The mining newspaper for Alaska and Canada's North
The mining newspaper for Alaska and Canada's North
Hardrock Mining and Reclamation Act of 2007 passes U.S. House; other body looks at throwing it out and starting with clean slate
Representatives Nick Rahall, D-W.V., and Jim Costa, D-Calif., introduced H.R. 2262, the Hardrock Mining and Reclamation Act of 2007, in the U.S. House of Representatives as a replacement for the 1872 Mining Law. Since the bill passed the House with a vote of 244-166 Nov. 1 it has received criticism from Democrats and Republicans alike.
Just before the legislation came up for a vote in the House, the Bush administration issued a statement that the president strongly opposed H.R. 2262 because the bill imposes a royalty on claims where property rights already have been vested, could reduce the continued domestic production of hardrock minerals and restates and expands some environmental standards and permitting requirements that are unnecessary and redundant.
The measure also establishes new public participation standards rather than using existing and well-established processes to engage the public, the White House said. If H.R. 2262 were presented to the president in its current form, his senior advisors would recommend he veto the bill, the statement added.
Democratic presidential hopeful Sen. Barack Obama, D-Ill., added his voice to those criticizing the bill. Obama said he is particularly opposed to provisions in H.R. 2262 that call for a 4 percent royalty tax on new mines and an 8 percent royalty tax on existing operations.
"Given the difficulties that the industry is already having in maintaining its operations, I think it is important for us not to move with royalty payments that are so significantly higher than they were previously," the Illinois senator said.
Obama said he will work with Senate Majority Leader Harry Reid, D-Nev., and others to develop reasonable compromise legislation that requires fair compensation for the use of federal land, enhances environmental protection and cleans up abandoned mines that pollute fish and wildlife habitat.
Senators want to start with clean slate
Reid predicted that H.R. 2262 will not stand up in the Senate. Reacting to the bill passing the House, he pledged to work with New Mexico's senators, Democrat Jeff Bingaman, and Republican Pete Domenici ,on legislation "that will provide a constructive counterpoint to the Rahall-Costa bill."
Sen. Lisa Murkowski, R-Alaska, said that even though she believes the current mining law is in need of reform, she does not support H.R. 2262 in its current form. Murkowski told delegates to the Alaska Miners Association's annual convention in Anchorage in early-November that she agrees with Domenici's statement that "the Senate should start with a clean slate and draft legislation that will make reasonable changes to the mining law."
Both Murkowski and Domenici are members of the U.S. Senate Energy and Natural Resources Committee, which is expected to take up mining law legislation in January after the holidays. Many ranking senators on both sides of the aisle have said that the House bill will not attract the support needed to pass the Senate and they believe a new bill will emerge from Resources.
National minerals policy
The debate on mining law reform has given congressmen an opportunity to talk about implementing a national minerals policy. It is believed by some that the United States needs a plan for the extraction and stockpiling of minerals vital to the nation's well being.
"We have allowed ourselves to become dependant on foreign sources of minerals that are critical to our national security and our national economy," Murkowski told the miners.
Time for change
During field hearings in Elko, Nev., on H.R. 2262, Reid vowed to not leave the fate of the industry in the hands of future administrations. "Now is the right time to develop a responsible minerals policy," he said Several Democrats also have indicated that they will follow Reid's lead on mining law reform.
Laura Skaer, executive director of the Northwest Miners Association, told Alaskans attending the miners' convention that the industry believes that now is the time to reform the mining law, "but not at all costs."
Republicans, Democrats, environmentalists or industry leaders; all seem to agree that the time is right to replace the 135-year-old mining law.
Over his more than 16 years of covering mining and mineral exploration, Shane has become renowned for his ability to report on the sector in a way that is technically sound enough to inform industry insiders while being easy to understand by a wider audience.
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