Mine Leasing

INCREASING attention has been given in the last decade to the possibilities of mine leasing in the West. The practice as described in this article does not refer to the leasing of entire properties for corporate operation. It is intended to deal rather with the advantages and problems incident to leasing portions of properties to individuals who themselves, individually or in groups, do the actual mining and transportation of the ore. These individuals are sometimes called "leasers" and sometimes called "tributors." The contracts under which they work set up an independent relationship of lessor and leaser, between themselves and the mineowner or operator. This relationship has many advantages to both sides over those created by the ordinary relationship of employer and employe. From the standpoint of the owners there is no liability on independent contractors for industrial injuries, social security taxes, unemployment taxes, or the manifold restrictions of the Federal Labor Relations and Wage Hour Acts and similar state acts where they exist. As the leaser's income depends on the quantity and quality of ore produced, there is a distinct incentive for maximum production of a good grade of ore. This in turn promotes careful mining of the areas under lease. Ordinarily in mining, labor cost is a high percentage of the total cost of operation. Under a leasing system, even if the leasers be allowed to retain half of the gross values that they produce, and the owner or operator gets half, in the case of marginal ore bodies this is ordinarily more than the lessor would realize if the property were worked by day labor. In some instances mineral deposits under a leasing system may become ore, whereas under a day-labor system they would