Source:
Reuters 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."
(snip)
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."
Read more:
http://uk.reuters.com/article/oilRpt/idUKN0154772920071101
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I can appreciate wanting to get the money to clean up old mines, but Rahall's ignoring that Congress has voted every year to extend the ban on patenting (that "buying" he's talking about) claims since the early 90s. Plus, an 8% royalty on gross, not net, profits?
I think this is short-sighted. Reform is good, but US mining operations that already pay on their incomes will see this as double dipping, and will simply not mine in this country, sending the enfironmental problem elsewhere. The fund they want to build will dry up before it gets off the ground. Gold's through the roof; it's only going to get more expensive if its only coming from overseas.
Plus, billing the existing mining operations for cleanup of old sites, which is essentially what this is, is like asking me to foot the bill for cleaning up my dead neighbor's yard. :shrug: