the era of oil. Today we are in
the midst of a third revolution, a transition to an era of clean and low-carbon energy. Under the long-cycle theory, the
new-energy powerhouses
will ultimately change the global distribution of power through
international competition. As history shows, every significant structural change in the international
and national competitiveness. There is every reason to believe that those
system has been due to a revolution in energy. The country or non-state entity that seized a new energy chain or part of it
was challenging the status quo. As the world debates collective action against climate change, most countries have
found that economies based on new and clean energy and on low-carbon and clean energy hold the keys to the future.
The European Union's carbon aviation tax aimed at boosting the bloc's competitiveness and promoting climate
negotiations could also boost its creativity and competitive edge. The Low Carbon Economy Report by the Royal Institute
of International Affairs says that the EU promoted climate negotiations not just because it was a pioneer in low-carbon
economics, but because it also wanted to predominate in global governance and lay the foundations for the future
recycling economy so it can garner the highest possible economic and social benefits using the least energy possible.
non-fossil fuels by 2020. It is targeting the development of non-fossil energy including wind power, solar power, biomass
energy, solar energy, and thermal and nuclear power equivalent to 480 million metric tons of standard coal by the end of
2015, according to the 12th Five-Year Plan (2011-15) for the renewable energy industry issued recently by the National
Energy Administration. Hydropower is the leading source of renewable energy. It provides more than 97 percent of all
electricity generated by renewable sources. The dams and hydropower plants also play an important role in water
resource planning, in preventing flooding, making rivers navigable, solving irrigation problems and creating recreation
areas. During the 12th Five-Year Plan China will begin building more than 60 key hydropower projects, and the aim is to
have 430 GW of total hydropower installed capacity in the country by 2020. However, debate about the negative impacts
By the end of
2015 the country's wind power capacity is expected to reach 100
million kW , with annual electricity output of 190 billion kW/h, the plan says. China's wind power will reach 100
million kilowatts by 2015 and annual wind power generation will be 190 billion kilowatt hours. Of that, ofshore
wind power will account for 5 million kilowatts ; solar power will be 15 million kilowatts
of dams and hydropower plants is heated, most of it focused on environmental problems.
and annual solar power generation will hit 20 billion kilowatt hours. China enjoys many advantages in developing solar
energy. It has become a world leader in photovoltaic cell production. The demand in the country for new solar modules
could be as high as 232 mW each year from now until 2012. The government has announced plans to expand the installed
capacity to 1,800 mW by 2020. If Chinese companies manage to develop low-cost, reliable solar modules, then the sky is
the limit for a country that is desperate to reduce its dependence on coal and oil imports as well as the pressure on its
should seek to resolve trade disputes and eliminate protectionist trade policies. The US should closely look at sales of
Chinese renewable energy products in the US market and seek to reduce trade barriers. The difculty lies not in new
ideas, but in escaping from old ones. Whatever the outcomes and motivations, in order to deal with the energy-water-food
nexus, China should understand it is in its economic and national interest to move ahead with clean and zero-carbon
discrepancies between the ofcial statistics and the actual data of rare earth production and exports in
ofcials concerned that such a disproportionately high level of output could soon deplete their resources.
saw an
explosion of the number of poorly constructed and maintained local
in high concentration in clays and soil a few feet underground. As a result, the 1990s
less extreme, situation exists with the global lithium supply. Chile holds approximately 76% of the world's
currently accessible lithium reserves,59 dwarfing Argentina and Australia, which hold a combined total of
14% of the world's reserves.60 Additionally, recent findings in Bolivia suggest that there may be a massive
supply of lithium located underneath the country, causing some "Bolivians ... to speak of their country
becoming 'the Saudi Arabia of lithium.'"
2NC Link
China monopoly on REE key to maintain tech companies
which is key to their economy
Troianiello, 12 Antonio, University of French Polynesia, Associate
skew the playing field against the United States and other countries
in the production and export of downstream products. They can
artificially increase world prices for these raw material inputs while artificially
lowering prices for Chinese producers. This enables Chinas
domestic downstream producers to produce lower-priced products
from the raw materials and thereby creates significant advantages
for Chinas producers when competing against U.S. and other
producers both in Chinas market and other countries markets. The
export restraints can also create substantial pressure on foreign
downstream producers to move their operations, jobs and
technologies to China.
class of 17 related elements is also used for a vast array of electronic devices ranging from Apple's iPhone
to flat screen TVs, all of which are competing for the 120,000 tons of annual global supply. China controls
97 percent of rare earth production. "Rare earth for China is like oil to the Middle East," said Yuanta
production sources are developed, say ofcials at Australian rare earth mining company Arafura
China has curbed exports of the mineral since 2005 through quotas and duties,
saying it needs additional supplies to develop its domestic clean
Resources.
energy
and high-tech sectors. On Wednesday, it said it would cut export quotas in 2010 by 40
percent. "Export restrictions may provide an advantage to Chinese turbine makers, again because of the
third of the world's reserves, eats up to 60 percent of global rare earth supply for a wide range of
applications from consumer gadgets and medical equipment to defense weapons. For related factbox
click: China's trading partners have grown increasingly vocal about its move to cut its export quotas, but
Beijing is determined to control the rare earth market. "Foreign companies could be facing some material
supply risks, unless they decide to move production to China," warned Yuanta's Min Li. NO GUARANTEES
But while China may ensure its first-tier green companies are given access to the rare elements, analysts
agree this alone is unlikely to guarantee success for the Chinese clean tech firms. New technologies free
of rare earth elements could emerge that may undermine China's advantage, while further cuts in rare
earth quotas could trigger a political backlash which could force the nation to keep supply open for its
trading partners. "Chinese technology needs to develop quickly enough to make full use of that
advantage," said CIMB's Li. "That window closes if its existing technologies fail to evolve." Still China will
have the upper hand in the global rare earth market for a while yet. There are currently many new mine
projects outside of China in the pipeline but few will be able to compete with it on price unless
low prices. Also, the development of new rare earth mines could take as many as 10 years. China's
leading rare earth company, Inner Mongolia Baotou Steel Rare Earth Hi-Tech Co., is building 200,000
tonnes in rare earth oxide reserves, and state media reported that the company is joining forces with
If supply becomes
extremely tight as experts suggest, Chinese green companies may
take upon themselves to secure the mineral by getting involved in the actual
Jiangxi Copper Corp to set unified prices for rare earth metals.
process of making rare earth products, analysts said. BYD is scouting for new sources of lithium, an
important ingredient for its high-performance batteries.
potential business risks and geopolitical implications. Such concerns became more acute when China
reportedly suspended shipments of rare earths to Japan, due to a months- long diplomatic crisis with
Japan in September of 2010
economic modernization . In the late 1980s, the United States was the global leader in rare
earth production. However, preferential policies by the Chinese government and lax
environmental standards there quickly enabled China to become a
dominant, low-cost producer of rare earths by the late 1990s. Many analysts contend
that Chinas recent actions to consolidate its rare earth production
and restrict exports are intended to promote the development of
domestic downstream industrie s, especially those engaged in high
technology and
SpectraWatt Inc. in New York and Solyndra Inc. in California closing some of their facilities. As General
Electric Co.s chairman and chief executive, Tefflmmelt, said at last year's ARPA-E summit, t hose
leaving the United States to be deployed among our global competitors who have fully embraced the
economic and environmental imperative to enter a new era of cleaner, more sustainable and domestic
manufacturer and developer of efcient nuclear and coal technologies. But China isnt alone. Not by a long
shot. Germany is not far behind in linking strong clean energy policies to market growth and manufacturing
leadership, as the leading global manufacturer of solar invertersa key part of solar power systemsand
has made huge strides in energy storage solutions that will further accelerate the widespread adoption of
renewable power. Denmark, Japan, and the United Kingdom are also global clean energy leaders with
European Unions target. Germany has set a target of 60 percent by 2050. The country already gets 16
percent of all its power from renewables, well on its way to meeting this ambitious goal, and some think it
may reach 100 percent by 2050. Denmark has gone a step further, actually announcing its intention to
become 100 percent independent of fossil fuels by 2050, something that at least one of its islands has
already achieved. This occurred in a country that in 1970 was almost completely dependent on foreign
fossil fuels. These countries prove that strong clean energy standards build growing economies. But even
more than that, strong clean energy standards are now imperative if we are to compete on the same
playing field as China and Europe. America over the course of the 20th century took command of the
Industrial Revolution and the communications revolution, and then led the world into the Information Age.
It is time for us to lead the clean-tech revolution, too. Today, others are beating us to the punch, not
because we lack the technology and innovation to lead this new revolution, but because we are not
providing the market signals needed for our private-sector entrepreneurs need to invest over the long
haul. This clean energy investment gap is rapidly becoming the greatest threat to Americas technology
leadership.
the United States is losing a generation-defining cleanenergy race to China and the other big emerging economies. They are right that the United
States is dangerously neglecting clean-energy innovation . But an energy agenda built
on fears of a clean-energy race could quickly backfire. Technology advances most rapidly
when researchers, firms, and governments build on one another's successes .
When clean-energy investment is seen as a zero-sum game aimed primarily
at boosting national competitiveness, however, states often erect barriers.
They pursue trade and industrial policies that deter foreigners from
participating in the clean-energy sectors of their economies, rather than adopting
approaches that accelerate cross-border cooperation. This slows down the very innovation
that they are trying to promote at home and simultaneously stifles innovation
abroad. To be sure, clean-energy innovation alone will not deliver the energy transformation the world
United States. They warn that
needs. It can drive down the cost of clean energy and narrow the price gap between clean and dirty
sources, but it is unlikely to make clean energy consistently cheaper than fossil fuels anytime soon.
Government policies will still need to tip the balance, through regulations and incentives that promote the
adoption of alternatives to fossil fuels.
that reduce reliance on rare earth s. The US Geological Survey says that substitutes are
available for many applications, but generally are less effective. Still, Japan announced earlier
this month that it had developed the first high-performance motor, free of
rare earths, for petrol-electric hybrid vehicles. The House of Representatives in Washington recently
approved legislation to support revival of the once leading-edge rare-earths industry in the US, while the
Energy Department says it will release a plan this autumn for developing
more rare-earth metal supplies, in part by encouraging US trading partners to hasten
expansion of production. Yet China could keep its dominant grip on the rare-earths industry for
some years. It holds 35 percent of global reserves, but supplies over 95 percent of demand for rare-earth
oxides, of which 60 percent is domestic, according to Industrial Minerals Company of Australia, a
production if Chinese manufacturers were given preferential treatment over foreign competitors. Cerium is
the most abundant of the 17 rare earths, all of which have similar chemical properties. A cerium based
coating is non-corrosive and has significant military applications. The Pentagon is due to finish a report
soon on the risks of US military dependence on rare earths from China. Their use is widespread in the
defense systems of the US, its allies, and other countries that buy its weapons and equipment. In a report
to the US Congress in April, the Government Accountability Ofce said that it had been told by ofcials and
defense industry executives that where rare-earth alloys and other materials were used in military
systems, they were responsible for the functionality of the component and would be difcult to replace
without losing performance. For example, fin actuators in precision-guided bombs are specifically
designed around the capabilities of neodymium iron boron rare-earth magnets. The main US battle tank,
the M1A2 Abrams, has a reference and navigation system that relies on samarium cobalt magnets from
China. An ofcial report last year on the US national defense stockpile said that shortages of four rare
earths lanthanum, cerium, europium and gadolinium had already caused delays in producing some
The surge in
Chinese rare-earth output initially flooded the market, cutting prices and
stimulating new applications. Now with China seeking to capitalize on its advantage, the US
and other advanced economies are trying to rush alternative rare-earth
mines into production to reduce reliance on China and improve security of
supply. While demand is forecast to increase by around two thirds over the next five years, the US
weapons. It recommended further study to determine the severity of the delays.
