Biden administration backing changes to mining act

A working group led by the U.S. Department of the Interior has released its final report containing recommendations to reform and improve the way mining is conducted on U.S. public lands.

President Joe Biden's administration says its review of the Mining Law of 1872 and related federal permitting processes is part of its effort to increase domestic supplies of critical minerals and uphold the strongest environmental, labor and community engagement standards. The law covers what is commonly called “hardrock” mining, which does not include coal mining or oil or gas drilling.

The 150-year-old law applies to mining for copper, gold and several other minerals on U.S.-owned lands. The 169-page report, released in mid-September, addresses environmental practices, the rights of tribal groups and the potential collection of fees and royalties from mining firms.

The working group says under the current fee and permit system in place, about $7.8 million in fees was collected from the estimated $4.9 billion worth of gold, silver, copper, molybdenum, lead and zinc extracted from federal lands in 2019. Currently, miners pay no royalties.

Under a 5 percent royalty system offered for consideration by the working group, the federal government would have collected about $244.8 million in 2019 instead.

Some recycling advocates have long considered the lack of royalties collected from mining sites in the U.S. as a subsidy that favors primary metals production over recycled-content production.

“Recycling comprises 40 percent of the U.S. [metals] raw material supply chain, and we have an interest in a level playing field,” says Robin Ingenthron, president of Vermont-based Good Point Recycling.

Ingenthron tells Recycling Today he is glad the 1872 law is receiving what he calls “once in a lifetime attention” from the Biden administration. The electronics recycler is urging state agencies and groups “to recognize that raw material subsidies are our biggest enemy,” and lists state environmental agencies and trade groups in his region such as the New Hampshire-based Northeast Resource Recovery Association (NRRA) and the Vermont-based Northeast Recycling Council (NERC) “to explain to recyclers that we have a huge interest in this.”

While not specifically mentioning the 1872 law, the Washington-based National Recycling Coalition (NRC) lists among its advocacy priorities to support the elimination of virgin material subsidies that adversely impact the demand for recycled materials and products.

A mid-September AP News report quotes a National Mining Association staff member and a U.S. senator from Wyoming as critical of imposing royalties, saying it would hamper recently renewed efforts to mine battery metals at a time when they are most needed.

In its news release, the Biden administration instead portrays the move as one that will help meet the future need for minerals and battery metals in the growing electric vehicle (EV) sector.

“To meet the needs of the clean energy economy while respecting our obligations to tribal nations, taxpayers, the environment and future generations, we need a modernized approach to make sure mining in this country is sustainable, responsible and efficient,” says working group Chair Tommy Beaudreau, who also is a deputy secretary of the interior.

Deputy Secretary of Energy David Turk says, “The Department of Energy strongly believes sustainability throughout the supply chain is paramount as this administration continues to invest in America through the development of next generation clean energy technologies. We are committed to engaging communities—ensuring we provide secure, resilient and environmentally-friendly ways to source critical minerals and raw materials.”