Can you explain the role of the Nevada Division of Minerals?

The Nevada Division of Minerals plays a critical role in promoting responsible exploration and production of minerals, oil, gas, and geothermal energy in the state. As a state agency, we provide information to the public and entities interested in exploring and developing mines in Nevada. We utilize our Open Data Platform to make publicly available data easily accessible and downloadable. Our agency regulates fluid minerals such as oil, gas, and geothermal energy, as well as dissolved mineral resource exploration like lithium brine. Additionally, we maintain a mining registry that tracks all mineral production in the state, along with the status of exploration and mining. The Division also addresses the physical safety of historic legacy mines in Nevada, and operates the Reclamation Performance Bond Pool. Lastly, we engage in educational outreach to inform Nevada citizens about the importance of mining to modern society.

How is the Nevada Division of Minerals addressing the challenges posed by abandoned mines in the state?

The Abandoned Mine Lands (AML) program is a vital program established to address the physical hazards posed by abandoned mines and shafts scattered throughout Nevada. Our program inventories inactive mining features, ranks their degree of hazard, and secures them. If the abandoned mining feature has an owner or claimant, it’s their responsibility to safeguard it from the public. However, if it’s an orphan, the Division carries out activities to secure the site. We estimate that there are 250,000-350,000 historic mine features in Nevada, of which approximately 50,000 are hazardous. Currently, we have secured 80% of the hazardous features, and we work in close collaboration with land management agencies to carry out permanent closures. Our AML program is setting the standard for the country, and its success derives from the fact that funding comes from mining claimants themselves, unlike in many other states.

Could you explain the Nevada Reclamation Performance Bond Pool administered by the Nevada Division of Minerals?

Before any mining or exploration company can initiate any surface disturbance on public lands in Nevada, they must provide a financial instrument to cover the total cost required by a federal or state regulating agency to perform all the necessary reclamation resulting from their proposed project. On average, the total cost for a bond is approximately US$6,000 per acre of proposed disturbance at small exploration projects. Companies can submit the money to the Bureau of Land Management (BLM), which can take several weeks to adjudicate the bond, or to our Bond Pool. We have established a US$2.5 million statewide bond with the BLM, which allows the State of Nevada to act as the co-principal on new project obligations. We receive the full amount that the BLM has determined necessary to do the reclamation and charge a 2% annual administrative fee. Upon receipt, a bond rider adding the obligation amount is submitted to the BLM, and the proponent can immediately move forward with their project. This program is designed to reduce the financial burden and timeframe for obtaining a plan-level reclamation bond for small companies that may not have a robust credit history. We currently handle around 1/3 of the reclamation bonds for notice-level projects in the state, while the BLM does the remaining 2/3.