Changes Needed in the Law

Establish Environmental Standards. Under current law, there are no statutory environmental standards written specifically for hardrock mining. The existing, inconsistent patchwork of federal and state laws contains broad regulatory gaps and loopholes when it comes to mining. For example, the Clean Water Act does not protect groundwater from mining pollution, and there is no definition of how to reclaim a mine. An effective bill must include:

Adequate reclamation: A mine site must be reclaimed to sustain either pre-mining uses, or uses conforming to the applicable land use plan. Fish and wildlife protection: Habitat must be restored to the land use plan applicable for that area. Surface and ground water protection: Operations must minimize damage to surface and groundwater. Prohibition of perpetual pollution: After mining ceases, mine operators need to meet water quality standards without permanent treatment.

Protect Special Places from Irresponsible Mining. The federal government currently interprets the 1872 Mining Law as mandating that mining is the highest and best use for public lands. Federal land managers have no choice but to give preference to mining over all other land uses -- from an adequate supply of clean water to recreation and hunting.

Meanders near the headwaters of the South Fork Koktuli River, Alaska. The proposed Pebble mine threatens this watershead which feeds into the world’s greatest commercial salmon fishery. photo by Erin McKittrick

Congress should protect sensitive lands and put mining on equal footing with other land uses by:

Increasing acreage of lands off limits to exploration and development: Wilderness study areas, Areas of Critical Environmental Concern, roadless areas, and lands in the Wild and Scenic River System or recommended for such would be off limits to mineral exploration and development, with existing permits grandfathered in. Protecting National Parks and National Monuments: The bill must assure that large-scale mining operations do not adversely affect these important natural treasures. Giving land managers the ability to balance mineral activities with other uses of public land. Giving state, local and tribal governments the ability to set lands off limits to mining.

Create a Fund to Clean Up Abandoned Mines and Assist Impacted Communities. There are more than 500,000 abandoned hardrock mines in the United States that will cost between $32 and $72 billion dollars to reclaim. Currently there is no dedicated federal funding source for abandoned hardrock mine reclamation. In line with HR 2262, the Senate bill should:

Establish a reclamation fund to clean up abandoned hardrock mines on federal lands. Allocate two thirds of all royalty revenues to this fund: Fifty percent of the royalties in this fund will go back to the state where the royalty was generated.

"I hope that soon, consumers can be assured that the gold in the rings and bracelets they purchase come from mines governed by a new law that puts water and communities first and assures the American public of a fair financial return for the mining of our natural resources." - John Bridge, co-CEO, Ben Bridge Jeweler In an editorial on 1872 Mining Law reform in the Seattle Times, January 2008

Implement Common-Sense Fiscal Reforms. The General Mining Law of 1872 allows patenting and extraction of public minerals without royalty payment to taxpayers. In the eyes of the public, the mining companies are getting a sweetheart deal that opens the metals industry to accusations of favoritism and corporate greed. A new law must:

End patenting Establish a royalty for new and existing mines of at least 4 percent Contain an exemption on royalties for small-scale, independent rock collectors who take minerals with a collective value of less than $10,000 per year from the surface: Rock collectors who take small quantities of minerals and do not use mechanized equipment to mine should be exempt from royalties. Statutorily enshrine reclamation bonding at adequate levels: The reform bill requires reclamation bonds with clear cleanup standards, so that taxpayers will be better protected. Due to inadequate bonds, potential taxpayer cleanup liability for operating mines could exceed $12 billion.

Require Enforcement. A new law must require substantially better monitoring and oversight, which the federal government admits is seriously insufficient now. This includes:

Require regular inspections without advance notice: They must occur at least once per quarter. The public is allowed to request an inspection. Contain authority to issue fines up to $50,000 per day for violators. Allow citizens to sue if regulators are not doing their job. Deny permits to violators: Past law-breakers can only receive a permit if their past violations are not part of a willful pattern of abuses. Grant the Secretary of the Interior discretion to stop operations in violation of the law if the company fails to address the violations.

A note on recreational and small-scale mining: While most mining today is done on a large scale by corporations with heavy machinery, there are still recreational and independent, small-scale miners out there. We support their ability to prospect for metals and stones on public land without having to pay the royalty that big, mechanized operators would pay under a new law. H.R. 2262 includes an exemption for recreational rock hunters, and Ethical Metalsmiths has asked that any Senate bill also include this exemption.