Rise in Black Hills mining claims drives effort to tax lithium mining

Lawmakers want to get ahead of industry, though mining is not under way

Photo by Spencer James Lucas on Unsplash

PIERRE – South Dakota was once one of the world’s largest lithium producers, and with demand expected to continue increasing, lithium mining could return to the Black Hills.

That prospect, along with a proliferation in Black Hills mining claims, drove lawmakers to take a first step Thursday to categorize lithium and place a 10 percent tax on the metal. That comes before any lithium mines are even being contemplated.

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But lawmakers on the House Agriculture and Natural Resources Committee suggested that getting ahead of potential mining was better now, giving industry the ground rules. As Rep. Stephanie Sauder, R-Bryant, said, it was better than “woulda, coulda, shoulda.”

The committee’s affirmative, 12-0 vote came despite friendly, but opposition testimony from Kwinn Neff, the president of South Dakota Mineral Industries Association. Neff suggested that lithium mining in South Dakota was not at a place where it should be taxed. Just one company is currently doing exploration work, and a 10 percent tax on net profits might suppress any potential growth.

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