Geological Survey says that undiscovered resources are thought to be very large relative to expected
2NC Brink
China has devoted their energy capacity to renewable
technology, restrictions to clean coal development have
left their energy sector vulnerable to U.S.
Hjalte 8
insufcient attention has been paid onto other sectors that would have greatly contributed to China's
by poor management and outmoded technology, and replacing them with new, modem and efcient ones.
However, the idea is difcult to put into action. This is because of high political barrier to closing them;
most of them are owned and operated by local government (Chandler &Gwin 2008: 9 ).
The
investments in coal energy sources have also been impeded. Due to
the restructuring of the State Power Corporation environmental goals
have been set aside and foreign investors are being redirected only
when local partners tail to keep up with the agreements within the
power sector. Unclear definition of baseline, methodology and justification of additionally has been a
major barrier as well (Zeng 2006: 83; Ojner 2007: 46). Similarly, the growing sector as transportation
raises pressing emission problem. China is expecting more than 140 million cars on its roads by 2020,
wanting to deploy and use any energy source they can % their hands
on. There's less of a perceived conflict between establish' energy sources and newer, cleaner options.
Wind, solar, small hydroelectric, biogas, biofuelswe need all of those, these nations seem to
say as much as possible, as soon as possible, and above all, as cheaply
as possible. This adds up to unprecedented opportunity for clean-tech manufacturers and investors in
meeting the power and water needs of billions people. The profit opportunity to serve the
emerging markets in China and countless other nations is expanding for both
large corporations are emerging start-ups. That's why today the
worlds leading wind, solar, and other clean-tech providers are already
moving into the Chinese mark via joint ventures with local companies
and other avenues. Tapping these markets won't be easy, but the growing, energy-hungry middle
classes of developing nations require massive new water energy infrastructure projects, be they wind
farms off the Indian corn ethanol plants in China, or desalination facilities in Algeria. And nr communities,
which still represent nearly 50% of the global population, are in desperate need of finding creative ways to
meet the resource needs of their residents. In India, some 56% of the population's 700 million rural
residents lack reliable access to electric power. The nation wants deliver electricity to all of them by 2020
5O% of it from renewal sources including wind, solar, and biofuels.
2NC Impact
Chinese growth fueled by clean tech is key to global sustainability
Wu, 12 Changhua Greater China Director, The Climate Group, July 2012,
CONSENSUS AND COOPERATION FOR A CLEAN REVOLUTION,
http://thecleanrevolution.org/_assets/files/TCG_ChinaCC_web.pdf
This transformation, together with growth of other emerging economies, is
reshaping the world. Along with the likes of India and Brazil, Chinas growing
economic power has a direct impact on a range of global
sustainability issues , from climate change and resource use, to
international trade and responsible business investment. With the worlds
second largest economy and the largest population, Chinas actions now have global
repercussions
for good or bad. Policy and decision makers in China understand this. This is why,
greenhouse gas
emissions . But this is not being done simply for altruistic reasons. The biggest driver for
change
is energy and resource security , along with the recognition that global climate
change, if left unchecked, has the potential to undermine much of what China has achieved. Over the
next five to ten years,
room of its economy . By doing so, Chinas aim is not only to address its energy and resource
to develop and lead the clean industries that will be at
the heart of low carbon 21st century economies. And as policies and measures
laid out in last years 12th Five Year Plan demonstrate, Chinas plans are more than just
rhetoric. But success is by no means guaranteed. In the absence of a proven
concerns, but also
road map or uniform template for green economic growth, a learning-by-doing approach is necessary.
Because this means mistakes may be made,
China's increasing
dependence on oil imports is also a concern. China has changed from an oil
times, has contributed to widespread electricity shortages [2].
exporting country in the early 1990s to one of the largest oil importing countries in the world, with an oil
Domestic concerns about the impact of climate change also contribute to the urgency of climate mitigation
[6]. Third, REEE policies affect economic competitiveness.
energy products
(e.g., wind turbines and photovoltaic cells) has been designated as a pillar
human livelihood is the fifth issue affecting China's adoption of REEE policies. Despite rapid development,
many Chinese rural households still depend heavily on traditional biomass energy for heating and cooking
[9). Renewable energy, such as photovoltaic and solar water heating, can
significantly improve the livelihood of people from underdeveloped areas in China. Due to the salience of
since 2005. However, as this critical review demonstrates, China's REEE policies are still far from
is organized into five parts: electricity, industry, transport buildings, and local government.
supply 300 million [extra] jobs by 2020."44 This also plays into a broader economic strategy designed to
rebalance China's economy. For decades China has been dependent on export-driven growth. Western
leaders have long decried trade imbalances and Chinese policies that favor exports at the expense of its
internal consumption. In the aftermath of the global economic crisis, the need to rectify global imbalances
production ladder. This affects rare earths in two ways. First, curbing the export of REO promotes the
development of higher value-added levels of rare earth-related production in China. Rather than simply
being content with selling oxides and refined rare earth metals, restricting exports of these products
supports the development of local manufacturers of rare earth applications and industries further
downstream. After all, why be content with selling REO when you can eventually sell the electric cars and
foreign competition.
how vulnerable Western economic growth is to an upward revaluation of the Chinese yen. Should that
would add greatly to the debt servicing cost of budget deficits in the USA, the UK and much of Euro land.
A reduction in demand for imported Chinese goods would quickly entail a decline in Chinas economic
that and unemployment will rise and the massive shift in population from the country to the cities becomes
Changs book again. Contrary to popular belief, foreign investment has actually deferred political reform in
pessimistic forecast for China was probably wrong. But my fear is there is at least a chance he was just
early.
of wind energy technology in China. For instance, Xinjiang Coldwind Science & Technology Company
(Coldwind), the largest turbine manufacturer in China, started its R&D operation by undertaking the
National Key Science and Technology Project in the 9th Five-Year Plan to develop 600 kW wind power
generating sets in 1998. One year later, Coldwind successfully developed China's first 600 kW wind power
generating set, with a localization rate of 90%. During the 10th Five-Year Plan period, Coldwind was
granted three National Science and Technology Projects, one of which was to develop 1.2 MW direct-driven
permanent magnet wind turbine. Four years later the first two 1.2 MW magnet turbines were erected. Their
localization rate, again, reached 90%. So far Coldwind has acquired independent R&D capacity and
proprietary IPR for 1.5 MW and is currently testing its 3 MW model. And the design and development of 5
received much support from the government of Xinjiang Autonomous Region. The local government
designated a high-tech development zone for Coldwind and also provided matching R&D funds to some of
the 863 and 973 grants. In terms of favorable policy, Coldwind enjoys an up to 15% income tax deduction
for the year 2001-2010. This benefit is supported by two regulations promulgated by the National
Development and Reform Commission (NDRC): the Catalog for the Guidance of Industrial Structure
Adjustment (2005) and the Circular on Preferential Tax Policy Issues for Developing the Western Region
described the
totality of China's clean technology development efforts as an example
of the approaches that can be taken in crafting effective, countryspecific clean technology policy and development. For developing
countries, the bulk of technological progress comes from the adoption and
adaptation of pre-existing but new- to-market technologies, and through the spread
(2001). The paper did not seek to provide a critique of these measures. Rather, it
of technologies across firms, individuals, and the public sector within a country (World Bank, 2008). In the
provides policy approaches and funding and partnership models from which other emerging and
developing countries can learn.
world's second largest economy and the largest population, China's actions now have global repercussionsfor good or bad. Policy and decision makers in China understand this. This is why, after three decades of
rapid economic growth, China
reasons. The biggest driver for change is energy and resource security , along
with the recognition that global climate change, if left unchecked, has the potential to undermine much of
century economies. And as policies and measures laid out in last year's 12th Five Year Plan demonstrate,
China's plans are more than just rhetoric. But success is by no means guaranteed. In the absence of a
proven road map or uniform template forgreen economic growth, a learning-by-doing approach is
***Politics
1NC Politics
Plan unpopularempirics
Doggett 10 (Tom Doggett is an economist of Reuters, 9/30/14, "U.S. aims to end China's
rare earth metals monopoly, http://www.reuters.com/article/2010/09/30/us-earth-metals-rareidUSTRE68T68T20100930)
2NC Politics
Environmentalists hate the plan
Cox 13 (Ramsey Cox is a bill analyst for the Hill, July 3rd, 2013, House bill aims to
streamline permits for mining rare earth elements, The Hill, http://thehill.com/blogs/flooraction/house/309177-house-bill-aims-to-streamline-permits-for-mining-rareearth#ixzz375uEe916
Decade-long permitting delays are standing in the way of high-paying jobs and revenue for local
communities, Amodei said. This bill would streamline the permitting process to leverage our nation's
In May,
the House Natural Resources Committee marked up the bill and
voted to advance it on a 24-17 vote. Only one Democrat on the
vast mineral resources, while paying due respect to economic and environmental concerns.
Democrats have
Plan is unpopular
Topf 13
(Andrew Topf is a exclusive writer for Rare Earth Investing News, 9/23/14, House Passes Critical Minerals
Act, Rare Earth investing News, http://rareearthinvestingnews.com/16395-house-passes-critical-minerals-act.html)
Opponents voted against the bill because they said it would erode
environmental protections and because it includes a broad definition of
strategic minerals, The House reported. The bills classification of critical
minerals is so broad that even sand and gravel and other such
things can fall under its definition, said Rep. Rush Holt (D-N.J. ).
