WASHINGTON — The Biden administration is recommending modifications to a 151-year-old legislation that governs mining for copper, gold and different hardrock minerals on U.S.-owned lands, together with making firms for the primary time pay royalties on what they extract.
A plan led by the Interior Department additionally requires the creation of a mine leasing system and coordination of allowing efforts amongst a variety of federal companies. This comes as The White House has been pushing to spice up home mining for minerals wanted for electrical automobiles, photo voltaic panels and different clear power.
Under phrases of an 1872 legislation, the U.S. doesn’t acquire royalties on minerals extracted from federal lands, a reality Democratic lawmakers and environmental teams have lengthy lamented. The White House plan would impose a variable 4% to eight% web royalty on hardrock minerals produced on federal lands. The proposal wants approval by Congress – unlikely when the House is managed by Republicans who’ve lengthy opposed such charges.
Undeterred by such political actuality, an interagency working group – led by Interior – touted the advantages of imposing royalties on about 750 hardrock mines on federal lands, principally within the West. The determine doesn’t embrace about 70 coal mines whose house owners should pay federal royalties.
“A royalty would be certain that American taxpayers obtain truthful compensation for minerals extracted from federal lands,″ the working group mentioned in a report Tuesday. The charge additionally might pay for packages to spice up mining permits, clear up deserted mine lands and assist states and tribal governments that present infrastructure and companies to mining-dependent communities, the report mentioned.
The U.S. stands out amongst different nations, corresponding to Australia, Canada and Chile, that acquire royalties on minerals. At least a dozen Western states additionally acquire royalties on hardrock mining.
“Although thoughtful concerns were raised by the mining industry regarding the existing hardrock leasing system that is used on certain federal lands,” the working group “did not receive any arguments as to why a properly designed leasing system could not be equally successful in the United States,” the report mentioned.
Deputy Interior Secretary Tommy Beaudreau, who chaired the working group, known as the plan launched Tuesday “a modernized approach” that might “meet the needs of the clean energy economy while respecting our obligations to tribal nations, taxpayers, the environment and future generations.”
“Securing a safe, sustainable supply of critical minerals will support a resilient manufacturing base for technologies at the heart of the president’s investing-in-America agenda, including batteries, electric vehicles, wind turbines and solar panels,” mentioned Joelle Gamble, deputy director of the White House National Economic Council.
Tribes and environmental teams welcomed the report however urged President Joe Biden to go additional to guard communities, sacred locations and water assets. The White House shaped the working group final yr as Biden pledged to spice up manufacturing of lithium, nickel and different minerals used to energy electrical automobiles and different clear power.
“These modest reforms are a good first step, but they’re not enough to safeguard our water and communities,” mentioned Allison Henderson, southern Rockies director on the Center for Biological Diversity, an Arizona-based nonprofit. “The Biden administration should use its full authority to update these antiquated mining laws, prevent more mining industry devastation and preserve a livable planet for future generations.”
Rich Nolan, president and CEO of the National Mining Association, mentioned the report did little to advance Biden’s said objective to safe home mineral provides whereas supporting accountable mining.
Creation of a leasing system, imposition of a punitive “dirt tax” and proposed royalties as excessive as 8% “will throw additional obstacles in the way of responsible domestic projects, forcing the U.S. to double-down on our already outsized import reliance from countries with questionable labor, safety and environmental practices,” Nolan mentioned in an announcement.
Wyoming Sen. John Barrasso, the highest Republican on the Senate Energy and Natural Resources panel, mentioned Biden was “taking a sledgehammer to affordable, reliable energy.”
If enacted, the proposed mining reforms “will force us to buy more critical minerals” from China and different nations that use compelled or youngster labor “instead of harnessing our abundant resources here at home,” Barrasso mentioned.
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