Rahall's royalties reforms passes House

by: Carnacki

Thu Nov 01, 2007 at 17:36:15 PM EDT

WASHINGTON, Nov 1 (Reuters) - The U.S. House of Representatives on Thursday voted to slap the first-ever federal royalties on gold, silver, copper, uranium and other minerals mined on public lands.

The House voted 244-166 for the Hardrock Mining and Reclamation Act of 2007, which would levy an 8 percent royalty on the gross revenue from new hard-rock mining activities and impose a 4 percent royalty on existing operations.

The White House threatened to veto the bill, warning that imposing royalties "could reduce the continued domestic production of hardrock minerals."

The U.S. Senate would have to approve the bill before President George W. Bush could review it.

If it becomes law, it would be the first major overhaul of the General Mining Law since former President Ulysses S. Grant signed it in 1872 to encourage Western land development.

Democrat Rep. Nick Rahall of West Virginia, the bill's chief sponsor, said reform is needed to end mining companies' ability to buy land for as little as $2.50 an acre, which amounts to "fast food hamburger prices."