Hardrock Mining

Various state and federal laws play important roles in the regulation of mining activities. Mining for hardrock minerals on federal public lands is governed primarily by the General Mining Act of 1872. The General Mining Act authorizes a prospector to locate and claim an area believed to contain a valuable mineral deposit, subject to the payment of certain fees. The General Mining Act does not, however, require payment of a production-related royalty, as is required for federal oil, gas, and other minerals governed by more recently enacted laws. Critics of the General Mining Act suggest that the lack of a royalty payment serves as an unnecessary subsidization of the mining industry, while proponents of the current system suggest that it encourages investment in the domestic mining industry. Legislation has been introduced in previous Congresses that would have required royalty payments, but such provisions have not been enacted into law.