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CONTENTS NOVEMBER 2023 | VOLUME 39 | NUMBER 11 | AKBIZMAG.COM
FE AT UR E S 10 FINANCE
78 ENGINEERING
An alternative path to small business ownership
In-house engineers at Alaska’s mines
Developing People
Eyes on the Franchise
By Sarah Reynolds Westin
By Tracy Barbour
18 TRANSPORTATION Another Way West
Adding a recreational route to the West Susitna Access Project By Terri Marshall
22 OIL & GAS
What Goes Down Must Come Up Colville fuels North Slope producers By Scott Rhode
26 ENERGY
Electricity for Later
Storage technology extends grid capabilities By Nancy Erickson
84 RETAIL
A Metal Umbrella
Sheltering wealth through gold and silver traders By Dimitra Lavrakas
96 CONSTRUCTION
Protecting Cultural Artifacts
Archaeology’s role in building projects
Stantec
Kinross
By Vanessa Orr
88 SMALL BUSINESS
94 RETAIL
Joining crafters and carpenters with specialty wood
Anchorage Chrysler Dodge Jeep Ram Dealership marks its 60th anniversary
Making Hardwoods Easy By Terri Marshall
Zero to Sixty By Tracy Barbour
QUICK READS 8 FROM THE EDITOR 102 THE FOCUSED MANAGER 4 | November 2023
106 INSIDE ALASKA BUSINESS 108 R IGHT MOVES
110 ALASKA TRENDS 112 OFF THE CUFF
Alaska Business www.akbizmag.com
SHAPE YOUR TOMORROW With more than a century of investing in Alaska, First National continues to put your financial needs first. Whether starting or growing your business, you can count on our experienced team to deliver personalized service and innovative banking solutions to help you shape a brighter future.
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Brett Knipmeyer OWNER, KINLEY’S RESTAURANT
MEMBER FDIC • NMLS# 640297
CONTENTS NOVEMBER 2023 | VOLUME 39 | NUMBER 11 | AKBIZMAG.COM
SPECIAL SECTION: NATUR AL RESOURCE DE VELOPMENT 36 ONE STEP AT A TIME
44 FIGHTING ILLEGAL FISHING
Completing the Alaska Long Trail
AI as a weapon to defend the seas
By Vanessa Orr
By Alex Appel U.S. Coas t Guard Dis tric t 14 Hawaii Pacif ic
52 LET’S GET GEOPHYSICAL How UAF labs support mining activity By Rachael Kvapil
58 LUCKY SHOT
Contango ORE rolls the dice in Hatcher Pass By Scott Rhode
68 ALASKA METAL MINES Renamed council connects Alaskans with metals producers By Alexandra Kay
72 REPRESENTING DIVERSE CONCERNS Q&A with Resource Development Council for Alaska Executive Director Leila Kimbrell
Colella Digital | Hecla
By Tasha Anderson
62 MAJOR MINES IN 2023
Updates from Alaska's large operators By Sarah Reynolds Westin
ABOUT THE COVER While the weather in the Anchorage Bowl was damp and dismal, Mariyam Medovaya and Haley Johnston enjoyed a bold and brisk autumn day on the Crow Pass Trail. The marathon-length segment through the Chugach Mountains from Girdwood to Eagle River attracts trekkers prepared for a day-long or overnight adventure. What if it were longer? In this month’s cover story, “One Step at a Time,” Medovaya describes the ambitious—and patient—plans for the Alaska Long Trail. Facilities to be built over the next thirty years would connect established trails like Crow Pass into a 500-mile chain from Seward to Fairbanks. The world-class route would bring through-hikers and day-trippers in touch with the natural resource of Alaska scenery. Cover photo by Kerr y Tasker
Alaska Business (ISSN 8756-4092) is published monthly by Alaska Business Publishing Co., Inc. 501 W. Northern Lights Boulevard, Suite 100, Anchorage, Alaska 99503-2577; Telephone: (907) 276-4373. © 2023 Alaska Business Publishing Co. All rights reserved. No part of this publication may be reproduced without written permission from the publisher. Alaska Business accepts no responsibility for unsolicited materials; they will not be returned unless accompanied by a stamped, self addressed envelope. One-year subscription is $39.95 and includes twelve issues (print + digital) and the annual Power List. Single issues of the Power List are $15 each. Single issues of Alaska Business are $4.99 each; $5.99 for the August & October issues. Send subscription orders and address changes to circulation@akbizmag.com. To order back issues ($9.99 each including postage) visit simplecirc.com/back_issues/alaska-business.
6 | November 2023
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FROM THE EDITOR When Alaska was petitioning for statehood in the ‘50s, there were several concerns at the federal level. One was national security: in the midst of tensions with Russia (a now recurring theme), a massive, largely unpopulated area a metaphorical stone’s throw away from our western neighbor seemed like a risk. Another significant concern was that Alaska would be a drain on the country financially. In June 1958, then-Secretary of the Interior Fred Seaton submitted a letter to then-President Dwight D. Eisenhower, in which Seaton stated: “Because of some questions which have been raised concerning Alaska’s population, income, per capita general revenue, and the costs of statehood, this letter is attached to a memorandum on these subjects. In my sincere opinion, these facts again demonstrate that Alaskans are ready for statehood.” Amongst those facts: • The statewide population was estimated at 220,000 people. • In 1957, the gross product from Alaska’s natural resources was approximately $162 million, an 18 percent increase over 1956. “Of this 1957 income, approximately $92.9 million was derived from fisheries; $34.3 million from timber; $24.6 million from minerals; and $1.5 million from the fur industry, exclusive of the Pribilof fur seal production. The Pribilof production amounted to $5.2 million,” Seaton reported. • Alaskans paid about $65 million in federal taxes in 1957; $45 million of that was from residents and the remainder from nonresidents doing business here. • Per capita general revenue for Alaska in 1957 was higher than thirty-nine of the existing states. This statistic is accompanied by a handwritten, unattributed note on the scanned letter that says, “I don’t believe it.” • Alaska had the only government in the forty-eight states, Hawaii, and Puerto Rico which had no outstanding debt at the close of fiscal year 1957. It’s clear from the letter that Alaska’s natural resources—and its ability to generate revenue through them—were a significant factor in establishing its value as a state. Sixty-plus years later, Alaska’s relationship with the federal government has changed. Instead of expecting natural resource development to grow as a boon for the entire country, support for natural resource development waxes and wanes with various administrations, and even worse, that see-sawing of support has led to uncertain and often chaotic policy decision making. What hasn’t changed is Alaska’s vast resource potential. In fact, that has expanded as additional resources have been identified. Joining Alaska’s roster of natural resources are its trails and tourism opportunities; renewable energy sources like wind, geothermal, tidal, and solar; minerals and elements that have applications today that weren’t even conceived in the ‘50s; and instead of seeing Alaska’s position on the globe as a liability, it is viewed as asset to national security. Much like in the late ‘50s, Alaskans know our state’s potential. We’ve cycled back to a position in which we need to educate the rest of the country about our incredible value—if we are allowed the opportunity to unlock it. I’m optimistic we can do it again.
VOLUME 39, #11 EDITORIAL Managing Editor Tasha Anderson 907-257-2907 tanderson@akbizmag.com
Editor/Staff Writer Scott Rhode srhode@akbizmag.com
Associate Editor Rindi White rindi@akbizmag.com
Editorial Assistant Emily Olsen emily@akbizmag.com
PRODUCTION Art Director Monica Sterchi-Lowman 907-257-2916 design@akbizmag.com
Design & Art Production Fulvia Caldei Lowe production@akbizmag.com
Web Manager Patricia Morales patricia@akbizmag.com
SALES VP Sales & Marketing Charles Bell 907-257-2909 cbell@akbizmag.com
Senior Account Manager Janis J. Plume 907-257-2917 janis@akbizmag.com
Senior Account Manager Christine Merki 907-257-2911 cmerki@akbizmag.com
Marketing Assistant Tiffany Whited 907-257-2910 tiffany@akbizmag.com
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Accounting Manager James Barnhill 907-257-2901 accounts@akbizmag.com
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8 | November 2023
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FINANCE
Eyes on the Franchise An alternative path to small business ownership By Tracy Barbour
10 | November 2023
Alaska Business www.akbizmag.com
S
retail (Value Village or The UPS Store), real estate (Keller Williams), or wellness (Planet Fitness or Massage Envy) can generate more probable success and long-term returns for franchisees. Not surprisingly, there is growing i n t e re s t i n f ra n c h i s e b u s i n e s s e s , according to the International Franchise A s s o c i a t i o n ( I FA ) . T h e I FA’s 2 0 2 3 Franchising Economic Outlook indicates that “franchise unit and job growth continues to outpace pre-pandemic levels, delivering jobs and business
ownership opportunities across the United States.” Service-based industries and quick-service restaurants are expected to experience higher growth than other industries. The overall number of franchise establishments will increase by almost 15,000 units in 2023 (1.9 percent) to 805,000 units in the United States, the IFA report reveals. B u y i n g i n t o a f ra n c h i s e c a n b e daunting, however, and cost prohibitive. Start-up costs range from $20,000 to $1 million, depending on the
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tarting a franchise business is an appealing option for many entrepreneurs because it allows them to capitalize on the strengths of an established enterprise. Buying into a franchise offers the benefits of brand awareness, an existing customer base, and proven products and services—all of which enhance the chance of success. Plus, the franchisor that sells the license to the franchisee offers support in the form of training, materials, process flows, and branding to make it easier to get the business off the ground. Ultimately, operating a franchise in a popular category like a restaurant (McDonald’s or Subway),
www.akbizmag.com
Alaska Business
November 2023 | 11
brand and real estate requirements, according to the IFA. In addition to the initial fee, franchisees often must pay franchisors ongoing royalties— typically 4 to 12 percent—and sometimes a flat monthly fee.
Common Financing Options
F o r t u n a t e l y, v a r i o u s f r a n c h i s e funding options are available to help entrepreneurs realize their dreams, including traditional bank financing or US Small Business Administration (SBA)-guaranteed loans. While many franchise businesses may be classified as startups, some are expanding on an existing operation and need money to remodel a space, acquire equipment, or purchase other property, according to Joe Donahue, a commercial loan officer at First National Bank Alaska (FNBA). In addition to offering loans to address these needs, FNBA provides lines of credit and other solutions when warranted. “We tailor financing solutions to meet our customer’s unique needs,” Donahue says. Sometimes the potential franchisee does not have sufficient collateral for
12 | November 2023
traditional financing, or FNBA has to scenario—whether it’s an SBA product underwrite more of a projected cash or traditional loan. “Most often franchise flow or business plan for the borrower, lending includes startups, next-unit Donahue says. Consequently, the bank expansion, resales, partner buyout, and may partner with a third party like the even commercial real estate needs,” SBA, Evergreen Business Capital, or one Hunnings explains. “We also have a of the newest funding sources, the State team that specializes in equipment Small Business Credit Initiative (SSBCI), financing and offers a wide range of a d m i n i s t e re d by t h e A l a s k a S m a l l equipment loans and lease solutions. Business Development Center (SBDC). There is no minimum or maximum loan The Alaska SSBCI uses approximately amount, and there are various channels $60 million from the US Department within Wells Fargo to service the needs of Treasury to finance incentives to of businesses large or small.” Wells Fargo has no specific business help drive private-sector funding t o A l a s k a’s s m a l l b u s i n e s s e s . T h e sector that it prefers to finance. Overall, t h e b a n k i s “o p e r a t o r program endeavors, in part, focused” first and “brandto stimulate investments in focused” second, according startups that have historically to Hunnings. “In short, we are struggled to receive funding. the “bank of doing” that wants Brad Hunnings, who to help you start or grow your specializes in SBA franchise franchise business,” he says. lending at Wells Fargo, says Wells Fargo’s SBA there are numerous creative products can be an excellent ways to facilitate financing solution for one- to ten-unit for franchise businesses. franchisees, but for larger Wells Fargo’s approach is to Timothy Breeden Nor thrim Bank owners there are more provide viable options and work with borrowers to determine the resources to support further growth. best potential solution for their specific For example, its Restaurant Finance
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Group (RFG) specializes in financing solutions for multi-unit owners in the quick-service restaurant space. “Businesses can start with an SBA loan, then once they exceed capacity, are able to seamlessly transition to RFG without having to seek a new lending partner,” Hunnings explains. As a full-service commercial bank, Northrim Bank also offers a range of financing options to assist franchise businesses, including term loans, lines of credit, equipment loans, and accounts receivable purchasing. The bank has no preferences in terms of providing funding for any specific kinds of franchises or industries. In the past, Northrim has funded businesses ra n g i n g f ro m re t a i l , re s t a u ra n t s , and ice cream shops to insurance agencies, mortgage companies, and other financial services companies. “Every business has its own niche,” says Northrim Bank Commercial Loan Officer Timothy Breeden. Franchise businesses also have a unique positive attribute that makes them appealing to lenders: support from the franchisor. Breeden says,
“What I like about franchise businesses is the franchise provides additional support in marketing, framework, and key performance indicators that the specific business can use to measure its success and profitability. In addition to all the systems and components that make the franchise successful, there’s coaching from other successful franchisees in other markets.” Timothy Breeden, Vice President – Commercial Loan Officer, Northrim Bank
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“I’m optimistic about any business that has this predefined framework and the chance of it being more successful than a business that doesn’t… We’re excited to entertain any loan application for a potential franchisee.” Timothy Breeden Vice President – Commercial Loan Officer Northrim Bank
14 | November 2023
“What I like about franchise businesses is the franchise provides additional support in marketing, framework, and key performance indicators that the specific business can use to measure its success and profitability. In addition to all the systems and components that make the franchise successful, there’s coaching from other successful franchisees in other markets.”
The Loan Process
want a third party to do a feasibility study to validate their projections. We may also request and consider construction plans, bids, tax statements, and other standard documentation.” While there are multiple steps in the loan process, it’s not as daunting as loan applicants might think, Hunnings says. The first step is to discuss the borrowers’ goals and needs and then assess what options are available. The second step is where the bank delves into the details, and the process evolves from there. “Each application is unique, and it is my role to walk the borrower through every step from that very first conversation to closing the loan,” Hunnings says.
The process for securing franchise financing is not unlike general loan applications, although it is greatly influenced by what is contained in the franchise agreement. Whether the borrower is “kicking the tires” or already bound to the franchise, it would be highly useful for them to obtain a copy of the franchise agreement, Breeden Borrower Eligibility Criteria says. Generally, the agreement provides The specific eligibility criteria for a framework of what ’s compulsory franchise financing are also similar to for the business, and the bank would that of a conventional business loan. like to see the requirements, what While most banks base loan decisions percentage of revenues translates to on the five Cs of credit—character, royalties, and where the business has c a p a c i t y, c a p i t a l , c o l l a t e r a l , a n d leeway. “For example, the framework conditions—Northrim also weighs the for the franchise in the United States general principles of idea, management, may not accurately reflect the pricing and capital. Breeden explains: “Is it a a n d r e q u i r e m e n t s i n A l a s k a , ” h e good idea, something people will need explains. “We want to make sure there’s and pay for? Are they providing a service some flexibility and our borrower can that is useful? Do the owners have still generate a profit and still pay back management experience, or do they our loan.” need additional partners to bridge that A t F N B A , a c l o s e rev i ew o f t h e gap, such as a good attorney or CPA franchise agreement is also standard. [certified public accountant]? Capital is The bank determines what control where the bank comes in.” the franchise has over the franchisee. Every bank has its own credit For instance, restaurants are known policy that outlines specific lending t o h a v e a s e p a ra t e d ev e l o p m e n t criteria, and the SBA has eligibility agreement that may entail future and underwriting requirements for obligations. “We want to understand the all lenders in its standard operating development agreement and timeframe procedure (SOP). Both documents involved,” Donahue says. “We look at outline specific detailed eligibility their capacity to meet the existing requirements for loan applicants. But requirement and whether from a very high level, Wells they have the financial Fargo is a common-sense strength to build that out d r i v e n l e n d e r, a c c o rd i n g over the next ten years or to Hunnings. “We want to based on their timeframe.” figure out a way to help, but Alternatively, if the loan is obviously stay within our for a new hotel, FNBA may credit policy and SOP,” he require a feasibility study says. “The key things we are to validate the borrower ’s looking for is good credit, cash flow projections. a s o l i d ré s u m é s h ow i n g Joe Donahue “ B o r row e r s w i l l t y p i c a l l y Firs t National Bank business experience, and provide us a business plan Alaska s o l i d l i q u i d i t y. T h e r e i s with projections, and that ’s great,” certainly more involved, but these three Donahue says. “Sometimes, we may factors are foundational for success.” Alaska Business www.akbizmag.com
“Most often franchise lending includes startups, nextunit expansion, resales, partner buyout, and even commercial real estate needs… There are various channels within Wells Fargo to service the needs of businesses large or small.” Brad Hunnings Vice President – SBA Franchise Lending Wells Fargo
16 | November 2023
Collateral makes a great addition to It also involves exploring how other a loan package, if it’s available. While franchise locations are operating in conventional loans typically require different markets. However, every collateral, Hunnings says, SBA loans business has a niche and every area can offer flexibility, which is beneficial is different. That’s why Northrim relies for some small business owners who on local experts to assist prospective might not have collateral. “That’s one of franchisees. “ We want to see that the reasons the SBA products are often the business is set up for success,” a great solution for franchise lending, Breeden says. Determining the potential profitability where many transactions involve a leasehold scenario and include funding of franchises is also a key component for working capital and franchise fees,” of credit approval at Wells Fargo. For he says. “In general, sharing the risk an existing franchise business, the with the SBA allows the lender to take bank starts with a detailed analysis of the focus off the lack of collateral the historical financial statements and and instead focus on repayment or total revenue, typically going back three cash flow. In terms of what assets are years. The analysis usually results in a acceptable collateral, it can include both list of questions that the underwriter business and personal assets, but most compiles to facilitate further discussion. common in franchise lending are real "From there, we arrange an interview with the borrower to discuss this and estate and equipment.” In addition to looking at tangible the overall health of their business,” assets for collateral, lenders can also Hunnings explains. “We will also rely c o n s i d e r n o n - p h y s i c a l a s s e t s l i k e heavily on the Franchise Disclosure Document of the franchisor patents, copyrights, good and the financial metrics of will, and trade secrets that the system.” could be liquidated in a Although franchise worst-case scenario for loan financing encompasses repayment. “What surprises slightly different underwriting many borrowers—especially requirements, lenders are w i t h t h e S B A a n d l a rg e r well equipped and eager deals—is the SBA may take t o h e l p A l a s k a n s ex p l o re a lien against a borrower ’s these unique business p e r s o n a l a s s e t s i f t h e y Brad Hunnings Wells Fargo opportunities. Hunnings determine there is a collateral deficiency with available personal urges interested parties to reach out to asset equity,” Donahue says. “Where it Wells Fargo without hesitation, saying, gets sticky is when you have multiple “The path to entrepreneurship starts by investors with different backgrounds as taking the very first step.” Breeden has positive sentiments loan applicants. Then a determination is needed as to who pledges what for about the franchise business model. collateral to keep their participation fair “I’m optimistic about any business that and equitable. But as long as they are has this predefined framework and the closely held entities and assets, that’s an chance of it being more successful than a business that doesn’t,” he says. “We’re easier conversation to have.” excited to entertain any loan application for a potential franchisee.” Evaluating the Franchise Donahue encourages aspiring In addition to the normal due diligence, FNBA conducts research on franchise business owners to “bring the franchise itself. In part, the bank First National into the conversation wants to determine if the franchise is early for guidance on the most feasible growing, restricted, and has longevity. funding path to help them prepare and “We also research the industry to see expedite the application and approval how it ’s performing nationally and process,” he says. “Being a locally owned and operated bank, I think we are in locally,” Donahue says. Similarly, Breeden emphasizes the a unique position because we have a importance of assessing the franchise knowledgeable team of lending experts business. This includes confirming who understand the local economy and that the franchisee is approved by the local businesses and have the flexibility franchisor before the loan is funded. to offer the right financing solution.” Alaska Business www.akbizmag.com
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T R A N S P O R TAT I O N
Another T Way West Adding a recreational route to the West Susitna Access Project By Terri Marshall 18 | November 2023
he West Susitna Access Project (WSAP) is changing course. Instead of just providing access to mineral resources, the goal is enlarging to also include access to recreational opportunities. The region west of the Susitna River harbors millions of acres of state lands with a wealth of natural resources. Access was identified as a priority in the State of Alaska’s 2014 Road to Resources report. In 2019, the Alaska Industrial Development and Export Authority (AIDEA) and the Matanuska-Susitna Borough agreed to provide a framework for a phased feasibility analysis. Governor Mike Dunleavy initially included WSAP funding in a proposed bond package, but instead he requested the $8.5 million from the legislature as part of the 2021 budget. “This important project makes it possible to travel by road from the Point MacKenzie/Big Lake area to the millions of acres
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on the west side of the Susitna River, opening access to strategic minerals and known proven oil and gas reserves,” Dunleavy said. “ That ’s the role of government—building transportation infrastructure that leads to economic development while ensuring that those resources are developed responsibly.” AIDEA has partnered with Australian firm Nova Minerals (not to be confused w i t h N O VAG O L D, t h e C a n a d i a n company developing the Donlin gold prospect near the Kuskokwim River) to develop the Estelle gold project, a mining district with a collection of 346 claims that the WSAP would connect to the highway system. The intended route is approximately 100 miles long from the West Ayrshire Avenue snowmachine trailhead to the confluence of Portage Creek and the Skwentna River, near Rainy Pass in the Alaska Range. Currently the only road access west of the Little Susitna River is a winter-only trail to the Fish Creek Natural Resource Management Unit. The WSAP would be a year-round road with at least eleven major bridges, in some sections paralleling the historic Iditarod Trail. In July, the Alaska Department of Tra n s p o r t a t i o n & P u b l i c F a c i l i t i e s (DOT&PF ) announced its intent to develop a public road and associated f a c i l i t i e s i n t h e S u s i t n a Va l l ey t o meet the region’s growing demand for improved access to public land, personal properties, waterways, and recreational areas west of the Little Susitna and Susitna Rivers. “The shift to a recreation road really came from the feedback from the public—people want a public road to pursue recreation activities to the west of the Parks Highway,” says Shannon McCarthy, communications director for DOT&PF. “ This is a new project and a separate effort from the AIDEA m i n e ra l d ev e l o p m e n t , w h i c h t h ey will continue to pursue.”
Economic Analysis for the WSAP
the development of the 15-mile public road while AIDEA focuses on the planning and development of an access corridor to reach agricultural, energy, mining, and other economic interests farther west. Upon request, AIDEA provided DOT&PF with the design and planning documents that were developed for the WSAP to aid in the DOT&PF’s planning and permitting efforts for a public road, which would include access to a new boat launch at the
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According to DOT&PF’s draft 20242 0 2 7 S t a t ew i d e Tra n s p o r t a t i o n Improvement Program, the estimated cost of the full WSAP project is $82.5 million, with plans to begin c o n s t r u c t i o n i n 2 0 2 5 . D OT& P F i s currently taking steps to expedite www.akbizmag.com
l ow e r S u s i t n a R i v e r a n d a p u b l i c campground at the road’s terminus on the west side of the river. The 2023 Economic Analysis Results for the WSAP listed potential benefits for growth and new job opportunities. These include 65,000 acres of agricultural land to improve Alaska’s food security; access to the region for wildfire control and search and rescue teams; potential oil, gas, and carbon assets; timber for sale or to eradicate beetle-killed forest to reduce wildfire
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“The shift to a recreation road really came from the feedback from the public— people want a public road to pursue recreation activities to the west of the Parks Highway… This is a new project and a separate effort from the AIDEA mineral development, which they will continue to pursue.” Shannon McCarthy Communications Director Alaska Department of Transportation and Public Facilities
20 | November 2023
risk; thousands of career-track jobs in the construction, energy, mining, and transportation sectors; access to tracts offered in state land sales; gold, silver, copper, and other strategic metals; 6 million acres for backcountry recreation; and options for bringing broadband telecommunications to the region.
