Loading ...President Obama has renewed his biennial campaign to impose gross hardrock mining royalties.
U.S. President Barack Obama’s proposed FY2016 federal budget seeks to protect 100,000 coal mining workers whose pension plans aren’t adequately funded, as well as those whose health insurance claims have been denied because of bankruptcy in the bituminous coal sector.
However, Obama’s largess did not extend to the hardrock mining industry which would be subjected to a royalty of not less than 5% of gross proceeds, increases for annual claim maintenance fees, and a new mineral leasing process.
The proposed Bureau of Land Management budget also eliminates the fee exemption for miners holding 10 or fewer mining claims. “These changes will discourage speculators from holding claims that they do not intend to develop,” said the BLM. “Holders of existing mining claims for these minerals could voluntarily convert their claims to leases. The Office of Natural Resources Revenue will collect, account for, and disburse the hardrock royalty receipts.”
Legislation is planned for introduction in Congress to institute a leasing program under the Mineral Leasing Act of 1920 for gold, silver, lead, zinc, copper, uranium, and molybdenum, currently covered by the General Mining Law of 1872.
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