Wyoming Delegation Applauds Soda Ash Royalty Rate Reduction

Wyoming’s congressional delegation applauded the Department of the Interior’s decision to lower the royalty rate for soda ash from six percent to two percent for ten years beginning January 1 of next year. U.S. Senator Mike Enzi said soda ash may not be a household name, but it is Wyoming’s top export and American producers have been struggling against unfair trade practices from other countries like China.

U.S. Senator John Barrasso said the long awaited decision will give Wyoming soda ash producers the certainty they need to stay competitive in the global market. U.S. Representative Liz Cheney said the royalty rate reduction will empower soda ash producers across Wyoming to expand operations and create much-needed job opportunities and economic growth as we continue to recover from the COVID-19 pandemic.

According to a media release from the congressional delegation, The United States exports almost 60 percent of its natural soda ash. For years, China has sought to capture the global market share from U.S. soda ash producers through unfair trade practices. China’s value-added tax (VAT) rebate for its own synthetic soda ash producers has artificially driven down prices in the global marketplace.

In August 2020, the Bureau of Land Management released its final rule to streamline the royalty rate reduction process for non-energy solid leasable minerals, including soda ash. The rule is estimated to save up to $5 million in regulatory costs over the next decade, helping the U.S. compete globally and supporting American jobs.