Reid seen as pivotal in debate over mining fees
by Diana Marrero, Gannett News Service
WASHINGTON — The mining industry likes to boast it helped build the West. Now they're threatening to leave if Congress makes them pay too much for minerals they've always extracted for free.
At issue: a proposal in Congress to make mining companies pay a 4% royalty for billions of dollars worth of gold, copper and other minerals taken from public lands.
The fight over these fees has significant implications for Nevada. The state is the largest gold producer in the nation and the fifth largest in the world behind South Africa, Australia, China and Peru.
Last year alone, mining companies in the state produced 6.3 million ounces of gold worth about $3.8 billion. About a third of the state's gold mining is done on public lands.
Advocates for mining reform say the time has come to amend the 1872 mining law, written in an era when then-president Ulysses S. Grant was encouraging Americans to head West. They say the law cheats taxpayers, poisons the land and allows mining claims within miles of national parks.
"This is a law that has been out of step for decades," said Jane Danowitz, director of the Pew Campaign for Responsible Mining.
With the approval of a mining reform bill in the House this week, all sides are turning their attention to Senate Majority Leader Harry Reid, a Nevada Democrat who has long been a champion of the industry.
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Reid, who grew up in the small mining town of Searchlight, Nev., has strong ties to the industry. He has collected $270,000 in campaign contributions from mining interests since 1989, according to the Center for Responsive Politics.
Reid's son-in-law, Steven Barringer, is a lobbyist for Newmont, one of the world's largest gold mining companies, and Coeur d'Alene Mines, a silver miner.
Reid does not allow family members to lobby him or his staff, said spokesman Jon Summers. He said contributions play no role in the senator's deliberations.
"It's an important industry that employs thousands of Nevadans," Summers said. "These are good-paying jobs that people particularly in rural parts of the state rely on heavily."
Contributing: Ken Dilanian, USA TODAY
more about this important bill here at............................
http://www.usatoday.com/news/washington/2007-11-02-mining_N.htm