Tiffany’s Kowalski declares U.S. mining law ‘long overdue for an overhaul’

With Democrats in control of Congress, and negotiations apparently taking place behind the scenes, it may be inevitable that 1872 Mining Law will not survive the current congressional session intact.

RENO, NV - 

Even before the bill to change the 1872 Mining Law is introduced by Rep. Nick Joe Rahall, the Chairman of the House Natural Resources Committee today, the campaign to change the law is already off and running.

In an op-ed piece published Monday in a Las Vegas newspaper, Tiffany & Co. President and CEO Michael Kowalski claimed that "many mining industry leaders, members of Congress and environmental organizations" agree that the mining law "is long overdue for an overhaul."

Nevertheless, he also noted that "a healthy, environmentally responsible and stable mining industry matters to my company."

Among the reforms called for by Kowalski in his opinion piece are: "1) enhanced regulatory certainty; 2) strengthened environmental protection and restoration; 3) improved returns to taxpayers for mineral resources mined from public lands; and 4) expanded post-mining development opportunities for communities."

"As a businessman, I value business certainty," Kowalski wrote. "So I am sympathetic to the predicament of the hard rock mining industry in America which operates under the auspices of an indefensible law. Given the capital-intensive nature of modern mine development, predictable siting and regulatory regimes are critical to mining companies. However, what made sense in 1872 does not make sense in 2007."

"As a conservationist, I believe that the environmental effects of mining should be minimized and that the privilege of mining on public lands should be assessed in the context of alternative uses, including recreation and conservation," Kowalski added. "The toxic legacy of abandoned mines in the American West is a matter of great concern to Tiffany & Co."

Kowalski called for the law to be changed to allow so-called "good Samaritans," such as private parties, NGOs and government agencies, to voluntarily clean-up mining-related pollution without incurring any liability for the clean-up.

"As a taxpayer, I believe that those who benefit from the extraction of mineral resources from public lands should pay fairly for that use," Kowalski wrote. "Ultimately, this cost will make it more expensive to produce jewelry but it is the right thing to do. It makes sense to reinvest these revenues in the conservation of waters and public land that will be our true legacy to future generations."

In his article, Kowalski took to task the failed Gibbons-Pombo Mining Law revisions introduced by former House Resources Committee Chairman Richard Pombo, R-California, and Rep. Jim Gibbons, R-Nevada, now Nevada's Governor. Kowalski asserted that their efforts "served two valuable functions: 1) they catalyzed the debate about the importance of updating the Mining Law; and 2) they identified the importance of helping communities across the West ensure a sustainable future after the mines play out."

Acknowledging that numerous businesses and families depend on a "healthy, respected, responsible mining industry," Kowalski said he stands ready to work on Mining Law reform, so that mining's future is even brighter than its past.

It should be noted that Tiffany & Co. retains the services of Dr. Kai Anderson, a former staffer for Senate Majority Leader Harry Reid, D-Nevada,--who often worked on mining and public lands issues-as an advisor in the current round of Mining Law legislation. Geoscientist Anderson, who holds a PhD in geology from Stanford University, now works as Senior Vice President for Washington, D.C.-based Cassidy & Associates, a government relations and lobbying firm.

NMA PROMISES TO PLAY FAIR

In a news release, the National Mining Association Wednesday pledged to play "a constructive role in the development of a fair, predictable and efficient national minerals policy through amendments to the Mining Law."

NMA President and CEO Kraig R. Naasz declared that "we look forward to working with Chairman Rahall and Ranking Member Don Young (R-Alaska) as the House Natural Resources Committee begins consideration of amendment to the law."

Naasz's statement read very much like the one published by Kowalski when NMA called for a "responsible approach to amending the Mining Law" which should include the following criteria:

•·        Provide the certainty needed for private investment in mining activities on federal lands by ensuring security of title and tenure from the time of location through mine reclamation and closure;

•·        Recognize existing authorities to close or declare unsuitable for mining those federal lands with unique characteristics or of special interest;

•·        Recognize the existing comprehensive framework of federal and state environmental laws regulating all aspects of mining from exploration through mine reclamation and closure;

•·        Provide a fair return to the government in the form of a net income production payment for minerals produced from new mining claims on federal lands; and reasonable fees for the location and maintenance of mining claims; and

•·        Establish an abandoned mine lands (AML) clean-up fund with the revenue generated from a net income production payment.

Still to be heard from is Rahall, who will introduce his Mining Law reform legislation today in the House Natural Resources Committee, and a panel of NGOs who are participating in a telebriefing today sponsored by the Pew Campaign for Responsible Mining.

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