SHOULD THE U.S. ENACT A FEDERAL ROYALTY TO PAY FOR THE RECLAMATION OF ABANDONED MINES?
The basis of U.S. mining law, the General Mining Law of 1872, failed to address a growing problem of abandoned mines that pose a public health and safety risk, and pollute the nation’s waterways. There are a couple proposals in U.S. Congress to fund reclamation efforts through a federal royalty on mining activities. This research paper addresses the question of whether the proposed royalty scheme is an effective fiscal arrangement for funding reclamation efforts. My methodology included review of literature on the subject, including on economics, taxation and the mining industry and an analysis of proposed legislation. In conclusion, I believe the proposed royalty scheme is an efficient method of raising money, though revenues will likely be insufficient to cover the total costs of reclamation in the near future.
