Highlights

• Gold remains the primary mining focus in South Dakota, with 31 out of 45 active mining projects centered on gold extraction.
• Lithium and other critical minerals are emerging as significant resources, particularly in the Missouri River basin area.
• The state is examining how to classify and tax new critical minerals.
• Federal lists identify 50 rare earth minerals crucial for daily functions.

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South Dakota Public Broadcasting (SDPB),  South Dakota's statewide public broadcasting network reports (opens in a new tab)

those critical minerals, the most important and useful items extracted from the earth in the mining industry, become the topic of greater interest in  state government,  asking how to best utilize and manage these resources.

At a recent meeting of the legislative Executive Board the question surfaced.

Lance Nixon (opens in a new tab), a Legislative Researching Council analyst cited one new mineral as quickly emerging as a force in the mining industry.  Nixon said to SDPB “As you might guess, one of the drivers was lithium." He continued. "We’ve entertained bills the past two sessions on whether to tax it as an energy mineral or as a precious mineral. We remember the discussion in which a lobbyist suggested it’s properly considered a critical mineral, that’s because the federal government has been building a list of so-called critical minerals through the past two presidential administrations.”

That list includes 50 rare earth minerals critical for day-to-day functions in America, and includes items like aluminum, zinc, tin and lithium.

Lance Nixon, Legislative Researching Council analyst

Lithium has many uses from inputs into cars to household batteries.

While most of the state’s mining industry is found in the Black Hills, Nixon said a significant potion of these critical minerals are found in the Missouri River basin.

“It’s going to be different than say finding a vein of gold and following it into the earth," Nixon said "(The) South Dakota Geological Survey notes that many critical minerals are not found as standalone deposits that can be mined profitably, they’re found as byproducts or co-minerals you might find mining for something else.”

While mining offers adverse effects, especially to the tourism economy of the western South Dakota, Nixon said much of the new permitting efforts are for an old friend of the Black Hills.

“When I started this, I was thinking of a significant anniversary – that it was 150 years ago when Custers party found gold in the Black Hills," Nixon said. Gold is still gold, and when I had the DANR send over their list of active mining projects this summer, 45 total projects: 31 were for gold, four were for lithium, and one was for other critical minerals – tin, tantalum and tungsten.”

Nixon said he predicts critical minerals as a part of the industrial future of the state. The report was ultimately approved by the executive board.