With the incoming Trump administration set to take office in 2025, mining and royalty holders may see policy changes aimed at boosting domestic energy production and reducing regulatory burdens. In general, the administration is expected to return to a more pro-energy, pro-mining agenda could create new opportunities for royalty holders while also reshaping how operations are regulated.

Things to keep an eye on:

1. Expansion of Domestic Mining on Federal Lands:
   • The Trump administration is expected to encourage greater access to federal lands for mining operations, reversing many restrictions implemented by the previous administration. This could lead to the permitting of construction of new projects and increased revenue opportunities for royalty holders tied to federal and state lands. Here’s a few projects worth keeping an eye on:
     • The Ambler Access Road Project, Alaska
     • Resolution Copper Mine, Arizona
     • Twin Metals Mine, Minnesota
2. Rollbacks on Environmental Regulations:
   • The administration is likely to focus on reducing environmental oversight to expedite permitting processes for mining projects. For royalty holders, this could mean faster project timelines and higher production rates, potentially initiating or boosting royalty incomes.
3. Focus on Energy Independence:
   • A renewed push for “energy dominance” may prioritize domestic resource extraction, including critical minerals, coal, and traditional metals like copper and gold. Royalty holders could stand to benefit from increased production and demand for U.S.-sourced resources.
4. Lower Federal Royalty Rates:
   • In line with previous policies, the administration may reduce royalty rates on federal lands to incentivize investment. This would be seen as a benefit to mining producers. Depending on scale, lower rates might be enough to make marginal projects attractive enough for mining companies to decide to advance.

What This Means for Royalty Holders

The new administration is expected to take policy directions intent on driving significant growth in domestic mining, presenting new opportunities for royalty holders. However, increased production would also lead to changes in market supply, affecting commodity prices. The rush to secure supply chains and the increasing focus on so call “defense minerals” are also likely to continue the trend of increasing interest of global governments, including the US, in mineral production and supply.

At Precision Mineral Accounting, we help clients navigate these changes, offering expert insights and tailored solutions to protect and maximize the value of their royalties in a shifting regulatory landscape.