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State Law: Most western states have different requirements for mining and prospecting. In general the State of South Dakota does not require a permit for panning or hand sluicing; however, permits and bonds are needed when motorized equipment or suction dredging is used.
Almost all of the state's crude oil production is concentrated in the northwestern corner of the state, where Harding County produces most of South Dakota's crude oil and natural gas. Since the 1980s, the state's annual crude oil production has ranged between about 1 million and 2 million barrels per year.
The Black Hills of South Dakota has a rich history of gold mining and gold panning. In fact, the Black Hills Gold Rush is what built up the surrounding cities! Since 1892, Big Thunder Gold Mine has been finding gold in the Black Hills.
There are public mining areas in many states, and prospecting may allow one to stake a gold placer claim or other type of mining claim in certain areas. Some public lands have been set aside for recreational gold panning. Some private land owners also give permission for small-scale gold mining.
Who Needs to Obtain a Mine Permit. Mine permits are required for the extraction and processing of minerals such as gold, silver, uranium, precious metals, coal, bentonite, dimension stone, and decorative stone.
The BLM Montana State Office manages minerals in South Dakota and is the office in which a claim staked in South Dakota is recorded. Please contact the BLM at (406) 896-5004 or visit their website if you wish to stake a mineral claim in South Dakota.
Wharf Resources, the only gold mine still actively mining in South Dakota, holds four of the permits. The other permits are held by E4 Energy, Golden Reward Mining, Homestake Mining, LAC Minerals, and Brohm Mining.
North Dakota produces on average more than 1 million barrels of oil per day in 2022, making it the number three oil producer in the U.S. behind only Texas and New Mexico. North Dakota's rise as a leader in oil production has helped the country as a whole become the world's No.