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Hardrock Mining
 Hardrock mining on federal public lands costs taxpayers million of dollars each year. Currently governed by the General Mining Law of 1872, this antiquated law has provided billions of dollars in precious metals to the hardrock mineral industry at expense of the U.S. taxpayer for the past 135 years. There are three areas where taxpayers are hit hardest by this outdated law: royalty exclusions, patenting, and inadequate bonding regulations.
IN CONGRESS
On October 23rd the House Natural Resources Committee passed H.R. 2262. The bill includes important reforms to the 1872 Mining Law.
End a 135 Year Old Taxpayer Giveaway
Support the Reform of the General Mining Law of 1872
TCS MATERIALS ON THE 1872 MINING LAW
Mining Industry Receives Special Tax Treatment (html | pdf)
Hardrock Mining Royalty-Fair to Taxpayers, Fair to Industry (html | pdf)
TCS Congressional Testimony About Reform of 1872 Mining Law (html | pdf)
TCS Mining Fact Sheet (pdf)
Jill Lancelot Statement on the Need for Reform of 1872 Mining Law
TCS Testimony in House about H.R. 2262, “The Hardrock Mining and Reclamation Act of 2007” Read Vice President, Steve Ellis's testimony before the House Natural Resources Committee Hearing on H.R. 2262.
TCS Wastebasket on Mining Royalties: Make Mining Companies Pay Their Share
Uncle Sam has been giving away gold, silver, copper and other minerals that are extracted from taxpayer-owned federal land for free for well over a century...Read More
TCS Wastebasket about 1872 Mining Law Learn about the granddaddy of all subsidies the General Mining Law of 1872.
State Fact Sheets: How the 1872 Mining Law Impacts Western States
Colorado
New Mexico
Utah
Royalties
While coal, oil and gas companies pay taxpayers 8% to 12.5% in royalties for mining on public lands, hardrock mining companies make no return to taxpayers at all. This oversight is estimated to cost taxpayers $100 million annually (based on a 10 percent royalty - the estimated value of hardrock minerals extracted from federal lands is about $1 billion annually, according to the Congressional Budget Office). This is a one-of-a-kind subsidy not extended to any other extractive mineral industry operating on federal property.
Read More: Hardrock Mines on Federal Lands Provide No Return to Taxpayers (pdf)
Patents
Patent provisions under the 1872 Mining Law authorize the federal government to sell public land for the per-acre price of $2.50 to $5.00 to any person or business that shows intent of hardrock mineral development. Patenting gives full title of both the land and mineral rights of a claim. Patents are not required for mineral development. Every year since 1994, Congress has renewed a moratorium on patenting that blocks billions of dollars worth of public land giveaways. However, this moratorium is only good for one year, and hundreds of patents were grandfathered in under this provision.
Read More: The Claim-Patent System: Fueling a 135-Year Heist of Public Land (pdf)
Bonding
Reclamation bonds require hardrock mine operators post adequate financial assurances to cover the costs of eventual mine closure and subsequent cleanup activities so that taxpayers do not have to foot the bill. Over the years however, the lack of clear and adequate clean-up, pollution or public health standards under the 1872 Mining Law have often left taxpayers with astronomical clean up costs for mine site remediation. Strong bonding requirements would provide taxpayers with much needed protection against the undue financial burden of cleaning up after the hardrock industry.
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