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| Wilson Outlines Problems with Hardrock Mining Legislation |
November 05, 2007 |
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Bill would impair mining industry of New Mexico
Washington, D.C. – Congresswoman Heather Wilson opposed legislation that would raise taxes on the Western mining industry and increase costs of raw materials, in addition to pushing more jobs overseas. Wilson voted today against H.R. 2262, the Hardrock Mining and Reclamation Act of 2007, saying the bill surely lead to the loss of American jobs to overseas mining operations. The bill attempts to reform the 1872 Mining Law by establishing a federal royalty for hardrock minerals mined on federal lands.
“I voted against this bill because the 8% royalty on gross receipts would be the world’s highest mining royalty, and result in an enormous tax increase on the New Mexico mining industry,” said Wilson. “Not only would this put the United States at a global disadvantage in the mining of minerals, it would threaten the domestic production of minerals that are vital to our military and national security interests.”
The Hardrock Mining Reclamation Act that Wilson opposed today will impose new taxes on the mining industry, including an 8% royalty on new mining and a 4% royalty on existing mining operations. The royalties would apply to gross revenues.
The modern mining of minerals is critical to the manufacture of everything from stainless steel, glass, cement, cell phones, computers, pipes, and jewelry to the development of American military equipment.
“I am concerned about the impact this bill will have on the Western mining industry. Any attempt to impose a tax of this magnitude on the mining industry will surely lead to the loss of American jobs to overseas mining operations,” Wilson stated.
Dependency on foreign sources of minerals has increased in recent years. Our country is 100% import dependent on 17 critical minerals and more than 50% import dependent on another 28 minerals.
“Imposing these excessive royalties will have a negative impact on the economy of our state and rural communities, by pushing mining operations out of the United States and into foreign countries.”
Much of the impact of this bill would be shouldered by rural communities dependent on the mining industry, with the exclusion of 90 million acres of land from future mining operations.
“I support reform of the 1872 Mining Law, and I hope that as this bill heads to the Senate, the problems can be addressed in a way that updates our mining laws without charging excessive royalties and endangering the economies of rural communities.”
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