Mining Reform: A Golden Opportunity

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In the midst of America’s financial crisis, one of the biggest government giveaways goes to an industry that least needs it: gold mining. Even as prices for gold hover near historic highs and mining exacts a deep environmental toll, the General Mining Law of 1872 allows $1 billion in hard rock minerals to be taken from federal lands each year royalty-free. All told, mining companies have been exempted from paying at least $100 billion in royalties, taxes, and fair land prices.

On Thursday, the House Natural Resources Subcommittee on Energy and Mineral Resources will hold a hearing on updating the 137-year-old law, which was enacted during the Grant administration. The House is expected to pass sweeping royalty and environmental reforms, but the bill must also clear the Senate, where last year a similar effort stalled in the hands of Senate Majority Leader Harry Reid, the gold mining industry’s most powerful ally.

Reid faces a delicate political dance. Typically a reliable ally to environmentalists, he’s also the son of a gold miner, father of children who maintain ties to the industry, and representative of a state that mines more gold than all but three nations. In a nod to his virtual veto power over mining reform, last year the House held a similar hearing in the town of Elko, ground zero for Nevada’s mining industry. There, Reid expressed his support for “real and reasonable reform” before ultimately turning on the House’s reform bill as “not something Nevada can accept.”

A spokesman for Jeff Bingaman, who oversees mining legislation as the chairman of the Senate Energy Committee, sees this as the year that a reform bill finally passes. With the treasury bleeding dollars and the gold mines swimming in cash, Reid may be headed for the final showdown between two seemingly incompatible sides of his political identity. Whatever compromise he supports could make him an historic statesman, put him out of a job, or both. I explore how it all might shake out in the March/April issue’s feature, Gold Member.

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DEMOCRACY DOES NOT EXIST...

without free and fair elections, a vigorous free press, and engaged citizens to reclaim power from those who abuse it.

In this election year unlike any other—against a backdrop of a pandemic, an economic crisis, racial reckoning, and so much daily crazy—Mother Jones' journalism is driven by one simple question: Will America move closer to, or further from, justice and equity in the years to come?

If you're able to, please join us in this mission with a donation today. Our reporting right now is focused on voting rights and election security, corruption, disinformation, racial and gender equity, and the climate crisis. We can’t do it without the support of readers like you, and we need to give it everything we've got between now and November. Thank you.

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