US extraction of billions worth of minerals, no royalties paid

6 Jun 2011

Three out of 10 most profitable US industries are in mining, including copper, gold and silver, at 47% net-profit margin (compared to 11% in oil and gas).

However, mining entities in the US pay no royalty charges for land from which they extract billions of dollars worth of minerals.

“They don’t pay a dime, not a penny for the gold and uranium they remove from public lands,” says Steve Ellis of Taxpayers for Common Sense. “Virtually every other country in world charges a royalty on hard rock minerals. It is absurd that we don’t do this.

In 2008, according to the National Mining Association, about $20 billion worth of metals were sold in the US. With, say, a 4% royalty, that translates into at least a $4 billion in payments for minerals owned by US taxpayers. Unsurprisingly, the mining industry is strongly opposed to changing the law.

From: William Lajeunesse (May 18, 2011) Minerals Mined on Federal Land Spared Taxes, Aided by Senator Reid. FoxNews.com