MINING SPECIAL SEC TION
Mining Optimism
Several statewide mining projects bolster economic outlook By Julie Stricker
I
n 2020, mining provided a bright spot in an otherwise bleak economy for Alaska. While the COVID-19 pandemic decimated the tourist industry and pinched the oil and gas sector, mining stayed on track, with none of the six major operating mines reporting pandemic-related shutdowns. Several other mineral prospects also advanced and exploration efforts remained robust, with $127 million spent on exploration in 2020 alone, according to a report by McKinley Research Group that was commissioned by the Alaska Miners Association and the Council of Alaska Producers. Another $430 million was spent on mine construction and capital investments. Alaska’s mines produce coal, gold, lead, silver and zinc, as well as construction materials such as sand, gravel, and rock. Two projects are in the advanced permitting stages; several others are in the works in various stages of development.
Pebble The Pebble project is a world-class copper and gold deposit in Southwest Alaska owned by Northern Dynasty through its wholly owned subsidiary 48 | April 2021
Pebble Limited Partnership. It also contains significant amounts of silver, molybdenum, rhenium, and more, which would be accessed through an open pit mine. According to the project description, during its twenty years of production, the mine would produce an annual average of 318 million pounds of copper; 362,000 ounces of gold; 14 million pounds of molybdenum; and 1.8 million ounces of silver. Despite the wealth of minerals at the site, Pebble has proved controversial due to its location near the headwaters of several streams that feed into salmon-rich Bristol Bay. The US Army Corps of Engineers published the final Environmental Impact Statement for the project in July 2020, noting it "would not be expected to have a measurable effect on fish numbers" in Bristol Bay. However, the following month, the agency halted the permitting processing, saying that the project proposal contains too many environmental risks and "lacks adequate compensatory mitigation." It asked Pebble to come up with a detailed mitigation plan to offset environmental risks. However, in November, the Corps of Engineers denied a key permit saying it has "determined that the applicant's plan
for the discharge of fill material does not comply with the Clean Water Act guidelines." Colonel Damon Delarosa, commander of the Corps' Alaska District, says the agency determined that "the proposed project is contrary to the public interest." Pebble is appealing that decision and the denial of a key water permit, but for now, further development is on hold.
Donlin Gold The Donlin Gold project is in the Yukon Kuskokwim region in southwest Alaska and holds one of the largest known undeveloped deposits of gold in the world, an estimated 33.8 million ounces. Donlin Gold is jointly owned by subsidiaries of NovaGold Resources and Barrick Gold Corporation. In 2020, Donlin continued its drilling program to outline the deposit, which reports 2.24 grams per tonne overall, with some areas showing much higher grades. Mark Bristow, president and CEO of Barrick, says the assay results are encouraging. "The ongoing modeling work and planned 2021 follow-up drilling program could further enhance the project parameters,” Bristow says.
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