"Tiffiany & Co. is leading the way in corporate responsibility by standing up to be counted among those who recognize that the Mining Law of 1872 ill serves both responsible mineral development and responsible environmental stewardship in today's America," said U.S. Rep. Nick J. Rahall (D-WV), the sponsor of legislation to reform the law and the Ranking Democrat on the House Resources Committee which has jurisdiction over mining issues.

     In the letter, Tiffany Chief Executive Officer Michael Kowalski took issue with a proposed mine in the Cabinet Mountain Wilderness Area in Montana. He noted that it was being made possible by the General Mining law of 1872.

"It remains a perverse incentive for mining in wilderness areas, scenic watersheds, around important cold water fisheries, and in other fragile ecosystems - all of which are inappropriate for mineral development," wrote Kowalski.

     Remaining as the last vestige of frontier-era legislation, the Mining Law of 1872 played a role in the development of the West. But 132 years later, precious federal land is still being sold at 1872 prices, from $2.50 an acre to $5. And the lack of environmental protections in the antiquated law have left the West scarred with poisoned streams, abandoned waste dumps and maimed landscapes.

     Rahall’s legislation, the "Mineral Exploration and Development Act of 2003", would thwart the continued giveaway of public lands to mining interests. It would requires a holding fee to be paid for use of the land, and ensure royalties be paid on the extraction of valuable minerals from these federal lands. And it would require the industry to comply with some basic reclamation standards to protect the environment.

     Kowalski stated: "We at Tiffany & Co. understand that mining must remain an important industry. But like some other businesses benefitting from trade in precious metals, we also believe that reforms are urgently needed. Mineral should - and can - be extracted, processed and used in ways that are environmentally and socially responsible. Government and industry each has a role in shaping sensible measures to achieve this goal."

     "Reforming the mining law is critical to protecting the environment and the Treasury. Taxpayers are and should be outraged by this 132 year old windfall to the mining industry," declared Rahall.

     It is estimated that $1.8 billion worth of hardrock minerals are annually mined from federal lands in the western states. Yet, the federal government does not collect one penny in royalty from any of this mineral production that is conducted on public lands owned by all Americans.