Support from Friends
Friends of West Susitna, a nonprofit grassroots organization, advocates for the State of Alaska to provide yearround road access to state-owned l a n d s a n d re s o u rc e s w e s t o f t h e Susitna River. “Alaska’s roads are limited in many regions throughout the state, and some roads are still being used well beyond their capacity,” says Cindi Herman, owner of Skwentna Roadhouse and chair of the Friends of West Susitna. “We need to build new roads to provide access to more areas of the state for all residents.” Skwentna Roadhouse is likely the only property in the remote area that would have a close connection to the roadway. By itself, the business contracted a lobbyist to push for the project, and now Herman has a formal alliance with other board members to participate in the public process led by AIDEA. In addition to Herman, board members include Rod Arno, former exe c u t i v e d i re c t o r f o r t h e A l a s k a Outdoor Council; Colleen SullivanLeonard, Wasilla City Council member and former state legislator; Calvin Flanigan, an assistant hunting guide, bear guard, and trapper; John Lamborn, a Mat-Su business owner and former exploration geologist; Christy Moore, a former dog musher, organizer of Iditaski and Iditasport events, and property owner at Derf Lake, near Mount Susitna; and Mark Tope, a Mat-Su business owner, trucker, and pilot. Among the organization’s m i s s i o n s a re t h e d ev e l o p m e n t o f recreational resources that will enhance enjoyment of the land for all Alaskans and their families. “As a long-time Alaska resident, I am a big proponent of protecting our land. I would love to see a portion of the toll money collected for commercial use of the road upon completion be used to invest in the land,” says Herman. “We
need to build parks, hiking trails, trails for ATVs, snowmachining, dog-mushing, and more. We also need to protect the land for our wildlife.” Herman is also passionate about supporting Alaska’s fishing and hunting traditions. “We need to start thinking along the lines of building fish hatcheries to help restore our fishing industry in the valley,” she says. A road would give more Alaskans access to fish and game. “Currently, the area is accessible to only a small group of people with access to private planes or watercraft,” says Arno. “Friends of West Susitna leadership believes a road moves us closer to opening the area for outdoor recreation like fishing, hunting, snowmachine travel, hiking, and boating without unduly impacting the environment. It could also create economic opportunities tied to tourism, resource development, agriculture, and timber harvest.” Among the organization’s core beliefs is fiscal responsibility, stating that the cost of the road should not fall entirely on the State of Alaska. Similar to the Red Dog Mine transportation corridor model, the WSAP should generate revenue to offset the cost of the road. The group believes the Red Dog Mine model was a successful AIDEA-led project, and WSAP can be similarly successful. “We live here year-round and are confident the community supports this road project, especially when they learn more about the benefits it offers to the entire Mat-Su Borough and beyond,” says Sullivan-Leonard. “This area should be accessible to more residents, not fewer. The road project will make that possible, which means progress for people who live here.” Public access is also among the Friends of West Susitna’s core beliefs, and the group believes that access is critical and should be provided on the road, noting that it is also important to balance safe public use with industry use. “Having access to this land will open up numerous opportunities for economic development while also providing recreation access for all Alaskans,” says Herman. “And most importantly, the project will create significant job opportunities for Alaskans.”
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KEEP WHAT MATTERS MOVING In October, GroeneveldBEKA Lubrication Solutions opened a new Anchorage store location that makes it easier for Alaska businesses to leverage its premier products. The facility not only enhances the availability of local service and support but also expands access to Automatic Lubrication solutions that are created for specific applications. “We will be able to quickly outfit new and previously owned equipment for our customers and service any other equipment needs regardless if they have a system,” says Tim Wynia, CEO of Groeneveld-BEKA North America. “We have a wealth of experience, a lot of knowledge for every application that we serve, and a tested product that can withstand any environment.”
NOT ONE-SIZE-FITS-ALL Groeneveld-BEKA—which has been serving Alaska for thirty years through its Seattle location—manufactures and installs automated lubrication systems, oil management systems, for on-road equipment, off-road machinery, industrial facilities, and almost anything that requires preventive maintenance. The company’s products have broad application and are well-suited for the transportation, construction, oil and gas, mining, fishing, forestry, and renewable energy industries. “We supply automated lubrication systems to a variety of businesses across all industries,” Wynia says. “Any equipment that people are manually greasing, we have an application for that.”
G ro e n eve l d - B E K A , a Timken Company, has been manufacturing and installing automated lubrication solutions for more than fifty years. With an expansive global footprint and strong presence in North America, Groeneveld-BEKA has more than thirty technicians in the United States and over 100 employees to meet customers’ needs. Its high-end systems are typically offered factory direct through many premium global manufacturers. As such, Groeneveld-BEKA solutions are not one-size-fitsall. Each system is engineered to the exact piece of equipment it is installed on to optimize performance. Additionally, the company’s own technicians complete the installations and maintain the equipment, which helps ensure the highest quality control.
INCREASES UPTIME AND THE BOTTOM LINE Whether they are being employed for oil and gas, trucking, construction, or mining, Groeneveld-BEKA products
significantly improve equipment life and reliability while reducing the total cost of ownership. They provide consistent and optimal lubrication—normally while the machine is in operation—which saves grease and valuable time, extends bearing life up to three times longer, and minimizes maintenance expenses. “When you couple just the maintenance savings and productivity time, your payback with one of our systems could easily be within the first six to eight months,” Wynia says. In essence, Groeneveld-BEKA systems help fleet managers, business owners, and owner operators have greater ROI,
efficiency, safety—and peace of mind. These are critical benefits, especially in a time where production demands are high, service technicians are hard to locate, and repair costs are higher than ever because of supply issues. “Automated lubrication makes more sense and increases your bottom line on levels you may have not yet explored,” Wynia says. “The cost of one preventable equipment failure is often more than the cost of a complete lubrication system installed. It's about protecting your investment. We help you keep what matters moving.”
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OIL & GAS
What Goes Down Must Come Up Colville fuels North Slope producers
the same as the altitude of the International Space Station. “ I t 's s u p e r re m o t e . I t 's p re t t y much just an oil field town,” says Colville President Jason Reeves. Everything the town needs must be transported somehow, and Colville is the somehow. Starting in 2024, Colville will be responsible for delivering one more thing to the North Slope. As a consequence of a 2010 rule by the US Environmental Protection Agency (EPA), diesel engines must use selective catalytic reduction (SCR). Engines equipped for SCR have an additional filling port where they are topped off with diesel exhaust fluid (DEF). As the chief supplier of fuels, Colville is also making DEF available at Prudhoe Bay.
Haul in a Day’s Work
Fuel transport is a natural evolution of Colville’s original form in the ‘50s as Arctic Tern Fish & Freight Company, established by pioneering bush pilot Bud Helmericks. With his knowledge of the landscape, Helmericks helped guide oil exploration in the ‘60s. Industry support continues to the present day through Colville and its sister companies Colville Transport and Brooks Range Supply. The company maintains an aviation branch at its 3-acre Fixed Base Operation at the Deadhorse Airport. Colville’s vertically integrated supply system also includes a 10-acre tank farm and truck loading revetment, 3.9-million-gallon fuel storage, and a maintenance shop. The company
Colville
By Scott Rhode
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rudhoe Bay petroleum flows both ways. The Trans Alaska Pipeline System, of course, moves almost half a million barrels of crude oil per day from the North S l o p e t o Va l d e z . T h e m a c h i n e s that make that happen, though, burn refined product: heating fuel, unleaded gasoline, #1 diesel, ultralow sulfur diesel, aviation gasoline, and jet fuel. The "pipeline" that carries those products northward has wheels. A fleet of trucks transports fuel up the haul road to Deadhorse, thanks to the hard work of Colville. Each year, Colville transports a volume equivalent to about one day’s worth of southbound crude oil. From 2019 through 2022, the support services company carried 10,000 highway loads with no accidents or spills. In that time, Colville moved more than 100 million gallons while driving 6.4 million miles. “That's our transportation team based out of Fairbanks, and that's traveling the Dalton Highway, which is notorious,” says Roger Bock, Colville’s senior director of operations. “That's a really hard-to-navigate road system with lots of challenges, passes, blizzards, and muddy conditions. So to safely transit that highway with all those gallons, that's a huge feat for our transportation division.” C o l v i l l e ’s b a s e i n D e a d h o r s e lies nearly 500 miles away from Fairbanks, and the last 240 miles north of the Coldfoot truck stop have no roadside services whatsoever. That overland distance is nearly
22 | November 2023
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even prepares paperwork to collect the 8-cent-per-gallon state motor fuel tax. A natural extension of Colville’s long-haul transport capability is its solid waste management service. The company collects trash and takes it to the North Slope Borough’s Oxbow Landfill on the shore of the bay. Just as Colville tidies up the town via garbage pickup, the company is taking on the job of cleaning the air.
Scrubbing Exhaust
Engines that heat, power, and drive machines at Prudhoe Bay breathe air that is 78 percent nitrogen. Chemical reactions combine a small fraction of nitrogen with oxygen, forming nitric oxide, which can deplete ozone in the upper atmosphere, and nitrogen d i ox i d e , w h i c h i s a s s o c i a t e d w i t h respiratory harm and acid rain. To regulate nitrogen oxide emissions, the EPA mandated strict standards for Tier 4 diesel motors, those with greater than 24 horsepower used off highways. Tier 4 requirements were phased in starting in 2008 and were fully implemented in 2015, reducing emissions by 99 percent compared to 1996 levels. SCR technology has been around for about fifty years, first used by coalfired power plants. Exhaust gas is mixed in a chamber with a spray of DEF, and metallic catalysts convert nitrogen oxides into nitrogen and water. The process is not unlike catalytic converters found in gasoline-powered vehicles, with the added component of the exhaust fluid. A typical tankful of DEF is refilled as often as an oil change, and the fluid sells for about $8 per gallon. “All the companies are wanting to start using those cleaner-burning motors, so there's a need up there,” says Bock. “We took the opportunity, instead of having to bulk it up by totes, let’s just make it in Prudhoe.” T h u s , ra t h e r t h a n t r u c k D E F a l l t h e w a y t o P r u d h o e B a y, C o l v i l l e is transporting the ingredients and mixing them on site.
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Mixing Fluid
Colville’s DEF plant is scheduled to open at the Prudhoe Bay main pad by January 1, 2024. A company called KleerBlue Solutions, which specializes www.akbizmag.com
Alaska Business
November 2023 | 23
Thanks to new activity on the North Slope, Colville is adding breakfast and dinner service at Brooks Camp, plus an area where Slope workers can pick up lunches to go. Colville
in storage and dispensing systems, is supplying the equipment. The process involves combining deionized water with a very pure form of urea, a common industrial chemical most often used as agricultural fertilizer. “The plant will have its own deionizing system, so we'll just source locally produced water from the borough and deionize it,” Bock explains. That minimizes the amount of material that must be supplied from off the Slope. In this case, urea comes in the form of dried prill, or tiny pellets that are also used as ice melt. Reeves explains, “Instead of taking the bulk pre-finished stuff in totes, we'll just take the [prill] product, which will be easier to haul up there and make it on the Slope versus hauling [DEF] up. There won’t have to be as many trucks.” Inside the catalytic reducer, DEF decomposes into ammonia and carbon dioxide; it’s the ammonia that’s mainly involved in the exhaust-scrubbing reaction. However, urea pellets are easier to handle than caustic ammonia. In theory, the chemicals to make ammonia are present on the North Slope in the form of natural gas. Of course, the industrial infrastructure does not exist there to manufacture ammonia. Fertilizer was produced in bulk at Kenai Nitrogen, the factory near Nikiski owned by Nutrien, but that plant has been idled due to constraints on the supply of Cook Inlet gas. Exactly where Colville will source urea for its DEF plant has not been decided as of this writing, but it would likely be an Outside chemical supplier. “They can get it wherever the best pricing is available, so they can source it from several different markets,” Bock says. 24 | November 2023
Urea is one more thing Colville must add to its northward pipeline, solely because of the EPA mandate. Reeves acknowledges that the company abides by whatever the current regulations are, and it has a responsibility from an environmental standpoint.
Incredible Growth
In addition to fueling machines, Colville serves the hungry humans who work on the Slope. The company’s Brooks Camp is essentially a 344-room hotel composed of four-story modules. Because of COVID-19, occupancy was limited to Colville employees only, but the facility is reopening, and food service is revving up in response to new activity. “With the ramp up of the Willow and the Pikka projects, we're getting more demand for those rooms,” Reeves says. “And we're adding meal service: a breakfast and a dinner, with a togo pick-up lunch area.” Whether food or fuel, Colville manages the flow of essential supplies along the Dalton Highway. “Everything's got to be either flown in or driven up the road,” says Bock. Thus, the company does all it can to keep that lifeline open. A new heavy wrecker is joining the fleet this fall. Reeves says that gives Colville three tow trucks, plus one more coming in the next year. Salvaging a wreck on the remotest ro a d i n t h e c o u n t r y t a k e s s p e c i a l expertise. “A lot of art and science to do that job safely,” Reeves notes. B o c k a d d s , “ I t 's i m p e ra t i v e t h a t i f there is any kind of wreck, the sooner that road gets opened back up and clear, that's obviously in everyone’s best interest.” Colville further enhanced its fleet repair and maintenance capabilities
in the last year with a purchase from Northern Oilfield Solutions. “Included in that purchase was a six-bay shop that had caught fire back in 2019 with the previous owner,” Bock says. “When we purchased it, we made the investment to get that up and running again.” The new shop is triple the size of Colville’s previous two-bay maintenance shop at Prudhoe Bay, so it enables crews to have more tools on hand. Those tools will be servicing fifteen new tractors joining the 2024 fleet. “We've got new ones arriving that we ordered a year ago,” Bock explains. “There's a lot of severe long lead times on new equipment, so we've got trucks that are arriving as we speak and down the road. We're also remodeling some of the older units and getting them refurbished—new engines and everything—so basically that's going to increase our fleet.” Colville’s tractors and tankers are e q u i p p e d w i t h s p e c i a l i z e d A rc t i c modifications to distribute fuel safely and efficiently to clients working in Prudhoe Bay. “They 're already set up pretty well o n t h o s e t r u c k s , ” B o c k s a y s . “ We like to keep it that way… so we can continue making sure that we can supply the North Slope with all the fuel it needs.” Colville fuels the Slope so that the Slope can produce crude oil for West Coast refineries to fuel the nation and the world. And the company is ready to meet the needs of producers developing new projects at the Pikka and Willow units. Reeves says, “ There's incredible growth on the North Slope, and we think we're the best positioned to help service those customers.”
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ENERGY
Electricity for Later Storage technology extends grid capabilities
By Nancy Erickson
ParisPhotographics | Golden Valley Elec tric A ssociation
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26 | November 2023
ooking to stabilize and balance their electrical grids as more renewable generation is connected, Alaska’s Railbelt utilities are turning to gigantic storage batteries comparable to those used in electric cars, cellphones, and laptop computers. Homer Electric Association (HEA) flipped the switch in January 2022 on its Battery Energy Storage System (BESS), an array of thirty-seven Megapacks m a d e by Te s l a . C h u g a c h E l e c t r i c Association (CEA) and Matanuska Electric Association (MEA) have jointly installed a twenty-four Megapack BESS, scheduled to be charged and operational by fall 2024. Because wind and solar energy are usually not available at the exact time consumers need power, other sources must fill the gap. Utility-scale BESS systems provide a tool that allows transition between renewables and conventional generation to occur seamlessly due to their ability to respond quickly. Thus, storage helps utilities better balance their grid while also enabling new methods of harnessing energy sources.
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Energy Storage Technologies
Storing energy is not a new concept to Alaska. When Golden Valley Electric Association (GVEA) activated its BESS in Fairbanks twenty years ago, it was the largest battery in the world, earning a place in the Guinness Book of World Records. Used mainly for preventing blackouts, the system is capable of briefly supplying 40 MW to the co-op’s grid when problems occur. GVEA’s nickel-cadmium battery system is nearing the end of its useful life and, because fuel savings made possible by the existing BESS has proven extremely valuable, GVEA officials are looking at options for upgrading or replacement. U n d e r c o n s i d e ra t i o n i s a B E S S system that takes advantage of recent improvements in lithium-ion technology, enabling more wind and solar generation to be cost-effectively integrated into GVEA’s portfolio. GVEA serves 100,000 Interior residents in Fairbanks, Delta Junction, N e n a n a , H e a l y, a n d C a n t w e l l i n addition to some customers along the Steese and Elliot highways and Chena Hot Springs Road. The utility has operated Eva Creek Wind Farm since 2012 and a solar farm since 2018 and is actively working to expand the use of renewables. The Railbelt electric grid stretches approximately 700 miles from Fairbanks t h ro u g h A n c h o ra g e t o t h e K e n a i Peninsula. The four member-owned electric cooperatives and one municipal utility—HEA, CEA, MEA, GVEA, and Seward Electric Department—share and sell power to Railbelt customers. Since going into operation more than forty years ago, the energy systems have undergone significant change, with increased loads, aging assets, and growing stakeholder interest in clean energy generation to reduce emissions. C o s t - s a v i n g p ow e r s a l e s b e t w e e n utilities have increased, demanding more of the transmission system. The push for implementing renewable resources into the grid has utilities looking for economical ways to store that energy.
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Testing Storage in Alaska
Gwen Holdmann has been working on energy issues—including storage— for more than twenty-five years. As the www.akbizmag.com
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November 2023 | 27
Racks of nickel-cadmium batteries were world-class when Golden Valley Electric Association activated its BESS in 2003, but newer lithium-ion technology is an attractive replacement. ParisPhotographics | Golden Valley Elec tric A ssociation
associate vice chancellor for research, innovation, and industry partnerships at UAF, Holdmann focuses her attention on testing various energy storage technologies through the Alaska Center for Energy and Power (ACEP), an energy research program based at UAF. “We founded ACEP fifteen years ago with the goal of addressing the realworld challenges Alaskans are facing when it comes to energy generation, distribution, and use,” says Holdmann. Holdmann and her staff work on a couple of different aspects of energy storage. “ We do modeling to right-size equipment. For example, we developed software that is available as an opens o u rc e p ro g ra m c a l l e d m i G R I D s , ” she explains. “But we also do realworld operational testing of power generation-related equipment in our Energy Technology Facility lab, and energy storage is almost always a component of that.” Te s t i n g h a s b e e n d o n e o n f l ow batteries, supercapacitors, and 28 | November 2023
flywheels. Tests on a liquid-metal battery fell through a few years ago when the manufacturer was unable to scale up the system for commercial use. “And that can often be a challenge: what works on a benchtop scale doesn’t necessarily work at full commercial s c a l e , a t l e a s t n o t e c o n o m i c a l l y, ” Holdmann says. The flywheel that ACEP tested was successfully deployed to a remote gold mine in northern Canada to integrate w i n d e n e rg y. T h e AC E P E n e rg y Technology Facility recently tested a new lithium-titanate battery system that will be installed in Saint Mary ’s, a village on the Lower Yukon River, to operate the local grid without diesel generators when enough wind power is available. “A n d t h a t ’s w h e re re a l s a v i n g s c a n c o m e i n f o r t h e c o m m u n i t y, ” says Holdmann. “It takes a lot of f u e l t o r u n a g e n e ra t o r ev e n o n standby, so if you can reduce the number of hours it is operating, the savings can be significant.”
Many Forms of Energy Storage
Depending on the location, energy storage can take on many forms. According to Dan Bishop, GVEA’s director of engineering, each form of energy storage has advantages and disadvantages, so utilities work to optimize the mix. “For example, the fast response of BESS systems is very valuable because it can keep the lights on w h e n c o n v e n t i o n a l g e n e ra t i o n o r power lines are damaged, so other generation has time to ramp up or get started,” says Bishop. In terms of sheer amount of energy stored, hydroelectric energy s t o ra g e i s m o re w i d e l y u s e d t h a n any other in Alaska’s Railbelt. The Bradley Lake Hydroelectric Project near Homer is, thanks to the Railbelt i n t e r t i e , G V E A’s l a r g e s t s o u rc e o f stored energy. “Although it does not produce as much instantaneous power as GVEA’s BESS, it can provide power over much longer durations,” says Bishop. “GVEA
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“When a generator across the Railbelt has an unplanned outage and trips offline, the frequency of the entire Railbelt system drops.” Julie Hasquet, Senior Manager of Corporate Communications Chugach Electric Association
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a l s o s t o re s e n e rg y i n t h e f o r m o f fossil fuels: tanks full of oil and piles of coal.” In Alaska’s rural areas, energy is generally stored as diesel fuel. But future innovative technologies such as batteries using liquid metal, sodiumion, iron-air, nickel-hydrogen, and s t o ra g e o p t i o n s u t i l i z i n g p u m p e d h y d r o , t h e r m a l e n e r g y, g e o l o g i c pressure, and others are likely to be more widely used, he adds. “Technology is advancing very quickly, and it is difficult to predict where the next breakthrough will be,” Bishop says. Healy is the site of a cutting-edge facility that Westinghouse Electric Co. is proposing. The storage medium is concrete slabs. Surplus electricity would heat the insulated concrete, and heat pumps could extract the energy when needed. The facility is designed to store energy for 2,000 homes for up to a month, and it easily scales up by adding more slabs. GVEA helped Westinghouse apply to the U S D e p a r t m e n t o f E n e rg y www.akbizmag.com
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Golden Valley Electric Association’s solar farm, operational since 2018, charges the utility’s battery storage when the sun shines in Fairbanks so that the energy is available during darker hours. Golden Valley Elec tric A ssociation
f o r a p o s s i b l e $ 5 0 m i l l i o n g ra n t . The facility would be co-located with t h e u t i l i t y ’s c o a l p l a n t , b u t G V E A has not committed any money t ow a rd t h e p ro j e c t . I f p h a s e o n e demonstrates feasibility at grid scale, GVEA has expressed interest in a power purchase agreement. The We s t i n g h o u s e s t o ra g e p ro j e c t i s expected to be built by 2028.
Megapacks Get a New Look
U n l i k e G V E A’ s n i c k e l - c a d m i u m batteries, lithium-ion batteries are currently the technology of choice due to their cost-effectiveness and high efficiency. Tesla’s response to HEA’s request for proposals offered the best value for the amount of storage and system capability, says Larry Jorgensen, HEA’s director of power, fuels, and dispatch. Part of the company ’s purchase agreement with Tesla is returning the batteries for recycling at the end of their operating life. “Recycle all those rare earth minerals and not lose them,” says Jorgensen. “That’s an advantage to all of us.” 30 | November 2023
Homer Electric Association was the fifth rural electric cooperative in Alaska, according to Jorgensen. “In 1946, a 75 kW Caterpillar g e n e ra t o r s u p p l i e d e l e c t r i c i t y t o fifty-six members. Today, 80 MW of generation from several sources is needed to fulfill all the electric needs,” Jorgensen says. Those megawatts and generation sources must be carefully balanced against fluctuating demand, not just in terms of volume but in frequency and phase. The principal function of HEA’s BESS is to regulate the system. “Running the electrical grid is like having a car that you’re trying to keep at the same speed, but you have a trailer that you’re pulling, and people are adding on and taking off things all the time,” he gives as an analogy. “You constantly have to adjust.” When there are deviations to the grid, the BESS either absorbs energy or delivers enough to maintain the balance, he adds. HEA also uses the BESS as a backup power source if the system goes offline. If transmission lines are damaged,
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the batteries have stored energy for immediate use. Installing a Megapack takes a bit of planning. Each Megapack weighs 52,000 pounds and contains more than 200,000 smaller battery cells providing 2.5 MW of energy storage, according to Jorgensen. “ That ’s equivalent to 970 Tesla cars parked out here, charging and discharging. The concrete has to extend down in the ground a long ways in order to make a stable, earthquake-proof foundation,” he adds. Before utilizing the BESS, HEA used fuel combustion turbines during system glitches with nowhere near as fast a response time as the BESS. “We don’t have to use fuel to do that,” says Jorgensen. “Instead, we use stored energy.” Energy stored in batteries is very short term, usually good for a few hours at best, according to Jorgensen. HEA also relies on Bradley Lake as another form of stored energy. “The BESS is a short-term solution but very effective in how it does it,” he adds.
