MINING SPECIAL SEC TION
Scouting for Prospects The journey from a parcel of land to a fully-functioning mine
B
efore a patch of land can be developed for mining, its specific location has to be vetted to confirm that it’s an economically feasible place to mine. From start to finish, the process is a long, involved endeavor that requires a significant commitment of time and resources—but the payback can be substantial. In mid-February 2021, a report by McKinley Research Group (formerly McDowell Group) estimated that companies spent $127 million on exploration in Alaska in 2020 and a total of $4 billion since 1981. The first step toward striking gold (or coal or zinc or… you get the picture) is deciding what commodity is being targeted. “Ultimately, it’s based on the geology,” says Lance Kilvagiaq Miller, vice president of natural resources
42 | April 2021
for NANA Regional Corporation. For instance, one wouldn’t go looking for copper in Iowa, Miller adds. “Then you have to look at access, logistics, and if the area is open for mineral entry, or mining,” says Miller, who holds a doctorate in geology and has worked on advanced-stage projects throughout Alaska, as well as Russia, Central Asia, Mexico, and the Canadian Arctic. One key piece of information for mining companies evaluating their options is the Fraser Institute’s Annual Survey of Mining Companies, most recently published in February 2021. The survey, according to the organization, “is an attempt to assess how mineral endowments and public policy factors such as taxation and regulatory uncertainty affect exploration investment.”
For 2020, the institute sent out approximately 2,200 electronic surveys and received 276, allowing it to evaluate seventy-seven jurisdictions around the world. In the survey, Alaska slipped from fourth place in 2019 to fifth in 2020. Miller says that the Fraser Institute survey is just one element of a comprehensive look at any given site that includes an understanding of what has “a geologically high potential” for the commodity in demand. “So you need a fundamental understanding of that,” he adds. “Then you look at the political jurisdiction, whether they have a stable government, the permitting and tax regime.” Next comes site consideration. Once an area’s been established as a potential
Alaska Business www.akbizmag.com
Varina Zinno
By Bruno J. Navarro
