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By Anjeanette Damon (contact) 
Friday, March 8, 2013 | 10:55 a.m.
A Republican proposal to ask voters to increase taxes on gold and silver mining operations is a punitive attempt to "inflict pain" on the industry, Nevada Mining Association president Tim Crowley said today in an interview taped for the political talk show "To the Point."
In some of his most pointed comments since Senate Minority Leader Michael Roberson announced plans to seek a mining tax increase, Crowley accused the cadre or Republicans of "ulterior motives."
"We found that people that spring tax plans on various segments of the economy, whether it's mining or any other segment, if they do it in a way that is aggressive like that, that their motives tend to be not just to work with the industry and generate more money, it's to be punitive and to damage that industry," Crowley said. "So that was our first reaction: that it was something meant with ulterior motives to actually inflict pain."
On Tuesday, Roberson and five of his Republican colleagues said they would seek to repeal mining's constitutional tax provisions and ask voters to approve a second ballot initiative to change the way the industry is taxed. Roberson presented the mining tax idea as a way to kill the margins tax ballot initiative supported by the teachers union that will likely be placed on the 2014 ballot.
During a press conference Tuesday, Roberson said he intends to work with his friends in the mining industry to develop a fair method of taxing gold that would result in more revenue for Nevada schools. He denied the move was punitive.
"We support the mining industry," Roberson said. "We are glad they are here. We want them to be profitable and productive, but we also want to look at the mining industry and how they generate revenue for the state compared to how we generate revenue from the gaming industry."
Crowley's full interview will air on Channel 3 at 7:30 p.m. Saturday.
Lawmakers are always more willing to inflict pain on industry rather than cut wasteful spending. The increased funding of a failing education system is like feeding a dead horse - pure waste to buy votes (and power). The best solution is to turn education back to the parents and the communities.
North America is Barrick's largest producing region with production of 3.38 million ounces of gold in 2011, or 44% of total production, at total cash costs of $426 per ounce.
The region has 59.0 million ounces of proven and probable gold reserves, representing 42% of the company's total reserves.
In 2012, gold production is expected to be in the range of 3.425-3.55 million ounces at total cash costs of $475-$525 per ounce. Pueblo Viejo is expected to contribute about 80,000 ounces of gold to Barrick in 20123 and is anticipated to contribute an average of 625,000-675,000 ounces to Barrick annually over the first full five years of operation at total cash costs of $300-$350 per ounce.
Beyond 2012, we have identified various opportunities to add production within North America, including the recent Goldrush discovery in Nevada.
This is the link to the Barrick Mining document on mining in North America.
http://www.barrick.com/operations/north-............
Barrick paid about $104,000,000 to Nevada last year. They prepaid taxes for one year during the worst of the budget crunch.
This may help you understand some of the recent history of taxes paid by mining to Nevada.
Coincidentally, Barrick Gold of North America issued a news release Thursday announcing it had paid record state taxes on its Nevada operations, prepaying $101 million in net proceeds of minerals taxes to the state on March 1, based on estimated 2011 operating results.
However, Nevada Department of Taxation projected figures published by the Las Vegas Review Journal reveal Barrick's Nevada operations are expected to earn gross revenue of $3.72 billion this year with allowable deductions of $1.73 billion, resulting in net proceeds of nearly $2 billion. Net tax after credits is projected to be $101.9 million this year.
Nevada's second largest net proceeds of mines taxpayer, Newmont, is projected by Nevada taxation officials to pay $33.7 million in net proceeds taxes this year as Newmont's Nevada operations are expected to earn a gross revenue of $2.21 billion with allowable deductions of $1.59 billion, resulting in net proceeds of $620 million.
In total, the Nevada Department of Taxation projected that mining companies would claim $4.2 billion in tax deductions in 2011 as many global mining companies proclaimed record earnings last year, thanks to record metals prices."
http://www.mineweb.com/mineweb/content/e............