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Water behind the dam at Bradley Lake, north of Homer, stores the energy that lifted rain and snow against gravity. Releasing that energy through a hydroelectric turbine, though, is not ideal for moment-to-moment grid balancing. Golden Valley Elec tric A ssociation
Alternative to Natural Gas
“There are a lot of ways we can store energy, and the options available can be site-specific,” Holdmann observes. “If you think about it, fossil fuels are one way of storing energy in a pretty inert form for a long time—either in a tank or underground for millions of years. It is basically the perfect form of dense energy storage, ready for use when you need it.” CEA and MEA, the two largest electric utilities in the state, depend largely on natural gas produced in Cook Inlet for electrical generation. But the Cook Inlet basin is aging, according to the state’s leading gas producer, Hilcorp. Shortfalls could begin surfacing in a few years. Current contracts between Hilcorp and the two utilities will end in 2028. Southcentral Alaska has been burning more natural gas than Cook Inlet produces for years, yet everyday customers haven’t noticed an interruption thanks to another storage mode. C o o k I n l e t N a t u ra l G a s S t o ra g e A l a s k a ( C I N G S A ) i s A l a s k a ’s f i r s t commercial natural gas storage facility. Located in a depleted natural gas reservoir on the eastern side of Cook Inlet, CINGSA provides a means to store gas during the summer months 32 | November 2023
when availability exceeds demand. Five horizontally drilled wells allow up to 150 million cubic feet of gas per day to be injected or withdrawn. The stored gas is then available for withdrawal during winter months. “The facility can be switched from injection to withdrawal within a threehour time period, allowing CINGSA to meet its customers’ needs on short notice,” says Julie Hasquet, CEA’s senior manager of corporate communications.
Holy Grail of Energy Storage
To provide more economical system support previously provided by natural gas generators, CEA installed twentyfour Megapacks next to its Southcentral Power Project generators near Midtown Anchorage at a cost of $63 million. MEA is a 25 percent owner. “When a generator across the Railbelt has an unplanned outage and trips offline, the frequency of the entire Railbelt system drops and initiates a period of dynamic response to replace that lost generation,” Hasquet explains. “If the frequency isn’t stabilized almost immediately, it can cause load shed, or outages. To avoid load shed, the lost generation must be replaced on a time frame which can be as small as 1.5 seconds. A large BESS like our
Tesla Megapack is very effective at responding to events like this because it can react instantly to inject or absorb necessary power and stabilize the grid.” The real value of battery storage is helping utilities stabilize the grid without having to burn fossil fuels, with big savings on cost and emissions, says Hasquet. The utilities have lofty hopes for new renewable energy projects to meet carbon emission reduction goals. CEA is aiming for 50 percent renewables by 2040 and MEA the same percentage by 2050. Both utilities depend approximately 15 percent each on the Bradley Lake and Eklutna Lake hydroelectric p ro j e c t s , a c c o rd i n g t o J u l i e E s t ey, M E A’s s e n i o r d i re c t o r o f ex t e r n a l affairs and strategic initiatives. The Fire Island Wind Farm, owned by Cook Inlet Region Incorporated, provides 3 percent. And MEA recently added p ow e r f ro m A l a s k a’s largest solar farm, an 8.5 MW array in Houston, through a partnership with Renewable Independent Power Producers. According to Holdmann, “Affordable long-duration energy storage is sort of the Holy Grail for enabling variable renewable resources like wind and solar.”
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NATURAL RESOURCE DEVELOPMENT Naturally, the interests of the Resource Development Council (RDC) span the mineral, vegetable, and animal assets of Alaska. The trade association’s membership draws from the oil and gas industry, of course, but RDC encourages a diversified economic base. Therefore, the group promotes mining, forestry, fishing, and even tourism. Allow RDC’s executive director, Leila Kimbrell, to explain further in this special section’s Q&A. Another advocacy group, the Council of Alaska Producers, recently changed its name: say hello to “Alaska Metal Mines.” Also in this section, meet the UAF research labs that support mining activity in “Let’s Get Geophysical.”
34 | November 2023
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Rather than nuggets of news from the six large producing mines in Alaska, our annual mining update takes the form of conversations with four operators in "Major Mines in 2023. During the discussion, the topic of exploration at Hatcher Pass comes up and is then further detailed in “Lucky Shot.” Outside of this special section, learn more about in-house engineers at Alaska mines, the retail side of the gold and silver trade, and a proposed mining road west of the Susitna River that opens potential recreational opportunities. Yes, recreation in the state’s natural surroundings is a resource, too. Thus, this section contains our cover story, “One Step at a Time,” an update on the Alaska Long Trail. After investigating enforcement measures against high-seas seafood poaching in “Fighting Illegal Fishing,” flip to Alaska Trends for the year’s accomplishments in aquaculture, a natural resource primed for major development in a state with a longer marine coastline than the rest of the Lower 48 combined. www.akbizmag.com
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One Step at a Time Completing the Alaska Long Trail By Vanessa Orr
H
iking is an important pastime in Alaska for tourists and residents alike. A proposed multi-braid trail system known as the Alaska Long Trail is going to make it even easier for people to enjoy spending time outdoors. The trail is a work in progress that will connect Fairbanks and Seward, taking advantage of already established trails and including new trails that will be developed along the way. When complete, more than 500 miles of trails will allow users to travel on mostly public lands, like the Appalachian Trail in the Lower 48. Developers dare hope that the trail system may someday connect to the Arctic or incorporate a Southeast Alaska portion.
36 | November 2023
“The vision is ambitious,” says project coordinator Mariyam Medovaya. “Our ultimate goal is to create a network of routes that can accommodate both motorized users and nonmotorized users for snowmachining, hiking, biking, and skiing.” The current concept for the trail was developed three years ago on the heels of the work that the nonprofit Alaska Trails organization was doing with its partners to develop a priority list. “ We w e re l o o k i n g a t a m a p f o r shovel-ready projects between Fairbanks and Southeast and saw that there were already many segments of the trail on the ground between Fairbanks and Seward,” says Medovaya. “With a little imagination,
y o u c o u l d s e e a c o n t i n u o u s t ra i l system. Everyone got excited recognizing the opportunity in Southcentral for this kind of trail.” The idea of an Alaska long trail has been discussed for more than a decade. An early version would have followed the Trans Alaska Pipeline System. The project is now in the hands of the Alaska Long Trail Coalition, which includes partners in five regions along the route: the Fairbanks region, Denali Borough, Matanuska-Susitna Borough, Anchorage area, and eastern Kenai region. Members of the coalition, which meets quarterly, include the Chugach National Forest, Chugach State Park, Anchorage Park Foundation, Mat-Su Trails and Parks Foundation, Denali State Park,
Alaska Business www.akbizmag.com
Sarah Lewis Photography
to happen next week, but it’s already showing real benefits, both in the near- and long-term.” Clay Walker, Mayor, Denali Borough
anchorageak palmerak juneauak seattlewa portlandor houstontx vancouverbc
Hatcher Pass State Recreation Area, Denali Borough, and Fairbanks North Star Borough. Other stakeholders i n c l u d e m u n i c i p a l i t i e s , t ra i l u s e r groups, nonprofits, tourism industry associations, and tribal councils.
What’s in a Name?
In August, the Alaska Long Trail Coalition planned to switch the name of the project to Alaska Traverse. Instead of moving forward with the new name, the coalition determined that the project would benefit from keeping the name used for the past three years. Congress recently directed the US Bureau of Land Management to conduct a National Scenic Trail (NST) feasibility study for the “Alaska Long www.akbizmag.com
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“The Alaska Long Trail is not going
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Trail,” and this language is now part of the National Scenic Trails Act. To maximize the success of the feasibility study and minimize the confusion about the name of the project, the coalition chose to revert to the trail’s previous name. The NST system comprises eleven long trails around the country, including the Appalachian Trail and Pacific Crest National Scenic Trail. The NST designation opens doors to more federal funding and will be critical to the development of the Alaska Long Trail. The designation would also bring more nationwide recognition, leading to increased visitation along the route.
Trail to Treasure
“Long trails have a magical appeal—look at the other long trails around the world and you can see that a lot of people are attracted to the concept,” says Medovaya. She notes that roughly 3,000 through-hikers use the Appalachian Trail each year, but more than 3 million visitors each year trek at least one segment of that trail. “Long trails provide a sense of adventure, and we expect that the Alaska Long Trail will likewise bring visitors from all over the world, as well as inspire Alaska residents to use it,” Medovaya adds. The route as envisioned now is near both the state road system and Alaska Railroad, which would provide easy access. Because many different communities are also located along the road system, the trail would provide 38 | November 2023
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them with the opportunity to become a travel hub, bringing more people into their businesses and stimulating the economy. A typical through-hike on the Pacific Crest Trail, for example, costs between $5,000 and $10,000 per person, with a good amount of that money spent in local communities. The Alaska Long Trail may also result in more people choosing to move to the state as it enhances quality of life. “Right now, six out of ten Alaskans l i v e h e re b e c a u s e o f t h e o u t d o o r recreation opportunities that the state provides,” says Medovaya. “Increasing the amount of those opportunities will likely bring more people to Alaska, adding to its workforce.” Building the full trail will also directly employ Alaskans, including landscape architects, construction firms, trail maintenance workers, and more. “We’re excited because the trail will benefit both residents and tourists,” says Casey Ressler, president and CEO of the Mat-Su Convention and Visitors Bureau. Ressler also serves on the trail advisory group. “ When you look at places like Hatcher Pass and Reflection Lake, that one-mile loop is packed on sunny days. Having more options for hikers is a good t h i n g , a n d i t ’s a g re a t w a y t o g e t people outside.” Having more options also could help alleviate pressure on existing trails. “ T h e A l a s k a L o n g Tr a i l i s a l s o important from a sustainability standpoint because it will become a major tourist attraction,” he adds, n o t i n g t h a t t h e A p p a l a c h i a n Tra i l not only attracts through-hikers but visitors who come back year after year to complete different sections. “Those people will be eating in our restaurants, visiting our breweries, and staying at our hotels and B&Bs. We will definitely see an impact.”
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A Work in Progress
Of course, creating a 500-plus mile trail across Alaska is no small feat, and trail supporters face a number of challenges to make it happen. This includes planning and securing easements for trails in areas where there are currently no specific routes, such as the section between Hatcher Pass and Talkeetna and the section between Healy and Nenana. www.akbizmag.com
Alaska Business
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Glen Alps trailhead parking filled to the brim on a sunny summer day in 2020. Chris Beck
Hiking near Anchorage in the Chugach State Park. Chris Beck
40 | November 2023
New routes need to be sustainable in terms of construction and visibility and must also work for the traveler, notes Medovaya. For example, trails cannot go over marshland or wetlands, and while 95 percent of the proposed trail route is on public land (state, federal, and municipal), private landowners must also agree to provide trail access. “The few private parcels we need to work with are on Alaska Native lands. We’ve been working with Ahtna Corporation on early-stage planning around Cantwell and with the Knik, Chickaloon, and Eklutna tribes to consult on route selection,” says Medovaya. “We’ve started that process and so far have received a positive reception.” There has been hesitation from some groups concerned that trail development might interfere with hunting and trapping rights. “Those decisions are up to the land managers; our coalition does not make policy decisions on how the trails are used,” Medovaya says. “If there are restrictions on land use, those will stay in place; the use of the new trail segments will be according to land management policies, the terrain, and community input.” Approximately 20 percent of the trail is already on the ground, with the most complete section between Seward and Eagle River in the Chugach National Forest and Chugach State Park. Farther north, planning is currently underway to connect Eagle River and Palmer. “A couple of other segments are underway in terms of getting easements and permits, and just recently a key s e g m e n t c o n n e c t i n g G ov e r n m e n t Peak Recreation Area and Hatcher Pass received approval for a permit,” says Medovaya. “We’re now working on securing funding for that piece.” Mayor Clay Walker of the Denali Borough says that his area is excited to be part of the trail planning. The borough is currently looking at where new trail segments can link to existing trails, particularly in the Denali Park area. “ We’ve been working with our partners to identify the new segments we’ll need because some of the trails will be within the DOT [US Department of Transportation] right of way, and others lie within other land management ownership,” Walker says. Alaska Business www.akbizmag.com
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The mayor adds that the borough has some priority areas for connecting c o m m u n i t i e s . “ F o r ex a m p l e , w e’re hopeful to get funding for separated paths along the DOT right of way from Cantwell to McKinley Village and into the park,” Walker says. “We’d love to have a separated path connecting those communities.”
Raising Funds
While there is no exact date for when the 80 miles of trail through the Denali Borough will be completed, Wa l k e r s a y s t h a t t h e b o ro u g h i s w o r k i n g o n f i n d i n g f u n d ing while discussing long-term maintenance. “ We’re in the early stages of discussions with land managers about who will maintain those trails,” he notes, adding that the borough is looking at numerous funding sources, including state and federal funds. “We did get some congressionally directed spending funds for Healy south to Antler Ridge Trailway, so we’re making headway.” According to Medovaya, the coalition has been quite successful in securing state and federal funding to construct trail segments over the past few years, including $11.6 million in federal appropriations with Senator Lisa Murkowski’s support. Most of that money is being used to complete the Iditarod National Historic Trail— Southern Track between Turnagain Arm and Seward, which will be finished in the next couple of years. For the last two years, the state capital budget has included Alaska Long Trail projects, most of which are centered around Anchorage and Chugach State Park. “The fact that the trail has received money through the state capital budget shows that trails are a nonpartisan issue; people like trails on both sides of the political divide,” says Medovaya. “Everyone uses trails, whether for hiking, biking, skiing, snowmachining, or walking dogs.” A l a s k a Tr a i l s i s a l s o p u r s u i n g individual donations to use for o p e ra t i o n a l ex p e n s e s a s w e l l , t o bring stakeholders together for the planning process. “As a nonprofit, we facilitate the process of planning and securing funds, and that work requires some funding; all of our individual donations go to www.akbizmag.com
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November 2023 | 41
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Crow Pass trail takes hikers above treeline. The trailhead is off Crow Creek Road in Girdwood. Kerr y Tasker
that, and we are grateful for those,” says Medovaya. “We are also very grateful for the help of ConocoPhillips, Rasmuson Foundation, Mat-Su Trails and Parks Foundation, and Turnagain Training, which runs the Race Across Alaska Winter Challenge and has brought thousands of dollars to the project from the individuals participating.”
Patient Steps
Upper Iditarod Trail, part of the Iditarod National Historical Trail, winds through rainforest in Anchorage's wild backyard. Monica Sterchi-Lowman
42 | November 2023
A c c o rd i n g t o M e d ov a y a , t h e f u l l trail between Fairbanks and Seward may take thirty years to complete, though she expects about 70 percent of the trail to be finished in the next ten years. “It ’s a big, ambitious goal and it w i l l t a k e t i m e , ” s a y s Wa l k e r. “ T h e Appalachian Trail took over 100 years, and while I don’t expect that it will take that long, there are a number of complications working with different land managers and funding agencies to stitch this whole quilt together.” H e c re d i t s n o n p ro f i t o rg a n i z e r s with taking the lead. “The work that Alaska Trails has done to bring different organizations, agencies, and entities together around this coalition has already made headway toward increased trail access, and we’ve seen some real progress outside of the big goal,” Walker says. “The Alaska Long Tra i l i s n o t g o i n g t o h a p p e n n ex t week, but it ’s already showing real benefits, both in the near- and longterm.” Once completed, the trail and its segments will be available for use y e a r - ro u n d a n d w i l l a l s o b e o p e n to various modes of transportation, depending on the location. The entire t ra i l c o u l d b e t ra v e r s e d i n a b o u t three months, depending on whether people choose to stay in towns along the way, like Talkeetna or Healy, or take side trips. “In winter, people can ski or use snowmachines for some segments to make the trip faster, and in the summer, they can hike or bike segments, or even packraft,” says Medovaya, adding that hikers could also choose to use the Alaska Railroad flagstop service to connect between gaps, such as through the Nenana Canyon. “The variety of uses and transportation options make it a truly Alaskan trail,” she says. Alaska Business www.akbizmag.com
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US Coas t Guard
Fighting E Illegal Fishing AI as a weapon to defend the seas By Alex Appel 44 | November 2023
ach year, tens of millions of fish are caught illegally. The United Nations estimates the illegal fishing economy is between $10 billion to $24 billion a year. Illegal, unreported, and unregulated fishing (IUU) is an international problem that reaches every coast, river, and stream. Alaska is no exception. According to the University of Washington’s Sustainable Fisheries project, Alaska fisheries may be the best managed fisheries in the world, yet IUU still impacts Alaskans. “IUU does happen on high seas and in international waters, where those products can then enter the legal market,” says Greg Smith, communications director with the Alaska Seafood Marketing Institute. “This increases the supply of seafood, which in turn dilutes the value of Alaska seafood.” IUU is also an issue of national security, according to Ritwik Gupta, deputy technical director at the Defense Innovation Unit (DIU), a civilian organization within the US Department of Defense (DoD) that helps national security agencies adopt commercial technology.
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Admiral Andrew Sugimoto, commander of the Coast Guard’s Eleventh District. “xView3 has enabled us to get a better view of large portions of the ocean in an automated fashion.” What makes these algorithms special is how they utilize synthetic aperture radar (SAR). Almost 70 percent of the Earth is covered by clouds at any given moment, according to NASA. On top of that, a slew of other factors can obscure a typical camera, including tree canopies and night-time darkness.
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“IUU fishing… very acutely impacts economic security of, not only the United States, but also of its allies,” Gupta says.
View from Above
O n e o f D o D ’s re c e n t i n i t i a t i v e s to stop IUU is yielding results and contributing to a larger movement to end illegal fishing, domestically and on the high seas. In 2021, DIU ran a contest called the xView3 Challenge. Programmers from around the world submitted algorithms using artificial intelligence (AI) to monitor the high seas. This was the third xView programming challenge run by the DIU. The winners of xView3 were announced in January 2022. In August www.akbizmag.com
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of this year, DIU revealed that the five winning algorithms are being used by several maritime law enforcement agencies and collaborators across the world, including the European Space Agency, the US Navy, the US C o a s t G u a rd , t h e U S D e p a r t m e n t of Transportation, and the National Oceanic and Atmospheric Administration (NOAA). “The US Coast Guard was a developmental partner for xView3 and has found tremendous use for the developed set of algorithms,” says Rear
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A screenshot of xView3 outputs in the SeaVision platform. Red dots indicate vessels detected by synthetic aperture radar that were not broadcasting an automatic identification system. Yellow dots are radar-detected vessels that correlate with an identification broadcast. Defense Innovation Unit
Officers of the US and Philippine navies use SeaVision to track vessels during a 2019 maritime partnership training activity. Pet t y Of f icer 1s t Class Gregor y Johnson | DV IDS
“How do you solve that? By being the light,” Gupta says. S A R u s e s p o l a r i z e d m i c row a v e s to image the Earth. Radar waves in specific orientations are sent out, and when they hit objects, they bounce around and return to the satellite. The waves are small enough that they can pass through clouds. 46 | November 2023
It’s similar to the technology used in distance sensors on cars, according to Gupta. But the SAR on satellites i s m u c h m o re p re c i s e t h a n w h a t is in the latest Honda. A f t e r t h e i m a g e s a re c o l l e c t e d , machine learning algorithms paint a detailed picture: where vessels are, how large they are, what they are doing and,
based on that information, what are the odds that they are engaging in illegal activity, Gupta says.
Dark Vessels
Fishing isn’t the only concern. IUU is associated with drug smuggling, human trafficking, and modern-day slavery, according to the DIU. IUU
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also accelerates the impact of climate change, the DIU reports. “Traditionally, sailors manually review all obtained intelligence, such as satellite or aerial imagery for a vessel o f i n t e re s t , ” S u g i m o t o s a y s . “ W i t h the accurate automation provided by xView3, analysts can now simply filter detected vessels to find the ones of interest.” One of the outcomes of the challenge is an interactive map showing vessels at sea across the world. This map is on the US Department of Transportation’s SeaVision website. “The xView3 Challenge was a great opportunity for us to advance stateof-the-art technology for detecting dark vessels,” says Paul Woods, chief innovation officer for Global Fishing Watch, a nonprofit that integrates data analytics to support ocean conservation. "We are leveraging the learnings from the competition to advance our efforts in creating a free and open map that reveals all industrial human activity at sea." G l o b a l F i s h i n g Wa t c h p a r t n e re d with DIU to run the xView Challenge program. The Coast Guard, N OA A , a n d t h e N a t i o n a l M a r i t i m e Intelligence-Integration Office also supported the challenge. A DIU press release stated that xView3 “[motivated] several concrete actions that have improved maritime security,” but did not specify what those actions were. G u p t a d i d n o t s h a re h ow m a n y vessels were apprehended specifically b e c a u s e o f t h i s t e c h n o l o g y. T h a t information is considered sensitive, he says, and furthermore, “Our detections that we provide are one piece of knowledge that's part of a larger arsenal of information that our partners use to make decisions.”
Guarding the Pacific
DIU’s xView Challenge is not the only maritime enforcement initiative targeted at IUU. An international mission happens close to home each year: Operation North Pacific Guard (NPG). The operation is run by the North Pacific Anadromous Fish Commission (NPAFC), a multilateral conservation group that seeks to preserve Pacific salmon and steelhead trout stocks. www.akbizmag.com
Alaska Business
November 2023 | 47
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The Coast Guard and NOAA are two of the agencies involved in running NPG. In 2021 and 2022, NOAA and its partners patrolled almost 30,000 miles and boarded dozens of boats. In addition to illegally caught salmon on the high seas, NPG patrols were looking for driftnets, which are large, unanchored nets that float in the water. Driftnets are notorious for high rates of bycatch, and the United Nations established a global moratorium on them. Although there were around forty violations found in 2021, in 2022 there were no signs of people intentionally fishing salmon illegally, and NPG had not encountered driftnets since 2019, according to Julie Fair, public affairs officer for the Alaska Region of NOAA. “It is likely that, at least in the near term, NPG has significantly curtailed this highly destructive practice in the North Pacific,” she says.
All Hands on Deck
Other actions are taken on l a n d t o p re s e r v e t h e o c e a n s a n d p ro t e c t f i s h e r m e n . S e n a t o r s D a n Sullivan and Lisa Murkowski, along
ALASKA'S PROVEN COMMERCIAL FREIGHT SERVICES EXPERTS 48 | November 2023
with three of their colleagues, introduced the Fighting Foreign Illegal Seafood Harvest Act of 2022. The FISH Act would, among other things, instruct the Coast Guard to increase at-sea inspections of foreign vessels suspected of IUU, have NOAA create a blacklist of parties that have engaged in IUU and other maritime crime, and have the executive branch inform Congress on technology that can be used to combat IUU. “This is an all-hands-on-deck effort to crack down on foreign fishing, to keep our fisheries sustainable, and to focus on actors who are engaged in this kind of illegal fishing,” Sullivan says. A lot of those actors are international rivals. The IUU Fishing Index, a website developed by fisheries consulting firm Poseidon Aquatic Resource Management Ltd. and the Global I n i t i a t i v e A g a i n s t Tr a n s n a t i o n a l Organized Crime, analyzes various factors, including coastal sizes and port management, to determine how well a country monitors and addresses IUU fishing. China and Russia were ranked as the worst countries in the world in
the most recent assessment, based on information from 2021. China especially is notorious for its “dark fleets,” or unreported fishing vessels. A 2020 study from the global affairs think tank ODI (formerly the O v e r s e a s D ev e l o p m e n t I n s t i t u t e ) found China had almost 17,000 vessels in its distant-water fishing fleets, including 1,000 vessels registered in different countries. More than one-third of vessels that were caught engaging in IUU between 2010 and 2022 were Chinese, according to a 2022 study from the Financial Transparency Coalition.
The Problem Is Global
“It's kind of a witch's brew of elements that not only harm the environment, harm the oceans, [and] harm the sustainabilit y o f f i s h e r i e s ; t h e re's human suffering that goes within this,” Sullivan says. For example, West African coastal countries lose more than 37 percent of their seafood to IUU fishing, and this is driving people to flee their homes, the Global Initiative Against Transnational Organized Crime reports.
