"Obama ties to mining lobbyist, opposition to bill draws scrutiny"

Obama ties to mining lobbyist, opposition to bill draws scrutiny
By KATHLEEN HENNESSEY Associated Press Writer
Article Last Updated: 11/14/2007 04:45:35 PM MST

LAS VEGAS—Democrat Barack Obama opposes a bill that would change the nation's 135-year-old mining law—the same stance as mining industry executives who employ a Nevada-based lobbyist advising the presidential candidate.

The Obama campaign and Billy Vassiliadis, a longtime Nevada power broker, contend there is no connection, saying they have never discussed Obama's position on the mining bill.

However, the Illinois senator's stance on pending legislation and his adviser's ties to the mining industry are raising questions in a state where mining is an economic engine in rural areas. Democrats will vote in presidential caucuses Jan. 19, and Obama's position could help him against rivals Hillary Rodham Clinton and John Edwards, who have not taken a clear position on the bill.

The General Mining Law of 1872 allows the mining industry to pull gold, silver and other minerals from federal lands without paying royalties. The industry opposes changes to the law and several efforts to reform it have failed.

A House-passed bill would impose a royalty of 4 percent of gross revenue on existing hard-rock mining operations and 8 percent of gross revenue on new mining operations. The reform bill also would put new environmental controls on hard-rock mining, set up a cleanup fund for abandoned mines and permanently ban cheap sales of public lands for mining.

Obama said the legislation, favored by environmentalists, "places a significant burden on the mining industry and could have a significant impact on jobs." He also opposes the proposed fees.

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Vassiliadis, a longtime Nevada power broker, is a member of Obama's Nevada steering committee and has contributed $2,300 to his campaign. He is a lobbyist for the Nevada Mining Association at the state level and the chief executive of the advertising and lobbying firm hired by two mining companies to lobby for them in Washington.

Denver-based Newmont Mining Co., one of the world's largest gold producers, hired Las Vegas-based R&R Partners' Washington, D.C. office in January. The firm has represented silver and gold miner Coeur d'Alene Mines Corp., in Washington since 2006.

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Hillary Clinton has lent a thoughtful ear to the discussion of mining issues. She supports revising the 1872 Mining Law, and she understands the importance of access to the vast mineral resources throughout the region. Her commitment to strengthening access to broadband communication systems throughout the rural United States will be vital to economic diversification and to increasing access to higher education for all."

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"We are fortunate to have the support of these outstanding community leaders," said Clinton Nevada Chair Rory Reid. "John and Roger are devoted representatives of Northern Nevada communities, and their leadership, work ethic and drive will be tremendous assets to the campaign."

http://www.hillaryclinton.com/news/release/view/?id=2946