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.
In the meantime, we will continue our multi-pronged approach to seek regulatory relief at the federal level while supporting those court cases that are built on a strong legal foundation.
Mining claimants who wish to retain their mining claims on Bureau of Land Management and Forest Service lands through the 2021 assessment year must pay a maintenance fee or file a maintenance fee waiver certificate on or before September 1…
• Idaho miners will challenge new EPA permit at rally
• California proposes to amend definition of a suction dredge
• Proposed rule redefines "navigable waters"
On July 4, we are reminded of the sacrifices our Founding Fathers made to establish this great country of ours, and in that spirit, the Minerals and Mining Advisory Council (MMAC) has created a draft Declaration of Miners.And MMAC has been hard at work writing a bill, with the unwavering support of several members of Congress, to reaffirm the rights of miners operating in traditional mining districts.
- Zinke leaving office
- Property rights triumph over critical habitat says Supreme Court
- Water of the United States
We know we lack critical minerals. We know the causes. We know the need. We have the knowledge we need right now. Why can’t we just take action and fix the problem?
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