By Kerry Shapiro and Dan Quinley
On September 9, 2021, the House Environmental and Natural Resources (“ENR”) Committee finished its mark-up of the $3.5 trillion reconciliation budget measure. Inserted at the very end of the 117-page mark-up is Section 70807: Hardrock Mining, which is a quiet attempt to reform the Mining Law of 1872.
The ENR Committee’s change would, for the first time, impose fixed royalties on all locatable minerals mined on Federal land. Under the terms of the proposed legislation, minerals, mineral concentrates, or products derived from locatable minerals, would be subject to royalty fees at the following rates:
- 8% for all new mining operations
- 8% for all new federal land added by plan modification to existing mining operations
- 4% for mining operations with an existing approved plan of operations, or who submitted a plan of operations prior to the effective date of the legislation
All royalty percentages would be calculated based on gross income derived from mining. Continue reading