AL ASK
A TRENDS
E
ven before the gold rushes that put Juneau, Skagway, Nome, and Fairbanks on the map, Alaskans have been pulling precious and useful materials out of the ground. Native cultures statewide unearthed deposits of soapstone and jade to carve and polish into dazzling artifacts. Copper nuggets were fashioned into fishhooks and blades or traded to Russian colonists. Nowadays we use copper in our electrical wiring, zinc in our pennies, coal in our power plants, and stone aggregate in our pavement, concrete, and masonry. The mining sector in Alaska employs about 4,700 workers, according to the Alaska Miners Association (AMA), and those workers are responsible for some world class output. The silver from Greens Creek and the zinc and lead concentrate from Red Dog are the most of any mines in the US. Beyond those major production sites and the other giants at Fort Knox, Kensington, Pogo, and Usibelli, miners are busy at 120 gravel and sand pits and at 169 small placer claims. The industry converts the earth under our feet into gold in our banks, figuratively and literally. This issue has a rich vein of content, scooping loads from mega mines in "Hunting Elephants in Alaska" (p. 52), introducing smaller players in "Modern Prospecting" (p. 64), and assaying the pros and cons of "Open Pits or Underground Ops" (p. 72). In this month’s installment of Alaska Trends, we take data from the AMA’s annual “Economic Benefits of Alaska’s Mining Industry” and compare 2019 to 2020. Where is the industry at risk of a cave-in and where is the real pay dirt? Let’s dig in. SOURCE: Alaska Miners Association, "The Economic Benefits of Alaska's Mining Industry"; February 2021 Alaska Miners Association, "The Economic Benefits of Alaska's Mining Industry"; February 2022
$4B Exploration The mining industry spent $4 billion on exploration since 1981; $127 million was spent in 2020.
$430M Development The mining industry invested $430 million into construction & capital investments in 2020.
$2B Total Value In 2019, the total export value of the mining industry was $1.9 billion, or 38% of Alaska’s total exports.
$117M Impact Statewide State government revenue through licenses, rents, royalties, fees, taxes, & other government-related payments totaled $117 million in 2020, a 5 million increase over the $112 million received in 2019. Mining license tax, rents & royalties $5M increase State material sales, large mine permit program receipts, misc. fees, & other taxes $2.5M increase
State-Owned Facilities In 2020, the mining industry paid $28.4 million to the Alaska Industrial Development & Export Authority for the use of state-owned facilities (DeLong Mountain Regional Transportation System & Skagway Ore Terminal), a $6M increase over the $22.8 million spent in 2019.
Alaska Railroad Corporation for moving coal, sand, & gravel $2.M decrease Alaska Industrial Development & Export Authority for the use of state-owned facilities $5.6M increase 126 | November 2021
Alaska Business
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