Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: SUNDAY, February 7, 1993 TAG: 9302070033
SECTION: NATIONAL/INTERNATIONAL PAGE: A-9 EDITION: METRO
SOURCE: Knight-Ridder/Tribune
DATELINE: WASHINGTON LENGTH: Medium
ANCIENT MINE LAW ATTACKED
The nation's 121-year-old hard-rock mining law, a statute so archaic that even the mining industry concedes it needs work, will provide an early test of whether Washington can change its business-as-usual ways."The Mining Act is America's biggest ongoing scam," Sen. Dale Bumpers, D-Ark., says.
"Every single year, $4 billion worth of minerals belonging to the American people is carted off and profitably sold - without a dime going to the U.S. Treasury."
The law, which has no environmental requirements, allows mining companies to mine gold, silver, copper and other hard rock minerals on leased federal land without paying royalties.
The National Wildlife Federation estimates that if royalties were charged on these mines, the Treasury would raise more than $1 billion over the next four years.
This year, for the third time, Bumpers has introduced a bill to repeal the 1872 mining law.
Each time, the effort was defeated, largely because of fierce opposition in the Senate from mining-state Republicans. A compromise failed in the last Congress, partly because of jurisdictional disputes between the House and Senate.
This year, the bill's chances of success depend on a big unknown - the Clinton administration's views. Hearings already have been held in the House. Senate and House committee votes are expected this spring.
The legislation would require miners to craft strict reclamation plans and back them up with cash bonds; give the government discretion on whether to allow mining; do away with the patenting provision; and impose a royalty of 8 percent on all hard-rock minerals taken off federal lands.
"In addition to helping reduce the federal budget deficit, the revenue could be used to put people to work reclaiming polluted mines," says James Lyons of the Mineral Policy Center, an environmental group working to change the law.
The American Mining Congress counters that a royalty fee would put thousands of mine workers out of work.
"Those workers pay income taxes and the companies pay corporate taxes," says Keith Knoblock, vice president of the American Mining Congress. "I think [the] royalty plan would be a net loss to the U.S. Treasury."
Aside from the issue of royalties, the mining companies are willing to consider some changes in the General Mining Law of 1872.
Up first for reconsideration may be the price that companies pay for an acre of federal land: $2.50 to $5, depending on the mineral mined.
"This is really just a giveaway of federal lands," Lyon says. "It should simply be abolished."
Once the land is deeded, the new owners have no obligation to continue mining - it's their land.
Some people think the law has worked just fine.
"For the past 121 years, the mining law has served the best interests of the country," maintains Sen. Orrin G. Hatch, R-Utah. "It allows the U.S. mining industry to produce the minerals that are essential to our economic and national security."
But the law has allowed some miners to show disregard for the environment. The U.S. Bureau of Land Management estimates that the nation is littered with 400,000 polluted hard-rock mineral sites. The U.S. Bureau of Mines estimates that mining runoff is damaging 10,000 miles of streams.