David L. Kanagy, the executive director and CEO of the Society for Mining, Metallurgy, and Exploration (SME), has expressed his concerns to the Securities and Exchange Commission (SEC) regarding the proposed Natural Asset Company (NAC) rule. In a recent letter to Sherry R. Haywood, assistant secretary of the SEC, Kanagy argued that the proposed rule is against public interest as it would increase reliance on foreign minerals and mining.
In his correspondence with Haywood, Kanagy stated: "The Society for Mining Metallurgy & Exploration (SME) has serious concerns about the Securities and Exchange Commission’s (SEC’s) October 4, 2023, proposed rule at Federal Register (FR) Volume 88, No. 191, Pages 68811-68819 to amend the New York Stock Exchange (NYSE) Listed Company Manual to adopt listing standards for Natural Asset Companies (NACs), hereinafter referred to as "the NAC Rule." He further elaborated on his apprehensions regarding the NAC rule currently under consideration by the SEC. He said that the rule is unlawful and detrimental to public interest as it increases dependence on foreign adversaries for necessary mineral products.
The Federal Newswire explains that the NAC Rule is a recently proposed regulation currently being evaluated by the SEC. This rule was jointly developed by the Intrinsic Exchange Group (IEG) and the New York Stock Exchange (NYSE). The investment category aligns with the 30x30 initiative which aims to permanently protect 30 percent of Earth's land and oceans by 2023.
Kanagy pointed out in his letter that this proposed NAC rule contradicts both the Federal Land Policy and Management Act (FLPMA) of 1976 and President Biden's stated goals of achieving net-zero carbon emissions by 2050.
According to Kanagy, the FLPMA states that public lands should be managed based on the principles of multiple use and sustained yield, unless otherwise specified by law. "The SEC’s NAC Rule unlawfully proposes to substitute non-use for multiple use on NAC public lands," he said. "The SEC cannot advance a rule that seeks to override Congressional intent by authorizing NACs to acquire public lands and manage them to specifically prohibit multiple use and sustained yield." He added that without Congressional authorization, no agency, including the SEC, can prioritize conservation of public lands.
Kanagy also contended that President Biden's goal is unattainable without domestic mining on public lands. He said: "By curtailing mining, the NAC Rule will exacerbate the Nation’s already dangerous reliance on other countries, including foreign adversaries, for the minerals that are essential to the energy transition." He further stated in his letter: "Because minerals are also indispensable for our national defense, economy, infrastructure, and manufacturing and technology sectors, the NAC Rule creates a broad threat to our country."
The SME is a non-profit organization consisting of more than 14,000 mining industry professionals from over 100 countries. It aims to advance the global mining and underground construction community through information exchange, education, and professional development. David L. Kanagy currently serves as its Executive Director and CEO.
According to the American Institute of Mining, Metallurgical, and Petroleum Engineers (AIME), Kanagy has been credited with SME's success as it has become the world's largest mining organization. He has received both the Professional of the Year award from the Colorado Society of Association Executives and the Gold Medal from the Mining and Metallurgical Society of America. Kanagy holds a Bachelor of Science in industrial education and a Master of Science in technology education. He is also recognized by the American Society of Association Executives as a certified association executive.
