Friday, May 6, 2011

Hardrock mining on federal lands makes NO measurable contribution to economy or tax base of Southwest Oregon

Mining rights advocates, arguing for unfettered access to National Forest and Bureau of Land Management lands, often make broad claims about mining's contribution to the economy of Southwest Oregon and to the property tax base. The mining rights they claim are those associated with the 1872 Mining Law.  However, this long standing statute applies only to hardrock minerals on federal lands. It does not apply to what are known as common variety or non-locatable minerals, the mining of which occurs mostly on private or state lands. It's only the latter where's there any measurable contribution to the economy or the property tax base of the county. 



 In the United States Geological Survey's latest report for mineral production in the State of Oregon  "industrial minerals" (sand, crushed stone, gravel, pumice, talc) accounts all mineral production in the state.  Contrast this with the  Nevada where 78% of non-fuel mineral production is for gold.  According to USGS, minerals produced in Southwest Oregon included, crushed stone, sand, gravel and talc.  None of these come under the 1872 Mining Law and we know of no production of non-locatable/common variety minerals on National Forest or BLM lands in the area.  See also  SWO Mining Economics.

Mining rights advocates also claim the mining industry makes up an important part of the property tax base of the county.  It's the same story here. While, gravel mining no doubt contributes to the property tax base, because it occurs primarily on private land, in the State of Oregon unpatented mining claims on federal lands are not taxable property.

Hardrock mining in Southwest Oregon does not measurably contribute to the local economy and its not going to contribute to paying down the federal debt either. A spokesperson for the Southern Oregon Resource Alliance is found of making presentations at town hall or other meetings claiming that there's enough mineral value in Southwest Oregon to pay off the federal debt.  He fails to mention that under the 1872 Mining Law the federal government gives away for free all valuable minerals on publicly owned lands.


So unless those extracting free minerals from federal lands would be willing to donate some or all of the proceeds of their endeavors to the federal government, rhetoric about paying down the federal debt by mining Southwest Oregon is meaningless and absurd—even if there were high mineral values in the area (and there's no evidence that there is). In fact for 139 years, individuals and corporations  have fought any reform of the 1872 Mining Law that would lead to even modest royalties being paid to the federal government for the extraction of valuable minerals on lands owned by all the public.

  
More often than not mining on federal lands costs the taxpayers money.  For example, the mining proposals on the National Wild and Scenic Chetco River are, by Forest Service estimates, going to cost the taxpayer initially $800,000.  The Bureau of Land Management's 2005 Mineral Report for the Nicore Claim Group, according to the mine proponent, cost the taxpayer $1 million and that's not counting earlier and continuing costs to the taxpayer.  


Mines top the Environmental Protection Agency list  of toxic Superfund Sites. For example, $17 million of the American Recovery and Reinvestment Act of 2009 went for remedial action at the abandoned Summitville Mine Superfund Site and this is just part of the cost.  About $20 million of Recovery Act money is being spent on clean-up at Iron Mountain Mine near Redding, California—another EPA Superfund Site—and the list and costs to the taxpayer goes on. 

document submitted to the Josephine County Commissioners by the South West Oregon Mining Association exemplifies the misinformation about the economic contribution of hardrock mining to Southwest Oregon. The statement refers to a generic "mining industry" and "mineral resources" and then mentions "public land."  Mining rights groups are deliberately conflating the two types of mining because they know they can't show any measurable economic benefits from hardrock mining on federal lands in Josephine County and in Oregon.

  
In fact, according to the United States Geological Surveys latest summary for the mining of non-fuel mineral in the U.S, not only is there no production of hardrock minerals that come under the 1872 Mining Law in whole state of Oregon, the state only ranks 35th in the U. S. in the production of non-fuel minerals which in 2008 were valued at $398,000 with no hardrock minerals reported.  The non-fuel minerals USGS reports produced in Oregon are: "stone (crushed), sand and gravel (construction), cement (portland), diatomite, perlite (crude)."

What does measurably contribute to the economy of the area (for example tourism) is not going to benefit by the promotion of mining on federal lands.  How many visitors are going to want to come and tour the devastation that's the Nickel Mountain Mine or stay in a motel that's adjacent to the now defunct Glenbrook Nickel smelter site outside Riddle, Oregon?  How many will want to swim in the waters that flow out of the abandoned Formosa Mine, an EPA toxic Superfund site above Riddle? 






The Nickel Mountain Mine near Riddle, Oregon as seen on Google Earth.
Note - the mine is not on federal lands but is an example of nickel mining.
A large nickel strip mine has been proposed outside Cave Junction on National
Forest and BLM lands.  Google Earth Image.