Attempts by House Democrats to narrow the definition of strategic
minerals were unsuccessful. Not surprisingly, the bill was applauded by the US mining
industry. Without compromising our rigorous environmental standards, this bi-partisan legislation carefully
addresses the inefciencies of our underperforming system by incorporating best practices for improving
coordination among state and federal agencies, clarifying responsibilities, avoiding duplication, setting
timeframes and bringing more accountability to the process, National Mining Association CEO Hal Quinn
***Environment DA
1NC Environment DA
Mining disrupts the ocean floor---thats critical to food
security and ocean biodiversity
Goldenberg, 14 Suzanne, US environment correspondent, Marine
our concern disturbing the deep sea habitat ." Most of the models
rely on being able to produce 1 million tonnes of ore a year . Stone said
the seabed authority was putting systems in place to protect the
is
ocean floor , but other scientists said there still remained enormous
risks to the sediment and the creatures that live there. " It is going
to damage vast areas of the sea floor ," said Craig Smith, an
oceanographer at the University of Hawaii who served as an adviser
to the International Seabed Authority. "I just don't see any way [in]
mining one of these claims that whole areas won't be heavily
damaged." Earle expressed fears about how mining companies will
deal with waste in the high seas. "Mining is possible," she said. "But the 20,000ft
question is what do you do with the tailings ? All of the proposals involved
dumping the tailings at sea with profound impacts on the water
column and the sea floor below. The Seabed Authority initially proposed to set aside 1.6m
sq km of the ocean floor as protected areas, or about 20% of its territory. But those reserves are under
review. As economic pressures rise, there are fears that commercial operations would begin to erode those
protected areas. "I think it is certain that within a year or two there will be more claims covering these
areas and there won't be enough room left to develop these scientifically defensible protected areas,"
Smith said. Some have argued that with all the unknowns
all and that the high seas should remain out of bounds for mineral
extraction and for shipping. Jos Mara Figueres, a former president of Costa Rica and cochair with the former British foreign secretary, David Miliband, of the Global Ocean Commission, an
have scientific backing to determine whether this is something good or bad for the planet." World
leaders are
to global food security and a healthy planet. US secretary of state John Kerry,
in a video address delivered to a high-level ocean summit hosted by the
Economist and National Geographic last week, invited leaders to a two-day summit in Washington that
will seek ways of protecting fishing stocks from overexploitation and
protecting the ocean from industrial pollution , plastic debris and
the ravages of climate change.
you
look at where food security has to go between now and 2030 we
have to start looking at the ocean . We have to start looking at the proteins coming
from the sea," said Valerie Hickey, an environmental scientist at the World Bank. That makes it all the
more crucial to crack down on illegal and unregulated fishing, which is sabotaging efforts to build
sustainable seafood industries. Two-thirds of the fish taken on the high seas are from stocks that are
already dangerous depleted far more so than in those parts of the ocean that lie within 200 miles of the
shore and are under direct national control. Estimates of the unreported and illegal catch on the high seas
range between $10bn and $24bn a year, overwhelming government efforts to track or apprehend the
illegal fishing boats. The illegal fishing also hurts responsible fishing crews.
Trudell 5 (Robert H., Fall, Food Security Emergencies And The Power Of Eminent
Domain: A Domestic Legal Tool To Treat A Global Problem, 33 Syracuse J. Int'l L. &
Com. 277, Lexis)
2. But, Is It Really an Emergency? In his study on environmental change and security, J.R. McNeill
dismisses the scenario where environmental degradation destabilizes an area so much that "security
problems and ... resource scarcity may lead to war." 101 McNeill finds such a proposition to be a weak one,
largely because history has shown society is always able to stay ahead of widespread calamity due, in
part, to the slow pace of any major environmental change. 102 This may be so. However, as the events in
Rwanda illustrated, the environment can breakdown quite rapidly - almost before one's eyes - when
food insecurity drives people to overextend their cropland and to use outmoded agricultural practices .
103 Furthermore, as Andre and Platteau documented in their study of Rwandan society, overpopulation
and land scarcity can contribute to a breakdown of society itself. 104 Mr. McNeill's assertion closely
resembles those of many critics of Malthus. 105 The general argument is: whatever issue we face (e.g.,
environmental change or overpopulation), it will be introduced at such a pace that we can face the
problem long before any calamity sets in. 106 This wait-and-see view relies on many factors, not least of
which are a functioning society and innovations in agricultural productivity. But, today, with up to 300,000
child soldiers fighting in conflicts or wars, and perpetrating terrorist acts, the very fabric of society is
under increasing world-wide pressure. 107 Genocide, anarchy, dictatorships, and war are endemic
throughout Africa; it is a troubled continent whose problems threaten global security and challenge all of
humanity. 108 As [*292] Juan Somavia, secretary general of the World Social Summit, said: "We've
replaced the threat of the nuclear bomb with the threat of a social bomb." 109 Food insecurity is part
of the fuse burning to set that bomb off. It is an emergency and we must put that fuse out before it is
too late.
http://www.theguardian.com/environment/2014/mar/02/underwater-goldrush-marine-mining-fears-ocean-threat
But with rising demand from China and India for rare earth metals like copper,
and deep-sea surveys having now found concentrations of minerals
four to five times those on land, it has returned but this time in the unregulated
territorial waters of PNG, conveniently close to the Asian markets. Ecologists say the PNG government is
allowing Nautilus to go ahead with the first ever commercial deep-sea mining project without properly
considering the environmental impacts or local opposition. Nautilus investors include the mining giant
Anglo-American which is ignoring indigenous opposition to a gold and copper mine in Alaska. Cradle of
Initially,
fauna
National Oceanography Centre at Southampton University. It is possible you might mine at a distance
will take many years to recover. However, other ecologists say the assessment is
flimsy and fails to give a full account of the potential damage mining will cause. Professor Richard
Steiner, from the University of Alaska cites the incompleteness of classification of species found at the
sites and an inadequate assessment of the risks associated with sediment and waste rock disposal. He also
that
record of mining on land resulting in lots of poor conditions and that bad record and lack of oversight is
now moving from land to sea, he says. Only this week the PNG government was accused by Greenpeace
of allowing rampant logging and failing to respect the rights of indigenous groups who depend on the
forests. Nautilus has reportedly suggested the country would benefit by more than $200 million from the
mining but Steiner says the benefits to local people or the economy of PNG were likely to be
disproportionately low compared to the scale and risk of the project. While the project could gross almost
$1 billion USD in its 30-month lifetime, it expects to provide only $41 million in total taxes and royalties to
the government, a $1.5 million development fund and a few dozen jobs at most to PNG nationals, he
said. Prof Steiner is also acting as a science advisor to Mas Kagin, a group formed in 2008 to give a voice
to coastal indigenous people in PNG oppose any commercial mining. The group says it depends on the
coastal waters for their livelihood, culture and way of life and has a right to oppose the seabed mining. In
a campaign video community groups from two provinces expressed their fears. When we first heard that
Nautilus was going to mine the seabed using technology that had never been used anywhere else it felt as
though we were becoming a science laband our very lives part of an experiment to test this new
technology, it says. Nautilus conducted workshops with local villages to explain its proposals but rejected
calls to set up a permanent citizens advisory council. The company also declined to respond to concerns
raised in this article but has previously said it took great pride in leading the mining industry into the deep
acknowledges that the deep-sea has not even had its surface scratched with what it might contribute to
the economy but
fears PNGs decision to approve Nautilus mining plans will open the
1NC Midterms
Plan popular boosts economy and supplies
Kilzer 11
(Lou Kilzer, 1/30/2011, Trib Live, U.S. control of 'rare earth' minerals slipping,
http://triblive.com/x/pittsburghtrib/news/nation-world/s_720470.html#axzz376Xqz8zU)
items such as fiber optics, flat-panel monitors and televisions, and electricity-generating wind turbines.
Through export policies and tariffs, China forces foreign companies to manufacture there in order to remain
competitive. And where manufacturing goes, research and development often follow. China dominates
more than rare earths. It leads the United States (or even the rest of the world combined) in key elements
such as germanium, indium, antimony, zinc, manganese, tungsten, magnesium, cadmium, pig iron,
graphite and fluorspar. Those materials, used to make alloys, feed China's surging steel industry. A decade
ago, China and the United States produced roughly equal amounts of steel; in 2010, the United States
produced about 90 million metric tons to China's 630 million. China is acquiring even more foreign
resources. While most of the world fell into recession in 2008, China went on a spending spree: It bought
all or part of 184 foreign mining assets for $37.2 billion, according to the U.S. accounting firm Ernst &
Young. Recently, Shanghai Securities News reported that China may create a strategic stockpile of rare
earths, tungsten, antimony, molybdenum, tin, indium, germanium, gallium, tantalum and zirconium. In
contrast, the United States began selling its reserves in the 1990s. China has positioned itself to surpass
the United States in purchasing-power parity a closely watched measure of an economy's real size
next year, according to the Conference Board, a nonprofit international business association. 'Free market
isn't working' The situation leads some analysts to stark conclusions. "The free market isn't working right
now," says Rep. Mike Coffman, R-Colo., who intends to sponsor legislation to re-stockpile strategic
materials. It is to export finished products." John Pike, a defense expert and director of GlobalSecurity.org,
a Virginia-based website analyzing military and intelligence matters, says "we cannot pretend there's a
free market when there's not." Ronald Ashburn, executive director of the Association for Iron & Steel
Technology, a Warrendale-based nonprofit promoting industrial research, says China controls
"huge
speaking on background, agree. "China is going to produce, whether they are making a profit or not," says
a Democratic staffer who has studied the issue for years. Its mining companies "are willing to get
Erie, who lost re-election in November. Each bill involved some degree of government intervention. None
won approval. Dahlkemper's bill emerged at a sensitive moment during China's brief rare-earths
embargo on Japan in September. A spooked House passed it, 325-98, but the bill lost momentum as the
midterm election neared and China relented. Like Coffman, Murkowski plans to try again. Many
Republicans, however, caution against going too far, too fast. In a statement, 10 GOP congressmen on the
committee that sent Dahlkemper's bill to a House vote said federal loans "should be restricted to those
areas not undertaken by the private sector," to avoid "favoring certain companies ... and potentially
contaminants into the food chain.25 Noise and light pollution Deep-sea
communities live in relative silence, and in the dark. Studies have
shown that deep-sea fish communicate at low sound frequencies26,
and are sensitive to acoustic changes to sense food falls the fall of
organic matter that provides an important source of nutrients to the
deep sea27. Whales rely on sound for communication and
navigation, and when encountering increased noise, change their
vocalisation patterns and behaviour, and move away to new areas.28
Studies show that baleen whales experience chronic stress when
exposed to increased shipping noise.29 Low-frequency mining noise
could travel far from the mining site, with one estimate suggesting that
noise from the Nautilus operation near Papua New Guinea could travel up to
600km from the site.30 This could have negative impacts on deep
diving whales in the area. Mining will also introduce bright light into
an environment that, but for bioluminescence, is constantly dark,
impacting species that are adapted to these conditions, such as
deep-sea vent shrimp, which have been shown to be blinded by the
lights used by researchers.31
markets. Ecologists say the PNG government is allowing Nautilus to go ahead with the first ever commercial deep-sea
mining project without properly considering the environmental impacts or local opposition. Nautilus investors include the
mining giant Anglo-American which is ignoring indigenous opposition to a gold and copper mine in Alaska. Cradle of life
he says. The mining process in PNG will take the top 20-30m off the seabed at a depth of 1,500m and lift it up to the
surface before transferring it by barge to processing sites on land. You
classification of species found at the sites and an inadequate assessment of the risks associated with sediment and waste
rock disposal. He also cites the effects of increased light and noise in the deep ocean environment and the toxicity of the
dewatering plume [the process of removing water from the mined deposits] to deep-sea organisms, which will not be able
to differentiate between food and junk sediment. Of particular concern are the hundreds of thousands of tonnes of waste
that will be produced by the mining process, which Steiner compares to that of a giant underwater tractor and which will
be pumped onto deeper seabeds nearby. Dr Fujita said the physics of water as well as weather and currents made it
difcult to predict or contain any spill and that deep-sea mining had the capacity to produce pollution that could travel
across into international waters. A smoking hydrothermal vent on the ocean seabed Exploitation or financial gain? I dont
think the project would be allowed to proceed anywhere else in the world based on such a poor analysis of risks, says
Steiner. The USA is known to have similar deposits off the coast of Washington as has Canada but mining is not thought to
be imminent. Dr Fujita suggests Nautilus is just the latest overseas mining giant to take advantage of lax regulations in
the country. In PNG they have a poor record of mining on land resulting in lots of poor conditions and that bad record and
lack of oversight is now moving from land to sea, he says. Only this week the PNG government was accused by
Greenpeace of allowing rampant logging and failing to respect the rights of indigenous groups who depend on the forests.
