By March 28, 2016 Read More →

US coal mine royalties could be raised by 50 per cent

Coal mine royalties increase part of government coal program

Coal mine royalties

Federal officials are considering increasing coal mine royalties by 50 per cent on strip mines located on public lands. 

BILLINGS, Mont. _ Federal officials will consider hiking royalty rates by 50 per cent on coal extracted from massive strip mines on public lands under a pending overhaul of a U.S. Interior Department program.

The first outlines of a planned three-year evaluation of the government coal program were released Thursday. Lower royalty rates to stimulate mining also will be considered.

The Obama administration in January imposed a moratorium on new coal leases to address the costs of climate change and ensure a fair financial return to taxpayers. Interior spokeswoman Jessica Kershaw says Thursday’s notice sets “sideboards” for that review.

The royalty increase from 12.5 per cent to 18.75 per cent would apply to coal from strip mines primarily in Western states. Wyoming and Montana are home to many of the largest mines.

The Canadian Press

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