Mining Law Reform Hits A New Snag Prospects For Action Fade As Lawmakers Rush To Recess

Initial enthusiasm for mining reform by the Republican-controlled Congress has waned to the point that some give even odds on whether any bill passes this year or next.

The industry wants a reform package to solidify the mining claim system on public lands and remove uncertainty about environmental laws looming over their domestic mining projects.

Uncertainty over the legislation troubles mining companies, which would prefer to know the rules they’ll be required to follow when looking at spending millions of exploration dollars domestically. Much of that exploration money now goes overseas.

Most industry leaders saw this Congress as the best opportunity to pass a palatable reform bill that they could live with.

As in previous fights over mining reform, an industry-backed bill in the Senate seems destined to collide with a stronger version in the House.

Idaho Republican Sen. Larry Craig’s mining reform bill has yet to be marked up in committee. The industry-backed bill makes more concessions to the stronger House version than previous attempts at mining reform.

Craig’s bill would charge mining companies 3 percent on the value of the metal after the expenses are taken out. The House version asks for 8 percent of the gross value of the metals, a surcharge that would kill most domestic mining, according to industry leaders.

Though the Senate will likely work through next week before following the House of Representatives to the traditional August recess, mining reform will probably languish.

“I think with all the things that the Senate is juggling right now - regulatory reform and others - mining reform has just settled to the bottom of the stack,” said John Grasser of the National Mining Association while in North Idaho this week.

The Washington, D.C.-based association formed in February when the coal mining and hard-rock mining organizations merged to save money.

Grasser said there remains now just a 50/50 chance that mining reform will pass next year. “It’s just a question of priorities in Congress, and we thought we needed to see the bill marked up before the August recess.”

Local mining officials are waiting anxiously.

“People would still like to see this addressed and taken care of,” said Ivan Urnovitz of the Northwest Mining Association in Spokane.

“Maybe mining reform isn’t at the top of the national agenda right now, so it is somewhat easier for us to be knocked down the pecking order.”

, DataTimes