Nautilus has reportedly suggested the country would benefit by more than $200 million from the mining but Steiner says
the benefits to local people or the economy of PNG were likely to be disproportionately low compared to the scale and risk
of the project. While the project could gross almost $1 billion USD in its 30-month lifetime, it expects to provide only $41
million in total taxes and royalties to the government, a $1.5 million development fund and a few dozen jobs at most to
PNG nationals, he said. Prof Steiner is also acting as a science advisor to Mas Kagin, a group formed in 2008 to give a
voice to coastal indigenous people in PNG oppose any commercial mining. The group says it depends on the coastal
waters for their livelihood, culture and way of life and has a right to oppose the seabed mining. In a campaign video
community groups from two provinces expressed their fears. When we first heard that Nautilus was going to mine the
seabed using technology that had never been used anywhere else it felt as though we were becoming a science laband
our very lives part of an experiment to test this new technology, it says. Nautilus conducted workshops with local villages
to explain its proposals but rejected calls to set up a permanent citizens advisory council. The company also declined to
respond to concerns raised in this article but has previously said it took great pride in leading the mining industry into the
deep ocean. Opening the floodgates It has estimated several billions tons of copper could be extracted from seafloor
sites around the world. Dr Tyler acknowledges that the deep-sea has not even had its surface scratched with what it
might contribute to the economy but fears PNGs decision to approve Nautilus mining plans will open the floodgates
PNG project: the way this first deep-sea mine proceeds will set the tone for all others, and this is a very, very bad start.
He argues investment in reusing copper and gold made more sense than continuing to pay mining companies to take
Floor,
http://online.wsj.com/news/articles/SB1000142405270230339560457743466
0065784388
Meanwhile, environmental groups have raised concerns about the
possible efect of deep-sea mining on aquatic life. While nations
have specific regulatory authority over the seabed under their
territorial water, that oversight diminishes farther out to sea . Miners
counter the likely environmental impact is less than onshore mining ,
in part because it doesn't require building roads and is far from human
habitation.
Deep Sea mining risk is not contained and its extent is just about
unknown.
upon the
this fish, the Court encouraged the parties to act with caution ,
mentioning explicitly the principle and
without
damage to existing stocks: Considering that, in the view of the Tribunal, the parties should in the
circumstances act with prudence and caution to ensure that
efective conservation measures are taken to prevent serious harm to the stock of
southern Bluefin tuna. 27
2NC Species IL
Deep sea mining causes disruptions to the benthic layer--causes water toxicity, water columns, zooplankton, food
chain
Troianiello, 12 Antonio, University of French Polynesia, Associate
Professor of Law, 1 Deep Sea Mining, A New Frontier for International
Environmental Law, http://works.bepress.com/cgi/viewcontent.cgi?
article=1000&context=antonino_troianiello
As stated, the effects of underwater mining are largely unknown and require a precautionary approach.
2NC Vent IL
Drilling hurts the vent ecosystems
Birney, 6 Kristi, Marine Conservation Analyst for the Environmental
Defense Center (EDC) Potential Deep-Sea Mining of Seafloor Massive
Sulfides: A Case Study in Papua New Guinea
Additionally, it has been suggested that drilling could impact the flow of vent fluid
diverting hydrothermal fluids away from the vent communities
(Interridge, 2000). This could result in a wide range of impacts on the vent
ecosystem , including the possibility of activating a new area at the
drilling location. This may be diverting vent fluid away from
previously active locations resulting in significant short term efects
on the ecosystem . However, the vent ecosystem is well adapted to a changing environment
because of natural tectonic activity as discussed in the environment section so long term impacts may be
less severe over the entire vent field.
It is imperative
that the higher organisms are able to incorporate the energy
produced by the microorganisms so that they can survive at
hydrothermal vents. Other symbiotic dependent organisms include the
Giant White Clams and the mussel Bathymodiolus. In both cases bacteria live in the gill filaments.
Snails and clams are also known to host symbiotic bacteria. In addition to maintaining symbiotic
relationships, the bacteria also form the basis of the food web as primary
tubeworm, which is a specialized organ to house the sulfide-oxidizing bacteria.
directly on the mats of sulfur bacteria. Larger organisms, such as crabs and
fishes are opportunistic feeders and feed on other vent organisms.
Thus, a food web is established, consisting of primary producers
(chemoautotrophic sulfur bacteria), the
secondary producers
***Solvency
AT: Solvency
5 Reason Af Fails in long term- stabilization; sterilization;
savings; socio-economic growth; and safety
UNEP 12 (United Nations Environmental Programme, Green Economy in a
Blue World,
http://www.unep.org/pdf/Green_Economy_Blue_Full.pdf)
The truth is that too often mining revenues have been used not for positive social transformation but for
revenues should be saved in view of intergenerational equity. Examples of savings funds include Norway
to increase expenditure in various areas. Although some socio-economic projects may have long-term
benefits, spending and investment decisions can become highly politicized. In this climate, short-term
benefit projects, rather than long-lasting ones, can often become the norm.
AT: Tech
Technology is not viable
MacDonald, 12 Alistar, Writers WSJ, Next Frontier: Mining the Ocean
Floor,
http://online.wsj.com/news/articles/SB1000142405270230339560457743466
0065784388
But previous attempts at deep-sea mining haven't yet proven
technologically possible or economically viable , despite more than a
century of experience. Efforts date back to the 1870s, when a British research vessel trawled
up manganese nodules from a depth of almost three miles as part of a wider scientific study of the world's
oceans.
the 1970s
(Rob Goddier is a writer for Popular Mechanics environment and earth column, Popular Mechanics,
Why Deep-Sea Rare-Earth Metals Will Stay Right Where They AreFor Now, 7/8/11,
http://www.popularmechanics.com/science/environment/why-deep-sea-rare-earth-metals-will-stay-right-where-they-arefor-now)
Deep-sea rare-earth deposits aren't new, either. Wiltshire, Sansone and many other researchers have been studying
mineral depositsincluding rare-earth mineral depositson the ocean floor since their careers began. "I published a
conglomerates of metallic particlesrare-earth metals and othersstripped from the water over eons, and they were the
hot undersea mining topic of decades past. Manganese nodule mining even provided cover for a bit of Cold War intrigue in
1974, when a $350 million deep-sea drilling ship built by one of Howard Hughes' companies supposedly went looking for a
deposit to develop. In fact, the ship was being used by the CIA to look for a Soviet nuclear sub that had sunk off Oahu in
the 1960s. Today, though, as in the 1970s, cost and time remain enormous hurdles to mining these deposits. Wiltshire
Pacific nations which possess the rights) and mine rare earths from the ocean bottom is: Is it worth all this trouble and
AT: Leasing
Leasing mechanisms failcompanies hate it and very low
concentrations of minerals.
Goodier 11
(Rob Goddier is a writer for Popular Mechanics environment and earth column, Popular Mechanics,
Why Deep-Sea Rare-Earth Metals Will Stay Right Where They AreFor Now, 7/8/11,
http://www.popularmechanics.com/science/environment/why-deep-sea-rare-earth-metals-will-stay-right-where-they-arefor-now)
The question, then, for any company that would seek to lease these
areas (from the Pacific nations which possess the rights) and mine rare
earths from the ocean bottom is: Is it worth all this trouble and
expense? At 0.2 percent concentration of rare earths, the deep-sea
deposits pale in comparison to ore deposits on land, which can have
5 to 10 percent concentrations. All things being equal, it's easier to
collect minerals from mud than from ore. But things are not equal, because
this mud is beneath three miles of water. Experts do not discount the
notion that we may someday mine rare-earth metals in the deep sea;
perhaps the buzzwords of the year 2040 will be "Autonomous
Underwater Mining Vehicle." But if you're wondering where rareearth components in computer chips and solar cells will come from
for the next decade, the answer is clearChina.
consumers then consumers will go off and use one of the myriad of
alternatives. And new alternatives will arrive as well. Where monopolies are
natural ones (perhaps because of network effects) or backed by government
licence or regulation the situation is different, but a contestable monopoly
can almost certainly be left alone. Precisely because as soon as anyone tries
to profit from the monopoly that monopoly itself will be contested.
construction work on the $1.5 billion rebuild of the Mountain Pass facility is complete, Molycorps
spokesman, Jim Sims, told me. The units are now in commissioning and following that theyll go into full-
electronics, oil refining, bombs and special magnets used in wind turbines and electric cars. At Mountain
Pass, Molycorp owns the biggest U.S. deposits of rare earths. The chloralkali plant takes wastewater from
the process that separates mining ore and the rare earth elements and recycles it into feedstocks for the
it
also drives down our production costs, Sims said. Molycorp hopes its
process will be competitive with the lowest cost rare earth
producers in the world, the company said. The mines multi-stage cracking
plant is part of a chemical process that raises the amount of rare
earth elements the facility can get from the ore, speed up the
production process, and also lower costs, the company said. About 8 percent of the
ore you pull out of the ground is rare earths, Sims said. Were getting increasingly
better rates of recovery, and this last unit of the multi-stage
cracking unit will help us increase that even more. Its all about
efficiency, he said.
separation process, Sims said. It greatly reduces the environmental footprint at Mountain Pass, and
Ultimately, falling prices for the metal commodities or for the rare earth oxides (REOs) directly affect
AT: Solvency
The US lacks domestic refining capabilitystill get sent to
China
Kennedy 1/29
established a new Technology Science Laboratory in China. As an example, a Chinese corporation was
granted approval to purchase the assets of A123 battery. A123 was the centerpiece of the Obama
Administrations drive for electric vehicles. The fact that GE moved the last of its medical imaging divisions
undermining our economic future. The U.S. should establish in my opinion a fully integrated REE refinery
value chain in North America.