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Supporting the Pacific Islands Forum Fisheries Agency, crew from the US Coast Guard cutter Oliver Henry approach a Philippine-flagged purse seine fishing vessel in the North Pacific Ocean on March 31, 2023. Chief Warrant Of f icer Sara Muir| US Coas t Guard Forces Micronesia |DV IDS
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NATUR AL RESOURCE DEVELOPMENT Senator Dan Sullivan discussing the Seafood Reciprocity Act of 2023 with an Alaskan fisherman in Kodiak on August 17, 2023. Of f ice of Senator Dan Sullivan
“This is an issue that kind of really crosses over from different federal agencies, not just your traditional fisheries agencies like NOAA and the Coast Guard but into the Pentagon and in the Navy,” Sullivan says. And technology will play a large role in patrolling the seas, according to Sullivan. “The problem is huge. The problem is global,” Sullivan says. “Americans think it’s not hard to find a ship in the big Pacific Ocean, or the big Atlantic Ocean, but it is hard. And so having available technologies to track, particularly these suspected IUU fishing vessels, we think is an important component and will only increase in importance in the years coming.” He says the FISH Act of 2022 goes hand in hand with other legislation he is proposing, including the US-Russian Federation Seafood Reciprocity Act of 2023. Sullivan is especially concerned about sanction loopholes that allow Russian fish to be imported to the United States. 50 | November 2023
Russia blocked the import of fish from the United States in 2014, but the United States still allowed Russian seafood imports until 2022, after Russia openly invaded Ukraine. The new sanction does not affect seafood caught in Russian waters and processed elsewhere, however. According to Sullivan, “elsewhere” means China. “ Then it gets sent back into the US market, almost duty free, so it's essentially laundering Russian seafood,” he says. “And this is hundreds of millions of dollars of seafood very negatively impacting our fishermen and seafood industry.” The Seafood Reciprocity Act of 2023 would stop this by banning all Russian seafood from entering the United States, including fish processed in other countries. “It literally took a war to make good progress,” Sullivan says. “Now we made good progress, we got to close that loophole.”
Defensive Technology
As long as IUU remains a global
security concern, mo re s o t h a n a mere obstacle to fair commerce, DoD will be on the case. Military-grade technology is already yielding results and contributing to a larger movement to end illegal fishing, domestically and on the high seas. Algorithms submitted to the xView3 Challenge, including the five winning ones, can be used by any country in implementing their own monitoring system, according to Gupta. Thus, AI will continue t o m o n i t o r f i s h e r i e s a n d e n f o rc e maritime law going forward. “In the end, fighting the environmental and economic scourge o f I U U f i s hing and tracking illegal shipping will require a concerted and collaborative effort amongst nations, NGOs, and the private sector,” the DIU press release stated. “xView3 is a prime example of how the US security community can lead the way in making progress on these objectives while a l s o a d d re s s i n g s o m e o f i t s ow n intelligence needs for pennies on the dollar.”
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Let’s Get G Geophysical How UAF labs support mining activity By Rachael Kvapil 52 | November 2023
eophysics is the study of the magnetism, electricity, radioactivity, vibration, fluid dynamics, gravity, and mineral properties of the Earth. From laboratories in Fairbanks, researchers at the UAF Geophysical Institute (GI) gather data in Alaska to unlock the secrets of the entire planet. Some of those laboratories look outward to space, including the Alaska Satellite Facility, the Poker Flat Research Range where sounding rockets are launched, and the High Frequency Active Auroral Research Program for studying the ionosphere. Other laboratories help protect the state from natural hazards, including the Alaska Earthquake Center, the Alaska Volcano Observatory, the Alaska Climate Research Center, and the Arctic Coastal Geoscience Lab.
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JR Ancheta | UAF | Geophysical Ins titute
professor of geology and director of the Geochron Lab. “We now can analyze things with a greater precision at a higher throughput.” According to Regan, every rock tells a story. The Geochron Lab measures the age of rocks and minerals using an argon method: researchers irradiate samples with neutrons in a nuclear reactor, changing some potassium into argon. This technique results in precise dating accuracy. The lab also offers mineral extraction services for rock samples in preparation for dating.
And parts of the institute connect with the original mission of the university, when it was founded in 1917 as Alaska Agricultural College and School of Mines. At the time, Fairbanks was barely more than a trading post for prospectors who flocked to the a re a d u r i n g t h e 1 9 0 2 g o l d r u s h . Modern-day prospectors have a high-tech assist from the institute’s Hyperspectral Imaging Laboratory, Geochronology Laboratory, and allied research groups.
Time to Learn More
The Geochron Lab, as it’s called, uses state-of-the-art equipment to determine www.akbizmag.com
Alaska Business
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the ages of rocks and minerals. GI has conducted geochronology research since 1971, when it established an initial research facility. Two milestones in 1990 and 1994 brought the lab closer to its current configuration. A third occurred more recently when a National Science Foundation (NSF) and Major Research Instrumentation grant allowed the lab to upgrade equipment and acquire a new NGX-600 multicollector mass spectrometer. “This affects our operations in two areas,” says Sean Regan, assistant
NATUR AL RESOURCE DEVELOPMENT
Establishing the age of minerals and rocks is a major step in determining t h e f o r m a t i o n h i s t o r y o f m i n e ra l deposits. Regan says this provides a framework for understanding how the specific regions developed and what geological processes resulted in mineral deposits. With that framework in place, researchers and mining companies can evaluate the combinations of critical geological processes required to distribute ore deposits at all scales. Even with the latest technology driven by years of expertise, the Geochron Lab still finds dating “young” samples a challenge. The decaying system that makes the argon method successful isn’t as pronounced in younger rocks as in samples with a longer history. Likewise, samples also include mixtures of materials, which can lead to grain inclusion in the analysis. To ensure they are only studying relative materials, the lab acquired a micro computed tomography system, like a hospital CT scanner combined with a microscope, that uses X-rays to build a 3D image, slice by slice.
54 | November 2023
A Market for Minerals
In an introductory geology class, Regan crushes a smartphone and conducts a chemical analysis with his students to determine the types and amounts of minerals needed to produce the device. “We go down the list from readily available materials like aluminum and discuss more limited elements like cobalt and lithium used for circuitry and rechargeable batteries,” says Regan. “When you think about how many smartphones are made annually, we need to think about the sources of critical minerals.” As of 2022, the US Geological Survey identified thirty minerals imported for domestic manufacturing. Of those thirty, the United States is 100 percent reliant on the import of twelve key minerals, seven of which come from China. H ow ev e r, i d e n t i f y i n g s o u rc e s o f critical minerals doesn’t guarantee that mining companies will receive permission to extract them. Mining companies undergo an intensive, timeconsuming public process at the start
of the mining cycle and must continue to adhere to multiple regulations throughout development, production, and land reclamation. “Alaskan officials and lawmakers are pushing to increase resource development,” says Martin Stuefer, director of the GI’s Alaska Climate Research Center. “Mining’s future will depend on public and administrative s u p p o r t a n d t h e e n f o rc e m e n t o f regulation and environmental laws. Alaska already supplies around 70 percent of US zinc production. We also produce significant amounts of gold, copper, and lead in the state. Hopefully, we find a balance between mining and the environment.”
A Wave of Information
S t u e f e r i s a l s o d i re c t o r o f G I ’s Hyperspectral Imaging Laboratory. The HyLab, as it ’s known, provides a b i r d ’s - e y e v i e w u s i n g a i r b o r n e cameras combined with ground spectrometers. Data collected by HyLab instrumentation can provide detailed maps and geological makeup to mining companies in the early phases
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A hyperspectral camera system is usually mounted on a Aviat Husky airplane to collect surface data to find minerals. Martin Steufer, director of UAF Geophysical Institute's Hyperspectral Imaging Laboratory, says hyperspectral imaging allows mining companies to identify potential locations remotely in the early development stages. JR Ancheta | UAF | Geophysical Ins titute
after Prakash became the UAF provost and executive vice chancellor. The main instruments in Hylab are the HYSpex VNIR-1800 and SWIR-384 cameras and a PSR+ from Spectral Evolution. Both are high-speed cameras that have low stray light levels, low sensitivity to polarization, and low spectral distortion and spatial distortion.
Building Alaska for over 40 years
The cameras also have automatic electromechanical shutters for dark offset. The PSR+ unit has three separate detectors measuring the full spectrum from ultraviolet to near infrared. Four sections make up the inner workings of the HyLab. Airborne Instrumentation handles the deployment of hyperspectral cameras
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of exploration. Hyperspectral imagery, also known as imaging spectroscopy, does more than observe the earth’s surface. It also measures surface reflectivity in various wavelengths, i n c l u d i n g s ev e ra l i n v i s i b l e t o t h e human eye. A detailed analysis of these wavelengths can identify the types of minerals within the area. “The nice thing about this method is that we can locate minerals without destroying anything,” says Stuefer. “Before, companies would have to go in with machinery and drill into the ground. And though that is still needed in later stages of exploration, we can fly over an area and find the best location before they go in.” T h e H y L a b i s t h e b ra i n c h i l d o f Anupma Prakash, who obtained funding from the NSF in 2014 to create Alaska’s only hyperspectral imaging facility. At the time, she was a geophysics professor and the director of the Division of Research at the UAF College of Natural Science and Mathematics. Stuefer says his research and administrative background made him a good candidate to take over the HyLab
NATUR AL RESOURCE DEVELOPMENT
The UAF Advanced Instrumentation Laboratory specializes in determining the quantities of minerals and maps their location within a sample using a highly advanced electron microprobe. Researchers can conduct a non-destructive analysis using the microprobe’s five wavelength-dispersive spectrometers. JR Ancheta | UAF | Geophysical Ins titute
mounted on a Aviat Husky airplane and conducts surveys for analysis. Field Instrumentation operates ground spectrometers for data acquisition or for training purposes. That section also conducts on-site scanning using instruments that bridge the scales between direct field spectroscopic measurements and airborne hyperspectral data. Calibration Facilities and Data Processing Facilities verify data collected during surveys, analyze data, develop models, and deliver findings in a way that is usable to researchers, private industry, government, and other interested parties. The wavelengths that hyperspectral imaging captures are extensive. The optical sensor on a smartphone camera captures three channels (red, g re e n , a n d b l u e ) ; i n c o m p a r i s o n , hyperspectral imaging captures 460 channels, including infrared. Since measurements are based on reflectivity, the ideal surveying conditions are sunny, cloudless days in areas with low vegetation. Stuefer says conducting surveys in less-than-ideal conditions results in low-quality data that is essentially no good.
The Sum of Its Parts
Once mineral deposits are located, the next step is to determine how 56 | November 2023
much of the resource is available. This work is the specialty of UAF’s Advanced Instrumentation Laboratory (AIL)—not part of the GI but under the College of Natural Sciences and Mathematics. AIL, a multi-instrumental facility that oversees surface and elemental analysis as well as electron microscopy, began in 1996 through the combination of two existing departments. Like HyLab, the facility conducts research, serves as a training ground for undergraduate and graduate students, and provides technical support to local, state, federal, and private agencies. In a nutshell, AIL takes a material sample and determines the number of mineral crystals and, in the cases where more than one mineral is detected, the proportion of each type. Of the seven instruments in the lab, AIL Director and Associate Professor Menghua (Marty) Liu says four machines are frequently used for this type of analysis. The JEOL JXA-8530F electron microprobe (EPMA) is the workhorse of the lab, as it identifies the composition of any material, including minerals, steel, and ceramics, to its exact location within the sample. This quantitative analysis can also provide percentages of the composition, while a different function on the machine uses X-ray mapping to provide a detailed distribution of the
sample. The electron microprobe is the only one of its kind in Alaska. An NSF grant funded its acquisition in 2013— a major upgrade that allowed AIL to expand the services it provides. The FEI Quanta 200 environmental scanning electron microscope collects similar data to the EPMA; however, it can be operated in a regular low-vacuum and full environmental mode that allows the lab to image wet, uncoated samples and samples that are heated and cooled on a device known as the Peltier stage. The PanAlytical Axios X-ray fluorescence spectrometer is used for quantitative analysis of bulk samples, and the PANalytical X'Pert material research diffractometer is used to look at thin, crystallized, and powdered materials and identify their components. Liu says field accuracy completely depends on fully understanding what researchers, government entities, or companies want to know. “Our analytical approach is based on the question,” says Liu. “The benefit of our services is that we ask questions about their needs, the problems they want to solve. A lot of commercial labs don’t do this.” He says the best way for the GI’s labs to investigate rich questions is by introducing all the instruments to interested parties and explaining what they can do.
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Lucky Shot Contango ORE rolls the dice in Hatcher Pass
Alaska Business
By Scott Rhode
H
atcher Pass Road exists because of gold mining. On the Palmer side of the backcountry route through the Talkeetna Mountains, Independence Mine State Historical Park preserves a relic of gold production from the ‘30s, ‘40s, and ‘50s. Even earlier, starting in the ‘20s, miners extracted ore from shafts penetrating slopes around the headwaters of Willow Creek, on the other side of the pass. The Willow Creek mining district ranks as the third-largest lode in Alaska, yielding 19 tonnes of gold during its active era. Subsequent activity has been more sporadic, however, with brief interest in the late ‘70s and early ‘80s falling short of a full-scale revival. The latest effort comes from Contango ORE, a Texas-based company with exclusively Alaska mining interests. T h e p re s i d e n t a n d C E O, R i c k Va n Nieuwenhuyse, contrasts Contango ORE’s serious exploration with the fleeting attention paid to Hatcher Pass by oil and gas companies like Enserch Corporation. “They were flush with lots
58 | November 2023
of petro dollars, and a number of the oil companies decided to get into the mining business,” he says. “Within about three or four years, they all decided to get out. It’s a very different business.” Van Nieuwenhuyse credits Full Metal Minerals with some good work in the ‘80s, defining the Coleman segment with 150 holes drilled. However, he says, “It wasn’t really a full effort, and was really sort of half thought through. I think it was more of a promotional story than anything else. But the drilling they did was good, solid drilling.” Until miners acquire X-ray vision, they must drill to locate veins of precious metal within mountains of solid rock. “The only way to get a sample is to drill a hole,” Van Nieuwenhuyse says. “You want to use a large enough diameter drill steel to ensure that you’re getting a good quality sample. If you start too small, you tend to get poor recoveries.” Each borehole is a shot in the d a r k . L u c k determines not just whether gold is in the ground but whether t h e d r i l l c a n i n t e r c e p t a
high enough concentration to justify investing in production. Contango ORE is aiming at Lucky Shot, the name of the gold vein u n d e r n e a t h B ox M o u n t a i n R i d g e . Thorough geologic modeling stacks the odds in the company’s favor.
Two for Contango
Crumbled adits, or mineshaft entrances, are visible on the hillside f ro m H a t c h e r P a s s R o a d n e a r i t s highest crossing of Willow Creek. These structures are the surface signs of the Coleman, Lucky Shot, and War Baby mines. All three tap the same layer of Box Mountain Ridge. “It’s the same vein; there’s a fault that offsets it,” Van Nieuwenhuyse explains. Because each has its own adit, the mines have different names; the one in the middle gives its name to the whole project. The Lucky Shot project sits on 360 acres of patented mining claims— private land surrounded by 7,865 acres of state-owned land. Contango
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ORE has a lease on the Lucky Shot Project from the underlying owner, Alaska Hardrock Inc., and through its subsidiary Contango Mineral Alaska has 100 percent ownership of the peripheral state mining claims. Across the valley, Contango ORE also has a 100 percent interest in the Gold Bullion project, another site that ’s been idle since the ‘80s. The company ’s flagship project in Alaska, however, is a minority interest near Tok. Contango ORE has a 30 percent stake in the Manh Choh mine, located on Tetlin tribal lands. The majority partner in the joint venture is Kinross Gold, the operator of the largest gold mine in the state, Fort Knox. A groundbreaking ceremony on August 30 marked the start of operations at Manh Choh. “ The construction phase has been achieved on budget and on schedule,” Van Nieuwenhuyse declared. “At this point, mining operations primarily consist of pre-stripping activities, with any ore encountered to be stockpiled for later transport by road haul trucks to the Fort Knox mill for processing.” Manh Choh, designed as an open pit mine, is expected to operate for four to five years, extracting at least 1.2 million ounces of recoverable gold. That would be about twice as much as the 600,000 ounces produced over several decades from the Willow Creek district, nearly half of that total from Lucky Shot itself. Manh Choh is not yet in the production phase, which is still a year away. Van Nieuwenhuyse explains, “Mill modification activities continue at the Fort Knox mill with an emphasis on completing outdoor activities before winter arrives. The project continues to be on track to achieve commercial production in [late] 2024.” The ore density of the gold resource at Manh Choh averages 4 grams per tonne. By comparison, the historic output of the underground mines in Willow Creek was reportedly at least 30 grams per tonne. A higher grade is necessary to warrant t h e g re a t e r ex p e n s e a n d s l ow e r progress of hard-rock mining.
Initial Results
Geology is a language Van Nieuwenhuyse understands well, www.akbizmag.com
Alaska Business
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having studied the science in Belgium, where he was born. He also worked overseas for Vancouver-based Placer Dome before the mining company was taken over in 2005 by Toronto-based Barrick Gold (one of the developers of the Donlin Gold project in the Upper Kuskokwim region; the other partner, NOVAGOLD, was led by Van Nieuwenhuyse from 1999 to 2012). Alaska is where he grew up, though, so the C E O k e e p s C o n t a n g o O R E f o c u s e d n o r t h w a rd . W h i l e b a s e d in Houston, Texas, the company ’s exploration prospects are all in Alaska. Contango ORE holds a 100 p e rc e n t i n t e re s t i n a p p rox i m a t e l y 137,280 additional acres of State of Alaska mining claims. Three of its projects—Eagle, Hona, and Triple Z— are adjacent to Manh Choh; one other, the Shamrock project, is along the Richardson Highway between Delta Junction and Fairbanks. A resident of Fairbanks has direct oversight of Lucky Shot. Chris Kennedy, formerly general manager of the Pogo underground gold mine near Delta Junction, is Contango ORE’s general manager for Lucky Shot. Kennedy also previously served as president of the then-Council of Alaska Producers [now rebranded as Alaska Metal Mines]. Canadian companies still play a role in Contango ORE’s exploration at Lucky Shot. For surface drilling, the contract goes to Cyr Drilling International of Winnipeg, Manitoba. Major Drilling Group International, based in New Brunswick, conducts underground drilling (in addition to exploration for Graphite One near Nome). The company completed more than 12,500 feet of underground drilling from twenty-nine holes bored from a tunnel first excavated in the ‘80s by Enserch Corporation. In its initial Technical Report Summary filed this year, Contango ORE estimated its indicated Lucky Shot mineral resource of 226,963 tonnes, at a grade of 14.5 grams per tonne. Va n N i e u w e n h u y s e s a y s f u r t h e r infill drilling ought to clarify the scope of the resource. “The current drill spacing, on the Lucky Shot segment in particular, is not dense e n o u g h t o re s u l t i n a s u b s t a n t i a l amount of indicated resources, but future drilling is planned to convert 60 | November 2023
much of the reported inferred to indicated resources,” he says. The area in general is considered u n d e rex p l o re d , s o C o n t a n g o O R E believes there is good potential to delineate additional exploration targets on the Lucky Shot Project lease. Van N i e u w e n h u y s e s a y s , “ We a re v e r y pleased with this initial resource at Lucky Shot and are planning a follow-up surface and underground drill program to augment resources sufficient to begin mine planning.”
Fan Shot Plans
Contango ORE initiated surface drilling this fall to extend the exploration program. “We will complete as much surface drilling as we can safely a c c o m p l i s h f ro m t h i s s i n g l e d r i l l pad on top of Box Mountain Ridge b e f o re w i n t e r w e a t h e r c o n d i t i o n s shut us down,” Van Nieuwenhuyse says. “Future drilling of approximately 12,000 meters (39,000 feet) from underground at Lucky Shot is expected to be undertaken in 2024.” The company will use a drill pad to drill a series of twelve to fifteen holes totaling approximately 9,800 feet in a fan pattern to in-fill and extend the Coleman Segment of the Lucky Shot vein. According to the Technical Report S u m m a r y, t h e C o l e m a n S e g m e n t contains an estimated 95,092 ounces of indicated gold resource averaging 15.6 grams per tonne. That segment is the target of surface drilling. “We set up a single, large 30-by-30 [foot] drill pad—a pretty substantial drill pad. The plan is to drill a whole series of fan shots from that single pad… to get a good spread on the drill intersections,” Van Nieuwenhuyse says. “Spread your hand open with your fingers apart, and (if you had six fingers) it would show what our plan is: drill from a nearvertical hole to a near horizontal hole and everything in between, getting a 15- to 20-meter spacing from the drills in a fan profile.” Underground exploration will likely resume next April. The objective is to identify 400,000 to 500,000 ounces of gold resource that Contango ORE can then develop a mine plan around.
Mutual Benefit
For now, Contango ORE is focused on the exploration stage. If reviving Willow
Creek gold mining becomes feasible, that decision will come later. To the extent that Van Nieuwenhuyse is looking ahead, he can rule out using a gold mill that was built in Willow to crack gold out of ore but never used for that purpose. If anything, ore might be trucked north of Fairbanks for milling. That’s what Contango ORE is doing at Manh Choh: trucking ore about 250 miles from the Tok area to the established infrastructure at Fort Knox mine. “We have a partnership with Kinross on Manh Choh, and they ’re p r o c e s s i n g t h e o r e t h e r e . T h a t ’s certainly an alternative we’ll take a l o o k a t , ” Va n N i e u w e n h u y s e s a y s . However, “Depending on the quality and the grade of deposit, and how much we find, we may also take a look at building our own facility. I have no idea where that would be, at this point.” He’s aware of the controversy that the Manh Choh trucking plan has engendered. In August, Kinross Gold hosted a safety fair featuring a new ore hauling truck that its contractor, Black Gold Express, will use at Manh Choh. Protesters attempted to blockade the truck to draw attention to the increased traffic, projected at about sixty trips per day, up and down the Richardson Highway. Hatcher Pass Road isn’t built for that level of traffic. It can barely handle seasonal tourist traffic to Summit Lake S t a t e R e c re a t i o n S i t e ov e r l o o k i n g the Willow Creek valley. In the grand scheme, recreation is an ancillary use of the road. Van Nieuwenhuyse observes, “I find it funny that roads that were built by miners and become useful for other purposes, then turn around and say, ‘Well, you can’t mine on ‘em.’” If the Lucky Shot vein pencils out for gold mining, Contango ORE would have to share Hatcher Pass with everyone else. Van Nieuwenhuyse endorses a mutually beneficial approach. “We recognize that’s an area that a lot of people visit; it’s a beautiful area, so it’s very understandable why,” he says. “I think the key thing is always safety, so if there is more traffic on the road, then we would advocate for improving the road.”
Alaska Business www.akbizmag.com
Judy Patrick | Hecla
NATUR AL RESOURCE DEVELOPMENT
Major Mines in 2023 Updates from Alaska's large operators By Sarah Reynolds Westin
A
laska Business caught up with representatives from companies that run three of the state’s six large mines and a seventh j u s t b e g i n n i n g o p e ra t i o n s t o t a l k about recent advances and potential challenges: Coeur Alaska Kensington Mine, Hecla Mining Company Greens Creek Mine, Kinross Gold Fort Knox Mine, and Manh Choh, a joint venture of Kinross Gold and Contango ORE. The following excerpts from the interviews have been edited lightly for house style and length.
Contango ORE Alaska Business: Contango ORE shares ownership of the newly operating Manh Choh Mine with Kinross Gold. How did this venture came about? Rick Van Nieuwenhuyse, President and CEO, Contango ORE: Contango 62 | November 2023
representatives were invited by the Tetlin tribal council, an Alaska Native village, to look at their privatelyowned land, which is 675,000 to 743,000 acres—about the size of Rhode Island. They were the only Interior village that opted to take the title to their land, which was originally granted in the ‘20s by the [US] Bureau of Indian Affairs. At first, we evaluated Tetlin’s land for oil and gas, which showed mostly highgrade metamorphic rocks. There was no chance of any oil or gas deposits, but there was a chance for minerals. So in 2008, we began mineral exploration. In 2011, we discovered the source that is now known as the Manh Choh Mine. For years, though, further development was on hold while companies evaluated h ow b e s t t o a d v a n c e t h e p ro j e c t . Finally, in September 2020, we signed a 70/30 joint venture with Kinross. The
project could proceed by using the existing mill and tailings facility at Fort Knox to process the Manh Choh ore. Since then, we’ve stayed on track and on budget. In f act, like you mentioned, our mine opening ceremonies just occurred, so now Manh Choh is Alaska’s seventh large operating mine. We are pre-stripping waste material and stockpiling ore, which will later be transported to Fort Knox for processing. When all is said and done, the joint venture will produce a little less than 1 million ounces of gold over a five-year period, based on current reserves. AB: Has Manh Choh had any permitting hurdles? Van Nieuwenhuyse: The mine site required improving an 18-mile access road so it would have a 6 percent grade to provide year-round access
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AB: Do you foresee other mining opportunities coming soon? Van Nieuwenhuyse: Contango has several other early-stage exploration projects in Alaska—all right along the road system because we want to stay close to i n f ra s t r u c t u re . O u r m o s t advanced project is Lucky Shot, which is located about 40 miles north of Wasilla. AB: Lucky Shot has a unique history. Would you please elaborate on it? Van Nieuwenhuyse: It was historically mined from 1928 until 1942, when President Roosevelt issued an administrative order to shut down all gold mines during World War II... So it didn’t shut down because it ran out of ore or had technical issues, which means plenty of high-grade ore has just been sitting there. Now, we’re drilling straight down the vein where the old miners left off. Importantly, Lucky Shot is a fully permitted underground mine, which provides access for underground and surface drilling. However, we are not currently producing ore or gold. We’re simply exploring to define resources.
