Mining: Too Much Regulation
Column
By Fletcher T. Newton   
Monday, 19 May 2008
smc Mining: Too Much Regulation
The National Mining Association argues more regulation is not necessary to further protect public land with mining potential.

The public lands in the Western states are an important source of minerals, metal production and reserves for the nation’s security and well-being. Mining on federal lands provides for high-wage employment, vitality of communities and for the future of this critical industry.

Because the vitality of the modern American economy is firmly rooted in the ready availability of metals and minerals, the Mining Law of 1872 needs to be amended to secure a fair return to the government in the form of a net income production payment for minerals produced from new mining claims on federal lands; establish an abandoned mine lands clean-up fund financed with revenue generated from a net income production payment; and provide the certainty needed for private investment in mining activities on federal lands by ensuring security of title and tenure from the time of claim location through mine reclamation and closure.

The potential impacts from uranium mining on federal lands are substantially similar to those from other hardrock mining, and the existing regulatory scheme adequately protects federal lands from all types of hardrock mining.

Current Environmental Regulations
Mining on public lands, including uranium mining, is a pervasively regulated enterprise with a vast range of federal, state and local environmental laws and regulations governing mineral exploration, development, operation, closure and reclamation. Under current law, companies that engage in hardrock mining and related activities on public lands are subject to a comprehensive framework of federal and state environmental, ecological and reclamation laws and regulations to ensure that operations are fully protective of public health and safety; the environment; and wildlife.

These laws and regulations that govern mining on federal lands are cradle to grave, covering virtually every aspect of mining from exploration through mine reclamation and closure.

Since the National Academy of Sciences released its review of the existing federal and state regulatory framework for hardrock mining, the federal land management agencies have acted to make this effective regulatory program even stronger. For example, the Bureau of Land Management (BLM) and the Forest Service have significantly strengthened their financial guarantee requirements.

BLM’s regulations now require financial guarantees for all mining and exploration disturbances, no matter how small, before activities can proceed. Both agencies require the financial guarantee to cover the full cost to reclaim the operation, as if the agencies were to contract with a third party to conduct reclamation.

In addition, the agencies can now require the establishment of a trust fund or other funding mechanism to ensure the continuation of long-term treatment to achieve water quality standards and for other long-term, post-mining reclamation and maintenance requirements. State-specific regulations require the establishment of financial assurance using a variety of specified forms.

Furthermore, the agencies require periodic review of reclamation funding. BLM has implemented a tracking system under which BLM state directors are required to certify each fiscal year that the reclamation cost estimates for proposed and operating mines have been reviewed and are sufficient to cover the cost of reclamation.

Similarly, the Forest Service requires annual review of financial assurances. The improvements in financial assurance requirements, combined with sustained environmental compliance, will ensure that the public will not ultimately become responsible for reclamation of mine sites on federal lands.

The existing comprehensive framework of federal and state environmental and cultural resources laws already regulates all aspects of mining from exploration through mine reclamation and closure.

Existing Authorities Adequate
Access to federal lands for mineral exploration and development is critical to maintain a strong domestic mining industry.

Federal lands account for as much as 86 percent of the land area in certain Western states.

These same states, rich in minerals, account for 75 percent of our nation’s metals production and will continue to provide a large share of the future metals and hardrock minerals produced in this country. Efforts to amend the Mining Law must recognize existing authorities to close certain “special places” to mining activity.

Congress has closed lands to mining for wilderness, national parks, wildlife refuges, recreation areas, and wild and scenic rivers. Congress also has granted additional authority to the Executive Branch to close federal lands to mining.

The Antiquities Act authorizes the president to create national monuments to protect landmarks and objects of historic and scientific interest. Finally, Congress authorized the secretary of the interior to close federal lands to mining pursuant to the land withdrawal authority of the Federal Land Policy and Management Act. As a result of these laws and practices, new mining operations are either restricted or banned on more than half of all federally owned public lands.

These existing laws and authorities are adequate to protect special areas. New closures of public land, based on vague and subjective criteria without congressional oversight, would arbitrarily impair domestic mineral and economic development. In addition, the federal land management agencies have land-use planning processes to identify natural or cultural resources or environmental and social sensitivities that require special consideration. 

These planning processes are used to identify areas that need to be withdrawn as well as any terms, conditions, or other special considerations needed to protect other resource values while conducting activities under the operation of the mining laws.  

This is an excerpt from testimony by Fletcher T. Newton, executive vice president of corporate and strategic affairs for Uranium One Inc., delivered to the Energy and Natural Resources Committee of the U.S. Senate in March on behalf of the National Mining Association. For more information, visit www.nma.org. 

 
< Previous Story   Next Story >