Bill puts an end to give-away of U.S. minerals; restores integrity of public lands

November 1, 2007    

CONTACT: Allyson Groff, 202-226-9019

Washington, D.C. - Over 135 years after President Ulysses S. Grant signed the Mining Law of 1872, House Natural Resources Committee Chairman Nick J. Rahall (D-WV) today shepherded comprehensive reform legislation through the U.S. House of Representatives to bring this antiquated law, once and for all, into the 21^st century.  The bill was approved by a vote of 244-166.

"Over the years, the Mining Law of 1872 has helped develop the West and allowed needed minerals to be extracted from the Earth - but we have long passed the time when this 19^th century law can be depended upon to serve the country's 21^st century mineral needs," Rahall said.  "At stake here are the health, welfare, and environmental integrity of our people and our precious federal lands, the public interest of all Americans, and the future of the hardrock mining industry in this country."

Current law permits multi-national conglomerates to stake mining claims on federal lands in the 11 western states and Alaska and to produce valuable hardrock minerals such as gold, silver, and copper without paying any royalty to the true owners of this land - the American people.  Further, the law contains no mining and reclamation standards, and provides for claimed lands to be sold for between $2.50 and $5.00 an acre. 

The Hardrock Mining and Reclamation Act of 2007 (H.R. 2262) provides a strong, clear framework to put a stop to this blatant abuse by imposing a royalty on the production of hardrock minerals - an 8 percent gross income royalty on new mines and a 4 percent gross income royalty on fully operational mines.  The coal, oil and gas industries have long paid royalties to the government for the extraction of these resources from federal lands. 

Rahall said, "Those who support this legislation - the countless locally elected public officials, concerned citizens, sportsmen and women, and taxpayer advocates - bring with them the new century conviction that corporate interests can no longer have an unfettered ability to reap America's mineral wealth with no payment in return.  There must be parameters set, and rules adhered to - for if we do not make corrections to the current regime, the ability of the mining industry to continue to operate on public lands in the future is questionable."

A special fund, financed by the royalties collected, would be used to finance the estimated $30 to $70 billion in costs to clean up abandoned hardrock mines, address the human health and safety threats they pose, and provide for community impact assistance.  The 2007 Act also puts a permanent end to the patenting of public land - the sale of mining claims at 1872 prices.

"I believe that, with enough courage and fortitude, we can continue to address the problems facing hardrock mining, and dovetail our need for these important minerals with the necessity of protecting the environment for future generations," Rahall said. 

Further, the legislation gives the Secretary of the Interior the right to say "no" to a proposed mine that would have severe, irreparable impacts on public resources.  It also allows states, their political subdivisions, and Tribal governments the ability to petition the Secretary to withdraw federal lands from mining to proactively protect drinking water, wildlife habitat, and other resources they deem critical to their communities and local economies. 

"Reform of the Mining Law of 1872 is a matter of the public interest.  The interest of the American taxpayer.  The interest of all Americans who are the true owners of these public lands.  Because the name of every American is on the deed to these lands," Rahall said.

This legislation responds to 20 years of House deliberations on the need to provide comprehensive reform of the Mining Law of 1872, including four hearings and nine months of valuable input from all perspectives in 2007 alone.  The Hardrock Mining and Reclamation Act of 2007 has received the support of over 125 groups representing conservation, environmental, hunting and angling, jeweler, and recreation interests, among others. 

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