AT: Protectionism IL
china tightening its grip on REE increase production of
other REEs and increases innovation for conservation --internal link turns the impact
OR
US will always be able to get REEs even with restrictions
PLumer, 12 (10/19, Brad, Washington Post, Chinas grip on the worlds
rare earth market may be slipping,
http://www.washingtonpost.com/blogs/wonkblog/wp/2012/10/19/chinaschokehold-over-rare-earth-metals-is-slipping/)
on rare earths over the past few yearsespecially since China has a habit of restricting exports every time
result, Barber notes, China itself also is changing its tune and has announced a higher export quota.
supplier countries can exert leverage over the United States by threatening to cut off certain key mineral
supplies. The United States may also lose ground strategically if it continues to lag in managing mineral
issues, as countries that consider assured access to minerals as far more strategically important are
captain over a skirmish in the East China Sea, Japanese companies reported weeks of stalled shipments of
rare earths from China amid rumors of an ofcial embargo. This may sound like a minor trade dispute, but
China currently controls production of about 95 percent of the worlds rare earths, which are critical to
building laser-guidance systems for weapons, refining petroleum and building wind turbines. Coinciding
that it did not put any formal export embargo in place, and that its plans to reduce exports simply reflect
the need to meet growing domestic demand for rare earths. Japan-China relations experienced further
rather than using the opportunity to better understand the true nature of U.S. supply chain vulnerabilities.
The 2010 rare earths case and others are increasing interest in
critical minerals among U.S. policymakers. Congress held hearings on
the strategic importance of minerals between 2007 and 2010, and the 2010 National
Defense Authorization Act required DOD to study and report on its dependence on rare earth elements for
weapons, communications and other systems.3 During a 2009 hearing on minerals and military readiness,
Republican Representative Randy Forbes of Virginia called minerals, one of those things that no one really
talks about or worries about until something goes wrong. Its at that point the point where we dont have
the steel we need to build MRAPs [Mine Resistant Ambush Protected vehicles] or the rhenium we need to
build a JSF [Joint Strike Fighter] engine that the stockpile becomes critically important.4 In October 2010,
The
decision comes against a backdrop of increasing trade conflict
the U.S. solar market, and we applaud Commerce for its work that supports fair trade.
While the media and members of the trade policy community fixate on how
various protectionist measures around the world might foreshadow a plunge
into the abyss, there is plenty of evidence that governments remain
interested in removing barriers to trade. Despite the occasional temptation to
indulge discredited policies, there is a growing body of institutional
knowledge that when people are free to engage in commerce with one
another as they choose, regardless of the nationality or location of the other
parties, they can leverage that freedom to accomplish economic outcomes
far more impressive than when governments attempt to limit choices through
policy constraints.
benchmarks--China's ambitions will grow as its power grows; the United States cannot successfully wage
economic warfare against a China that pursues a smart reassurance (peaceful rise) strategy; and Sino-
American relations are not doomed to follow recent past rising-dominant power dyads--are
the starting points from which to analyze America's interests in East Asia. I now turn to these interests.
tech-now, ADL)
Americas energy landscape is undergoing a dramatic
transformation. According to a new Energy Department report,
falling costs for four clean energy technologies -- land-based wind
power, solar panels, electric cars and LED lighting -- have led to a
surge in demand and deployment. The numbers tell an exciting
story: America is experiencing a historic shift to a cleaner, more
domestic and more secure energy future. That clean technology
revolution is here today -- and it is gaining force. Read the report Revolution Now:
The Future for Four Clean Energy Technologies Watch a video from Secretary Ernest Moniz and learn more about the report
Wind energy is
the fastest growing source of power in the United States, creating
jobs opportunities for thousands of Americans and boosting
Read Secretary's Moniz blog post about the report and the Clean Tech Revolution WIND ENERGY
economic growth. In 2012, U.S. wind capacity topped 60 GW, enough energy to power more than 15 million
homes. America's Wind Industry Reaches Record Highs Wind Farm Growth Through the Years Blades of Glory: Wind
The U.S.
is on the verge of a major shift to solar energy, putting a clean,
renewable energy source within reach of the average American
family. In 2012, rooftop solar panels cost about 1 percent of what they did 30 years ago, and deployment
is skyrocketing. Top 6 Things You Didn't Know About Solar Energy Energy 101: Solar Photovoltaics Energy
Technology Bringing Us Closer To a Clean Energy Future Energy 101: Wind Turbines RESIDENTIAL SOLAR
Department Support Brings Game-Changing Advancements in Solar Energy Finding Solutions to Solar's Soft Cost Dilemma
four years, 2013 is set to be another banner year for PEVs. In the first half of 2013, Americans doubled the number of
PEVs they purchased compared to the same period in 2012, and last month, PEV sales reached a new record high. More
than 11,000 PEVs were sold in August 2013 -- that's a 29 percent improvement in sales over the previous monthly record.
Top 10 Things You Didnt Know About Electric Vehicles The eGallon: How Much Cheaper Is It to Drive on Electricity?
LED
lighting generates more light than heat and lasts as much as 25
times longer. Once an expensive niche product, LED bulbs are becoming an affordable choice for Americans
looking to reduce their electric bills. In 2012, about 49 million LEDs were installed in the
U.S. -- saving about $675 million in annual energy costs. Switching entirely to LED lights over the
next two decades could save the U.S. $250 billion in energy costs and
avoid 1,800 million metric tons of carbon pollution. Top 8 Things You Didnt Know
Visualizing Electric Vehicle Sales Energy 101: Electric Vehicles LED LIGHTING Unlike traditional incandescent bulbs,
About LEDs LED Lighting Bright Lights and Even Brighter Ideas Energy 101: Lumens A Winning Light Bulb With the
Potential to Save the Nation Billions
http://cleanedge.com/sites/default/files/CTLI-2013-Report.pdf, ADL)
Yet despite these negative factors, clean-tech deployment in the U.S. showed notable,
and even historic, market momentum during the year. Wind power,
spurred in part by the then-looming expiration of the federal
production tax credit, grew by 28 percent with 13.1 gigawatts of new capacity installed in
2012, bringing the U.S. past the 60 GW milestone in total wind power
capacity for the first time. That made wind energy the nations largest source of new generation
capacity for the year, contributing 41 percent of the total even more than the 33 percent
share of new generation capacity from natural gas. Overall, renewable
energy (wind, solar, geothermal, biomass, and others) accounted for 49 percent of the
nations added electricity capacity, its largest share ever. Solar PV in
the U.S., spurred by continued price drops and ever-more-innovative
financing options, had its second straight banner growth year.
Installed PV capacity grew by 3,313 MW or 76 percent, with California becoming the first
state to install more than 1,000 MW in a single year. The geothermal power industry
bounced back from recent doldrums, adding more than three times
as much new capacity in 2012 as the two previous years combined.
This growth in clean energy occurred with little significant new federal legislation or Congressional leadership.
But clean-tech leadership at the state and metro level tells a different, and much better, story. As we
detail in the State Index, U.S. states often politically conservative ones are now rivaling the worlds
leading clean- tech nations for preeminence in many areas. Take Iowa and
South Dakota. With each state generating 24 percent of its utility-scale electricity from wind power in 2012, they trail only
the country of Denmark (at 30 percent) for world leadership in this critical clean-tech metric. And Iowa wind farms actually
generate more power than those in Denmark 13,945 GWh in 2012, as compared to 11,637 GWh in Denmark (much less
populous South Dakota generated 2,914 GWh from wind). An April 2013 report from the Union of Concerned Scientists,
Ramping Up Renewables: Energy You Can Count On, presented this type of if states were countries analysis. North
Dakota (with 15 percent of generation from wind) and Minnesota (14 percent) would also make this global top 10, just
below Portugals 17 percent and Spains 16 percent. Global clean-tech powerhouse Germany generated 11 percent of its
electricity from wind last year, but so did Kansas, Idaho, Colorado, and Oklahoma. Germany, with a much larger
population than most U.S. states, has much larger total power from wind 61,204 GWh in 2012. The leading U.S. state in
total wind generation, Texas, reached 31,860 GWh. On peak wind days during the year, wind farms supplied 25 percent of
the juice to the grid in the Midwest, 30 percent to the Southwest Power Pool (Kansas, Oklahoma, and the Texas
Panhandle), and 32 percent in the rest of Texas. The nationwide generation percentage for the U.S., by contrast, was just
The emergence of
states as key global markets for clean-tech products and services
has not been lost on the industry, particularly with some states renewable portfolio standard
three percent, although wind was the largest contributor of new capacity as noted above.
(RPS) mandates, net-metering laws, and other supportive policies under attack from fossil-fuel backed lobbyists and
legislators. The federal PTC is hugely important, but it is state policies that drive our markets, says Susan Innis, senior
manager of public affairs for leading wind turbine maker Vestas North America.
Resources Institute in the ChinaFAQs (April 2012, "CLEAN TECHS RISE, PART
II: U.S.-China Collaboration in Public-Private Partnerships,"
www.chinafaqs.org/files/chinainfo/ChinaFAQs_IssueBrief2_PPP.pdf, ADL)
As two of the worlds largest economies, competition between the
United States and China often obscures another reality: As the
globes two biggest users of energy and producers of greenhouse
gases, the two nations have also long collaborated on eforts to
develop and scale-up cleaner energy technologies. U.S. business is
widely engaged with Chinese businesses in private business
relations1 and also in public-private partnerships. Indeed, their
overlapping interests in clean energy have spawned a wide array of
cooperative, public-private projects that are delivering tangible
benefits to both nations and the world at-large, including new markets for U.S.
companies, improvements in clean tech for both countries, lower global costs of controlling pollution and
emissions, and new opportunities for economic growth and jobs.2 A key feature of public-private
partnerships is that U.S. businesses recognize the benefits and are contributing funds to these initiatives.
theres no way we can make a dent in climate change globally in the time period that matters, says Kelly
Sims Gallagher, Professor of Energy and Environmental Policy at Tufts University and ChinaFAQs expert.9
Because the United States and China are the worlds top two greenhouse gas emitters, together
accounting for more than 40% of annual emissions, any solution requires both countries to transition to
low-carbon economies, writes Kenneth Lieberthal, a China expert at the Brookings Institution in
Washington, D.C. U.S.-China cooperation on climate change would have not only bilateral but global
of cooperation, including clean and efcient electricity production and transmission, and clean
transportation.12 In 2009, the two nations extended the Framework, launching a wide-ranging package of
cooperative efforts between private businesses, various Chinese ministries and U.S. agencies, including
the establishment of three U.S.-China Clean Energy Research Centers (focusing on electric vehicles, clean
coal, and buildings), an Energy Cooperation Partnership (ECP) working to match U.S. clean energy
businesses with Chinese markets, the U.S. China Renewable Energy Partnership, and others.13 Such efforts
reflect the fact that cooperation on clean energy and climate change is now seen in both Washington and
Beijing as a major issue in U.S.-China relations, notes Kenneth Lieberthal. The
world has
awakened, he adds, to the potential for U.S.-China cooperation on clean
energy and climate change.
Such partnerships are motivated by joint ownerships and codevelopment of intellectual property assets, which could lead to
two-way paths of reciprocal access to markets.
few.
along with ambitious national targets for roll-outs bear a semblance of the Space Race of the 1960s.
