Environmental Impacts

Socal Impacts

Major Financial Give-Away

How has this happened?

Royalties and Sensible Regulation Won’t Doom American Mining

As The General Mining Law of 1872 has governed hardrock mining on public lands in America since Ulysses S. Grant was president. That was back when prospectors with mule and shovel worked independent claims. Now, major multinational corporations operate mines that measure miles across that can leave widespread environmental, social and economic impacts if not managed responsibly. Congress has not updated the archaic law since then, and it contains NO environmental or social controls.

According to the Environmental Protection Agency, hardrock mining has been the top toxic polluter in the United States for the past 9 years. Some forms of mining pollution, such as groundwater contamination, are completely unregulated. Local land managers and communities have no ability to stop harmful mines, or to balance mining with other potential uses of the land.

Plus, through its ties in Washington the hardrock mining industry has also managed to continue its sweetheart deal by paying nothing for minerals while it too often leaves the cleanup costs to the taxpayers.

Most of the hardrock mining in the West – which includes mining for minerals such as silver, gold, copper, lead, zinc, uranium, and molybdenum occurs on public land. If you are a metalsmith, you are most likely using metals mined under the General Mining Law of 1872 in your work.

The skyrocketing prices for metals and uranium (another hardrock mineral) have led to a dramatic spike in exploration and claims in the U.S. The Environmental Working Group recently reported that hardrock claims have doubled over the past five years!  Reform that was already way past due is even more urgently needed to counter new, hasty operations.

Environmental Impacts

The greatest impacts from the mining, smelting, and refining of metals are hazardous and solid wastes, water and air pollution, and habitat destruction. Cyanide, ammonia, mercury and a number of organic compounds used to extract metals from rock can contaminate surface and groundwater, as can the minerals naturally contained in mining waste. Mining generates enormous quantities of waste. Much of this waste is made up of mine tailings, the finely ground rock that remains after the valuable minerals are extracted. At many sites, tailings have been piled into huge mounds, upon which if not reclaimed in some way nothing will grow for generations. At other sites, slurries containing tailings are flushed into large open ponds, where the hazardous metals or chemicals they often contain can threaten local aquifers, watersheds and wildlife.

Tailings pile at the abandoned Yerrington, Nevada copper mine.

We recognize that many mining operations in the U.S. are managed responsibly. This means that, at a minimum, they follow existing laws (though there are major loopholes in environmental laws as they apply to mines). They may even install modern technology and invest in research and development to improve their environmental performance beyond what the law requires. In some cases, mine managers work with local officials and communities to minimize negative social and environmental impacts.

However, there is no getting around the fact that the mining industry as a whole has a shocking track record – the most toxic in the country! when it comes to the environment:

• EPA has declared hardrock mining the top toxic polluter for nine years in a row
• Hardrock mining has polluted over 40 percent of Western watersheds
• Gold mines generate over 20 tons of waste per ounce of gold produced. Through a specialized exemption, these toxic wastes are not subject to our country’s hazardous waste laws. In any other industry, they would be.
• Metals processing generates 96 percent of arsenic emissions and 76 percent of lead emissions in the United States
• Highly toxic mercury and cyanide are used to process ore, often in massive outdoor heaps
• Acid mine drainage can cause perpetual pollution unless mines are remediated properly
• Many mining operations consume enormous amounts of groundwater, often in arid regions, and energy use is huge – 4 to 7 percent of global energy is used in the mining sector!
• Local land managers and government officials cannot deny new mines, even if they threaten local water supplies or protected areas such as the Grand Canyon

To make matters worse, enforcement and monitoring at mines by government inspectors is seriously lacking and virtually non-existent in some areas. In a report to Congress , the National Research Council admonished federal land managers for widespread failures to enforce permit compliance.

The Mining Law is "long overdue for an overhaul." Michael Kowalski Tiffany & Co. CEO

Pollution doesn’t just come from present day mines, though. Mining is one of the few industries in which the risks can actually increase after active operations have ended. Acid mine drainage from exposed rock, mercury in rivers, and old, unstable mine shafts can persist for centuries.

