Wyoming Representative Barbara Cubin is to introduce a bill to cut US federal taxes on trona mining in the state in order to help the industry compete against foreign producers.
Cubin, who is chairwo…
Wyoming Representative Barbara Cubin is to introduce a bill to cut US federal taxes on trona mining in the state in order to help the industry compete against foreign producers. Cubin, who is chairwoman of the Energy and Minerals Subcommittee of the House of Representatives, said she will introduce legislation cutting the royalty rate on new and renewed trona leases to 2%, down from the current 6% for renewed leases and 8% for new leases. “Chinese and other foreign producers have an unfair advantage on Wyoming“s trona industry,” Cubin said in a statement. “Wyoming used to be the No. 1 trona producer in the world. … We need to reduce the tax burden on these Wyoming employers and get the Wyoming industry back on top.” Cubin“s press secretary, Joe Milczewski, said 10 April 2004 that the congresswoman plans to introduce a bill seeking the rate reduction when Congress reconvenes on 20 April 2004. Wyoming“s share of soda ash mineral royalties was USD 25.2 million in 2000, he said. Wyoming Mining Association Executive Director Marion Loomis welcomed Cubin“s effort. “We really appreciate the support she would give to the industry … which has certainly suffered severe economic downturns from increased competition in recent years,” he said. “With the expansion of China“s (soda ash) production, a (slump) in the markets for soda ash and the importance that this industry has for Wyoming … I think it“s very important we make sure this industry has every opportunity to thrive and be in a competitive situation when the markets do turn around,” he said. The sodium-bearing trona is mined west of Green River, Wyoming, by four multinational corporations for processing into soda ash, which is used to make glass and detergents. Cubin said China enjoyed a big advantage because of low labor costs, lenient pollution laws and lower transportation costs. The Green River area soda ash producers are disadvantaged because of the high costs of transporting the product by rail to the coast for export. Transport costs are greater than those from production. Wyoming trona mines account for about 90% of domestic production and about 30% of global production.