While cleantech companies in both countries are in many cases locked in head-to-head
competition to become major players in these developments, there also exist
intersections where US and Chinese companies are partnering in ways that play to
each others strengths while closely aligning with national clean
energy policies. Successful partnerships could potentially hold significant
growth opportunities both within and beyond US and Chinese
markets.
seventh International Climate Change Conference sponsored by the Heartland Institute, held last week in Chicago. I attended, and served as
serious natural
science, contrary to the self-interested political science you hear from
government financed global warming alarmists seeking to justify widely expanded regulatory and
one of the speakers, talking about The Economic Implications of High Cost Energy. The conference featured
taxation powers for government bodies, or government body wannabees, such as the United Nations. See for yourself, as the conference
Heartland Institute has effectively become the international headquarters of the climate realists, an analog to the UNs Intergovernmental
Panel on Climate Change (IPCC). It has achieved that status through these international climate conferences, and the publication of its Climate
Change Reconsidered volumes, produced in conjunction with the Nongovernmental International Panel on Climate Change (NIPCC). Those
Climate Change Reconsidered volumes are an equivalently thorough scientific rebuttal to the irregular Assessment Reports of the UNs IPCC.
You can ask any advocate of human caused catastrophic global warming what their response is to Climate Change Reconsidered. If they have
the up and down pattern of naturally caused climate cycles. For example,
temperatures dropped steadily from the late 1940s to the late 1970s. The
popular press was even talking about a coming ice age. Ice ages have cyclically occurred roughly every 10,000 years, with a new one actually
The incorruptible satellite measured global atmospheric temperatures show less warming during this period than the heavily manipulated land
to the late 1970s, and it was warm from the late 1970s to the late 1990s, similar to the Atlantic Multidecadal Oscillation (AMO). In 2000, the
UNs IPCC predicted that global temperatures would rise by 1 degree Celsius by 2010. Was that based on climate science, or political science
Easterbrook, Professor
Emeritus of Geology at Western Washington University, knew the answer. He
publicly predicted in 2000 that global temperatures would decline by 2010. He made
to scare the public into accepting costly anti-industrial regulations and taxes? Don
that prediction because he knew the PDO had turned cold in 1999, something the political scientists at the UNs IPCC did not know or did not
Easterbrook
2010 the 2000 prediction of the IPCC was wrong by well over a
degree , and the gap was widening . Thats a big miss for a forecast just 10 years away, when the same
folks expect us to take seriously their predictions for 100 years in the future. Howard Hayden, Professor of Physics Emeritus at the University of
Connecticut showed in his presentation at the conference that based on the historical record a doubling of CO2 could be expected to produce
a 2 degree C temperature increase. Such a doubling would take most of this century, and the temperature impact of increased concentrations
of CO2 declines logarithmically. You can see Haydens presentation online as well. Because PDO cycles last 25 to 30 years,
Dalton Minimum from 1790 to 1830, which saw temperature readings decline by 2 degrees in a 20 year period, and the noted Year Without A
Summer in 1816 (which may have had other contributing short term causes). Even worse was the period known as the Maunder Minimum from
1645 to 1715, which saw only about 50 sunspots during one 30 year period within the cycle, compared to a typical 40,000 to 50,000 sunspots
during such periods in modern times. The Maunder Minimum coincided with the coldest part of the Little Ice Age, which the earth suffered
from about 1350 to 1850. The Maunder Minimum saw sharply reduced agricultural output, and widespread human suffering, disease and
Will it be modest like the cooling from the late 1940s to late 1970s? Or will the paucity of sunspots drive us all the way down to the Dalton
Minimum, or even the Maunder Minimum? He says it is impossible to know now. But based on experience, he will probably know before the UN
and its politicized IPCC.
better than that of the U.S. today . The IPCC's embrace of biofuels as a way to reduce
greenhouse gas emissions was premature, as many researchers have found "even the best biofuels have
the potential to damage the poor, the climate, and biodiversity" (Delucchi, 2010). Biofuel production
consumes nearly as much energy as it generates, competes with food crops and wildlife for land, and is
unlikely to ever meet more than a small fraction of the world's demand for fuels.
global
backwards
- that is,
the past, whereas global warming has coincided with periods of peace,
prosperity, and
social
stability .
***Hegemony Advantage
-- such as breaking out a new account for Future Naval Capabilities focusing on advanced research and
prototypes, increasing funding for the Littoral Combat Ship, and increasing funding for the Marine Corps'
which uses electronic warfare to disarm incoming missiles. Other R&D cuts impact separate initiatives on
anti-submarine warfare, undersea weapons, cyber security, electronic warfare, sensing, SATCOM
vulnerabilities, missile defense countermeasures, S and X-band radar integration, and radar defenses
against electronic attack. These programs form important parts of the Navy's next-generation arsenal,
that R&D money declined for these particular Navy programs is a disturbing sign for the overall coherence
of the administration's budget. While the Navy received a $4 billion increase in O&M funding from 2012, it
O&M funding for the Navy helps, but more needs to be done in order to fix the fleet. It certainly does not
help that the Navy is forced to pay nearly $900 million to retire ships early while the fleet size is already
In February 2009, the Ticonderoga-class guided missile cruiser U.S.S. Port Royal ran
aground about a half mile south of the Honolulu airport. The Navys
investigation found that the ships navigational gear was broken and
that the ships fathometer wasnt functioning. In simple terms the
bridge didnt know where the ship was. The investigation subsequently discovered that
the commanding ofcer was exhausted, sleep-deprived, and that
sailors who were nominally assigned to stand watch against such
incidents were assigned elsewhere in the ship to cover manning
shortages. Two months later the Navys iron-willed Board of Inspection and Survey determined that
problems with corrosion, steering, surface ships firefighting systems,
and anchoring were widespread throughout the Navy. Asked by Defense News
to comment on these findings five former commanding ofcers agreed that smaller crews,
reduced budgets, and fewer real-life training opportunities for overworked crews were important causes for this catalogue of affliction. Its
hardly a surprise. The Navy reported last year that 11,300 sailors were supporting ground forces in Iraq
fortunes since the end of the Cold War. The US Navy has not been as small as it is today since the
administration of William Howard Taft when the Royal Navy filled the international role that Americas naval
forces eventually inherited and currently possess. As suggested by the past two decades of declining navy
procurement, the rising cost of ships, hints from the Pentagons Quadrennial Review now underway that
previous goals for fleet size are open to question, and the publics focus on the nations land wars in the
Middle East, chances are that US naval shrinkage will continue.
Intelligence Council estimates, Joint Operating Environment forecasts, the Pentagons Ofce of Net
Assessments studies, the UK Defence Ministrys Development, Concepts, and Doctrine Centre as well as
similar predictive efforts undertaken by French and German national security experts, there is a general
managing these problems is maritime power: force that can be applied to the shore from the sea, used to
protect against missile-borne as well as stealthier ocean-borne Weapons of Mass Destruction (WMD),
marshaled to alleviate the causes of massive immigration, and displayed to reassure allies and dissuade
enemies.
Wars in Iraq and Afghanistan have sucked the oxygen out of any
serious effort to understand the connection between the large changes
that strategic planners see in the future, Americans expectations that
they will retain their ability to wield global influence, the Navys role in
maintaining such influence, and the US fleets slow evanescence. No
attempt to connect fleet shape and size to the unfolding strategic environment exists as a referent for
piracy as well as very dangerous ones like the possibility of smuggled WMD reaching our shores that
capability rather than number of ships is key to accurately measuring our naval power.
With very
What,
for example, do globalization, the growing dependence of the United
States on sea-borne transit for strategic resources and minerals, and the likelihood of
more dislocations such as continue from Somali piracy mean for the future of
US national security?
and building ships adapt quickly and cost-effectively to changes in the strategic environment?
case in Europe. To state the obvious, over the past decade, the pharmaceutical industry has brought few
drugs to market from its own development efforts. Commentators have stressed, and heads of big pharma
with its diminished R&D productivity. First, it has looked to expand its markets geographically into
developing countries; second, it has increased its emphasis on generic drugs and biosimilars; and finally, it
has sought to diversify by migrating into new product categories. Although the foregoing steps will lessen
the projected shortfall in revenues associated with the expiration of patents in the coming years, the
achievement of sustained growth in big pharma will of necessity depend to a large extent on another
factorits ability to increase the productivity of internal R&D efforts, while at the same time bolstering the
acquiring drugs.
Kessel 11 (Mark, Janurary 10th, Nature Biotechnology 29, The problems with
todays pharmaceutical business-an outsiders view,
http://www.nature.com/nbt/journal/v29/n1/full/nbt.1748.html)
A major reason that big pharma must limit the number of compounds it
introduces into its pipeline is that spending on R&D places great pressure on
earnings. The public equity markets relentlessly focus on short-term performance
and unduly punish companies that do not meet quarterly revenue and earnings expectations. It has been
years, of the top 10 best-selling drugs in the world, 9 will go off patent, and of the top 20, 18 will lose
patent protection. As a result, ~$100 billion of sales will be lost during this period. This
number may be understated, given the recent safety issues associated with some blockbuster drugs, such
as GlaxoSmithKline's (GSK; Brentford, UK) diabetes drug Avandia (rosiglitazone). To compensate for these
losses, big pharma has resorted to buying revenues by means of acquisitions to replace declining sales. At
the same time, sales of existing drugs are less likely to benefit from direct-to-consumer advertising.
Indeed, direct-to-consumer advertising will continue to garner greater scrutiny from regulators and have
This has been driven by an increase of demand, the expiration of patents and
cost constraints imposed by governments and third-party payers. The expectation
is that this trend will continue into the future. With the patent cliff looming, generics will have many small-
government and third-party payers. GSK recently has reported a drop in profits, which it attributed to US
healthcare reform and European government 'austerity' measures that have had an impact on the drug
industry1.
Kessel 11 (Mark, Janurary 10th, Nature Biotechnology 29, The problems with
todays pharmaceutical business-an outsiders view,
http://www.nature.com/nbt/journal/v29/n1/full/nbt.1748.html)
Technology will make regulators and third-party payers better equipped to
measure what benefits patients are deriving from the drugs . The net effect is that
governments and payers will continue to bear down on prices, access, utilization and prescribing patterns.
doubt that the regulators are going to focus increasingly on patient safety and benefits when bringing new
drugs to market3. The recent restrictions placed on GSK's Avandia because of data indicating an
association with heart toxicity points in this direction. The manner in which big pharma is perceived in
political circles will also have an impact on its future prospects. The US Congress portrays the industry as
insensitive to consumer safety. Indeed, the Obama Administration publicly vilified big pharma as part of its
health reform initiative (while simultaneously courting its participation in providing funds to close the socalled donut hole, a coverage gap in the 2003 Medicare Part D health plan for prescription drugs ).
severe long-term internal challenges. Its population is declining and aging, its vast Siberia
territories hollowing out after the end of Soviet subsidies . Extractive industries such as hydrocarbon,
mining and timber account for 80 percent of Russia's exports and 30 percent of its government revenue, whereas its
manufacturing industries are mostly outdated and uncompetitive . Russia therefore will have serious issues
with its self-image as a major world power, finding it hard to forge an assessment of its
global role commensurate with its long-term demographic and economic realities. Japan has a
similar problem of updating its self-image as the most "advanced" nation in Asia for more than 100 years. Today Japan
faces the harsh reality that, after its neighbors catch up, Japan will again find itself a
geographically small, resource-poor island nation dependent on trade, living uneasily
among large, populous continental neighbors. It has a largely pacifist, prosperous
population in a neighborhood still rife with nationalism. Unlike Europe, East Asia has yet to extinguish
historical grievances, border disputes and a taste for raw national powers. As Japan itself proved, economic rises, once
initiated, can be rapid indeed, so its current economic strength does not guarantee its future influence. Furthermore, barring a
rapid re-militarization, Japan's growth in national strengths is bound to be slower than that of its still maturing neighbors,
therefore its relative strategic position in East Asia will only grow weaker. Either re-militarization or an erosion
immediate environment: Southeast Asia, Central Asia and Korea Peninsula. But this only
serves to show that China is still mired in local complexities.
