57 



allows the mining industry to operate with some assurance that it will be able to 

 obtain access to and secure tenure on public lands. 



The second threat to continued mining in the Black Hills is the persistent at- 

 tempt to lock up valuable natural resources by proposals which recommend tens of 

 thousands of acres of wilderness. Wilderness designations may be appropriate on 

 certain pristine lands which meet all of the strict criteria necessary to obtain such a 

 designation. Unfortunately, many proposed wilderness areas in the Black Hills are 

 simply intended to keep miners, loggers, and recreationists off public lands without 

 adhering to specific wilderness criteria. 



The third issue of concern to natural resource producers is revision of the forest 

 plan for the Black Hills National Forest. The U.S. Forest Service is faced with the 

 difficult task of revising the plan for the Black Hills Forest. Nine options are under 

 consideration by the USFS, several of which seriously restrict natural resource pro- 

 duction on forest lands. One option, proposed by American Wildlands and others, 

 seeks to create wilderness areas through manipulation of the forest plan. The "Con- 

 servation Biology Alternative" does not provide for responsible natural resource 

 production. 



Homestake Mining Company is concerned that legislative action on these propos- 

 als may: 



attempt to "lock up" natural resources 

 create prescriptive and inflexible regulatory mandates 



provide industry opponents with procedures which result in denial of use by 

 unnecessary delay. 



The result of such legislation could fatally affect local small business, which is the 

 focus of this hearing. 



Homestake Mining Company's Black Hills operation employs over 1,200 technical- 

 ly skilled, well educated, and highly paid people with an annual payroll in excess of 

 $45 million. Expenditures for services and supplies in 1992 amounted to nearly $33 

 million. Total industry expenditures for services and supplies exceeded $73 million. 



A recent study commissioned by the State of South Dakota reported that the pur- 

 chase of goods and services by the mining industry has a leakage rate of less than 

 24 percent outside the State. In other words, 76 percent of the $73 million or $55 

 million spent by the mining industry went to South Dakota businesses. Much of 

 that $55 million went to small businesses like RPM in Rapid City or Henry's Safety 

 Supply in Lead. Many supplies are purchased through South Dakota dealers like 

 Butler Machinery or Northwest Pipe. Local contractors depend on mining like 

 Summit Construction, Ainsworth Benning and Donovan Construction. Consultants 

 like Banner Associates, Inc. and NJS engineering employ hundreds of people who 

 provide essential services to Homestake and other mining companies. 



Large companies like Homestake Mining Company have the option to invest in 

 exploration and development in other parts of the world like Canada or South 

 America. Recently, a group of Russian mining engineers toured the Homestake 

 Mine. Russia has vast resources which are largely undeveloped, incredible opportu- 

 nities may someday exist there. If natural resource producers are prohibited from 

 accessing the enormous resources available on public lands, available capital will be 

 directed out of the U.S. If mining capital leaves the U.S., the burden will be borne 

 not only by taxpayers, but by the backbone of the American economy which is small 

 business. 



Homestake Mining Company and its vendors and suppliers support reasonable 

 regulation, a fair return to the taxpayer for resources produced on public lands, de- 

 velopment practices which respect the environment, and legislation which provides 

 for the responsible development of America's natural resources. 



Homestake steadfastly supports the multiple use concept on public lands and 

 urges the U.S. Senate to preserve the right of small business, natural resource pro- 

 ducers, recreationists, and individual citizens to enjoy the benefits public lands 

 offer. Support for the Craig bill, opposition to wilderness areas which do not strictly 

 adhere to designation criteria, and implementation of a fully funded Forest Plan 

 which provides for reasonable production on public lands are steps which are criti- 

 cally important to the survival of many small businesses in South Dakota. 



Senator Pressler. Thank you very much. 

 Larry Nelson. 