A recent study by Pew Charitable Trusts showed that, contrary to popular belief and statements by the mining industry, the toxic legacy across the West is not from "historic” mines that were created before we knew better. In the past 40 years – after the enactment of our modern-day environmental laws major mining accidents have continued with surprising regularity.

The good news is that this pollution is avoidable today with proper safeguards. Effective prevention a starts with an effective law that includes social and environmental provisions.

Unfortunately, it is nearly impossible today for metalsmiths and people shopping for ethical products to know if they are buying metals produced by responsible mines. A modern mining law in the U.S. would increase the social and environmental standards across the board and the chances that the metals we use come from responsible sources.

Social Impacts

Since 1872, the Western U.S. has changed dramatically. Areas that were once sparsely populated are now thriving population centers with many, often competing needs for land, water and economic development. Yet, under the General Mining Law of 1872, mining is still considered the best use for public land. It trumps all others. Federal officials and local communities have no say when it comes to balancing other uses of land or ensuring that basic safeguards are in place before mining can go forward.

As metalsmiths, we recognize the importance of mining in society today. Products made from metals and other hardrock minerals are an indispensable part of our world. Mining also contributes much-needed jobs and economic support for many communities across the Western U.S. and abroad. In some rural areas, mining is the lifeblood of the community.

But, mining can be done responsibly, or it can be done haphazardly, without regard to basic social and environmental safeguards.

Ethical Metalsmiths supports responsible mining. Mining should contribute to overall economic well-being and negatives impacts should be minimized. Nearly all negative impacts can – and must be prevented with proper planning, careful management, and consultation with nearby communities.

Some of the social and economic impacts of mining in the U.S. include:

Mining has all too frequently taken precedence over the interests of native communities around the world. Unfortunately, this is true even in the United States. The Western Shoshone tribe in Nevada has been waging a battle against mining interests on its sacred tribal lands for the past 160 years. A treaty between the tribe and the federal government in 1863 granted ownership rights to the Western Shoshone and promised royalties would be paid for mining on their land. The U.S. has failed to live up to its promise, instead permitting multinational corporations to take millions of dollars worth of gold from tribal land without paying a cent. In a strongly worded decision, the U.N.’s Committee on the Elimination of Racial Discrimination called on the federal government to halt the destructive land-use practices. Click here for more information.

Mt. Tenabo, the mountain sacred to the Western Shoshone people is treatened by a massive gold mine. Previous mining is seen at its base.

Not only does a proposed massive mine complex on Alaska’s spectacular Bristol Bay threaten the world’s richest salmon fishery, it also threatens the traditions of Native American communities living downstream, who have for generations depended on the fishery. [nearly all tribes in Alaska oppose the massive mine complex and are engaged in an ongoing fight to save their way of life.Read more here and here.

The over 500,00 abandoned mines in the West pose a serious hazard for children, hikers and other recreational users, who may fall into mine shafts. Government officials in California have recognized “tens of thousands” of abandoned mines in that state alone, prompting Senator Diane Feinstein (D-CA) to introduce abandoned mine bill in March 2008.

In 1998, Montana voters approved a ballot initiative to ban open-pit gold mining because taxpayers and the state had already spent millions of dollars to clean up the enormous mess left by earlier mines. That’s saying a lot in a state where the motto is “Oro y Plata” and mining was king for over 100 years! The widespread social impacts of mining in the state clearly outweighed the benefits, which were reserved for a select few.

The renewed rush for metals has created conflict in former mining towns, such as Crested Butte, CO and Bisbee, AZ, which have evolved into recreation hubs or tourist destinations since the last bust. Mining companies are now starting up or reopening massive open-pit mines, often within miles of small towns that have fostered new growth based on beautiful vistas and plenty of open space. New mines may cause property values to plummet and reduce the chances to diversify the economy. To read more, click here.

We need to tell Congress to pass an updated law that ensures basic safeguards for people and communities across the West.

