WyoCoalMiner
Well-known member
- Joined
- Nov 14, 2024
- Messages
- 235
Yes. It depends on the pit and the overall cost of mining in that pit. In general, the higher the cost to mine, the lower the royalty rate. All of our private leases are the same landowner. One is roughly the same as the prior Fed rate, this is a pretty small area and very few tons come from this lease. All others are lower than the current 7% Fed rate.Do you mine on any private land? Whats the cost there?
If a mine stops producing then there is nothing to pay a royalty on. You could make the rate 50% and it wouldn't matter. This is a very much the reality for many mines. Not all, there are still many really good deposits in the West but not as many as say 10 years ago. Reducing the royalty rate helps reduce overall costs which helps keep the operation running and the cash flowing to the Feds and State.Well it'd be zero for the federal govt - but i have a feeling itd be more than 7%, right?



