Mining ‘continues’ to work for Alaska

By Marleanna Hall

RDC board member and Council of Alaska Producers (CAP) Executive Director Mike Satre spoke at the Alaska Resources conference in November about the importance of mining in Alaska, and the value it adds to Alaska’s economy.

“Alaska has a rich mining history, but only seven producing mines,” Satre noted. The seven large mines produced $3.8 billion in gross metal value last year, he said. “Mining contributes .6% of the State’s annual revenue, we want that number to be bigger. We want more mines in Alaska.”

Satre explained the main theme for mining this year was investments in operations for the future, noting a significant amount of investment dollars was spent on infrastructure. In 2011, 30 exploration projects spent over $1 million.

In addition, mining continues to provide 4,500 direct jobs in Alaska, with an average wage of $100,000.

But mining doesn’t just provide jobs, it makes $620 million in purchases of goods and services, with $500 million of those purchases made with Alaska businesses.

Satre highlighted the large producing mines in Alaska, noting his role is to represent those mines.

The Red Dog Mine, one of the largest zinc mine’s in the world, reached a milestone in February by pulling the final ore out of the main pit, and moved into the Aqqaluk pit.

The Fort Knox mine is at nearly two million man hours without a lost-time incident. Fort Knox increased production this year.

Sumitomo Metal Mining’s Pogo Mine operation has produced over two million ounces of gold since 2006, establishing it as a world-class high-grade underground gold mine.

The Nixon Fork Mine is working toward a long-term, sustainable plan to mine copper and gold, but is faced with logistical challenges.

Coeur Alaska’s Kensington Gold Mine is in full production, after completing infrastructure and other projects.

The Hecla Greens Creek silver mine has capital budgets over three times the previous levels, making investments in the mine to extend its life.

Usibelli Coal Mine is still Alaska’s only producing coal mine. The clean burning coal provides a large portion of energy for heating and electricity in Interior Alaska. UCM is preparing to move operations to its Jumbo Dome deposit.

Currently there are over 200 large and small placer mines across Alaska, producing 70,000 - 80,000 ounces of gold. “Placer mines are truly the heart and soul of mining,” Satre added.

Satre outlined prospects in Alaska, including the Tower Hill Mines Livengood Project, a gold deposit north of Fairbanks, the Donlin Gold Project on the Lower Kuskokwim – one of the largest undeveloped gold prospects in the world, Heatherdale Resources’ Niblack Project in Southeast Alaska – a mostly zinc and copper prospect, and the Pebble Partnership prospect, a world-class geologic resource in Southwest Alaska.

Satre explained some of the challenges facing the mining industry are potential preemptive actions by federal permitting agencies, as well as a slew of issues like limited infrastructure, access, other federal overreach, and more.

“Ultimately, Alaskans are being sold a bill of goods that resource industries are in conflict with each other,” Satre said. “The reality is, we have to have all five of the resource industries working together to ensure we are not impacting each other, to the benefit of all Alaskans,” he added, referring to mining, fishing, timber, tourism, and oil and gas.

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