Biden plan would overhaul 151-year-old mining law, make companies pay royalties for copper and gold
WASHINGTON — The Biden administration is recommending changes to a 151-year-old law that governs mining for copper, gold and other hardrock minerals on U.S.-owned lands, including making companies for the first time pay royalties on what they extract.
A plan led by the Interior Department also calls for the creation of a mine leasing system and coordination of permitting efforts among a range of federal agencies. This comes as The White House has been pushing to boost domestic mining for minerals needed for electric vehicles, solar panels and other clean energy.
Under terms of an 1872 law, the U.S. does not collect royalties on minerals extracted from federal lands, a fact Democratic lawmakers and environmental groups have long lamented. The White House plan would impose a variable 4% to 8% net royalty on hardrock minerals produced on federal lands. The proposal needs approval by Congress — unlikely when the House is controlled by Republicans who have long opposed such fees.
Undeterred by such political reality, an interagency working group — led by Interior — touted the benefits of imposing royalties on about 750 hardrock mines on federal lands, mostly in the West. The figure does not include about 70 coal mines whose owners must pay federal royalties.
“A royalty would ensure that American taxpayers receive fair compensation for minerals extracted from federal lands,” the working group said in a report Tuesday.
The fee also could pay for programs to boost mining permits, clean up abandoned mine lands and help states and tribal governments that provide infrastructure and services to mining-dependent communities, the report said.
