Dear Friends, A successful precious/base metals operation should...

Dear Friends,


A successful precious/base metals operation should be incorporated in one county and operating in another while internationally listed.

The greatest political and environmental risk to all mining exists in the US.

This is a form of Dean Harry's ultimate means of protection. Dean Harry teaches that ultimate protection lies in a 3 step life style; "Citizenship in one country, body in another and money in a third."

With a liberal administration, the US mining lobby has an uphill fight on this one.

From Chris Laird's PrudentSquirrel.com...

The US congress is proposing new very restrictive mining regulations like yearly inspections and a whole gamut of new regulations specifically on precious metal miners....in the name of the environment... it's hard to say the effect on big US mines, but the smaller ones will have lots of trouble with this if it gets through.

Rahall Proposes Bill to End All Mining in the U.S.
by Scott Harn

Nick Rahall, chairman of the House Resources Committee, reintroduced mining reform legislation in the House of Representatives on January 27, 2009. The Congressman has obviously been away from real work for far too long. H.R. 699, the Hardrock Mining and Reclamation Act of 2009, should be labeled H.R. 666 because it appears to have been written by the Devil himself. If it passes as written, it will completely destroy an entire industry.

H.R. 699:

Casual use would be redefined to allow only those activities that do not cause "any disturbance of public lands and resources." The collection of samples, use of gold pans and non-motorized sluices would be the only activities allowed without a Notice or Plan. Taking a vehicle off-road would also require a Notice or Plan. Any extraction of minerals for sale or use would require a Notice or Plan.

H.R. 699 would be retroactive. Existing mining that is not already operating under a Notice of Plan would require proof of a valuable discovery to retain a mining claim, and those operating under a Notice or Plan would have ten years to bring their operation under compliance with the new regulations.

The patenting of mining claims, which has been suspended by yearly legislation since 1994, would be permanently discontinued.

The federal government would be entitled to an 8 percent gross royalty for all locatable minerals for any new mining operation.


Link to article

Even if the miner is unable to make a reasonable profit at current commodity prices, he would have to give 8 percent to the federal government. Existing operations at the time the bill is passed would be subject to a 4 percent gross royalty, and any federal lands added to the operation after enactment of the bill would be subject to the 8 percent royalty.

The reporting requirements are absurd. Anyone transporting a locatable mineral, concentrate or product derived from a locatable mineral shall carry documentation declaring the amount, origin and intended destination. Miners shall create and maintain reports relating to the quantity, quality, composition, volume, weight and assay value of all minerals extracted from a mining claim. Failure to produce these reports when requested by any officer or employee designated by the federal government may result in involuntary forfeiture of the mining claim. ..."

Best,
Chris

Disclaimer:
Chris Laird is not an investment advisor/professional. This article, and the PrudentSquirrel newsletter, and alerts, are general market commentary only. It is not intended as specific advice. You should talk to your own investment professionals for specific advice. All information is deemed reliable but is not guaranteed to be accurate. Any information deemed important should be verified by you.

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at http://www.jsmineset.com/


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