For mineral companies operating in the United States, the regulatory landscape can be as formidable as the exploration process itself.
While some states offer a more streamlined path to production, others present a complex maze of federal oversight that companies must navigate to move their projects forward.
Ed Karr, founder of US Gold Corp (NASDAQ:USAU), sees Wyoming as a standout jurisdiction for mining, contrasting sharply with the challenges faced in other states. “I can’t say enough good things about Wyoming,” Karr said, citing the state’s clear permitting process and pro-mining stance.
“The experience we’ve had from the state, regulators, local stakeholders, and ranchers has been extremely positive," Karr said in a recent webinar with fellow US-focused executives. "Wyoming is a natural resource state, and they understand the industry.”
US Gold’s CK Gold project (pictured) recently secured full permits, a milestone Karr attributes to the state’s structured approach. “There was no shortcut—we had to do everything, from environmental baseline studies to wildlife impact assessments—but in Wyoming, there’s a clear process, and we got through it.”
The economic benefits of mining are a key factor in the state’s support, with Wyoming holding a 2.1% net smelter royalty (NSR) on CK. “Key state regulators have told us, ‘We really want this mine to go into production.’”
Permitting
Elsewhere in the US, permitting is often more challenging. Stephen Rentschler, CEO of Nevada Lithium Resources Inc (TSX-V:NVLH, OTCQB:NVLHF), which is developing the Bonnie Claire lithium-boron project, has experience navigating federal land regulations.
“Bonnie Claire, our project, is on federal land. Of course, I think 85% of Nevada and Arizona is on federal land,” Rentschler said. “We’ve had very good interface with the BLM. The local offices have been very receptive to us and get back to us in a timely manner. But I think we all know it’s really about the bureaucracy above—it’s all these additional regulations that have come in over time.”
One of the biggest hurdles for US mining companies is the National Environmental Policy Act (NEPA), which governs environmental reviews for projects on federal land. While some speculate that a second Trump administration could eliminate NEPA, Rentschler believes the process is deeply entrenched. “This is one area I don’t believe President Trump can just simply eliminate, because NEPA was created by an act of Congress,” he said. “But what I do think can happen is a streamlining of regulations across different agencies, whether it’s the Interior Department, Fish and Wildlife, or others.”
Beyond regulatory reform, Rentschler argues that a more pressing issue is the underfunding of key agencies responsible for mineral development. “To me, it’s less important whether people are still working from home and more important whether agencies like the BLM and the state of Nevada have enough geologists,” he said. “As a businessman, I think President Trump would be receptive to arguments for additional funding in key areas.”
Positive policy changes
Despite these regulatory and financial challenges, Nevada remains a crucial hub for lithium production in the US. “In my opinion, the centerpiece of the US lithium industry is going to be Nevada,” Rentschler said. “These are expansive projects, and while our grades are lower than some international deposits, that’s not uncommon. Look at gold—some mines have high-grade veins, while others process billions of tons at lower concentrations.”
Nevada’s advantages extend beyond its geology, with infrastructure that supports long-term lithium production. “The state desperately wants to extract as much value as possible from the lithium supply chain,” Rentschler added. “There’s already great infrastructure—alternative energy from the Hoover Dam, expanding solar projects, highways, and even discussions about upgrading railroads. It’s the perfect environment for a critical minerals hub.”
For US Gold, securing full permits in Wyoming places the company in a strong position for growth. “We have a very tight share structure—only 12.3 million shares outstanding—no debt, and a strong cash balance,” Karr said. “Once CK is in production, we’ll use that revenue to go after our big exploration projects.”
Ultimately, state-level support can be the deciding factor in a project’s success. “If any of the positive policy changes being discussed actually come to fruition—everything from permitting reform to financing support—it’s going to help,” Rentschler said. “I’m looking forward to it.”