The Mining Law of 1872, which is still in effect, allows any individual to stake a mining claim on federally managed public land i.e. Bureau of Land Management or Forest Service Land. The law further states that once the claimant has complied with certain procedures (proving mineralization, surveying, financial responsibility, etc) the individual may apply for patent to the land. If everything checks out, the government issues a patent and the claimant becomes the outright owner of the land, surface and mineral rights. There is a $2.50 or $5.00 per acre transfer fee involved.
Based on this, the media likes to say that anyone can go out and buy mining claims for $5.00 per acre.
In reality, brochures printed and distributed by the BLM clearly state that in order to patent a mining claim, one must be prepared to spend an average of $16,000 per acre, (drilling, consultants, lawyers, etc.) before a patent will be issued. Furthermore, congress has placed a moratorium on all patents for about two years. The only patents being issued are those that were applied for before the moratorium and it is usually necessary for the applicant to find a federal judge that will order the Secretary of the Interior to issue the patent.
So while it is true that the government only receives $5 per acre, they require the claimant to spend about $16,000 per acre. An analysis of a mining operation will show that Federal, State and local goverments, through corporate and individual income tax, property tax, sales tax, severance tax, excise tax, social security, various permit fees and other fines and taxes will receive between 40 and 50 % of the gross proceeds from any successful mining operation. However, the press does not like to report these numbers, they are more interested in shutting down mining operations in the US and especially the Western US. It seems that the attitude of many Easterners is that the west should be preserved as a vacation spot and those of us who live out here should be happy waiting on tourists.
Tim Hall |
