S859-119

What This Bill Does

The Mining Waste, Fraud, and Abuse Prevention Act of 2025 fundamentally reforms the 1872 Mining Law, which has governed hardrock mining on federal lands for over 150 years. It ends the patent system that allowed miners to purchase federal land for as little as $2.50-$5.00 per acre, imposes new royalties of 5-8% on mineral production, and establishes comprehensive environmental permitting, reclamation, and financial assurance requirements for mining operations on public lands.

Who Benefits and How

Federal government and taxpayers: The government gains new revenue streams through royalties (5-8% of gross income), maintenance fees ($200/claim/year), location fees ($50/new claim), land use fees, and reclamation fees (1-3% of production value). Taxpayers benefit from reduced liability for abandoned mine cleanup through mandatory financial assurance requirements.

Environmental and conservation groups: The bill significantly strengthens environmental protections by requiring permits for surface-disturbing activities, mandating reclamation to pre-disturbance conditions, preventing "undue degradation," and creating a process to withdraw sensitive areas like wilderness study areas and wild and scenic rivers from mining.

Indian Tribes: The bill mandates meaningful consultation before any mining activities that may impact Tribal lands, cultural practices, or treaty rights including water, hunting, gathering, and fishing rights.

Environmental remediation contractors: A new Hardrock Minerals Reclamation Fund funded by royalties and fees will finance cleanup of abandoned mines, creating business opportunities for remediation companies.

Who Bears the Burden and How

Hardrock mining companies on federal lands: Mining companies face substantial new costs including 5-8% royalties on gross income (an entirely new cost under the 1872 law), 1-3% abandoned mine reclamation fees, annual maintenance fees, land use fees, and the cost of obtaining permits, providing financial assurance (bonds), and meeting reclamation requirements. Compliance burdens increase significantly through permitting requirements, quarterly inspections, 7-year recordkeeping, and monitoring obligations.

Mining exploration and junior mining companies: New exploration permits with public notice and comment requirements, financial assurance, and environmental plans create higher barriers to entry for smaller companies seeking to explore federal lands.

Uranium mining companies: A National Academy of Sciences study may lead to additional regulations or land withdrawals specifically affecting uranium mining.

Mining claim speculators: Automatic forfeiture rules for non-payment and the requirement that claims be used for mineral activities penalize speculative claim holding.

Key Provisions

• Ends mining patents: No new patents will be issued, meaning miners can no longer obtain private ownership of federal land through their mining claims (grandfathering only claims filed before September 30, 1994).

• Establishes 5-8% royalty: For the first time, hardrock miners on federal lands must pay royalties on production, with existing producing operations exempted.

• Requires comprehensive permits: All surface-disturbing mining activities now require permits with operations plans, reclamation plans, and environmental compliance documentation.

• Mandates financial assurance: Operators must provide bonds or trust funds sufficient to cover reclamation costs, land restoration, and long-term water treatment, reviewed every 3 years.

• Creates reclamation fund: A new Hardrock Minerals Reclamation Fund receives all royalties and fees to fund cleanup of the estimated 500,000+ abandoned hardrock mines on federal lands.

• Strengthens enforcement: Civil penalties up to $5,000/day per violation and criminal penalties up to $50,000 and 2 years imprisonment for knowing violations.

• Protects sensitive lands: Requires review of wilderness study areas, roadless areas, and other sensitive areas for potential withdrawal from mining.