The sweetheart giveaway sailed through under a 132-year-old
federal law that allows mining companies to purchase
unrestricted patents on public land, and then use the land for
their own profit -- by mining it for silver, gold or other
minerals or even by developing it into luxury condominiums and
getaway homes.

The 1872 Mining Law, which has never been updated to reflect
21st century real estate values, has enabled mining companies to
extract more than $245 billion in metals and minerals from
public lands without paying a single subsidy to taxpayers since
the statute went into effect 132 years ago. It currently applies
to more than 270 million acres of public lands in the U.S., or
"2/3 of the land the federal government holds in trust for all
Americans."[2]

Phelps Dodge Corp. used the 1872 law to apply for nine patents
on U.S. Forest Service land at the top of Mount Emmons, also
known as the "Red Lady," just three miles west of the Crested
Butte ski area in Colorado. The area, which lies within the
boundaries of Gunnison National Forest, is the site of a
longstanding battle between mining interests and the local
community, which has since filed suit against the federal Bureau
of Land Management protesting its sale of the patents. The suit
is being brought by the Gunnison County Board of Commissioners,
the Town of Crested Butte and High Country Citizens'
Alliance.[3]

Phelps Dodge claims the land can be used to operate a molybdenum
mine, though opponents argue such a use would not be profitable
since there is already a large supply of this ore (used in rifle
barrels, batteries and lubricants) on the market.

Observers believe the company is more likely to develop the land
into vacation homes.[4] Indeed, in legal documents filed two
years ago in a separate case, the company argued that
establishing a mine on that land would be fiscally
"reckless."[5]

"Once again the abuses allowed by the outdated 1872 Mining Law
are being exploited by mining companies -- free gold, silver or
molybdenum, access to prime real estate at 1872 prices, no
environmental standards -- what's not to like? Unless you're not
a mining company," said Steve D'Esposito, president of
EarthWorks, a Washington, D.C.-based nonprofit organization that
fights for reform of the 1872 law.

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TAKE ACTION
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###

SOURCES:
[1] "Sale of Mining Patents Roils Crested Butte Residents,"
Denver Post, Apr. 6, 2004.
[2] Earthworks 1872 Mining Law.
[3] "Local forces file suit over Red Lady land," Crested Butte
News, Apr. 15, 2004.
[4] Denver Post, Apr. 6, 2004.
[5] "Company Has Argued Both Sides in Mine Patent," Denver Post,
Apr. 19, 2004.