1993 A LOOK BACK — New U.S. mining royalty

Hard-rock miners in the U.S. operating on public land, including some Canadian gold producers, are facing a government-imposed royalty, but the amount was not settled in 1993.

A proposal by the Clinton administration to impose a 5-12.5% royalty on gross mining revenue did not make it into the budget.

However, the House of Representatives voted in favor of an 8% net smelter return royalty several months after the U.S. Senate voted to introduce a 2% royalty on net profits. The matter has gone to a Senate-House conference for resolution.

The proposed new royalty is part a reform package of U.S. mining legislation.