ANALYSIS

Driven by increased metal prices and aided by outdated federal law, in the last four years mining interests have staked claim to more public land in Arizona than the Saguaro and Petrified Forest national parks combined, according to a three-month Environmental Working Group (EWG) analysis of millions of federal records.

Between the end of 2002 and September 2006, mining interests registered claims with the Bureau of Land Management for 208,000 acres of public land in the state. The number of claims increased by 32 percent, from 24,856 to 32,868. (See Fig. 1) Added to existing claims, mining interests now control more than 862,000 acres of public land in Arizona — about 1,350 square miles, or the size of Phoenix and Tucson combined.

The report seeks to raise awareness about reforming the 1872 mining law so that mining companies pay taxpayers a fair price for use of our land, clean up the pollution they leave behind and leave treasured places untouched.

Metals mining is the leading source of toxic pollution in the United States, and one of the world's most destructive industries. In the 1990s, the industry had multimillion-dollar pollution disasters in Colorado, Montana and South Dakota.Ê But because most mines operate far from public view, the ugly scars on the landscape, dangerous chemicals and mountains of toxic mine waste that contaminate soil, water and air are the mining industry's dirty secret.

EWG's interactive online website makes it possible for the first time to see the environmental devastation caused by mining in Arizona, through satellite images of major mines and every claim on public lands. The images show not only the destruction that has already occurred, but also the locations, marked by mining claims, plans and notices, where mining may occur in the future. Hundreds of the new claims filed in the last four years are within five miles of Grand Canyon National Park. (See Fig. 2)

Historically, mining has been a prominent part of the economy of Arizona and the West, but data show that most people have not benefited from this industry. University of Montana Professor of Economics Tom Power has found that most mining communities, including those in Arizona, are not prosperous. Power found that while mining companies and a few employees make money, relatively little wealth flows to local residents because of technologies that displace workers and the boom-and-bust nature of mining that makes long-term investment uncertain. Environmental destruction also prevents mining communities from attracting residents and businesses.

In order to make wise economic decisions, citizens and elected officials need complete information about the impacts of mining. Instead, in the last four years the industry has staged a little-noticed land rush, gaining control of millions of additional acres across the West with minimal oversight.

The mining claims covered by EWG's report are for so-called "hardrock" minerals including gold, silver, copper and uranium. We found that claims in Arizona are disproportionately concentrated among the largest claimholders, with the top 10 claimholders in the state holding about one-sixth of all claims. Six of the top ten claimholders are foreign corporations. (See Fig. 3)

By law, the federal government has the authority to reject a mine. In practice, however, the government has only once denied a mine based on risks posed to the public, the environment, or cultural resources, and the government subsequently rescinded that decision, allowing the proposed Glamis mine in southeastern California to proceed.

Mining companies can stake mining claims for as little as $1 per acre. The companies can extract billions of dollars in precious metals without paying taxpayers a dime in royalties, a windfall that sets metal mining interests apart from every other extractive industry operating on federal land. Companies often leave behind multimillion-dollar cleanups and perpetual water pollution. Yet there is no federal fund designated for abandoned mine cleanup. Companies also can receive a tax break for up to 22 percent of the metal they extract.

The satellite images on EWG's website show in striking detail how destructive modern, open pit mining can be and highlight how inadequate U.S. mining laws are to address current industry practices.

Bipartisan legislation introduced by Rep. Nick J. Rahall (D-WV) would help address many of the shortcomings of U.S. mining law. Among other provisions, the bill would require mining companies to pay an eight percent royalty on the metal they extract, create a fund for abandoned mine cleanup, implement specific reclamation standards, prohibit mines that would require perpetual water treatment and put treasured places off-limits to mining. Legislation introduced by U.S. Sen. Russell D. Feingold (D-WI) would close the tax break for metal mining and direct a portion of the savings to be used for abandoned mine cleanup.

Areas in Arizona where new claims are concentrated


Mining claims in Arizona increased by 32% since 2002

Fig 1. Open claims (1,000) from 2000 to 2006.

Claims increase in Arizona

Fig 2. New claims in Arizona (black) since 2002.
Click for detailed map.

Six of the top ten claimholders in Arizona are foreign corporations

Fig 3. Top ten claimholders & number of claims.