Kinross Gold AB: Kinross Alaska operates Fort Knox Mine for Kinross Gold while also starting up Manh Choh. What permitting challenges have you had? Brenna Schaake, External Affairs Supervisor, Kinross Alaska: T h e number one permitting hurdle any p e r m i t t e e f a c e s i s e n v i ro n m e n t a l c o m p l i a n c e w i t h c u r re n t p e r m i t s and making sure to diligently maintain them. Alaska has very strict www.akbizmag.com
environmental laws and permit requirements that must be met in order to operate in this state. AB: How does Kinross address the permitting requirements? Schaake: Kinross has built a culture of environmental compliance, and it starts with our management and rolls down to every employee and business we work with. We always ask ourselves, “Are we going above and beyond?” Basically, we see our efforts as top-tier environmentalism. AB: How does a rigorous permitting process help mining companies? Schaake: Because Alaska’s permitting process is so thorough, it attracts more mining companies to Alaska, which surprises some people. The world needs the minerals our state has, and Alaska offers a place to develop them where human rights and environmental concerns are valued. Kinross considers those factors before entering any location, and Alaska ev a l u a t e s c o m p a n i e s ’ c o m p l i a n c e when they review permitting, operations, and production plans. So these permitting processes actually help everyone. AB: What about obstacles related to operations at both mines? Schaake: Well, different factors play a role there. Every project is unique, based on the location and the community’s values. For Kinross, our approach is always informed by how we’re going to be good neighbors. We put people first and celebrate good corporate citizenship, and we think about our legacy. To understand our im p a c t , w e l o o k a t h ow w e’re communicating with the community and responding to their questions so we can make our projects operational successes. We don’t see community engagement as an obstacle. We see it as necessary and valuable to actively pursue.
“Because Alaska’s permitting process is so thorough, it attracts more mining companies to Alaska, which surprises some people. The world needs the minerals our state has, and Alaska offers a place to develop them where human rights and environmental concerns are valued.” Brenna Schaake External Affairs Supervisor Kinross Alaska
AB: How does Kinross evolve the Fort Knox and Manh Choh Mines alongside permitting and operation requirements? Schaake: Kinross will continue staying robust with our permitting and operation processes, which is positive for states, like Alaska, that value its Alaska Business
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for trucks to transport the ore to Fairbanks. Those road improvements re q u i re d w h a t i s k n ow n a s a 4 0 4 Wetlands Permit, issued by the US Army Corps of Engineers. We received that permit late last year, and road construction started. Mine operating and wastewater permits were issued e a r l i e r t h i s y e a r by t h e S t a t e o f Alaska Department of Environmental Conservation and the Department of Natural Resources. I believe Kinross had a solid approach to mine development. So overall things went well, permitting-wise.
NATUR AL RESOURCE DEVELOPMENT
Schaake: A l a s k a r i g h t f u l l y v a l u e s reclamation, and so do we. One of our goals is to restore abandoned mines, here in Alaska and other places too. In this state, we partnered w i t h Tro u t U n l i m i t e d t o f o r m t h e Alaska Abandoned Mine Restoration Initiative. The fact that our state values re c l a m a t i o n h e l p e d K i n ro s s c o m e to the table. Yes, we want to extract minerals, but we will only do it if we’re m a k i n g s u re w e’re re s t o r i n g l a n d for generations to come—and that’s true for our project, obviously, but historical ones also. The environment is a top priority.
Hecla recently received permitting for an expansion project at Greens Creek Mine and is now working with the community to provide information and address concerns.
Coeur Alaska
Colella Digital | Hecla
land, resources, and people and wants to continue protecting and responsibly developing all three. We know that Alaska is going to continue and hold us to a high standard, which is good not only for those who live there but for other places in the world. When
we carefully mine needed minerals, we meet demand and deter unsafe mining ventures. AB: Can you tell me how reclamation impacts Kinross’ exploration, discovery, and production in Alaska?
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AB: What complications has Kensington Mine faced for discovery, permitting, operations, and production? Stephen Ball, General Manager, Coeur Alaska: Alaska has a long history of exploration, mining, and production, and we are proud to be a responsible contributor to the mining industry. The state and the mining companies who operate in Alaska have
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AB: Many people don’t understand the lengths mining companies have to go to receive approval for their permits. What has Coeur Alaska experienced in this regard? Ball: We have permits from seventeen agencies—including federal, state, and local authorities—and every agency ’s permitting process must be followed. A mining company cannot advance unless every agency gives the green light. For instance, Coeur Alaska received a Record of Decision from the US Forest Service in February 2022 for our Plan of Operations Amendment 1,
which granted us permission to add approximately ten more years o f w a s t e ro c k a n d t a i l i n g s t o ra g e capacity. That decision wasn’t the end of the permitting process, but was a major milestone as many o t h e r re g u l a t o r y a g e n c i e s f a c t o r the US Forest Services’ decision into their own permitting process. Once we received the decision from the US Forest Service and the US Army Corps of Engineers, we submitted the remaining state permits. We are working through the process on one final remaining permit for a specific action, but the others have all been granted. To put it into perspective, we began our baseline studies for the Plan of Operations Amendment 1 in 2015. So it takes a lot of time, longer than many people expect. For instance, the land where Kensington Mine now operates was acquired in 1987, and it took twenty-three years before production commenced. It wasn’t until the US Supreme Court issued its ruling in 2010 that we were able to advance our mining operations and production.
“The mining industry as a whole has a lot of past transgressions, but mining companies like ours are doing the best we can to avoid new transgressions.” Kyle Beebe, Technical Services Manager, Hecla Mining Company
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extraordinary processes for permitting and operations, including top tier environmental mitigation and safety precautions. Our primary core value at Coeur Alaska is “We protect our people, places, and planet.” We want to be showcased for how we do mining right. Being able to operate responsibly within the Tongass National Forest on 243 acres of undisturbed land speaks to our rigor and commitment to environmental stewardship.
NATUR AL RESOURCE DEVELOPMENT
“Mining companies want to get the right projects in place. We understand some ventures cannot move forward— they need a ‘no’ because they’re unsafe, shortsighted, risky, or impractical. Science doesn’t have a biased approach.” Stephen Ball General Manager Coeur Alaska
66 | November 2023
AB: Do you see any changes coming for permitting processes? Ball: There’s a potential for change in state- and federal-level permitting. People on both sides of the aisle a g re e c h a n g e s t o s t re a m l i n e t h e processes need to happen, and those changes can occur while preserving the integrity of environmental protection and regulation. State and federal agencies are facing staffing shortages, which lead to permitting delays. Consistency in timelines is important for any project, mining or otherwise. Science doesn’t have a biased approach; however, changes in mining policy from one federal administration to the next can. AB: Any final thoughts? Ball: The mining industry supplies the essential minerals necessary for nearly every sector of our economy, from healthcare to infrastructure to clean energy and national security. The US mining industry also is one of the safest and most environmentally responsible mining industry in the world. The demand for critical minerals is only growing as technology evolves; mining will be instrumental in our transition to green energy— and wouldn’t you want resource d ev e l o p m e n t t o o c c u r i n a n a re a that has one of the highest levels of environmental protection and worker safety regulations in place? That’s why I think mining should happen right here, in our backyard, where we know that we’re doing it right.
But everything goes through all the right agencies before receiving approval. We are always looking as far out as we can about what solid evidence we need to provide for permitting and evaluating whether or not we really have a grasp on what our impact will be. We don’t know all the answers, and we don’t have a magic ball that lets us see the other side of production. So we produce our best estimate, based off what we know we have, and then we ask for a little extra so we can see where we could go next and know whether it’s feasible. AB: How would you respond to criticisms that come with being in the mining industry? Beebe : T h e m i n i n g i n d u s t r y a s a whole has a lot of past transgressions, but mining companies like ours are doing the best we can to avoid new transgressions. Of course, there is no way to control everything, and there are unknowns about what we can do and will happen. But what we can do is identify what could happen, find solutions, and then be ready to improvise.
Hecla Mining Company
AB: Is Hecla looking into any new Alaska mining ventures? Beebe: Based on our understanding of the geological structures we work with and the mineralization, there are good chances nearby deposits exist. The question is, are they adjacent, findable, accessible? Extending a mine is easier and safer, when you already have a presence, than trying to start somewhere new.
AB: Hecla has special permission to mine silver from the Admiralty Island National Monument. What are some recent permitting issues at Greens Creek Mine? K y l e B e e b e , Te c h n i c a l S e r v i c e s Manager, Hecla Mining Company: We just received permitting for the expansion of a facility two months ago, and now our challenges are related to public perception. Specific applications raise different concerns, like creating airborne dust, causing contamination, or spilling materials—and these ones are always brought up with any expansion or production project. Typically permitting involves samples. Water, air, and ground impacts. Cleared timber. Stuff like that.
AB: Any last words? B e e b e : U n f o r t u n a t e l y, i t d o e s n ’ t matter what recycling technologies are produced. We’ l l n ev e r g e t t o a place where everything is recyclable. E v e r y t h i n g j u s t ev e n t u a l l y w e a r s out. Certain nece s s a r y m i n e ra l s a n d m a t e r i a l s ox i d i z e , r u s t , w e a r away, and are dispersed back into the environment. They ’re finite resources, and we can’t just get m o re . S u re , i f w e w a i t m i l l i o n s o f years, the formation of new deposits b e i n g p ro d u c e d by t h e e a r t h w i l l happen. So now, we need to maximize what we have access to, and that requires more permitting.
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Alaska Metal Mines Renamed council
connects Alaskans with metals producers By Alexandra Kay
68 | November 2023
A
fter more than thirty years o f a d v o c a c y, t h e t ra d e organization representing large metal mines in Alaska has a new name. The Council of Alaska Producers is now called Alaska Metal Mines. Created in 1992, the group works t o i n s p i re A l a s k a n s t o realize a shared goal of safe and sustainable mineral production, providing economic and social benefits to the state and local communities. A new branding campaign will showcase how Alaska can play a greater role in providing metals and minerals that advance the human experience. “Alaska’s approach to mining is world class, smart, and responsible, and our goal is to connect with Alaskans and share how our natural re s o u rc e s n o t o n l y b e n e f i t o u r daily lives but make the impossible p o s s i b l e , ” s a y s K a re n M a t t h i a s ,
Alaska Business www.akbizmag.com
Sharing Facts
AKM advocacy involves ongoing efforts focused on connecting Alaskans with accurate information about the state’s tremendous mining potential and sustainable approach to mining that is uniquely Alaska. Sharing this information with the public, policymakers, and other stakeholders helps to counter misinformation about mining and is essential to maximizing the benefit of Alaska’s resources for all Alaskans in a responsible manner. AKM’s advocacy also provides the opportunity to show how mining is foundational to future technologies in transportation, medicine, infrastructure, renewable energies, and a green economy. “From exploration to production and reclamation, mining projects in Alaska are held to the highest federal, state, and local standards,” says Matthias. “By sharing facts about what the industry is doing to meet or exceed those standards, Alaskans will see that responsible www.akbizmag.com
NATUR AL RESOURCE DEVELOPMENT
executive director of Alaska Metal Mines. “Rebranding from Council of Alaska Producers to Alaska Metal Mines p rov i d e s a n o p p o r t u n i t y t o m o re clearly communicate our focus and who we are.” Alaska Metal Mines (AKM) is the c o l l e c t i v e v o i c e o f A l a s k a’s m e t a l mines. The association has twelve members, including Coeur Alaska, Hecla Mining, Kinross Alaska, Northern Star Resources, Teck Resources, Donlin Gold, NANA, NOVAGOLD, International Tower Hill Mines, Constantine Mining, Pebble Limited Partnership, and the nonprofit representing the broader mineral industry, the Alaska Miners Association. AKM advocates for responsible resource development in Alaska in partnership with its members and other natural resource, business, a n d c o m m u n i t y o rg a n i z a t i o n s . A l l twelve members are actively involved in prioritizing and guiding AKM’s outreach and advocacy efforts. “Our focus is not company or project specific,” says Matthias. “Instead, Alaska Metal Mines promotes a comprehensive understanding of the importance of mining in Alaska and the associated benefits for the state, local communities, and Alaskans.”
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“Mining projects in Alaska are held to the highest federal, state, and local standards… By sharing facts about what the industry is doing to meet or exceed those standards, Alaskans will see that responsible development is possible and sustainable.” Karen Matthias Executive Director Alaska Metal Mines
70 | November 2023
development is possible and sustainable.” Additionally, AKM provides testimony and comments on legislative and regulatory actions. The association also advocates for the state to attract and retain skilled regulators to work efficiently and always uphold Alaska’s high standards for its mining industry.
Digging for Miners
The Alaska Department of Labor and Workforce Development counts about 4,000 people employed by the “Mining and Logging” industry sector, not including 7,400 workers in the Oil & Gas subcategory. Those mining employees include about 200 loader operators at underground mines, 140 dragline operators at surface mines, and 40 explosives experts, according to the US Bureau of Labor Statistics. In employment terms, the mining sector was relatively insulated from any downturn during the COVID-19 pandemic, in the view of the state’s senior labor economist Neal Fried. He told the Resource Development Council that Alaska came out of the pandemic in “generally pretty good” shape, with unemployment as low as ever while incomes continued to grow. However, Alaska is taking longer than any other state to recover to its preCOVID economy. Fried blames that lag on two main factors. One is a lack of momentum coming out of a statewide recession driven by the 2014 oil price crash. The second is a worker shortage most directly attributable to Alaska’s aging population. Fried recalls that Alaska’s population s w e l l e d i n ‘ 7 0 s a n d ‘ 8 0 s a s B a by Boomers migrated to the state, and now that cohort is aging out of the workforce. They are taking their skills and experience with them, and younger people are not entering the industry fast enough to replace them. Alaska’s population also shrank in recent years due to net out-migration. Fried notes that Alaska has the fastest population turnover of any state. The 10 percent moving in or out every year outpaces next-place Wyoming, Nevada, and Hawaii. Such a churn wouldn’t be much of a problem except that mobility is lower than ever nationwide; fewer people are choosing to move anywhere, so they ’re not coming to Alaska.
Thus, even though the mining industry has plenty of work to be done, Matthias notes that bodies to fill those jobs are in short supply. “The problem is really bigger than any one industry,” she says. “People are leaving the state, and they’re not leaving because there are not good jobs available; they ’re leaving because they want to live somewhere else.” Matthias suggests that communities should take action to make Alaskans want to stay.
Tomorrow's Innovations
AKM recently launched a public awareness campaign during its annual Mining Day at the Alaska State Fair. It will be an ongoing effort that emphasizes how mining is foundational to future technologies. Metals and minerals like those found in Alaska play critical roles in these endeavors and will help to define the world of tomorrow. “From autonomous, electric vehicles that make transportation more efficient to modern prosthetics that improve quality of life, metals make tomorrow’s innovations possible,” says Matthias. “ We h a v e s o m a n y ex a m p l e s t h a t demonstrate the importance of mining in our daily lives, and we’re excited to share these with Alaskans.” The campaign will also spotlight the role of metals in achieving a sustainable climate. Metals like copper, graphite, zinc, and silver are crucial for the development of renewable energy technologies, such as wind turbines, solar panels, and electric vehicle batteries. By providing these essential materials, Alaska can support the global transition to cleaner and more sustainable energy sources. Alaska sets the global standard for responsible management of its lands and natural resources. A robust regulatory system ensures that appropriate environmental safeguards and responsible business practices are in place so that the benefits are realized while minimizing environmental impact. "We are reaching out to Alaskans to listen to their ideas and concerns and provide accurate information about mining," says Matthias. “Our hope is to strengthen public and community support for projects that will bring economic and social benefits while safeguarding the environment, workers, and local communities.”
Alaska Business www.akbizmag.com
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Representing Diverse Concerns Q&A with
Resource Development Council for Alaska Executive Director Leila Kimbrell By Tasha Anderson
Kerr y Tasker
NATUR AL RESOURCE DEVELOPMENT
R
72 | November 2023
esource Development Council for Alaska (RDC) Executive D i re c t o r L e i l a K i m b re l l w a s born and raised in Alaska, growing up on the Kenai Peninsula on the family homestead. Her grandparents were small business owners that often involved themselves in local chambers o f c o m m e r c e ; h e r g r a n d f a t h e r, specifically, got involved in politics around the time Kimbrell was entering high school and considering her future, and his involvement “started piquing my interest,” she says, in governance and policy. It helped set her on a path to graduate from UAA with a focus on law and policy before going on to law school at Willamette University College of Law. A f t e r l a w s c h o o l , K i m b re l l h e l d alternating positions in legal private practice and working for US Senator Lisa Murkowski, which focused much of her professional attention on Alaska’s resources and lands. This education and work experience combined with her personal experience of how important natural resources are to Alaska is what attracted her to apply to be the executive director of RDC for Alaska when the position opened about two years ago. “[Natural resources] almost define who we are in Alaska,” she says. “When we became a state, the agreement w i t h t h e f e d e ra l g ov e r n m e n t w a s that we would rely on monetizing our natural resources to help provide essential government services. You can see how important these industries are to our economy. You have to use what you have in your back yard, and we have a lot of natural resources available to us.” In the following Q&A, Kimbrell talks more about the importance of RDC for Alaska’s work in supporting natural resource development in the 49th state. Alaska Business: RDC defines “natural resources” more broadly than other organizations might. What’s included under RDC’s umbrella of “natural resources”? L e i l a K i m b re l l : R D C 's m i s s i o n i s growing Alaska through the responsible development of our natural resources. We represent five key industries, and it makes us quite diverse. We have mining
Alaska Business www.akbizmag.com
AB: We have far more people who visit here than even live here. Kimbrell: Exactly. So we look at tourism as a natural resource in those ways. And of course [mining, oil and gas, fishing, timber, and tourism] doesn't include all of the resources we have. People looking to other technologies for energy production, whether it's h y d ro p ow e r, s o l a r, o r w i n d , a n d how those resources are providing opportunities around the state to help lower energy costs. How those technologies can help support or resource development projects around the state—especially in our remote areas—is certainly something that we have to think about. AB: Do you also advocate for those kinds of projects, or is that something you’re considering to make part of your mission in the future? Kimbrell: It's something that RDC is looking at, especially as we grow. Many of our members use those forms of technology to help reduce energy costs depending on where the project is located: Southeast obviously relies on a lot of hydro power. And as more micro-grid technologies come online, providing a more reliable form of energy in areas that are remote or don't have a reliable source of energy, that's key to every single development project for all of our members. www.akbizmag.com
NATUR AL RESOURCE DEVELOPMENT
and oil and gas—as you would naturally assume—and then we have timber, fishing, and tourism. We have a seventy-eight member board, and we have more than 700 members, and that brings a lot of diverse views to the table as we look at Alaska as a whole. That's been the goal of RDC: how do we all work together to make Alaska a place that we all want to live, and work, and play. That makes for a unique and diverse organization, and we don’t always have agreement but we do more often than you might think. Some people might ask, "Well, how does tourism fit into our natural resources?" thinking of traditional natural resources, stuff t h a t c o m e s o u t o f t h e g ro u n d o r timber that you harvest. When we talk about tourism, we're talking about our human resources and also our scenic resources.
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“We can't keep Alaska in a little snow globe. It's nice for folks outside of Alaska who may not understand our mission to think about just keeping us nice and pure as the snow is white, but that's not realistic, and it doesn't actually align with the record that we have on the environmental side.” Leila Kimbrell, Executive Director, Resource Development Council for Alaska
AB: You do have a diverse group of members and industries that you represent, and as you mentioned they don't always agree on the best path forward. So how do you, in your role, navigate supporting your members if they are on opposite sides of an issue or a project? Kimbrell: We are run by a board, and the board will make a decision on whether there's a policy position or something that RDC takes a public stand on. When the board can't find alignment on a project or an issue, we may not have a public position.
74 | November 2023
Ultimately what we focus on is the process: when our member projects are going through the permitting a p p l i c a t i o n p ro c e s s , w h e t h e r i t 's through the federal or state agencies, we advocate for a fair and consistent process. We may not have a position on a specific project, but we're always going to advocate that everybody gets their fair shake at the agency level. The Willow Project is a recent example of lots of people coming together to advocate for a fair process at the federal level. Whether our members personally supported Willow or not, the fact that
it had gone through so many years of permitting, and back and forth, and back and forth, we really saw a diversity of different groups coming out and saying, "We want a fair process for the North Slope." AB: We’ve seen similar policy problems for other projects, such as the Pebble Project or the Roadless Rule in Southeast. Kimbrell: Right, the repeal of the Roadless Rule for Alaska. That really isn't about timber harvest; under the current management plan that the US
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a b o u t re a s o n a b l e a c c e s s s o t h a t Alaskans can responsibly develop our natural resources and support local jobs and communities. AB: Beyond access to resources, what other obstacles or challenges are your members facing? Kimbrell: Ma n y o f o u r m e m b e r s s t i l l h a v e l a b o r c h a l l e n g e s . I t 's a numbers game; we just don't have enough workers in Alaska. What can we do to help attract people to remain in Alaska, get their training here, get their education here? There's a l w a y s a c o n v e r s a t i o n happening around workforce development and addressing the labor needs for our companies. As an example, a bright spot but also a challenge, is—with the excitement of the Willow Project with ConocoPhillips and the Pikka Project with Santos— there's a lot of activity and a lot of optimism about what 's happening on the North Slope right now… When those projects come online, some have talked about it being similar to the TAPS (Trans Alaska Pipeline System)
construction era of the ‘70s in terms of worker needs. That’s great news for Alaska, but again, where will all those workers come from? On the minerals side, there has been a lot of focus and conversation on critical minerals and where Alaska's role is in that development. Alaska has a lot of these minerals. It is good to see the Biden administration focusing on critical minerals for the clean energy transition, as well as our nation's national security and energy independence. However, a challenge we face with in permitting. While the Biden Administration says it wants these minerals prioritized domestically, the permitting agencies are continually blocking or delaying good projects like Pebble and the Ambler Access Project. And what will that mean with the current geopolitical landscape that we have? This inconsistent message isn’t good for our domestic security. AB: Speaking of that landscape, one of the things I find interesting about our current administration are those policies promoting mineral development, but
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Forest Service has in place, reinstating the Roadless Rule tomorrow is not going to impact the current harvest levels that are set forth in that management plan. But what this is about, for Alaska, is access to our other mineral resources, it's access to cheaper forms of hydroelectric energy power (compared to diesel g e n e ra t i o n ) . We 're t a l k i n g a b o u t maintenance roads: limited, restricted access. Someone mentioned to me the other day that, currently, some of the maintenance on electrical transmission lines has to occur by helicopter, because you can’t get an access road in the Tongass with the current restrictions. This isn’t realistic. That's long been a challenge Alaska has had with the federal government. So RDC continues to advocate for those reasonable opportunities. When you look at the 16 million-plus acres that is the Tongass National F o re s t , a n d t h e n y o u l o o k a t t h e communities in Southeast, we're not talking about clear-cutting; we're not talking about building an interstate superhighway system. We're talking
NATUR AL RESOURCE DEVELOPMENT
then there seems to be a persisting idea that Alaska is pristine and shouldn’t have any additional development. Have you felt any of that tension as you've worked with the administration? Kimbrell: Ye s , I would agree with that, and at times it 's been quite frustrating. On the one hand, we're getting messages out of the Biden A d m i n i s t ra t i o n t h a t w e want to promote domestic mineral production—they are adopting policies to even expedite that, adding to the critical minerals list— and then on the other hand we see projects in Alaska where the permitting process is almost getting reversed. Looking at some of these areas where Alaska could support our nation's critical mineral needs, the Ambler Access P ro j e c t i s a g re at example. That 's been delayed in its permitting for years, and so that's really a frustration. Watching the first ever preemptive veto of a project by the EPA—the Pebble Project—sets a dangerous precedent. I t ’s f r u s t ra t i n g t o s e e t h e B i d e n Administration prioritize clean energy technologies, like battery storage and
electric vehicles, only to watch them p u r s u e t ra d e a g re e m e n t s f o r t h e minerals necessary to produce these technologies with other countries. Alaska checks the list for every mineral listed on the critical minerals list, along with rare earth elements, plus gold, silver, and copper. We are also very frustrated by the Administration’s recent announcements to cancel the leases in ANWR and further restrict oil and g a s d ev e l o p m e n t i n t h e N a t i o n a l Petroleum Reserve–Alaska. We are monitoring those decisions and will be submitting comments, but when you look around the world with the events happening with Russia’s war on Ukraine and now the attack by Hamas on Israel—why is our federal government locking up our opportunity to produce resources vital to our national security and energy independence? It sends the wrong signal to the world. We can't keep Alaska in a little snow globe. It's nice for folks outside of Alaska who may not understand our mission to think about just keeping
u s n i c e a n d p u re a s t h e s n ow i s white, but that's not realistic, and it doesn't actually align with the record that we have on the environmental side. Alaskan projects are held to some of the highest environmental standards compared to anywhere else in the world, and even within our own country. We see differences between operations in the Lower 48 versus operations here in the state. We have excellent labor standards and labor protections, in addition to those high environmental standards, so why wouldn’t we want to have responsibly developed resources right here? Cobalt is a great example: look at what’s happening in the [Democratic Republic of the] Congo where there are no labor standards. Children as young as three years old are known to be working in those mines with no health and safety protections. When you look at the health record, the labor record, and our environmental re g u l a t i o n s t h a t w e a l l a g re e t o , you won't find anyone in Alaska that disagrees with doing something in a responsible way.
