Biden plan would make companies pay royalties for copper and gold

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 ysterday. 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.

The U.S. stands out among other countries, such as Australia, Canada and Chile, that collect royalties on minerals. At least a dozen Western states also collect royalties on hardrock mining.

“Although thoughtful concerns were raised by the mining industry regarding the existing hardrock leasing system that is used on certain federal lands,’’ the working group “did not receive any arguments as to why a properly designed leasing system could not be equally successful in the United States,’’ the report said.

Deputy Interior Secretary Tommy Beaudreau, who chaired the working group, called the plan released yesterday [Macau time] “a modernized approach” that would “meet the needs of the clean energy economy while respecting our obligations to tribal nations, taxpayers, the environment and future generations.’’

“Securing a safe, sustainable supply of critical minerals will support a resilient manufacturing base for technologies at the heart of the president’s investing-in-America agenda, including batteries, electric vehicles, wind turbines and solar panels,” said Joelle Gamble, deputy director of the White House National Economic Council.

Tribes and environmental groups welcomed the report but urged President Joe Biden to go further to protect communities, sacred places and water resources. MDT/AP