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II. ASSUMPTIONS AND CONCLUSIONS OF THE NMAB REPORT,

"ELEMENTS OF A NATIONAL MATERIALS POLICY," AUGUST 1972

Purpose. The purpose of this report was "early identification of issues and problems to whose resolution a national materials policy should be directed, and to recommend such possible solutions, constructive actions, and needed studies as could be reasonable formulated within the time allowed."

Limitations. The scope of the report was confined to minerals.

The

panel meetings were confined to a one-day planning session, a one-day workshop session, and a one-day plenary session. Development of the final report was aided by the staff of the National Materials Advisory Board, and by correspondence and telephone consultations among the participants. The report

focused on seven "major issue areas." These were:

1.

2.

Abundances of mineral commodities and problems affecting future
primary supplies

Implications of environmental protection policy for national
materials policy

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Outside of these seven issue areas was one of general concern that would

condition all of the others. As expressed in the report: "Any viable materials policy must recognize and cope with the pressures created by increasing per

capita consumption of materials, increasing numbers of consumers, and the growing need for control of both."

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The Summary Summarized.

It is difficult to summarize the entire study.

For

The procedure in preparing it was to divide the study team into seven working groups, each of which reported on one of the seven topics listed above. mats varied with the subject matter. At the plenary session, chairmen of the seven working groups reported in sequences, while the entire team acted as a board of review and the general chairman (Preston Cloud) noted consensual agreement and dissent. Subsequently, the Chairman prepared a seven

page summary that dealt in very broad generalities about the findings of the seven working group reports.

The summary stressed the importance of materials to an industrial society, cited the goals of environmental quality and fundamental equity in global distribution of supplies, and warned of the

***Growing pressure with respect to availability of raw materials, their harmonious apportionment among nations and social groups, and the impact on our ecosystem and society of their production, refinement, and disposal.

Dependence on imports was growing. Foreign sources were "increasingly precarious." A "fresh and flexible materials policy must be formulated and continue to evolve ***. The philosophy of limitless growth needed re"Environmental, social, and energy costs must be counted."

examination.

Attention should be given to the interactions throughout the total materials system and to the maintenance of skills needed for total materials management. Policy should focus on increased use of the greatly abundant materials, on reduced use of scarce materials, and on the creation of institutions to monitor and control materials supply and demand. Specific measures of con

servation were enumerated.

required corrective action.

Lagging science of mineral discovery and extraction

Government controls and incentives could help

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solve many problems and should be evaluated.

The problem of equitable global

division of supply might be approached through a "permanent, representative Minerals Advisory Council." Manpower and facilities were fundamental to the management of materials; but data were unhelpfully unreliable so studies should be made.

Assumptions.

society.

TASK ONE: ABUNDANCE AND SUPPLY

Minerals supplies were utterly essential to an industrial Domestic supplies were clearly inadequate to meet demands. While there was need to slow the growing dependence on foreign supplies, total elimination of foreign dependence was infeasible. It was necessary to improve

the technology of domestic production of minerals and to adjust the technology of their use by industry. There should also be increased concern for the environmental consequences of actions taken.

Availability Considerations. The Working Group suggested the classification of minerals into three categories: (1) those greatly abundant and widely distributed, like salt, cement, gravel; (2) those relatively abundant but unevenly distributed, like chromium, manganese, and nickel; and (3) those intrinsically rare, with few sources, like gold, platinum, tin, and

mercury.

Issues and their Resolution. The Working Group took up four broad issues, and offered suggestions on ways to approach their resolution, as follows:

1. Steps to improve the utilization of domestic sources "without unacceptable damage to the environment." Four measures were suggested: (1) an adequate information data base (five categories of geological data were

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needed, and a central information bank should be established); (2) clarification of land policy for mining; (3) (4) improved technology of mineral discovery and extraction.

2. Reduction of nonessential uses of minerals by industry and the design of products to make them more durable. These were advisable, would become essential, and called for gradual evolutionary development

3. Adjustment of industrial technology to match more closely the domestic availability of minerals. Much could and should be done. Six specific courses of action were recommended. Dangers of failing to do this

were described as:

*** the erosion of United States mining, smelting, refining,
and mineral-based manufacturing industries, growing economic
colonialism, international frictions, a steadily deteriorating
balance of trade, and a tarnished global image of the nation.

Government encouragement was suggested to motivate this policy.

4. Assurance of foreign supplies of minerals deficient in the United States. There could be no such assurance. Efforts should be made, however, to develop "equitable long-term agreements" for international commodity exchange. It was time "to begin thinking about an international body" for global conservation of minerals. Stockpiling was a short-term palliative

and an implement of price control.

TASK TWO:

IMPLICATIONS OF ENVIRONMENTAL PROTECTION

POLICY FOR NATIONAL MATERIALS POLICY

Issues Raised

This Task Force raised the question: Can a realistic and acceptable

national materials policy be formulated, given the constraints of the National

Environmental Protection Act? Increased requirements for materials

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were forecast. If these were to be met, there were only two alternatives: resort to leaner and leaner domestic sources, or more and more reliance on

imports. The consequence of the first course was increasingly destructive environmental impact; the consequence of the second was "increasing opportunity for international conflict."

The Task Force identified 10 issues, as follows:

1.

Environmental cost accounting. The cost of materials extraction should include "the cost of preventing or repairing environmental damage ***." 2. Damage from wastes. This "must be recognized and minimized at every step from mine to ultimate user."

3.

Monitoring contaminants.

"An agency other than those responsible

for developing resources *** should be charged with this task."

4. Finiteness of critical components of biological systems. Study and better management of finite global resources of biologically essential and non renewable minerals was "essential."

"The

5. Environmental consequences of development of energy resources. sane and environmentally acceptable management and control of [the development of energy resources] must be an integral part of future production."

6. Legal incentives for environmental management. These "must be established on a regional basis to assure [both] continued biological and material productivity at sustainable levels ***."

7. Environmental reclamation. "Biological productivity must be

restored in areas * * * degraded by materials extraction."

8. Compensation for environmental degradation or loss of employment due

to materials production or non-production deemed essential to the general

welfare.

"***To reduce or prevent economic and other inequities as a consequence of national zoning policies * * *."

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