H.R. 2262 Provides Overdue Mining Reforms
Mining Industry Struck Gold with Century-Old Giveaways

One hundred and thirty-five years ago, Congress enacted the federal law that governs precious metal mining on federal land. Thanks to this archaic law, billions of dollars of gold, uranium, silver, and copper are taken from public lands by mining interests each year. Rep. Rahall has introduced a bill, H.R. 2262, the Hardrock Mining and Reclamation Act of 2007 that will bring these anachronistic policies into the 21st century.

H.R. 2262 addresses three important problems with the 1872 mining laws:

Unlike other extractive industries, companies that mine for gold, silver, copper, uranium and other precious metals do not have to pay a fee when operating on federal land, essentially allowing these valuable minerals to be given away for free. In contrast, the oil, gas and coal industries pay more than 12% royalty, and they and the hardrock mining companies may pay even more when mining on private, state or tribal lands.

H.R. 2262 imposes an 8 percent royalty on the value of all hardrock mined from federal land:

The government can sell land at 19th century prices while allowing the buyer to reap 21st century profits. Under the 1872 law, federal lands are sold for no more than $5 an acre–considerably below today’s market value. Not only have mining companies been able to gain title to land valued at tens of millions of dollars for as little as tens of thousands of dollars, but the land can be developed for other purposes, including commercial enterprises, such as condominiums, ski resorts and casinos.

H.R. 2262 prohibits the further sale of federal land to hardrock mining companies by making a temporary patent moratorium permanent.
Taxpayers are saddled with hefty clean-up costs of the toxic aftermath of mining operations. Not only do American taxpayers underwrite the profits, but they are also forced to pay for the damages left behind. These damages have been estimated to cost upwards of $50 billion.

H.R. 2262 tackles these environmental costs from several angles. The bill 1) Establishes environmental standards to minimize damage, 2) requires more stringent planning and disclosures from mining companies to reduce unforeseen catastrophes, and 3) invests royalty and fee revenues into a fund that helps cover these expensive damages.

Public lands are taxpayer assets, and should be managed in a way that preserves their value, ensures a fair return from private interests using them for profit, and avoids future liability. The structure of the Mining Law of 1872 fails by all of these measures. H.R. 2262 addresses these century-old policies and protects taxpayer interests.