Legislation & Regulation
Legislative and Regulatory Update
December 2021 by Scott Harn
• Big banks penalized for rigging gold price
Major banks have agreed to pay a total of $152 million to settle a class-action settlement that accused them of rigging the price of gold through the daily London gold price fix.
Eighteen lawsuits were consolidated in 2014, and the plaintiffs included Barclays, Bank of Nova Scotia (Scotia Bank), Société Générale, London Gold Market Fixing Limited, Deutsche Bank, UBS and HSBC. (Charges against UBS bank were dismissed in 2016 for a “lack of evidence.”)
All were members of the London Bullion Market Association.
Barclays, Scotia Bank, Société Générale and London Gold Market Fixing Limited were the last to agree to the settlement in mid-November, 2021.
The amount of the settlement pales in comparison to the profits these major banks reaped in futures gold contracts over the ten-year period when they were accused of artificially suppressing gold prices stated Ronan Manly, a precious metals analyst with BullionStar.
These latest settlements are on top of major fines already paid by Scotia Bank ($127 million) and JP Morgan Chase ($920 million).
The best news is that it will be much more difficult for the big banks to conspire to suppress the price of gold in the future because of the risk of a more severe punishment. I would expect to see gold prices increase as a result, which bodes well for all mining companies and individual miners.
• Mining royalties excluded from reconciliation bill
A proposal to charge royalties for extraction of gold and other precious metals was removed from the House reconciliation bill referred to as “Build Back Better” by the current administration before it was passed by the House.
Rep. Grivalja (D-New Mexico) had included an 8% royalty on new mines and a 4% royalty on existing mines, and another seven cents “reclamation fee” on every ton of material moved, which included overburden.
Legislative and Regulatory Update
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• California suction dredge hearings
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Legislative and Regulatory Update
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Legislative and Regulatory Update
Legislative and Regulatory Update
• Hearing date moved up for preliminary injunction for California suction dredging
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Protecting Our Access to Public Lands
As prospectors, we cannot just roll over and continue to ignore the shift in public land management from multiple use to national preserve.
Legislative and Regulatory Update
• California suction dredging
• House shows support for public land use
Proposed Regulations for California Suction Dredging
One of the most asinine proposals in the SEIR is to require miners to state when and where they will be dredging. This information would be accessible to the public, which would make them prime candidates for getting their homes burglarized while they are out mining.
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