(Richard, Judge 7th Circuit Court of Appeals (Richard, Skeptic, Catastrophe, 11:3,
Proquest)
the fact that Homo sapiens has managed to survive every disease to
assail it in the 200,000 years or so of its existence is a source of
genuine comfort, at least if the focus is on extinction events. There have been
enormously destructive plagues, such as the Black Death, smallpox, and now AIDS, but
none has come close to destroying the entire human race. There is a
biological reason. Natural selection favors germs of limited lethality;
they are fitter in an evolutionary sense because their genes are more
likely to be spread if the germs do not kill their hosts too quickly. The AIDS
Yet
virus is an example of a lethal virus, wholly natural, that by lying dormant yet infectious in its host for
prevention and cure: the lesson of the AIDS pandemic. And there is always a first time.
AT: Bioterror
No risk of a bioterror attack, and there wont be retaliation their evidence is hype
MATISHAK 10 (Martin, Global Security Newswire, U.S. Unlikely to
Respond to Biological Threat With Nuclear Strike, Experts Say, 4-29,
http://www.globalsecuritynewswire.org/gsn/nw_20100429_7133.php)
The United States is not likely to use nuclear force to
respond to a biological weapons threat, even though the Obama administration
WASHINGTON --
left open that option in its recent update to the nation's nuclear weapons policy, experts say (See GSN,
April 22). "The
could kill tens of thousands, if not millions of Americans," according to Jonathan Tucker, a senior fellow with
the James Martin Center for Nonproliferation Studies. "But
The
nonproliferation benefits for restricting the role of strategic
weapons to deterring nuclear attacks outweigh the "marginal"
reduction in the country's ability to stem the use of biological
weapons, he said. In addition, the United States has efforts in place to defend against chemical and
biological attacks such as vaccines and other medical countermeasures, he argued. " We have
ways to mitigate the consequences of these attacks," Koblentz told the
audience. "There's no way to mitigate the efects of a nuclear
weapon." Regardless of the declaratory policy, the U.S. nuclear arsenal will always provide a
biological attack," Koblentz said during a recent panel discussion at the James Martin Center.
"residual deterrent" against mass-casualty biological or chemical attacks, according to Tucker. "If a
biological or chemical attack against the United States was of such a magnitude as to potentially warrant a
nuclear response, no attacker could be confident that the U.S. -- in the heat of the moment -- would not
retaliate with nuclear weapons, even if its declaratory policy is not to do so," he told GSN this week during
a telephone interview. Political Benefits Experts are unsure what, if any, political benefit the country or
President Barack Obama's sweeping nuclear nonproliferation agenda will gain from the posture review's
biological weapons caveat. The report's reservation "was an unnecessary dilution of the strengthened
negative security and a counterproductive elevation of biological weapons to the same strategic domain as
nuclear weapons," Koblentz told GSN by e-mail this week. " The
the former for being unable to resist underbidding programs, and the latter for not exercising more control
over major competitions.
Industry Fails
Watts 8 (Barry, September 19th, The US Defense Industrial Base: Past,
Present, and Future, http://www.csbaonline.org/wp-content/uploads/2011/02/2008.10.15Defense-Industrial-Base.pdf)
While the overall performance of US military technologies and weapon systems has been excellent, the
industry has failed, on more than one occasion, to provide systems with the
promised capabilities, or only done so after following delays , increased costs, or
both. Recent examples of major program failures stemming from cost overruns,
schedule slippage, or performance include termination of the National Reconnaissance
Ofce's (NRO's) Future Imagery Architecture program,"6 termination of Army - Navy Aerial
Common Sensor, and the scrapping of the Coast Guard's Deepwater program to produce the
first new coastguard cutters in more than three decades."7 It is difcult to assess the full extent of these
various program shortfalls because they can often be dealt with by government actions such as making
available additional funding available, altering requirements to avoid acknowledging shortfalls, or
stretching out programs until technical problems have been resolved. Moreover, program terminations
the most glaring manifestation of acquisition difculties can also be chosen by the government to
release funds for other uses or because products are no longer needed. In the case of FIA, however, the
government's assessment of the two proposals was surely questionable. Whereas Boeings proposal for
producing a new generation of electro-optical and radar-imaging reconnaissance satellites was evidently
superior to Lockheed Martin's, the government's judgment about Boeing s ability to match LM's four
decades of experience and success in this area appears, in hindsight, to have been poor. As then-NRO
director Keith Hall later said about the selection of Boeing, "I shouldn't have allowed it to go further.""8 The
dominant criticism of the weapons and systems produced by the defense industry is that programs either
cost too much to start with, or their costs increase during development and production. Studies by the
correlated to changes in annual buys imposed by top-level members of the DoD/Executive branch or
Congress. These factors are generally beyond the control of government or industry program
often mentioned in this regard are small arms, mortars, air defense guns and surface-to-air missiles. For
instance, the 7.62-millimeter Kalashmkov AK-47 assault rifle, initially adopted by the Soviet army in 1949,
was simple and inexpensive to man- ufacture yet provided legendary ruggedness and negligible failure
rates. By compari- son, when the American 5.56-mm XM16E1 (renamed the M16 upon adoption by the US
Army) entered service in Vietnam in 1966, reports of jamming and malfunctions in combat surfaced almost
immediately, and modifications of the rifle were needed to overcome these deficiencies. Even today,
assault rifles of the Kalaslmikov family are estimated to constitute one fifth of the worldwide supply of
firearms and are found in "practically every theatre of insurgency or guerrilla combat."109 Similarly, the
premier US fighter of the Vietnam era, the technologically more advanced McDonnell Douglas F-4, cost
four times more than the Soviet MiG-21, but the smaller, lighter MiG was a superior dogfighter in
horizontal-plane, turning fights, especially at higher altitudes.110 To defeat the MiG-21's superior turning
ability, F-4 crews had to master the more difcult techniques of maneuvering in the vertical plane so that
they could take advantage of the F-4's superior thrust-to-weight and raw power."1 In the early 1970s,
comparisons such as these led some observers to wonder whether the United States might be pricing itself
out of the competition with the Soviets by emphasizing technologically sophisticated but more expensive
buy to 175 operational aircraft. Along these same lines, the US Navy's recent decision to limit the planned
buy of seven DDG-1000 Zumwalt-classdestroyers to the first two ships due to unit prices over $3 billion
only reinforces longstanding concerns about the ballooning unit costs of advanced US weapon systems."3
Second, the American defense industry has also been unable to develop
technologies and systems to alleviate some of the most pressing challenges
of ground combat, such as jungle warfare, urban combat, guerrilla or irregular warfare and
peacekeeping. More than 80 percent of all US military personnel killed in combat during the last fifty years
have been in the ground forces of the Army and Marine Corps ."4
Nevertheless, this vulnerability, which insurgents and suicide bombers have exploited in Iraq and
capable of eliminating Clausewitzian friction are discovered which seems highly unlikely even in principle
inflicting casualties on US forces will continue to be a viable stratagem for America's enemies."5
AT: Manufacturing
Manufacturing doesnt solve anything- the jobs are poorperforming and they are not capable of competing for
innovation ***Read all highlighting
I
dont share their enthusiasm. The extra effort that went into Sperlings
speech raises the troubling possibility that these ideas will actually guide
policy in a second term rather than simply serve as props in a re-election campaign. It is sensible
analytic meat on the bones of President Obamas manufacturing-heavy State of the Union address.
for public policy to pay attention to the creation of great firms, to strength in specific sectors, and to the
quality of the jobs generated by different economic models.
need to tax it, and underinvestment in childrens education, so you need to subsidize it. If an unregulated
marketplace underproduces manufacturing firms or establishments, then we should subsidize factories just
like schools.
coincidence, its something you see all the time. Sperling notes that researchers have found that spillover
benefits decline with distance, indeed by over half when they are more than 700 miles away and tend not
to cross national boundaries. Thats because spillovers are fundamentally made of peoplegossip over
dinner, workers and managers drifting from one firm to another, casual inspection of the other guys setup,
etc.and people dont move around that much. Long story short, if the awesomest, most innovative
widget-making factory in the world is in your country, that gives you a huge leg up on your odds of
The problem is
that none of this has much to do with manufacturing. If you want to subsidize
R and D, then subsidize R and Dtheres no need for the backdoor of an
across-the-board subsidy to factory owners regardless of how much R and D
they actually do. On agglomeration, the irrelevance of manufacturing per se is even clearer. Its
becoming home to a disproportionate share of the next 10 awesome widget factories.
not a coincidence that Twitter, Apple, Google, and Facebook are all located on
a narrow corridor between San Jose, Calif. and San Francisco, that all the
movie studios are in Los Angeles, or that nonlocal journalism happens overwhelmingly in New
York and Washington, D.C. Industry clusters happen in all sectors. But if you look at Americas
metropolitan areas, its clear that manufacturing-oriented places are
relatively poor . The wealthy clusters in the United States are built around
things like software, biotechnology and medical devices , higher education, finance,
and business services. Places like California, Minneapolis, Seattle, and the Northeast corridor are far richer
by restrictive zoning policies that keep the cost of living high and population growth low. The number of
American students getting degrees in computer science and other technical fields is actually falling even
as the number of people going to college grows. Short-sighted politicians are underinvesting in the
transportation infrastructure even as people need to access our most vibrant labor markets. These kinds of
issues dont do as good a job of addressing the anxieties of Midwestern swing state voters as visits to lockmaking factories, but creating new billion-dollar software startups has a lot more to do with the future of
thats just a way of saying that America can regain factory parity with
China by eliminating the prosperity gap between our two countries
a very strange policy aspiration. Most likely theres nothing we can do to prevent some
narrowing of the gap, which will have the consequence of bringing some jobs back. But we should
measure our success by the extent to which this doesnt happen , and we
instead build and expand new industries that push living standards
up and keep factory owners searching abroad for cheap labor.