This is an interesting article. The Barrick mines in Nevada produced over $8,760,000,000 and paid $104,000,000 to the state of Nevada. Barrick has SEVEN mines in Nevada. The contract with the Domincian Republic has Barrick Mining paying 3.2% of the gross production, 25% income tax and 8.75% of net earnings or an estimated total of $11,000,000,000 for ONE mine. What's wrong with that picture?
The 2011 Barrick Mining annual report is out. If you read it, there are some very interesting facts that emerge. This is a link to the Barrick Annual Report for 2011.
http://www.barrick.com/files/doc_downloa............
Barrick Mining either owns outright, or is a partner in a joint venture in 7 gold mines in Nevada. To determine my estimate a profits for 2011, I assumed the price of gold at $1500 per ounce, or less. The current price for gold is in excess of $1750 per ounce. The first four mines listed are totally owned by Barrick Mining. In 2011, according to their own figures, Barrick Mining produced almost 97 TONS of gold from their Nevada Mines. That is same weight as 16 full size, original HUMMERS. Barrick Mining has reported record profits and dividends in both 2010 and 2011.
The Cortez Hills Mine produced 1.42 Million (44.375 tons) ounces of Gold at a cost of $245 per ounce. If you assume a conservative profit of $1000 per ounce, you get a profit for the Cortez Hill mine of $1,420,000,000. Barrick paid a total of $47,300,000 in local and state taxes last year.
Bald Mountain Mine produced 93,000 ounces (2.9 tons) at a cost of $558 per ounce. Assuming a profit of $900 per ounce for the Bald Mountain Mine, you get a profit of $83,700,000.
The Gold Strike mine produced 1.09 MILLION ounces (34.0625 Tons) at a cost of $511 per ounce. Again assuming a profit of $900 per ounce for the Gold Strike mine, you get a profit of $981,000,000.
Ruby Hill mine produced 127,000 ounces (3.96875 tons) at a cost of $334 per ounce. Assuming a profit of $1000 per ounce for Ruby Hill, you get a profit of $127,000,000.
Barrick Mining is involved in three joint ventures in Nevada.
Barrick owns 33% of the Marigold mine. Barrick's share of production was 51,000 ounces (1.59675 Tons) at a cost of $761 per ounce. For the Marigold mine, assume a profit of $700 per ounce. The total profit would be $35,700,000.
Barrick owns 50% of the Round Mountain mine. Barrick's share was 178,000 ounces (5.5625 Tons) at a cost of $612 per ounce. Assuming a profit of $800 per ounce for the Round Mountain mine, we get a total profit of $142,400,000.
Barrick owns 75% of the Turquoise Ridge mine which produced 135,000 ounces (4.21875 Tons) at a cost of $569 per ounce. Finally for the Turquoise Ridge mine, assume a profit of $700 per ounce. This would give a profit of $ 94,500,000.
Barrick is actively exploring in the Carlin Trace in Nevada. The Carlin Trace is one of the richest gold deposts in the world. Barrick's annual report shows that 44% of the companies income comes from North America. Don't forget that Barrick is also mining silver along with the gold in Nevada. If you add all of the projected and conservative profits, the total is $2,884,300,000. This is a conservative estimate.
Mr. Crowley suck it up and pay more taxews. Your company's been ripping Nevada off long enough.
Mr. Crowley, your industry has enjoyed decades of "favored son" protection in the state Constitution. Effectively, the state named you favorite and guaranteed your rate of taxes would never increase the Constitutional cap.
Your industry no longer deserves this favoritism. Likewise, your industry does not deserve the numerous bounty of write-offs and deductions unique to your industry... found in state statutes.
Nevada has many important mineral resources, and we deserve fair compensation for the extraction of those resources.
The repeal of the Constitutional provision favoring your industry is not punitive; removing your industry's unfair advantage over other business interests is the definition of fairness.
Mining Nevada soil while paying Nevada peanuts off of Billions...
If the mining industries were taxed at a fairer rate more money would be available to the state for education, mental health, and other governmental services. Then maybe Nevada wouldn't be last in so many of the rating of these types of services.