We are Donlin Gold. We are an Alaska Native project. We are invested in the prosperity of the people of the Y-K region.
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This year, our theme is “Alaska’s R e s o u rc e s : L e a d i n g t h e Wa y. ” I ’m excited for this year’s theme as we focus on Alaska’s role in the future of critical minerals, new technologies, responsible resource development on a national and international scale and how we are leading the way on several fronts, including with our community and Alaska Native partners. AB: With that big picture in mind, what priorities or goals does RDC have to advocate on behalf of your members? Kimbrell: Each year our board comes together and identifies its policy priorities for the year. They frequently and consistently focus on keeping a reliable tax structure in place, making sure local and state governments have responsible budgeting and balanced budgets before looking to new sources of revenues. Frequently what impacts our members the most is when the state starts talking about changing tax policy. We will stay focused on that, especially with the introduction of new oil tax legislation this past session. It didn't pass this year, but we know it's
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still on the table and may come back to us in January. The real issue when these conversations take place at the policy level, it changes the investment climate in terms of certainty and predictability. When investment climate chills, then we potentially lose revenues because lack of investment means no development. No development means no jobs or revenue generation. It’s a careful balance. Another priority that we have is to reform the state initiative and referendum process. This has been a priority for RDC for a number of years as we see cases come out of the Alaska Supreme Court where we think the court got it wrong and muddied the waters. To be clear, this is not an effort to do away with the initiative process, because that's an important part of our democratic system. However, there are improvements that can be made to bring certainty and add clarity to some of those previous court decisions. There have been a couple of legislative proposals in the past that we have supported in that regard and we will continue to work on in the future.
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NATUR AL RESOURCE DEVELOPMENT
AB: Switching topics, in addition to investing in Alaska, RDC invests in its own annual conference. What’s the value that you continue to see in hosting this conference year after year? Kimbrell: That 's a great question, because normally it 's asked in the reverse: " Why should I invest in your event?" This is going to be our forty-fourth annual Alaska Resources Conference [November 15-16], which is Alaska's largest natural resource focused conference. Last year we had more than 800 registrants. In part, it's that networking opportunity for those who attend our conference to be exposed to more than just the industry they ’re focused on, to hear all the industry updates. And coming back to this theme I mentioned earlier, it’s an example of how we all work together and how we all need each other to have that diversity that ’s going to create a strong economy for us. Forty-four years and running, it ’s just an awesome opportunity to see what’s happening in our resources industries.
ENGINEERING
Developing People In-house engineers at Alaska’s mines
Kinross
By Sarah Reynolds Westin
E
very stage of a mine’s lifecycle is impacted by engineering. As a result, companies that own and manage mines often employ teams of technical services employees, which include in-house engineers to design, maintain, and improve essential infrastructure. “Our technical team is quite small—about ten people,” says Stephen Ball, general manager at Coeur Alaska’s Kensington Mine, “but that is great for young engineers coming into the field. They get lots of mine site opportunities and aren’t pigeonholed.” At most mines, the work of in-house engineers follows the mine’s lifecycle and, accordingly, divides into three areas: short-range, mid-range, and longrange planning. While planning falls under the scope of a mine engineer’s duties, everyone on the mining company’s technical services team contributes their expertise for the mine site’s success. Short-range planning tends to study the longrange plan to figure out where the mine is right now in relation to it. These engineers determine where the mine site needs to be in the next two or three weeks to stay on schedule, adjusting operations to slow things down or speed them up.
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Mid-range planning often involves supervising staff because these engineers are reviewing and c o o rd i n a t i n g t h e o t h e r p l a n n e r s ’ d e s i g n s . P e o p l e d o i n g m i d - ra n g e planning often develop a well-rounded approach to mining, which helps them become better engineers and leaders and grooms them for certain positions in the company. Long-range planning doesn’t usually offer the same mobility as mid-range planning because engineers in this role are looking at the mine’s future from one year out until final closure. They track costs, efficiencies, what-ifs, and successes. They evaluate what the mine can do better and what it could— or should—go after. These findings are integrated into mine sites’ official land statements, which go into technical reports and influence other areas. These engineers might even work on more esoteric projects—sky’s-the-limit possibilities that the mine might not actually build. However, this work is valuable because it informs processes and procedures that allow mines to increase efficiency and, thereby, become more successful. In all instances, once ore has been identified and quantified, owners of the resource move to permit and plan operations and production. The short-, mid-, and long-range planners evaluate economic and environmental approaches, design pits, and estimate extraction rates based on the geology. Their plans account for time frames from as short as one week to five years. To implement these plans, drill and blast engineers help make the ore accessible, and project engineers assist with permit compliance and infrastructure needs.
planners as well as drill and blast experts. Technical services teams also include mechanical engineers. Other disciplines may also have full-time representation in mining companies, including civil, metallurgical, and electrical engineers. Although environmental scientists and geologists are not engineers, those positions are regularly staffed as well. Surveyors are often on the teams, too, since they offer engineers and applied scientists a different perspective, which helps everyone make better decisions. A
solution might look good on paper, but ground conditions complicate or prevent it from being feasible. With these experts working together, technical services teams provide many types of designs and processes. “Water management is a big factor and includes mechanical engineering: piping, pumping, all that sort of stuff,” says Tyler Bruce, project director with Kinross Gold, who oversees the in-house engineers developing the Manh Choh mine near Tok. “Every mine also needs power 24/7, which involves electrical
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Experts Working Together
At some mining companies, technical services teams are divided into two groups: project engineers and mine engineers. Other mining companies blend both together. Either way, the results are similar. Project engineers design and maintain capital a n d o p e ra t i o n s p ro j e c t s , s u c h a s incorporating fact-based decisionmaking, expanding waste rock storage sites, adding booster sites for capacity, and managing risks. Mine engineers serve as short-, mid-, and long-range www.akbizmag.com
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engineering. But not only do we need the lights on, we need to use power in an efficient way—which is one small part of our environmental awareness.” Bruce says Kinross Gold aims to g o b ey o n d m e re c o m p l i a n c e w i t h permits. “We must use the land with integrity. Our engineers help there too. On top of all that, the projects each have day-to-day, week-to-week, and year-to-year aspects. Our in-house engineers design those solutions as well,” he says.
Outside Perspective
The technical services team at Kensington Mine is a great place for engineers early in their careers to gain experience in the mining field. Coeur Alaska
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To supplement in-house engineers’ efforts, companies sometimes contract with engineering consultants. “Having engineers on-hand lets us improve our processes, operations, and production,” says Bruce. “Consultants serve a necessary role, but we just grab them when we need them.” Companies generally bring on consultants in two scenarios. First, if the mine needs specialized engineers with disciplines involving permitting, environmental concerns, and air or noise pollution to provide reviews or
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designs for work in areas out of the technical services team’s scope. Second, expansion projects often mandate that mining companies outsource 100 percent of those engineering services since this work surpasses their steadystate staffing. “Our in-house technical team is well-staffed and maintained,” says Kyle Beebe, technical services manager at Hecla Mining Company’s Greens Creek Mine, which includes about thirty engi n e e r s , g e o l o g i s t s , and surveyors. “But sometimes work exceeds our abilities to manage o u r d a y - t o - d a y t a s k s a n d c u r re n t underground projects or is very large and beyond our norm. Then we take it outside to consultants.”
Clockwise, from left: engineering interns at Kensington Mine; their engineering superintendent; the technical services team gains on-the-ground (or rather, underground) experience; and a mine engineer who helps with the safe and efficient production of gold north of Juneau. Coeur Alaska
People as a Resource
Even though technical services teams of in-house engineers represent only a small portion of the companies’ employment footprint, licensed engineers are scattered throughout every department. For instance, they often have jobs in maintenance, supply c h a i n s , c o n t i n u o u s i m p rov e m e n t ,
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Mine engineering is its own discipline, yet technical services teams at operations like Fort Knox Mine also draw on the skills of mechanical, electrical, and civil engineers. Kinross
management, and leadership. While they may no longer practice engineering, their insights guide the mines and employees. “Development of people is critical in mining,” says Bruce. “People often think of us as natural resource developers—and we are—but our commitment to develop our employees defines our work.” Because so many leaders and managers in mining companies are licensed engineers, they mentor upand-coming technical services team employees and review their designs. At Kensington, Ball says, “We often assign technical service employees t o u n d e rg ro u n d s h i f t s f o r t w o t o three months so they are exposed to conditions. They come up better understanding the challenges of mine.” Ball notes that cross-training increases efficiency while providing e m p l oy e e s w i t h o p p o r t u n i t i e s t o 82 | November 2023
learn new skills and prepare to advance in the organization. Like Coeur Alaska, Hecla also incorporates other departments’ and divisions’ insights into their technical service solutions. “We coordinate with the operations group in terms of trying to reach our annual targets, assessing what ’s left to mine, and predicting what the next year will be like,” Beebe says. “ We’re constantly looking for re f i n e m e n t s a n d i n t e r f a c i n g w i t h operations to keep plans in line.” Many mining companies—including Coeur Alaska, Hecla Mining Company, a n d K i n ro s s G o l d — h a v e a h e a v y emphasis on hiring local residents. The companies have learned that when employees grow up and live nearby, they take the environmental and economic impacts much more seriously. For instance, currently 99 percent of the people who work at t h e K i n ro s s G o l d F o r t K n ox M i n e
are from the Interior. Many of them toured Fort Knox Mine during their elementary education—a tradition still offered today. “Alaskans know the areas and what’s at stake,” Bruce says. “Their families, friends, and networks are here. They recreate here. They want our mines to be safe, efficient, and economical. They’re committed to returning the land to its pristine condition. Plus, the mining companies get the benefit of them remaining employed with us longer. Everyone wins.” Each type of mine—zinc, lead, copper, gold, silver, or coal, as well as construction materials (such as sand, gravel, or rock)—requires customized engineering designs. The locations for each deposit call for attention to regional, geological, environmental, and economic sensitivities, and it’s the job of in-house engineers to keep all those factors in mind.
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Dimitra Lavrakas
R E TA I L
A Metal Umbrella Sheltering wealth through gold and silver traders
G
old rushes of the late 1890s swelled Alaska’s population by about 26,000, nearly an eightfold increase during the decade. Men and women left their homes and families to seek a shiny metal due to economic insecurity. In 1873, the United States tied p a p e r m o n ey t o a g o l d s t a n d a rd , w h i c h l e d t o g o l d d o l l a r s ra p i d l y increasing in value ahead of paper currencies, and people began to hoard them. Within a couple of decades, a series of economic recessions and bank failures led to the Panic of 1893 and 1896, causing unemployment and financial uncertainty. At the time, some argued for re e s t a b l i s h i n g a s e c o n d m e t a l l i c monetary basis using more abundant silver. That political argument failed, partly due to the adoption during the 1890s of the cyanide process of extracting gold from low-grade ore. US currency has been completely severed from gold since 1971, but the metal still has market value as a n i n v e s t m e n t c o m m o d i t y. G o l d and silver have the peculiar quality of retaining value by virtue of their existence; whether tarnished or 84 | November 2023
By Dimitra Lavrakas reshaped, the elements themselves are all that matters. The everlasting luster that made the metals precious throughout history is also appealing to present-day traders looking for a solid form of wealth.
In Times of Trouble
“ W i t h t h e b a n k f a i l u re s l i k e t h e Silicon Valley Bank, it led to a panic nationwide,” says Jerry Cleworth, coowner with Richard Hanscom of Alaska Rare Coins in Fairbanks. T h e F e d e ra l D e p o s i t I n s u ra n c e C o r p o ra t i o n ( F D I C ) a n n o u n c e d i n March it had entered into a purchase and assumption agreement for all deposits and loans of Silicon Valley Bridge Bank, N.A. by First–Citizens Bank & Trust Company of Raleigh, North Carolina. In its report, the FDIC said it will reexamine how it regulates larger regional banks such as Silicon Valley Bank, which had more than $200 billion in assets when it failed, although less than the $250 billion threshold for greater regulation. Since the failure, customers are also stocking up on silver, Cleworth says. “The recent panic buying puts
strains on companies that produce products for physical possession, and we sometimes see delays in shipping,” Cleworth says. “Several years ago, we saw delays in silver shipments that took up to four months to fill backorders. Currently, however, the industry has been able to keep up with demand, which is a good sign.” What gold does, he says, is keep fairly steady value through economic upheavals, though there can be exceptions. “In January 1980, gold peaked at $850 [per ounce] then did nothing for twenty years,” he says. “In the ‘90s, gold went below $300.” In 2019, the price of gold increased by 18.8 percent, in 2020 it went up 24.4 percent. The years 2021 and 2022 were slower for gold, with the perounce price falling by 3.5 percent and 0.2 percent. “The gold price, like other commodities, has generally moved up in the long term due to the inflation of our currency,” says Jack Jensen, owner of Alaska Bullion & Coin in Soldotna. “Gold is historically considered a store of value over the long run and is sought after during times of economic uncertainty.”
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In July, the Alaska Department of Labor and Workplace Development’s Alaska Economic Trends magazine reported the Commodity Exchange, Inc.—the primary futures and options market for trading metals s u c h a s g o l d , s i l v e r, c o p p e r, and aluminum—showed gold at $1,947.70 an ounce and silver at $23.02 an ounce in June. “ I t h i n k t h e b i g g e s t re a s o n t h a t gold has risen in value over the last few years is that people around the w o r l d a re i n v e s t i n g a s a w a y to hedge against inflation,” says Mike Robuck, who runs Alaska Mint in Ancho ra g e a l o n g w i t h h i s w i f e Michele and their children.
Rich with Mines
Some gold and silver retailers make their living by trading with Alaskans who, to this day, extract wealth from mining claims around the state. “We buy raw gold from many local miners around Alaska and the Klondike that we make into jewelry or sell as specimens,” says Robuck. “ We are celebrating thirty-two years at Alaska Mint this year, as well as being in a family-owned business since the '60s, so we have long relationships with many miners.” On occasion, store owners go to the mines, small or large. “I have visited Fort Knox mine years ago,” Robuck says. “It is a big, interesting place.
Local miners come into our shop. And when we can get a break out of the shop, we visit local mines in the state.” For Jensen, his products come from other sources. “We acquire gold and silver, mainly in bullion form, from dealers throughout the country as well as local folks selling to our shop,” Jensen says. “We do not refine or mint any precious metals in store.” Some metals come from scrap metal like jewelry, which Lee St. Pierre, owner of Gold Buyers of Alaska Assaying & Refining in Eagle River, will accept, but St. Pierre will not deal with mortuary gold. It means sifting through human ashes, and he finds that morally repugnant.
“I think the biggest reason that gold has risen in value over the last few years is that people around the world are investing as a way to hedge against inflation.” Mike Robuck, Co-owner, Alaska Mint
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Ways to Invest in Precious Metals
“Gold is historically
Bars The most traditional way of investing in gold or silver is by buying bullion bars. Bars are available in 1-oz., 10-oz., 100-g, 1-kg, and 400-oz. bars. Bars generally carry lower price premiums than bullion coins. However, larger bars carry an increased risk of forgery because their appearance is not strictly controlled. While bullion coins can be easily weighed and measured against known values, most bars cannot, and buyers often have bars re-assayed. There are also gold and silver wafers, which are a much smaller bullion, usually 1 inch by 11.8 inches.
considered a store of value over the long run and sought after during times of economic uncertainty.” Jack Jensen, Owner, Alaska Bullion & Coin
Coins Silver and gold coins are a common way of owning gold. Bullion coins are priced according to their fine weight, plus a small premium based on supply and demand. The fineness of a precious metal is the weight of the fine metal in the coin in proportion to the total weight, which might include alloying base metals such as iron, nickel, lead, zinc, and copper. Numismatic coins are priced mainly by rarity, condition, and demand. The sizes of bullion coins range from 0.1 to 2 troy oz. (3.1 to 62.2 g), with the 1 troy oz. (31 g) size the most popular and available. The South African Krugerrand (1 troy oz. of fine gold) is the most popular gold bullion coin.
Rounds Gold or silver rounds look like coins but have no currency value. They range in similar sizes as coins, including 0.05 troy oz. (1.6 g), 1 troy oz. (31 g), and larger. Gold and silver rounds usually do not have additional metals added to them for durability. They do not have to be made by a government mint, which allows the gold rounds to have a lower overhead price as compared to gold coins. Rounds are normally not as collectible as coins.
Other Forms of Investment Gold and silver exchange-traded products include exchange-traded funds (ETFs), exchange-traded notes, and closed-end funds, which are traded like shares on the stock market. Some ETFs own silver mines. This diversified exposure has lower risk than owning one or two mining stocks, which can also be purchased. Gold and silver exchange-traded products represent an easy way to gain exposure to the gold or silver price, without the inconvenience of storing physical bars. Certificates allow gold and silver investors to avoid the risks and costs of transferring and storing physical bullion by taking on a different set of risks and costs associated with the certificate itself (commissions, storage fees, and various types of credit risk). Many types of gold and silver “accounts” are available. Different accounts impose varying types of ways to link the client and their metal of choice. One of the most important differences among accounts is whether the metal is held on an allocated (fully reserved) or unallocated (pooled) basis. Unallocated accounts are a form of fractional reserve banking and do not guarantee an equal exchange for metal in the event of a run on the issuer's gold or silver on deposit. Derivatives (such as gold or silver forwards, futures, and options) trade on exchanges around the world and over-the-counter directly in the private market. In the US, gold futures are primarily traded on the New York Commodities Exchange. These are fairly complicated investment avenues, so best to consult an expert for advice.
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He prefers to deal with miners working within the Tintina Gold Province, which extends in a broad arc from Southeast Alaska through British Columbia and the Yukon, into Interior and Southwest Alaska. “I get it from several different sources, but about 90 percent off the Yukon,” says St. Pierre. To invest in gold and silver, many assayers and refiners in Alaska sell all forms: bars, coins, wafers, and rounds. Assaying is testing a metal to determine its purity, and refining takes an object consisting of any percentage of gold or silver to make a final product of only pure metal. “Gold varies in assays, some 75 percent to 93 percent and some as much as 96 percent pure,” says St. Pierre. His advice to would-be investors: “Shop around if you don’t like what one place offers—assays can vary.”
The Lure of Precious Metals
“I grew up in Alaska and loved the history of the gold rush,” says St. Pierre. “I’m a jeweler by trade, and when things got tight in 2010 and 2011, I started dealing in scrap gold,” he says. The glitter also drew in Robuck. “What really attracted me to it is the same thing that attracted all of those miners to the Klondike: the love of the sparkle in gold,” he says. “There is great satisfaction in taking a raw piece of gold, adding in some sparkling precious stones, and creating custom designs for our customers. Working one-on-one with the customer to create the perfect piece for them is really satisfying.” His family has a history of dealing in metals in many forms. “My parents moved up to Alaska in the mid-‘60s when I was four years old [and] they opened up their own jewelry store,” he says. “My brothers and sisters and I were raised in this business, and most of us decided to make it our career. That’s how I got started.” Jensen has a family stampeder connection. “My ancestors immigrated to the United States through San Francisco in the early 1850s and the California Gold Rush,” he says. “I have been interested in gold since a young age, collecting coins, both silver and gold. Later on in life, I have pursued courses in history and economics with an emphasis on real money (specie).” For Cleworth, his father put an 1887 nickel in his hand when he was in third grade, and from then on he was hooked. He recalls, “I just found one coin to be fascinating and wondered about the history of it and became a coin collector, but I didn’t know it would be a profession later.”
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ANCHORAGE FAIRBANKS
King’s Hardwood Supply
SMALL BUSINESS
Making Hardwoods Easy Joining crafters and carpenters with specialty wood By Terri Marshall 88 | November 2023
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rom cradles to coffins, railings to railroad ties, and canoes to charcuterie boards, wood finds its way into all types of designs. Hardwood retailers provide expertise about the qualities and characteristics of various woods and supply the necessary wood and tools for woodworking at every level, from hobbyists to professional contractors.
Becoming Superior
Jack Utton grew up in Vermont, where the autumn colors fueled his passion for trees. He studied forestry at the University of Maine and worked as a county forester for ten years in Wisconsin. He brought that knowledge to Fairbanks and started Superior Hardwoods in 1983. It has the distinction of being Fairbanks’ first business specializing in the sale of fine-quality hardwoods. Utton, who also worked as the director of natural resources for the Tanana Chiefs Conference, stocked typical hardwoods such as white oak, red oak, cherry, and hickory, and he also brought in exotic
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woods such as lignum vitae and ebony. Lignum vitae was used by the US Navy and shipbuilders to build underwater bearings that line the propeller shafts of submarines and steamships, and hickory and white ash are the hardwoods of choice for crafting dog sled runners. Alaska birch was also part of the starting line-up and continues to be a favorite of locals today. Most of Superior Hardwoods’ business comes from the local community, but bush orders come from as far away as Valdez and Kotzebue at times. When Utton owned the store, he ordered most of his hardwoods by the truckload from Wisconsin—because of his work in that state, his familiarity with Wisconsin’s forests and lumber mills, and his confidence in the quality of the woods. All of Superior Hardwoods’ lumber is carefully kiln-dried to the proper moisture content. If hardwoods are not slowly air-dried and kilned, they tend to shrink and crack, especially in the low humidity of an Alaska winter. There have been a few owners of Superior Hardwoods, but the longest of them were Rick Kreofsky and Connie Page. When they bought the business in 1996, Kreofsky had more than twenty years of experience in the woodworking and building trades. During their seventeen-year tenure, they added a showroom to the warehouse along with custom milling services. Today the shop on Old Steese Highway features a large sander, jointer, planer, saws, and moulder.