Fellow with the Center for Security Policy WHY ITS WRONG TO AGREE WITH
THE MALTHUSIANS ABOUT ETHANOL May 13, 2011http://www.ilcorn.org/dailyupdate/182-why-it-rsquo-s-wrong-to-agree-with-the-malthusians-aboutethanol/)//
In an op-ed article printed in the Denver Post May 8, editorial columnist Vince Carroll endorsed the view of
population control advocate Lester Brown that the U.S. corn ethanol program is threatening the worlds
poor with starvation. This endorsement is especially remarkable in view of the fact that, as the otherwise
many
previous limited-resources doomsday predictions have proven
wildly incorrect. In fact, Lester Brown is wrong about the alleged famine-inducing potential of
generally astute Mr. Carroll has correctly noted many times in the past, all of Lester Browns
the ethanol program for exactly the same reason he has been repeatedly wrong about the alleged famine-
corn growing industry, the beneficial effect of a growing market has been especially pronounced, with corn
yields per acre in 2010 (165 bushels per acre) being 37 percent higher than they were in 2002 (120
Not
only that, but in part because of the impetus of the expanded
ethanol program, another doubling of yield is now in sight, as
the best farms have pushed yields above 300 bushels per acre.
bushels per acres) and more than four times as great as they were in 1960 (40 bushels per acre.)
As a result, in 2010, the state of Iowa alone produced more corn than the entire United States did in 1947.
Of our entire corn crop, only 2 percent is actually eaten by Americans as corn, or 12 percent if one includes
products like corn chips and corn syrup. These advances in productivity do not only benefit the United
Victor, a Senior Fellow at the Stanford Freeman Spogli Institute for International Studies the Woods
Institute for the Environment, 2007 (David. What Resource Wars? November 1.
http://goliath.ecnext.com/coms2/gi_0199-7344601/What-resource-wars-From-Arabia.html)
THE SECOND surge in thinking about resource wars comes from all
the money that is pulsing into resource-rich countries. There is no
question that the revenues are huge. OPEC cashed $650 billion for 11.7 billion barrels of the oil it
sold in 2006, compared with $110 billion in 1998, when it sold a similar quantity of oil at much
lower prices. Russia's Central Bank reports that the country earned more than $300 billion selling oil
and gas in 2006, about four times its annual haul in the late 1990s. But will this flood in rents cause
conflict and war?
source--can fund a lot of mischievous behavior. Iran is building a nuclearweapons program with the revenues from its oil exports. Russia has funded trouble in Chechnya,
Georgia and other places with oil and gas rents. Hugo Chavez opened Venezuela's bulging
checkbook to help populists in Bolivia and to poke America in ways that could rekindle smoldering
conflicts. Islamic terrorists also have benefited, in part, from oil revenues that leak out of oil-rich
But resource-related
conflicts are multi-causal. In no case would simply cutting the
resources avoid or halt conflict, even if the presence of natural
resources can shift the odds. Certainly, oil revenues have advanced
Iran's nuclear program, which is a potential source of hot conflict and could make future
conflicts a lot more dangerous. But a steep decline in oil probably wouldn't
strangle the program on its own. Indeed, while Iran still struggles to make a bomb,
societies or are channeled directly from sympathetic governments.
resource-poor North Korea has already arrived at that goal by starving itself and getting help from
friends. Venezuela's checkbook allows Chavez to be a bigger thorn in the sides of those he dislikes,
but there are other thorns that poke without oil money. As we see,
just money but how it is used. While Al-Qaeda conjures images of an oil-funded
network--because it hails from the resource-rich Middle East and its seed capital has oily origins-other lethal terror networks, such as Sri Lanka's Tamil Tigers and Ireland's Republican Army, arose
with funding from diasporas rather than oil or other natural resources. Unlike modern state armies
that require huge infusions of capital, terror networks are usually organized to make the most of
scant funds. During the run-up in oil and gas prices, analysts have often claimed that these
revenues will go to fund terror networks; yet it is sobering to remember that Al-Qaeda came out in
the late 1990s, when oil earnings were at their lowest in recent history. Most of the tiny sums of
money needed for the September 11 attacks came from that period. Al-Qaeda's daring attacks
against the U.S. embassies in Kenya and Tanzania occurred when oil-rich patrons were fretting
about the inability to make ends meet at home because revenues were so low. Ideology and
organization trump money as driving forces for terrorism. Most thinking about resource-lubed
conflict has concentrated on the ways that windfalls from resources cause violence by empowering
belligerent states or sub-state actors. But the chains of cause and effect are more varied. For states
with weak governance and resources that are easy to grab, resources tend to make weak states
even weaker and raise the odds of hot conflict. This was true for Angola's diamonds and Nigeria's
oil, which in both cases have helped finance civil war. For states with stable authoritarian
governments--such as Kuwait, Saudi Arabia, most of the rest in the western Gulf, and perhaps also
Russia and Venezuela--the problem may be the opposite. A sharp decline in resource revenues can
create dangerous vacuums where expectations are high and paltry distributions discredit the
established authorities. On balance, the windfall in oil revenues over recent years is probably
breeding more conflict than would a crash in prices. However, while a few conflicts partly trace
themselves to resources, it is the other pernicious effects of resource windfalls, such as the
undermining of democratic transitions and the failure of most resource-reliant societies to organize
their economies around investment and productivity, that matter much, much more. At best,
storms will probably become more intense; dry areas are prone to parch further and wet zones are
likely to soak longer. And on top of those probable effects, unchecked climate change raises the
odds of suffering nasty surprises if the world's climate and ecosystems respond in abrupt ways.
Adding all that together, the scenarios are truly disturbing. Meaningful action to stem the dangers is
long overdue.In
the United States over the last year, the traditional security
community has become engaged on these issues. Politically, that
conversion has been touted as good news because the odds of meaningful policy are higher if
hawks also favor action. Their concerns are seen through the lens of resource wars, with fears such
as: water shortages that amplify grievances and trigger conflict; migrations of "climate refugees",
which could stress border controls and also cause strife if the displaced don't fit well in their new
societies; and diseases such as malaria that could be harder to contain if tropical conditions are
more prevalent, which in turn could stress health-care systems and lead to hot wars.While there are
have caused particular alarm in the advanced industrialized world, partly because microbial threats
are good fodder for the imagination. But none of these scenarios hold up because the scope of all
climate-sensitive diseases is mainly determined by the prevalence of institutions to prevent and
contain them rather than the raw climatic factors that determine where a disease might
theoretically exist. For example, the threat industry has flagged the idea that a growing fraction of
the United States will be malarial with the higher temperatures and increased moisture that are
likely to come with global climate change. Yet much of the American South is already climatically
inviting for malaria, and malaria was a serious problem as far north as Chicago until treatment and
eradication programs started in the 19th century licked the disease. Today, malaria is rare in the
industrialized world, regardless of climate, and whether it spreads again will hinge on whether
governments stay vigilant, not so much on patterns in climate. If Western countries really cared
about the spread of tropical diseases and the stresses they put on already fragile societies in the
developing world, they would redouble their efforts to tame the diseases directly (as some are now
doing) rather than imagining that efforts to lessen global warming will do the job. Eradication
usually depends mainly on strong and responsive governments, not the bugs and their physical
climate. Rethinking Policy IF RESOURCE wars are actually rare--and when they do
exist, they are part of a complex of causal factors--then much of the conventional wisdom about
resource policies needs fresh scrutiny. A full-blown new strategy is beyond this modest essay, but
here in the United States, at least three lines of new thinking are needed.First, the United States
needs to think differently about the demands that countries with exploding growth are making on
the world's resources. It must keep their rise in perspective, as their need for resources is still, on a
Applied to China, this means getting the Chinese government to view efcient markets as the best
way to obtain resources--not only because such an approach leads to correct pricing (which
encourages energy efciency as resources become more dear), but also because it t ransforms
China to source commodities through markets rather than mercantilism will be relatively easy
because Chinese policymakers, as well as the leadership of state enterprises that invest in natural
resource projects, already increasingly think that way.
expectations must be placed on China to tame the pernicious effects of its recent efforts to secure
special access to natural resources. Sudan, Chad and Zimbabwe are three particularly acute
examples where Chinese (and in Sudan's case, Indian) government investments, sheltered under a
foreign-policy umbrella, have caused harm by rewarding abusive governments. That list will grow
the more insecure China feels about its ability to source vital energy and mineral supplies. Some of
what is needed is patience because these troubles will abate as China itself realizes that going out
is an expensive strategy that buys little in security. Chinese state oil companies are generally wellrun organizations; as they are forced to pay the real costs of capital and to compete in the
marketplace, they won't engage in these strategies. The best analog is Brazil's experience, where
its state-controlled oil company has become ever smarter--and more market oriented--as the
Brazilian government has forced it to operate at arm's length without special favors. That has not
only allowed Petrobras to perform better, but it has also made Brazil's energy markets function
better and with higher security.Beyond patience, the West can help by focusing the spotlight on
dangerous practices--clearly branding them the problem. There's some evidence that the shaming
already underway is having an effect--evident, for example, in China's recent decision to no longer
use its veto in the UN Security Council to shield Sudan's government. At the same time, the West
can work with its own companies to make payments to governments (and ofcials) much more
transparent and to close havens for money siphoned from governments. Despite many initiatives in
this area, such as the Extractive Industries Transparency Initiative and the now-stalled attempt by
some oil companies to "Publish What You Pay", little has been accomplished. Actual support for such
policies by the most influential governments is strikingly rare. America is notably quiet on this front.
With regard to the flow of resources to terrorists--who in turn cause conflicts and are often seen as a
circuitous route to resource wars--policymakers must realize that this channel for oil money is good
for speeches but perhaps the least important reason to stem the outflow of money for buying
imported hydrocarbons. Much more consequential is that the U.S. call on world oil resources is not
sustainable because a host of factors--such as nationalization of oil resources and insecurity in
many oil-producing regions--make it hard for supply to keep pace with demand. This yields tight and
jittery markets and still-higher prices. These problems will just get worse unless the United States
and other big consumers temper their demand. The goal should not be "independence" from
international markets but a sustainable path of consumption. When the left-leaning wings in
American politics and the industry-centered National Petroleum Council both issue this same
warning about energy supplies--as they have over the last year--then there is an urgent need for
the United States to change course. Yet Congress and the administration have done little to alter
the fundamental policy incentives for efciency. At this writing, the House and Senate are
attempting to reconcile two versions of energy bills, neither of which, strikingly, will cause much
fundamental change to the situation.Cutting the flow of revenues to resource-rich governments and
societies can be a good policy goal, but success will require American policymakers to pursue
strategies that they will find politically toxic at home. One is to get serious about taxation. The only
durable way to rigorously cut the flow of resources is to keep prices high (and thus encourage
efciency as well as changes in behavior that reduce dependence on oil) while channeling the
revenues into the U.S. government treasury rather than overseas. In short, that means a tax on
imported oil and a complementary tax on all fuels sold in the United States so that a fuel import tax
doesn't simply hand a windfall to domestic producers. And if the United States (and other resource
consumers) made a serious effort to contain financial windfalls to natural-resources exporters, it
would need--at the same time--to confront a more politically poisonous task: propping up regimes
or easing the transition to new systems of governance in places where vacuums are worse than
incumbents.Given all the practical troubles for the midwives of regime change, serious policy in this