OLD ECONOMY

Could the 1872 Mining Act be Rewritten?

By Headwaters News, 5-11-07

The General Mining Act of 1872 is perhaps the oldest operating legislation significantly affecting the environment and economy in the West on a daily basis. Numerous attempts have been made to update it, but have thus far failed. The most recent attempt looks like it might work, though.

West Virginia Democratic Rep. Nick Rahall, also the current U.S. House Natural Resources Committee Chairman, submitted legislation to rework the 1872 law. Proposed changes include an 8 percent net royalty on minerals mining on public lands, creation of a fund to clean up abandoned mines and a provision to forever ban mining on some federal lands.

Nevada Democratic Sen. Harry Reid, who has successfully fended off earlier attempts to rewrite the law — hardrock mining is a big issue in Nevada where mining interests carry considerable clout — said he’s amenable to working with Rahall on the rewrite, although insiders said it was unlikely any legislation fiercely opposed by the mining industry would pass.

The new law would not affect Wyoming’s coalmines, but the Casper Star Tribune reported that it would apply to the state’s bentonite and uranium industries.  A change to the 1872 law would have considerable effect in Nevada, too, given that the state is the nation’s largest gold producer.

And with renewed interest in uranium mines, because of skyrocketing uranium prices worldwide, in Wyoming, Colorado, New Mexico and Utah, the legislation will surely see multi-state scrutiny.

The National Mining Association has said it disagrees with the 8 percent royalty proposed by the legislation, but does support the changes to instill more certainty in permitting processes and to create an abandoned mine cleanup fund.

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