Major Financial Give-Away

Mining companies in the United States have a pretty sweet deal – free mining on taxpayer land, special tax breaks on top of that, and in some cases, no obligation to clean up the mess. In fact, due to the strength of the mining lobby in Washington, the industry enjoys breaks that other extractive industries only dream of. At the same time, they are making record profits. Why would they want to change the status quo?

How has this happened?

The General Mining Law of 1872 allows anyone – a single individual or a multinational corporation, American or foreign – to go onto public land, stake a claim and patent the land for prices set at 1872 levels. This means that miners can buy our public lands for private purposes for a one-time payment of $2.50 to $5.00 per acre, take valuable gold and other minerals valued at millions of dollars, and pay nothing year after year for the minerals they mine. The Government Accountability Office estimates that miners have taken over $245 billion worth of minerals from public lands and have paid nothing for the privilege of doing so.

"Jewelers of America supports the enhanced viability of mining companies that produce jewelry’s raw materials, but our members also realize that the current Mining Law does not address the considerable impact of mining on watersheds, wildlife or local communities. Failure to modernize the law has proven expensive to Americans and to our environment. JA members see reforms as both necessary and urgent." Jewelers of America CEO Matthew Runci, in an October 2007 letter to Congress urging mining law reform

In contrast, other extractive industries (oil, gas, timber) have to pay between 8 and 16.7 percent in royalties for resources taken from public lands.

To make matters worse, there are no uniform requirements for cleanup of mines after closure. There are over 500,000 abandoned mines across the West, amounting to a $50 – 75 billion dollar cost left to taxpayers. Today, hardrock mining companies can declare bankruptcy once a mine is closed and escape paying for remediation. Taxpayers are stuck with the tab. This kind of dealing within our supply chain does not reflect well on metalsmiths and jewelers.

Royalties and Sensible Regulation Won’t Doom American Mining

In protest to calls for reform, mining companies claim that royalties and environmental upgrades will put them out of business. We disagree, especially in today’s booming metals market. After all, Rio Tinto profits were $7.7 billion in 2007, Barrick made over $1 billion last year, and in the first quarter of 2008 alone, Denver-based Newmont made $594 million. We think they can afford to clean up after themselves! Not only do the companies get away with taking minerals from public lands for free, they also receive preferential treatment on tax write-offs. To compare, since 1977 the coal industry, which is not covered under the 1872 Mining Law, has contributed $7.4 billion to a federal fund that will help clean up coal sites. Last time we checked, the coal industry was alive and well, despite having to clean up its own mess! Plus, the proposed legislation would include a fund to help assist communities impacted by increased royalties.

….In Fact, A Modern Law Could Help Create a More Efficient Mining Industry

Many smart companies today respond to tightening environmental standards with increased innovation – innovation that ultimately makes them more efficient, profitable, and better able to compete with firms operating in other countries. Too often, dirty industries are happy to go with the status quo unless forced to invest in cleaner technology. However, failure to innovate can put them at a disadvantage globally (take the U.S. auto industry, for instance). Their stubborn resolve is surprising in light of studies that show that ethical companies do better overall and people are willing to pay more for their products. In a commodity industry like metals, responsible production could have the double benefit of distinguishing a company’s metal products as “ethical” and making overall production more efficient. Plus, companies have the chance to make more by licensing newly-developed technology.

A handful of mining companies have realized this and taken action on their own. For instance, Homestake’s McLaughlin mine in California, one of the best managed mines ever, recycled or contained all process water and remediated mined areas continually rather than waiting until all mining was complete. Now mined out, the site is an environmental studies research station. A state-of-the-art testing system monitors groundwater for toxic chemicals. Homestake reported that these pollution prevention measures cost them only 2 percent of their overall capital costs and were well worth the investment.

However, progressive operations are still the exception rather than the rule in hardrock mining, as shown by the industry’s track record. A modern, sensible mining law would raise the bar in an industry that has gotten away with some of the lowest standards in America since before the invention of the telephone. It might even make the American mining industry more efficient and globally competitive in the long run.