General Mining Law of 1872

  • DATE: Signed May 10, 1872

The General Mining Law of 1872 was one of several pieces of legislation passed by Congress in the years following the Civil War. Its purpose was to combat economic depression and unemployment by opening up for development the vast federal lands in the West. Amended many times over the years, this law continues to govern the exploitation of “hard-rock” minerals in the United States.

Background

In its original form, the General Mining Law covered all resources on more than 405 million hectares of federal land. Later, it covered only “hard-rock” minerals, those associated with and rocks. By the Mineral Leasing Act of 1920, the fossil fuels and some minerals were “withdrawn” from coverage under the law. The Common Varieties Mineral Act of 1955 withdrew sand, gravel, stone, and other common rocks and minerals. In 1976, the last of the national parks and monuments were withdrawn from coverage, thus protecting them from mining. As a result of these withdrawals, the total land covered under the law was reduced to approximately four hundred million hectares.

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Provisions

The General Mining Law permits U.S. citizens to lay claim to federal land. In exchange, the claimant has only to pay a $100 fee and make minimal annual improvements (“assessments”) to the land or pay a $100 annual assessment fee. Actual mining need not be done. Claimants possess the right to any mineral deposits below ground; they also possess the right to the exclusive use of the land surface. Claims can be of two types: placer or lode. Placer claims are for 8-hectare sites, whereas lode claims, those designed to exploit localized veins of ore, are for tracts measuring 457 by 183 meters. For a fee of six dollars per (placer claim) or twelve dollars per hectare (lode claim), a claim can be “patented,” or converted to private ownership. In 2023, an Interior-led Interagency Working Group on Mining Laws, Regulations, and Permitting (IWG) recommended that the General Mining Law of 1872 be modernized to uphold environmental, labor, and community standards.

Impact on Resource Use

Opponents of the law find fault with it in three areas. First, the federal treasury receives no income from minerals taken from lands that belong to the public. Second, the law makes no provision for environmental concerns, which did not exist in 1872. Third, abuses of the law abound, including the resale of claims for thousands of times the original purchase price.

Proponents of the law, primarily the major mining companies, argue that while royalties are not paid, mining provides thousands of jobs and significant tax revenue. The mining industry must compete in a global market against companies that exploit cheap labor and are government-subsidized. Whereas the original mining law took no cognizance of environmental concerns, any mining on federal lands is now covered by the same environmental legislation that governs all mining.

Proposed modifications to the law revolve around three key issues: royalty payments, patenting, and environmental concerns. Suggested levels of royalty payment range from 2 percent on the net value (after taxes and cost) to 8 percent on the gross value of the minerals produced. Either patenting would be eliminated or claimants would be allowed to purchase the mining patents for the fair market value of the land surface. Environmental concerns would be addressed by requiring restoration of the land and by using royalty payments to establish a fund for the cleanup of abandoned mine properties.

"Biden-Harris Administration Report Outlines Reforms Needed to Promote Responsible Mining on Public Lands." U.S. Department of the Interior, 12 Sept. 2024, www.doi.gov/pressreleases/biden-harris-administration-report-outlines-reforms-needed-promote-responsible-mining. Accessed 27 Dec. 2024.

Disbrow-Monz, Morgan. "Revisiting the 1872 Mining Law." Speaking of Geoscience, 6 Jan. 2022, speakingofgeoscience.org/2022/01/06/revisiting-the-1872-mining-law/. Accessed 27 Dec. 2024.

Thompson, Jonathan. "An Antiquated Law Rules Mining in the West." HighCountry News, 1 Aug., 2023, www.hcn.org/issues/55-8/infographic-mining-an-antiquated-law-rules-mining-in-the-west/. Accessed 27 Dec. 2024.