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In 2015, husband-and-wife-team Justin and Nava Christian bought S u p e r i o r H a rd w o o d s . N a v a c a m e to Fairbanks by way of her father ’s military career, and Justin is a born and raised Fairbanksan. “I’ve always wanted to own a business, and I think it came from being a teen and wanting to be my own boss,” Nava says. “I went to the University of Alaska Fairbanks and obtained my business management degree. Justin previously worked as an independent contractor. Our combined experience helps keep the business balanced.” Superior Hardwoods continues to grow under the Christians’ leadership. “We continue to receive business from www.akbizmag.com
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Between the final product and the woodworker who conceived it, hardwood retailers supply material of the proper type and form. Wood is what they live for. King’s Hardwood Supply
hobbyists, but when we took over, we started getting more business from contractors,” Nava explains. “I’ve increased our marketing through online advertising and TV commercials.” The Christians often welcome homeowners considering remodeling along with their contractors to help with the selection of woods they need for their projects. The Christians have added a CNC (computer numerical control) machine to the shop, which can do custom cuts for anything from table legs to shelf pieces. Woodworkers are welcome to come into the shop to use the tools available. “Often woodworkers making items like cutting boards will come in and run the boards through the sander instead of hand sanding,” Nava says. The lumber stocked at Superior Hardwoods is typically grouped into domestics and exotics, with wood sourced from outside the United States being the exotics. Popular among the domestics are maple, hickory, walnut, and cherry ash. “There are a lot of people in Fairbanks that prefer Alaskan birch,” says Nava. “They ’ll trim their
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houses out, add windowsills and more, all in Alaskan birch.”
Anchorage Suppliers
In Anchorage, Hardware Specialties has served the woodworking industry since 1984. The company prides itself on competitive pricing, quality products, and excellent customer service. Hardware Specialties’ warehouse is stocked with a w i d e v a r i e t y o f h a r d w o o d s , e x o t i c l u m b e r, w o o d slabs, turning blanks, wood turning tools, power tools, hand tools, hardware, and more. Hardware Specialties’ lumber stock includes African mahogany, alder, ash, beech, birch, cherry, fir, hickory, Honduras mahogany, knotty pine, lyptus, maple, Philippine mahogany, poplar, red oak, teak, walnut, white oak, and yellow cedar. Inventory also includes butcher block offerings along with plywood, decking materials, and exotic lumber. For bigger jobs, Anchorage also has Pacific Alaska Lumber, supplying lumber and building materials to commercial, government, and industrial
customers throughout North America since 2007. Often the go-to company for contractors, Pacific Alaska Lumber specializes in imported hardwoods in demand for marine piling, railroad ties, structural timbers, and a wide range of architectural uses. Utilizing a network of wellrespected providers of eco-friendly and sustainable hardwoods in Africa, Asia, and South America, Pacific Alaska Lumber specializes in the direct-source shipment of greenheart, purpleheart, mora, ekki, and apitong. These heartwoods are recommended for cabinets, fine furniture, parquet flooring, tool handles, shipbuilding, and heavy construction, among other things. For jobs requiring high-performance products with a high level of cost effectiveness, Pacific Alaska Lumber recommends engineered wood for floor and roof systems, beams, headers, or rim boards for frame construction, noting that these products efficiently use more of the tree while bringing out the best qualities of natural wood. Pacific Alaska Lumber also provides essential services, including submittals,
“We continue to receive business from hobbyists, but when we took over, we started getting more business from contractors.” Nava Christian Co-owner Superior Hardwoods
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fabrication, a variety of wood preservative treatments, and logistics. Pacific Alaska Lumber also produces mats from Pacific Coast softwood timber. The company offers a full range of timber mats, laminated wood mats, and steel framed mats. Pacific Alaska Lumber mats are currently in use for oil and gas exploration, pipeline construction, civil construction, marine construction, and wind power installation, where they protect sensitive terrain from heavy equipment and reduce reclamation costs. Pacific Alaska Lumber’s roots are in wholesale distribution of construction materials nationwide. The company, b a s e d i n L a k ew o o d , Wa s h i n g t o n , has a strong presence in Alaska a n d H a w a i i . E x t e n s i v e ex p e r i e n c e in managing the logistics of getting material to remote jobsite locations makes Pacific Alaska Lumber invaluable for large commercial projects throughout Alaska.
With his home-based shop, Reyes Alvarez is geared toward the needs of hobbyists, and he’s loaded with advice to up their woodworking game. King’s Hardwood Supply
Filling a Valley Void
A long reach is fine for some jobs, but sometimes a community needs a
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local retailer. That’s why Reyes Alvarez established King’s Hardwood Supply in Palmer about five years ago. “The local hardwood supplier retired a n d m ov e d o u t o f s t a t e , ” A l v a rez explains. “The only supplier we had here is an hour away and doesn’t conform to the average customer ’s schedule needs who need to shop a f t e r s t a n d a rd b u s i n e s s h o u r s . I opened the business out of my home, and my weekday hours run from 6 p.m. to 9 p.m., allowing hobbyists to shop after their workday is complete.” The shop on Broadway Drive began with a table saw and a few basic tools and has grown to include multiple services for local woodworkers. Alvarez, with roughly twenty years of woodworking experience, has a fulltime job in addition to running his hardwood business. Customer service is a priority for h i m , a n d h e m e e t s t h e h o b by i s t s or woodworkers where they are. “I’m kind of like a coach,” he says. “I spend most of my time telling customers what woods they should or shouldn’t use for their projects
O
and what safety equipment they should utilize.” Alvarez notes that certain types of wood are good for tables and not good for items like cutting boards. “Knowing the difference between the two is key,” he says, adding that he guides customers in their selections. Alvarez is a relatively small supplier and chooses to work with b ro k e r s i n Wa s h i n g t o n s t a t e w h o source domestic hardwoods. “I don’t deal with imported hardwoods a s i t i s m o re t e c h n i c a l a n d m o re problematic,” he says. While most of his customers are hobbyists, he also attracts woodworkers who specialize in items such as ornate tables and cabinets. Alvarez’s mission at King’s Hardwood Supply is to be the go-to destination for discerning woodworkers, craftsmen, and do it yourself enthusiasts. He strives to offer a selection of f i n e h a rd w o o d s a n d p rov i d e s h i s customers with the materials and knowledge they need to bring their woodworking projects to life.
Reyes Alvarez Owner King’s Hardwood Supply
Looking North to the Future of 2024
ne of the things that I enjoy most about working at Alaska Business Publishing Co. is the opportunity to make connections with amazing people in our local business community. The power of community brings together our readers, our Alaska Business Publishing Co. team, and our other partners and connects us in a common mission of supporting and advocating for Alaska’s business community. As we most recently witnessed at the 2023 Top 49er Luncheon, it takes a diverse mix of businesses to keep the Alaska economy pumping. With the diversity of businesses in our state, there are some common denominators, one of which is Alaska Business magazine. Reading feedback I’ve received this year, I feel encouraged that we are succeeding in our mission of helping foster our business community and supporting each other to grow our businesses and make each other
stronger. Here are a few recent comments I’ve received: The Alaskan business community is small and interconnected. It is important to know not only what is going on in your industry but also with the other facets of Alaska’s economy. Alaska Business helps me stay up-today by covering stories and voices that aren’t covered by the national press. Ryan Watterson, Preconstruction & Development Manager Watterson Construction
Nick (owner of 3-Tier Alaska) has sung Alaska Business magazine’s praise for a few years now and has enjoyed the visibility, which has helped him meet and engage with new clients. Jamie Ringstad, Director of Marketing 3-Tier Alaska
Our management mentioned this morning that the advertising with Alaska Business has been effective in terms of sales and overall traffic. Scott Bryant, Marketing Coordinator Material Flow & Conveyor Systems, Inc.
–SP ON S OR E D
www.akbizmag.com
“I’m kind of like a coach… I spend most of my time telling customers what woods they should or shouldn’t use for their projects and what safety equipment they should utilize.”
CON T E N T –
Alaska Business
If you’ve been asking yourself how to reach more customers and get your brand in front of the leaders, the shakers, and the worker bees, let us help you. Our 2024 Media Kit is now available. Alaska Business continues to evolve,offering not only print advertising options, but newsletter, web, digital and live event sponsorships. Give us a call today to start the conversation. Christine has worked in Anchorage media for almost 20 years. Her writing talents have earned her top honors as a recipient of the Alaska Broadcasters Association Goldie Awards. Her sales and marketing skills have helped countless clients connect with their target audience to achieve annual goals. She unapologetically lures clients in with her homemade raspberry jam and lives with her salmon slaying beau and a ferocious cat named Maggie.
CHRISTINE MERKI
907-257-2911 | cmerki@akbizmag.com November 2023 | 93
R E TA I L
Zero to O Sixty Anchorage Chrysler Dodge Jeep Ram Dealership marks its 60th anniversary By Tracy Barbour
94 | November 2023
verlooking the first traffic signal on the Glenn Highway entering Anchorage—or the last light on East Fifth Avenue on the way out of town—the Anchorage Chrysler Dodge Jeep Ram dealership has been a fixture since April 1963. Celebrating its 60th anniversary this year, the familyowned company exemplifies a successful model of owners selling to employees. The original owners, Kenneth B. Davis and Glen Phillips, opened the first showroom as 5th Avenue Chrysler. They built the operation until their retirement in 1978. The next year, Ray Sutton and Joe Leavitt Sr. invested in the business, adding their unique expertise and drive. Anchorage Chrysler Center Inc., as the company was called then, added brands, becoming a “quad” (Chrysler, Plymouth, Dodge, Dodge Truck). In fact, the Anchorage franchise was, for a time, the most profitable “quad” in the country, outselling and outperforming all other dealers in the Northwest Zone. In 1987 longtime salesman and fleet manager Rod Udd took the helm. As the sole owner, he ultimately expanded the dealership to encompass an 11-acre site on East Fifth Avenue. He also supported numerous worthy causes to give back to Anchorage and Alaska, including the Iditarod Trail Sled Dog Race, Fur Rendezvous, Alaska Raceway Park, Alaska Aces, and Boys & Girls clubs. Udd passed away in 2017, but the dealership is still a family-owned enterprise, held by his widow and his daughter. Leadership remained in experienced employee hands. In 2014, Udd tapped general manager Corey Meyers, considered an “ultimate car man,” to become the next company president. With Meyers’ expert guidance and the acquisition of the Jeep franchise in 2000, the full-service dealership is thriving more than ever before. Today Anchorage Chrysler Dodge Jeep Ram and its 100-plus employees are looking forward to many more years of serving Alaskans. Alaska Business www.akbizmag.com
CONSTRUCTION
Protecting Cultural Artifacts Archaeology’s role in building projects By Vanessa Orr 96 | November 2023
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hile working on the Sterling Highway in 2021, contractors unearthed evidence of D e n a’ i n a h o m e s . T h e f i n d included cache pits, animal remains, cutting tools, and a ground slate point arrowhead. On the Chiniak Highway in Kodiak, an ancestral Alutiiq settlement approximately 350 years old was discovered. And in advance of an expansion project at Fort Wainwright, archaeologists documented campsites at McDonald Creek that range from 6,000 to 14,000 years old, including stone tools and the remains of extinct mammoths. Because of finds like these, companies involved in excavation are encouraged,
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Patrick Saltons tall |Alutiiq Museum
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November 2023 | 97
Stantec archaeologists in the field in Alaska. Stantec
Alutiiq Museum archaeologist Molly Odell examines a soil profile at a construction site on Kodiak Island. Patrick Saltons tall |Alutiiq Museum
98 | November 2023
“A s w e p r o g r e s s a s a n a t i o n , environmental compliance and stewardship of the natural environment i s b e c o m i n g a n i n c re a s e d f o c u s , ” Browning says. “One of the boxes we check in environmental compliance is archaeology. We are part of the trend of cultural resource management and environmental compliance in the United States as a whole.” Cultural resource management (CRM) differs slightly from archaeology in that it is more business- and client-focused. Starting in the late ‘70s, CRM became a growing trend nationwide. That gave archaeologists a new field in which to apply their training. “Archaeology with the big ‘A’ is typically what people think about when they see Indiana Jones, but today that idea is more reserved for academia,” Browning explains. “CRM is compliance-related and has to do with Section 106 of the National Historic Preservation Act.”
Advance Consultation
If artifacts or remains are found on federal land or at projects using federal funding or requiring a federal permit, the National Historic Preservation Act applies. If they are found on state land, the Alaska H i s t o r i c P re s e r v a t i o n A c t a p p l i e s . These laws not only protect individual buildings and structures but also districts, objects, and archaeological sites that are important due to their connection with the past, says Molly Odell, director of archaeology and special projects at the Alutiiq Museum a n d c h a i r o f t h e C i t y o f K o d i a k ’s Historic Preservation Commission. “As part of these acts, there is an e m p h a s i s o n c o n s u l t a t i o n ; t h e re is a process in place where all stakeholders—including tribes, local historical societies, museums, and anyone with a vested interest—is consulted about the best course of action,” Odell explains. According to Odell, even before ground is broken, areas should be surveyed to determine if there is the possibility of archaeological or historical finds. If these types of resources are discovered before the project gets underway, they can be excavated or otherwise mitigated; if they are found during construction, the site will temporarily be shut down Alaska Business www.akbizmag.com
until stakeholders are consulted and a decision is made about what to do with the cultural resources. “ There is always a short-term shutdown when something is found, and work stops in the vicinity while all parties are notified,” she explains, adding that work can usually continue in another part of the construction zone if it is far enough removed. “If it’s a development project such a s a b u i l d i n g or road that can be moved or adjusted in order to avoid that archaeological or historical site, that is one option,” she says. “That’s w h y i t ’s s o i m p o r t a n t t o d o t h i s survey early in the process before construction s t a r t s . I f i t h a p p e n s during construction, they may still need to alter the project, which can be much more difficult at that point, or all of the parties will have to agree that the site should be mitigated.” Archaeologists aren’t always required to be part of a development project; they are typically required in areas where artifacts have previously been found or found adjacent to that site, or if the site is deemed unique in a certain way with traditional cultural property of a Native group. “In some states, including Alaska, w e h a v e p re d i c t i v e m o d e l s b a s e d on a number of things like geology, elevation, and proximity to water that give credence to whether archaeology will be present,” says Browning. “Across time, people like to live where they like to live, such as near the water to take advantage of natural resources and on elevated plateaus above the floodplain.” H o w e v e r, B r o w n i n g n o t e s t h a t places where people live now are not necessarily where they lived in the past. “For example, a mining concern building out in the wilderness, away f ro m d ev e l o p m e n t , m i g h t b e l i ev e that the area is barren or devoid of previous settlements or life,” he says. “But an archaeologist can provide insight into landscapes that were used tens of thousands of years ago that, while not visible to the untrained eye, show the presence of people even in remote areas.”
Saving Money through Mitigation
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“It is far more costprohibitive to stop midway through... Typically the assessment of a damaged resource is far more costly than the initial assessment of a resource left intact and undisturbed.” Gilbert Browning Senior Associate Archaeologist Stantec
that it’s easier and more cost-effective to skip this step, but dealing with damages after the fact or having to change a project on the fly can be far more problematic. “ Whether they know about them beforehand or not, developers are required by law to protect cultural resources,” says Browning. “Having us there early on helps the backflow of the project; it keeps it from experiencing delays, as well as any unforeseen consequences that come from hitting archaeological deposits or having to find the funding to mitigate a rc h a e o l o g i c f i n d s a f t e r t h e f a c t . We can identify issues early on and provide mitigation measures to keep them out of trouble with state and federal authorities.” Mitigation methods depend on the site. Buffer zones of 50 to 100 feet can prevent developers from coming near the resources. Sites can also be capped by bringing in sterile dirt or cement to cover them. In some cases, excavation is required if the resource will be destroyed; it can either be re l o c a t e d o r p u t i n t o a c u ra t i o n
agreement with a museum, such as the Museum of the North at UAF or the Alutiiq Museum in Kodiak, where it can be stored in a safe, secure, climate-controlled facility. Browning cites a recent project north o f N o m e w h e re a n a rc h a e o l o g i s t was able to identify areas of concern b e f o re t h e p ro j e c t s t a r t e d . “ W i t h the archaeologist ’s help, the client and developer were able to create a buffer around the resource so that it was not impacted,” he says. “This accomplished two important things: first, it kept the local stakeholders, including the tribe and community, happy because their cultural history and heritage was not being disturbed. Second, it gave the client a sense of relief that, as long as they stayed out of that area, their project would not hit any hiccups.” He adds that Stantec also produces an inadvertent discovery plan (IDP) for each project which outlines the steps to take if something is found. “If we walk the site and dig the holes and don’t find anything, but then the construction company finds a resource
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while excavating 10 feet down, they can refer to the IDP for guidance on who to call and how to treat the resource,” he says. Most projects follow the regulations outlined in the historic preservation acts, and owners or contractors who choose to ignore them might end up paying more than anticipated. F o r i n s t a n c e , S t a n t e c i s c u r re n t l y helping at a project that was shut down by the State of Alaska due to noncompliance and is working to help mitigate the damage. “ The State Office of History and Archeology sent [the project] a ceaseand-desist order for development of that property and is keeping the project on hold until the archaeological due diligence is done,” says Browning. “This can be very costly and detrimental to the development of the project because it is far more cost-prohibitive to stop midway through. Now you’ve got equipment idle, construction workers idle, and typically the assessment of a damaged resource is far more costly than the initial assessment of a resource left intact and undisturbed.”
One Foot in the Past
By working with both developers and cultural resources s t a k e h o l d e r s , a rc h a e o l o g i s t s c a n help protect the state’s history while still helping it progress. “A s a rc h a e o l o g i s t s , w e t e n d t o have one foot in the past and in the present; we’re bridging that gap,” says Browning. “Having us on-site gives developers a glimpse into the past and helps them see another point of view. Typically, Native Americans have a deeper understanding of the l a n d s c a p e t h a n m o s t We s t e r n e r s , who don’t understand the value of the cultural landscape.” He adds that being able to present that information to developers tends to give them a better understanding of why there is so much concern by Native Americans about development in “random areas.” “ M o s t c a n’ t s e e t h e c o n n e c t i o n forged over thousands of years on the landscape, and we can help them grasp that connection, as well as understand why there may be associated costs and extra time
required on a project,” Browning says. “It gives them a deeper respect for what they’re doing when they realize t h a t t h ey a re a l t e r i n g s o m e o n e ’s heritage in an area that has been used for 10,000 years. It humbles them and gives them a more holistic view of the connection between the landscape, people, development, and time.” Attention to archaeology shows t h a t d ev e l o p e r s a re c o n s c i o u s o f their actions when they acknowledge the cultural value in the landscape. Browning says, “ We all understand that progress will take place, but when developers do their due diligence and are respectful of the former and current landscape, they can still do right by those who have cultural ties to the land while getting the development done.” C u l t u ra l re s o u rc e m a n a g e m e n t goes beyond regulatory compliance. “People understand that there is value in history,” Browning says. “By doing archaeology, we are able to present snippets of the past that provide people with a link to their local and national histories, and an overall understanding of the past.”
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Alaska Business
November 2023 | 101
THE FOCUSED MANAGER
Design Your Career
How to deconstruct a job title into work roles By Brian Walch
102 | November 2023
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hat do you do? How many times a week have you a n s w e re d t h a t q u e s t i o n ? H ow d o you answer it? Is it usually something like, “I’m a [insert job title].” Job titles carry a lot of significance in our culture. In an episode of the sitcom Cheers, the bartender Woody wants more pay. He marches into his boss Rebecca’s office to demand a raise. He comes out smiling and announces he is now the Senior Bartender. His coworker Sam is upset, so he marches into her office to demand a raise, too. He comes out with the title Executive Supervising Bartender. Both left their meeting feeling victorious, but their situation hadn’t changed. Neither got a raise, and their job duties hadn’t changed. All they got was a new title. Although that’s TV, art imitates life. We attach significant value and meaning to our job titles.
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Your résumé lists a series of titles that describe your career path. If you’re looking to advance in your career, you usually start by identifying a handful of titles you would be interested in pursuing. Human Resource (HR) departments define compensation by title, and it is an easy way to place positions relative to each other and denote power. Job titles can be used to communicate the structure of a company to its customers and partners. Your job duties are encapsulated with a single title. But that label doesn’t b e g i n t o ex p re s s t h e c o m p l ex i t y of your work. It is an insufficient simplification. That doesn’t stop us from internalizing the label and making unproductive generalizations about our job satisfaction, performance, and opportunities. For several years, I had the title of HR Director. There were parts of the job I loved. I enjoyed getting to know employees, working on initiatives to help the company, listening to and responding to employee feedback, and helping others build rewarding careers. But I got worn down by the politics, and the administrative components were a chore. I wanted to have a bigger impact. I became dissatisfied and unfulfilled. I thought, “I don’t like being HR Director.” All my feelings about the job were lumped into the job title, even though I was only unhappy with a small portion of the work I did. I ended up leaving the position. The job title had no value in helping me shape a more rewarding, challenging, and fulfilling job. Since t h a t t i m e , I ’ v e l e a r n e d t h e r e ’s a different way to think about this, one that is more useful to personal and professional development.
A New Mindset
Maybe you’re thinking about making a change or wondering what’s next for your career. Do you want to have more contentment and meaning at work? Are you looking to be more ambitious and take on bigger challenges? Are you ready to design the career you want? If so, ignore the job title! Instead, deconstruct your work into roles. A “role” is a part you play at some point during the day or week. You www.akbizmag.com
Job titles aren’t going away anytime soon, nor should they. They have a place. But when it comes to making meaningful changes, they aren’t useful.
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Alaska Business
November 2023 | 103
have many roles at work, more than you think. The following exercise will help you identify and create a list of these roles. With this list, you can begin making productive changes in your career. Before jumping in, make sure you have space to reflect on your work life. This exercise is more like mining exploration than an assembly line. It will take multiple passes to get beneath the surface and consider all the facets of your work. You will also want a way to record the list of roles and other thoughts you have. Any method works, but I prefer using an Excel spreadsheet because it is simple, flexible, and easily supports adding additional attributes.
Start Exploring
1. First, start with broad strokes. What high-level roles are included in your work? What are your major areas of responsibility? 2. Second, review your job description. What roles are listed in it? 3. Third, what is your role in relation to other employees? Who is dependent on you? What do they need from you? Who are you dependent on and for what? 4. Fourth, identify your performance metrics. What roles do those describe? 5. Fifth, list tasks by category. Administrative tasks, personnel tasks, strategy-related responsibilities, and short-term and long-term objectives. Some of your roles will describe a task you are responsible for, such as “monthly budget report creator” or “monthly meeting facilitator.” 6. Sixth, think about your work using Mintzberg’s Management Roles. These are interpersonal roles (figurehead, leader, and liaison), informational roles (monitor, disseminator, and spokesperson), and decisional roles (entrepreneur, disturbance handler, resource allocator, and negotiator). 7. Lastly, get creative. What hasn’t been covered? What would your boss add to the list? What would your peers add to the list? Don’t worry if you bounce around a bit between these approaches and 104 | November 2023
Your job duties are encapsulated with a single title. But that label doesn’t begin to express the complexity of your work. revisit them multiple times. The goal is to look at your job from different perspectives and unearth all the roles you have. When done, you should have a relatively complete list that describes the diverse work you do.
Use Roles to Make Meaningful Changes
Now that you’ve completed the first step—exploration and data collection— you can move to analysis and extraction. Your goal here is to analyze the list of roles you created and extract insights to help you make decisions about your work and career. When I work with clients on this, I have them rank each role on a scale of one to ten using a couple of criteria. Which criteria we use depends on their objectives. Here are suggestions for criteria you can use to conduct your own ranking exercise. • If you’re feeling discouraged at work, rate each role based on how energizing the role is to you and how important the role is. Reviewing the results will show you which roles you should invest more into and which roles you should get rid of. • If you’re trying to find more time in your day, rate each role based on how much time it takes and how much value it provides. Roles that take a lot of time and are low value should be eliminated. Ones that take a lot of time but are of high value are candidates for automation.
• If you want to scale your position and grow the team, rate your roles by their ability to be delegated and the level of effort to delegate. Then use that to make a plan for you and your team. • If you’re looking for career advancement, rate your roles by challenge and impact. Roles that are high impact and low challenge represent areas where you are competent and valuable. There may be an opportunity for innovation and leadership. If you notice a theme of low challenge across many of your roles, it is time for a discussion with your boss about reassigning roles and taking on a stretch assignment. As a manager, it is important that you do this exercise for yourself, first. Then, introduce it to your team members and give them some space to work on it. Schedule time to discuss their results and the insights they take away from thinking in roles. It should yield great conversations that propel you, the team, and your organization forward.
