Gut reaction: If the NMA is agin it, Rahall did the right thing

by: Beth Wellington

Thu Nov 01, 2007 at 22:03:06 PM EDT

The hardrock mining industry is exempt from royalties due to the General Mining Law  Grant signedin 1872, hoping to encourage Western land development. Nick Rahall D_WV) chief sponsor of the Hardrock Mining and Reclamation Act of 2007 (HR 2262) says 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."

If enacted, the bill would represent the first major overhaul since Grant's time.  Gross revenue from gold, silver, copper, uranium and other minerals mined on public lands would be levied at the rate of  8 percent  royalty on new hard-rock mining  and  4 percent on existing operations.

To track the bill, go to the Library of Congress's THOMAS database for the bill.

Of course, my "friends" at the NMA sent me an urgent email to oppose the bill.  (see their email below the fold.

Chris Baltimore of Reuters reported today that the House voted in favor of the measure 244-166
Bush (as usual) threatens a veto, saying  royalties "could reduce the continued domestic production of hardrock minerals."

Don Young (R-AK) complained, "It doesn't affect West Virginia, it doesn't affect (Rahall's) coal mines, it doesn't affect any of the East Coast states."

"As I watch my good friend there working his blackberry, where do you think the metals came from?" Young said, gesturing toward Rahall across the aisle.

Rahall says it would cost up to $70 billion to clean up the estimated 500,000 abandoned U.S. mines, which can seep toxic chemicals like cyanide and mercury into groundwater supplies.

The Senate has blocked several of Rahall's attempts to change the mining law. Senate Majority Leader Harry Reid's home state of Nevada is the biggest U.S. gold producer.

Sen. Pete Domenici of New Mexico, the top Republican on the Energy Committee, said he wants to update mining laws but that the Senate should start over rather than try to pass the House bill.

NMA writes me,

ACT now and ask your House member to vote "NO" on the "Hardrock Mining and Reclamation Act of 2007" (H.R. 2262), which will imposes new taxes, eliminate countless jobs, increase our dependence on foreign minerals and allow investments to be confiscated by allowing mining projects to be stopped, even when all environmental and other legal requirements have been met.

Today, American hardrock miners are the highest paid in the world earning excellent salaries and receiving unmatched benefits. Congress will drive these jobs overseas if it approves H.R. 2262, which impose the highest minerals tax in the world!

Hardrock mining employers and employees are dedicated to working with Congress to reform the Mining Law to ensure a fair return to taxpayers and allow businesses to stay open, preserve high-wage American jobs and prevent further increases in our dependence on foreign minerals. No one wants to depend on foreign minerals the same way we depend on foreign oil - especially when we have more than enough minerals right here at home!

Please tell Congress to stop exporting our jobs and stop making us more dependent on foreign countries. So ACT today and urge your member of Congress to vote "NO" on H.R. 2262. Congress needs to reform the Mining Law to ensure a fair economic return to taxpayers for the use of federal lands, help meet America's future mineral needs with domestic minerals, while keeping high-paying mining jobs at home.