Grow Beyond the Title
Job titles aren’t going away anytime soon, nor should they. They have a place. But when it comes to making meaningful changes, they aren’t useful. They are static, broad, and generic. Sam and Woody got sucked into chasing job titles, but you don’t have to. Meaningful changes start from within. You are always changing, as is your work. Career development is a dynamic process that requires you to be active and engaged. Use roles to define your work and manage what you want for your career. That is how you design a career that is rewarding and fulfilling to you. Brian Walch is an executive coach, consultant, and speaker on leadership development. He uses his extensive experience in people and systems t o p rov i d e t o o l s and services to empower managers to lead themselves, their teams, and their organizations. Learn more at shiftfocus.com.
Alaska Business www.akbizmag.com
You bring out the best in us. Thank you for voting Providence Alaska Medical Center the Best of Alaska hospital. We are committed to ensuring Alaskans receive the best care close to home. We’ve also once again been recognized as a top health care provider by U.S. News & World Report. Providence Alaska Medical Center has been named 2023-2024 Best Regional Hospital in Anchorage and High Performing in seven procedures and conditions. Thanks to the great work of all our caregivers, providers and community partners, enabling us to serve our community with award-winning care. Learn more at Providence.org/PAMCawards.
INSIDE ALASKA BUSINESS Alaska Business Publishing Co. Trade Associations Business Publications International (TABPI) honored this magazine with a Silver award for the June 2022 cover. Designed by Art Director Monica Sterchi-Lowman, it features a picture taken by freelance photographer Kerry Tasker of the co-founders of logistics app Remora. The Gold prize went to the April 2022 issue of Datacenter Dynamics. TABPI also gave an Honorable Mention to “Unpacking an Underdog” by Dan Kreilkamp, a profile of Brian McKinnon’s invention of the PacBak cooler/vacuum sealer combo in the December 2022 issue. akbizmag.com
AOGA The Alaska Oil & Gas Association (AOGA) presented the 2023 Industry Awards at its annual conference in August. The Contractor of the Year Award for Safety Performance goes to NANA Management Services for a second year in a row. The Project of the Year Award for Environmental Stewardship and Innovation goes to another repeat winner: Alyeska Pipeline Service Company. The Marilyn Crockett Lifetime Achievement Award goes to Cindy Bailey, senior vice president of community affairs for Santos. AOGA’s fourth annual award, the Rising Star, goes to an assistant program director at Alaska Resource Education, Taylor Burgh. aoga.org
Providence Health & Services Alaska Alaska now has an accredited inpatient medical rehabilitation program. Providence St. Elias Specialty Hospital has been recognized by the Commission on Accreditation of Rehabilitation Facilities (CARF) International for its level of service. The three-year accreditation is the first for an inpatient rehabilitation program in Alaska. The hospital near International Airport Road and C 106 | November 2023
Street in midtown Anchorage opened in 2006. Inpatient rehab opened in 2020, and St. Elias began pursuing CARF accreditation. The accreditation extends through June 30, 2026. providence.org
block away on 36th, consists of three eight-plexes, three four-plexes, and one duplex. Seven buildings are scheduled to be ready for occupants by the end of next summer. key.com | cookinlethousing.org
Business Impact NW
Alaska Permanent Fund Corporation
Alaska has its first Veterans Business Outreach Center (VBOC). Business Impact NW adds the VBOC thanks to a grant from the US Small Business Administration. “We’re bringing together resources that uplift our entrepreneurs and strengthen our small businesses that give back to the people,” says center director Traci Willett. The center extends the Anchorage offerings of the Seattlebased nonprofit, which also include microlending and the Alaska Women’s Business Center. businessimpactnw.org
Renewable IPP The largest solar farm yet built in Alaska began sending sunlight into the Matanuska Electric Association grid in late summer. Renewable Independent Power Producers (IPP) completed the 45-acre facility near Houston High School with panels that can collect 8.5 MW, enough to power about 1,400 homes. CleanCapital, a New York underwriter of solar energy projects, invested in Renewable IPP to serve as the facility’s official owner. Renewable IPP already operates a 1.2 MW solar farm in Willow. renewableipp.org
KeyBank | CIHA The second phase of an affordable housing complex in Anchorage’s Spenard neighborhood secured financing thanks to KeyBank Community Development Lending and Investment (CDLI). The branch of the Cleveland-based bank packaged $20.3 million for the construction of Ch’bala Corners II, to be managed by Cook Inlet Housing Authority (CIHA). The first phase, with forty-eight units, sprouted last fall at Spenard Road and 36th Avenue, kitty-corner from CIHA headquarters. Phase II, one
For the first time since it was established in 1976, the Alaska Permanent Fund Corporation is opening a branch office outside of Juneau. The board of trustees decided to open an Anchorage office to aid in recruitment and retention of the Fund’s money managers. Board Chair Ethan Schutt says a couple of potential hires would only take a job based in Anchorage. The office uses surplus space the Alaska Department of Environmental Conservation leases on Cordova Street. apfc.org
BSNC | Graphite One The board of Bering Straits Native Corporation (BSNC) is supporting a graphite mine near Nome with a $2 million investment. The agreement with mine developer Graphite One provides for establishing a joint advisory board with BSNC. The investment adds to the $37.6 million grant that Graphite One received in July from the US Department of Defense to pay for a feasibility study. beringstraits.com | graphiteoneinc.com
New Pacific Airlines A new meaning for the ‘N’ logo on a new airline: Northern Pacific Airways rebranded in September as New Pacific Airlines. The change sidesteps trademark litigation from BNSF Railway, which owns the defunct Northern Pacific Railway. Deemphasizing “Northern” also aligns with the current flight schedule— one-hour hops between Ontario, California and Las Vegas, Nevada— while the company arranges routes that could include the South Pacific as well as East Asia, using Anchorage as a hub airport. np.com
Alaska Business www.akbizmag.com
To All Of The 2023 Luncheon and Networking Social Sponsors!
RIGHT MOVES Alaska Business Publishing Company
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The newest member of the Alaska Business Publishing Company (ABPC) team has been part of the magazine’s White extended family for years. As Associate Editor, Rindi White formalizes her previous status as a freelance writer and editor. Her byline has appeared in Alaska Business many times, and she has a regular role as editor of The Alaska Contractor, a quarterly magazine for the Associated General Contractors of Alaska, published by ABPC. Her new responsibilities include writing for Alaska Business and posting articles and event notices to the akbizmag.com website. White earned a degree in English literature at Montana State University in Bozeman and learned the journalism trade at the campus newspaper. She worked for the Mat-Su Valley Frontiersman for five years and was part of the Valley reporting team for the Anchorage Daily News.
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NMS
A subsidiar y of NANA regional corporation is counting on an exper t chef to have the right recipe to feed students throughout Evers Alaska. NMS Food and Facilities Management promoted Scott Evers to the position of Director of Operations, Education. Originally from Eagle River, Evers graduated from the California Culinar y Academy in San Francisco and has been with NMS
since 2008, star ting as an executive chef. He was promoted to general manager in 2011 and managed accounts such as UA A. Most recently, Evers has overseen many NMS accounts for K-12 schools, and he has taken a larger role suppor ting NMS Airpor t Fleet Ser vices, the First Americans Museum in Oklahoma, and Diné College in Arizona. Evers has also owned a catering company that suppor ted movie productions and events such as Arctic Man.
Chugach Alaska Chugach Alaska made two senior leadership changes, even as the Alaska Native corporation for the Prince William Sound region searches for a new chief executive. Peter Andersen was appointed COO. In this role, Andersen oversees growth strategy and operations Andersen for Chugach’s operating companies and investment portfolio, as well as the business enterprise functions that support them. Andersen most recently served as president of Chugach Commercial Holdings. Prior to that, he held the position of president at Chugach Alaska Services. A Chugach shareholder born and raised in Cordova, Andersen spent many years as a commercial fisherman in Prince William Sound, Kodiak Island, and the Bering Sea. Katherine Carlton transitioned to Vice President of Operations for Chugach Commercial Holdings, where Carlton she drives operational
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performance for Chugach’s commercial businesses. Originally from Cordova and a Chugach shareholder, Carlton started her Chugach career in 2005 in an entry-level finance role and moved her way up to president and general manager for the Education Division subsidiaries.
Tlingit & Haida Three new managers are in charge of some social services provided by the Central Council of Tlingit and Haida Indian Tribes of Alaska. Erinn Adkins-Franks is now Employment and Training Manager, transferring from her previous position as the Adkins-Frank s tribes’ American Rescue Plan Act (ARPA) Manager. In her new role, Adkins-Franks leads a team that supports efforts by tribal citizens to obtain long-term employment. AdkinsFranks first joined Tlingit & Haida in 2021 as a customer service technician and program coordinator for the Rescue Relief Household program. She was promoted last year to ARPA manager. Adkins-Franks was raised in Portland, Oregon and currently resides in Eagle River. Her family originates from Ketchikan and Sitka, and she is Eagle Brown Bear. She earned a Bachelor of Administration in Literature and Creative Writing from the University of Hawai'i at Mānoa. Also within the Cultural Heritage and Education Division, Benjamin K’uyáang Young is the new Early Education Curriculum Development Manager. In that role, Young develops and implements
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RIGHT MOVES IS BROUGHT TO YOU BY NORTHERN AIR CARGO
Committed to the Alaska Spirit 108 | November 2023
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language curriculum and early education initiatives. Young was raised in Hydaburg and is Raven of the Yahgw’láanaas clan. He Young attended UAF and Butler University and holds a bachelor’s degree in secondary education. He also earned a master’s degree in First Nations linguistics from Simon Fraser University in British Columbia. Young learned Xaad Kíl (the Haida language) from his grandfather and has been teaching since 2014, most recently for the X̱ ántsii Náay Haida Immersion Preschool in Hydaburg. A recent reorganization gave Tlingit & Haida’s Family Services Division responsibility for the Temporary Assistance Johnson for Needy Families (TANF) program. Chaix Johnson is promoted to serve as TANF Manager, overseeing financial assistance for Native families in Southeast Alaska. Johnson joined Tlingit & Haida’s team in 2015 serving as Head Start’s family engagement specialist. She transitioned to the TANF Department as a caseworker and has served the last three years as a benefit technician. She previously worked for the City & Borough of Sitka and Sitka Tribe of Alaska. Johnson was born in Glennallen and raised in Sitka. She holds a Bachelor of Arts in Social Science degree from UAS with concentrations in psychology, social science, and anthropology.
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Alaska SeaLife Center The Alaska SeaLife Center (ASLC) in Seward created two new executive leadership positions and selected John Fraser and Neisha Jones to fill them. Fraser, a noted international conservation psychologist and architect,
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comes aboard as the center ’s new Direc tor of Mission Impac t. Fraser work s alongside Wei Ying Wong, A SLC’s chief science Fraser and education of f icer, to advance social science research, evaluation, and monitoring. Fraser leads strategies that use scientif ic knowledge to promote understanding and stewardship of Alaska's marine ecosystems. Fraser has led research on the social value of zoos and aquariums. His book with Tawnya Switzer, The Social Value of Zoos, is considered a def initive work on how the zoo and aquarium movement can advance conser vation. He founded the A ssociation of Zoos and Aquariums Research and Technology Commit tee and has continued ser vice on that commit tee for the past f if teen years. Human factors are also a focus for Jones as ASLC’s first Director of People and Culture. In this new position, Jones serves as the Jones organizational lead for all human resources and diversity, equity, accessibility, and inclusion functions. Jones is a certified human resources professional with more than ten years of experience in the nonprofit, public, and education sectors. They have worked with national organizations in labor relations, talent strategy, leadership development, and strategic planning. In addition to their new role at ASLC, Jones serves as board president for New Life Development and as a board member for Best Beginnings.
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Alaska Native Heritage Center A p a i r of m a n a g e r s a t A l a s k a Na t i v e H e r i t a g e Ce n te r ( A N H C ) i n
A n c h o r a g e a re p ro m o te d to s e n i o r l e a d e r s h i p positions.
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Rinah Fifield becomes Director of Operations, Fif ield providing operational leadership and overseeing human resources, supporting efforts related to cultural tourism, and helping to manage programs such as Indigenous Awareness Workshops, Culture Boxes, and the overall ANHC experience for Alaska Native peoples a n d v i s i t o r s f r o m across the globe. F if ield f irs t joined ANHC as an event s manager to oversee facilities, develop tourism relationships, and coordinate social enterprise operations and revenue s treams within ANHC. Born and raised in Anchorage, F if ield prev iousl y ser ved as corporate ser vices manager for Cook Inlet Region, Inc. A lso joining the A NHC senior leadership team is Caroline Ulapiŋan Wiseman Wiseman as Direc tor of Cultural Programming. She notes that the center ’s cultural programs played a tremendous role in her life: she began her invol vement at A NHC in 20 09 as a s tudent in the Af terschool High School Program. Wiseman was born and raised in A nchorage and comes from Iñupiaq, Hawaiian, and European heritage. She recei ved her undergraduate degree in elementar y educ ation at Haskell Indian Nations Uni versit y and taught at Nome Elementar y School and A lask a Nati ve Cultural Char ter School (A NCC S). Wiseman returned to A NHC in December 2022 as a program manager for the T in Hoozoonh A pprenticeship.
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Northern Air Cargo is committed to getting your cargo where it needs to be, on time, so you can worry about what really matters.
For more information, please visit us at www.nac.aero. www.akbizmag.com
Alaska Business
November 2023 | 109
ALASKA TRENDS
W
hile farming fish has been illegal in Alaska waters since 1990, that doesn’t mean the state is devoid of mariculture activities. Hatcheries are tolerated because juveniles are released to the wild. Mollusks are fully exempt from the ban, allowing small-scale farmers to raise Pacific oysters and blue mussels. Sugar kelp, known as “kombu” in Japanese cuisine, is also grown commercially. So while some Alaskans already make their living by tending to aquatic organisms, there could be more. Ocean development agencies and organizations set a goal in 2016 to boost Alaska mariculture into a $100 million industry by 2036. By comparison, terrestrial farming of hay, potatoes, flowers, and other produce is worth between $40 million and $50 million. Inventing a larger industry from nothing might seem impossibly ambitious—except in light of the state’s largest cash crop, cannabis, which rakes in $100 million worth of sales less than a decade after legalization. Research is ongoing into potential farming of sea cucumber, geoduck clams, blue king crab, and red king crab (the latter two species firmly established as a wild-caught market). The US Department of Commerce and the National Oceanic and Atmospheric Administration (NOAA) are helping to drive the development, partly by laying out a five-year strategic plan. To track progress, NOAA and its partners released the Aquaculture Accomplishments Report for fiscal year 2023. This edition of Alaska Trends dips into those murky waters and scoops up a bounty of plans and projects. By the way, one tidbit that takes more explanation than a simple infographic is the role of SMURFs. No, not the tiny blue cartoon characters; SMURFs are standard monitoring units for the recruitment of fish, a collection tool in the form of a mesh cylinder anchored in a marine habitat. By counting juvenile fish that shelter inside the SMURF, researchers compare animal abundance and diversity between farms and natural settings. Smurftastic!
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PROJECTS 110 | November 2023
1 Selective breeding of hatchery oysters Resolve barriers to locally producing seed larvae of Pacific oyster.
2 Determine aquaculture's environmental effects Divers count animals at Southcentral kelp and oyster farms, and designers work on underwater instrument moorings.
Alaska Business www.akbizmag.com
3 Redesign classroom aquaculture units
6 Assess 100 years of kelp canopy change
“Tumble culture” kit for red ribbon
Analyzed 1913 and 2004 surveys
algae, used in Klukwan, made
to find increased kelp coverage in
compact and quieter for Juneau.
the Gulf of Alaska.
Update ESA Section 7 consultation template
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Develop a checklist to ensure that Endangered Species Act Section 7 consultations reference aquaculture mitigation measures.
4 Monitor harmful algal blooms
7 Potential for pinto abalone farming
Validated SeaTox ELISA
Study preferred foods,
kits to test for
energetic demands, and growth
paralytic shellfish poisoning.
rates of pinto abalone.
Develop interagency working group Coordinate among NOAA Fisheries Alaska Region, US Army Corps of Engineers, and Alaska Departments of Fish and Game and Natural Resources for AOA siting.
Develop aquaculture research database Collated all research products
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from 1986 to 2022, compiling it in one place for the first time.
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Develop FY23 action plan priorities Updated Five-Year Joint
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Aquaculture Action Plan to prioritize projects.
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Advance aquaculture communication
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Published a article about the Alaska Mariculture Cluster and presented at Alaska STEAM conference.
5 Assess habitat provisioning of kelp farms
8 Develop marine spatial analysis data portfolio
Compare farmed versus natural
Partner with National Centers for
kelp beds as habitat via GoPro
Coastal and Ocean Science to lay
cameras and environmental
the groundwork for site
DNA sampling.
suitability analysis.
www.akbizmag.com
Alaska Business
Launch AOA communications Rolled out presentations and press coverage to engage with AOA stakeholders. November 2023 | 111
What book is currently on your nightstand? The Streaming Book by Matthew Ball. What charity or cause are you passionate about? Public media; that’s a given. I’m also very supportive of the work the United Way is doing, especially around “cradle to career” and early childhood education. What’s the first thing you do when you get home after a long day at work? Usually something to do with music… Play guitar, play bass, play keys, play horn. What vacation spot is on your bucket list? Our destination spots are jazz clubs in New York or LA. I love the Chicago Symphony any chance I get… We want to be doing something where people are making art.
Photos by Kerr y Tasker
If you could domesticate a wild animal, what animal would it be? The cat I currently own.
OFF THE CUFF
Ed Ulman J
azz music led Ed Ulman from his hometown of Vancouver, Washing ton to his current
position as president and CEO of A laska Public Media, the largest broadcaster
AB: Is there a skill you’re currently developing or have always wanted to learn? Ulman: [He laughs.] I play the guitar, and not well. But I love the guitar… The guitar has fascinated me for most of my life.
in the state. Li ke an improvisational tune, of course, the path was not direct, but Ulman committed to each note. “Whi le I had a clear plan,” Ulman says, “I was open to oppor tunities and was wi l ling to move where the oppor tunity ex isted.” Ulman aspired from a young age to perform music, and he went to the University of Idaho on a music scholarship. He earned a master’s degree in teaching from Por t land State University and went to Arizona for a doctorate in music. He pivoted from academics to nonprofit management by r unning the Tucson Jazz Society. Then A l buquerque cal led, recr uiting Ulman to the New Mex ico Jazz Workshop. Col laborating with local public T V led him to applying his teaching degree toward r unning the broadcaster’s education depar tment. He then managed a station in Tacoma, Washing ton before being recr uited to A nchorage in 2016. “A nybody who has a passion for any human pursuit can successf u l ly translate that into another career oppor tunity,” he says. Alaska Business: What do you do in your free time? Ed Ulman: Family first. I have two boys, and I’ve been married for thirty-two years to my best friend… My wife and I, we just pal around. www.akbizmag.com
AB: What’s the most daring thing you’ve ever done? Ulman: Transition from the musical arts and nonprofit sector and take a job with public television in Albuquerque, New Mexico.
AB: What’s your best attribute and worst attribute? Ulman: To answer that question, you would have to suspend any humility you might have… It’s an important question to have an answer for in a job interview; that much I get. But it opens up a larger conversation about your value as a human. AB: What’s your favorite local restaurant? Ulman: South… Anything that’s truly local. AB: Dead or alive, who would you like to see perform live in concert? Ulman: Wynton Marsalis. I’ve seen him multiple times in my life; I’ve even had the opportunity to perform with him. He’s not only a virtuoso and a subject-matter expert for all things American music and jazz; he’s just a wonderful individual. AB: What’s your greatest extravagance? Ulman: Gotta be my shoes. I wear Allen Edmonds shoes… I learned the power of spending more money (than you would normally spend on a throwaway pair of shoes) and keeping shoes… If you have access to cobblers—and we do in this town— you can own those shoes for a long time.
Alaska Business
November 2023 | 113
ADVERTISERS INDEX Airport Equipment Rentals.......... 115 airpor tequipmentrentals.com
Cook Inlet Tug & Barge Inc............ 73 cookinlet tug.com
Lynden........................................... 116 lynden.com
PND Engineers Inc.......................... 37 pendengineers.com
Alaska Argo Rentals LLC................. 71 alaskaargorentals.com
Cowork by RSD................................ 59 coworkbyrsd.com
Alaska Dreams Inc.......................... 54 alaskadreamsinc.com
Credit Union 1................................. 31 cu1.org
Material Flow & Conveyor Systems, Inc.................................... 64 materialf low.com
Providence Health & Services Alaska............................. 105 providence.org
Alaska Railroad................................ 47 akrr.com
Crowley Fuels.................................. 33 crowley.com
Alaska School Activities Assoc....... 11 asaa.org
Cruz Companies............................. 55 cruzconstruc t.com
Altman, Rogers & Co...................... 23 altrogco.com
Denali Commercial......................... 15 denalicommercial.com
Alyeska Tire..................................... 90 alyeskatire.com
Denali Industrial Supply................. 89 denali- industrial.com
Anchorage Chrysler Dodge........... 13 accak.com
Design Alaska.................................. 39 designalaska.com
Anchorage Convention Centers.. 103 anchorageconventioncenters.com
Donlin Gold..................................... 76 donlingold.com
Anchorage Sand & Gravel............. 74 anchsand.com
Doyon, Limited................................ 73 doyon.com
ASRC Construction......................... 69 asrcbuilders.com
Equipment Source, Inc................... 17 esialaska.com
Avis Rent-A-Car............................... 12 avisalaska.com
First National Bank Alaska............... 5 fnbalaska.com
BSI Commercial Real Estate, LLC... 75 bsialaska.com
GCI..................................................... 7 gci.com
C & R Pipe and Steel, Inc................ 59 crpipeandsteel.com
Global Credit Union........................ 29 alaskausa.org
Chugach Alaska Corporation......... 49 chugach.com
Global Services Inc......................... 92 globalsr vc.com
Coffman Engineers......................... 19 cof fman.com
Great Originals Inc......................... 27 greatoriginals.com
Conam Construction Co................. 99 conamco.com
Groeneveld-BEKA Lubrication Systems....................... 21 groeneveld- beka.com
Conrad-Houston Insurance Agency............................................. 30 chialaska.com Construction Machinery Industrial........................................... 2 cmiak.com
Hecla Greens Creek Mining Company............................. 53 hecla- mining.com JENNMAR......................................... 83 jennmar.com
Matson Inc...................................... 51 matson.com Moda.................................................. 3 moda.com
Samson Tug & Barge...................... 47 samsontug.com
MT Housing Inc............................... 45 mthousing.net
Satellite Alaska................................ 35
NANA Construction LLC............... 101 nanaconstruc tion.com
Sheet Metal Inc............................... 99 sheetmetalinc.com
Nana Regional Corp....................... 39 nana.com
Sourdough Express........................ 48 sourdoughexpress.com
Nenana Heating Services, Inc....... 69 nenanaheatingser vicesinc.com
Spenard Builders Supply................ 91 sbsalaska.com
New Horizons Telecom, Inc............ 85 nhtiusa.com
Stellar Designs Inc.......................... 41 stellar- designs.com
Nortech Environmental & Engineering...................................100 nor techengr.com
T. Rowe Price................................... 67 alaska529plan.com
Northern Air Cargo....................... 108 nac.aero
The Plans Room.............................. 89 theplansroom.com
Northern Air Cargo....................... 109 nac.aero
Tutka, LLC........................................ 81 tutkallc.com
Northrim Bank................................ 43 nor thrim.com
UA Local 375 Plumbers & Pipefitters.................................... 61 ualocal375.org
NOVAGOLD..................................... 79 novagold.com Nu Flow Alaska................................ 65 nuf lowalaska.com Oxford Assaying & Refining Inc.... 87 ox fordmetals.com
UAA College of Business and Public Policy.................................... 23 alaska.edu United Way of Anchorage................ 9 liveunitedanc.org
Pacific Power Group....................... 77 pacificpowergroup.com
Usibelli Coal Mine........................... 80 usibelli.com
Parker, Smith & Feek...................... 95 psfinc.com
Westmark Hotels - HAP Alaska...... 41 westmarkhotels.com
Petro Marine Services.................... 57 petromarineser vices.com
Yukon Equipment Inc..................... 97 yukoneq.com
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