Alaska Business November 2017 by Alaska Business

MINING | NATURAL RESOURCES | TOURISM | OIL & GAS | EDUCATION November 2017 Digital Edition

ALASKAâ&#x20AC;&#x2122;S RESOURCES IN HAND Mining, timber, fisheries fuel fiscal stability in communities statewide

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FROM THE EDITOR EAT, SHOP, PLAY, STAY EVENTS CALENDAR RIGHT MOVES BUSINESS EVENTS INSIDE ALASKA BUSINESS ALASKA TRENDS AD INDEX

ABOUT THE COVER: Every November Alaska Business takes a close look at resource development in the Last Frontier with a special focus on mining. Alaska’s six major operating mines are Usibelli (coal), Greens Creek (silver, zinc, gold, lead), Kensington (gold), Pogo (gold), Red Dog (zinc, lead, silver), and Fort Knox (gold). There are eight advanced mining exploration projects looking to develop potential sites containing copper, gold, silver, zinc, molybdenum, rare earth elements, and coal. Similar to oil and gas, Alaska’s potential for mining is vast; in particular it’s estimated that Alaska holds as much as 5 trillion tons of coal, about 40 percent more than the Lower 48 combined.

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ARTICLES

The Bristol Leader, Alaskan Leader, and Bering Leader fishing boats at dock.

FINANCIAL SERVICES 8 | Angels in Alaska

Alaska’s growing entrepreneurial ecosystem By Jessica Rohloff

Image courtesy of Alaskan Leader

12 | Unique Financial

Arrangements Fund Natural Resource Enterprises

Image courtesy of UAA Community & Technical College

EDUCATION

12 Mining Special Section

40 © Judy Patrick Photography/courtesy of Donlin Gold

Regional corporations, local, state organizations help fisheries stay afloat By Tracy Barbour

A UAA Community & Technical College student during a hands-on class project.

22 | Industrial Hands-on Training as a Path to Prosperity

Available jobs outpace qualified applicants in some sectors By Judy Mottl

REAL ESTATE

28 | Standing in the Landlord’s Shoes

Seeing Yourself as a Prospective Tenant By Jeff Grandfield and Dale Willerton

CONSTRUCTION

30 | New Hangar Construction at Lake Hood

Building one of three nears completion By Tasha Anderson

Donlin Gold focuses on being a good neighbor in the Yukon Kuskokwim region, one part of which is a strong local hire program.

38 | Alaska’s Mining Industry

62 | Pebble Mine Update

40 | Alaska 2017—Mining in

66 | PolarX and Millrock Drill

‘Resilient, innovative, and proud’ By Deantha Crockett

Review

By Curtis J. Freeman

60 | Water Management at Alaska’s Operating Mines

Process water, groundwater, and runoff all managed with care By Tasha Anderson

A few hurdles cleared, others remain By Sam Friedman

at Stellar Copper-Gold Project Companies ‘extremely encouraged’ by presence of high-grade mineralization By Kathryn Mackenzie

70 | Alaska Business 2017 Mining Directory

Alaska Business | November 2017 www.akbizmag.com

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ARTICLES An Alaska West Express truck backs up to the dock at the Port of Anchorage to transfer a seventy-six-ton seismic boat onto an Alaska Marine Lines barge, completing the shipment from Prudhoe Bay to Seattle, where it was then transferred to a ship returning to Europe.

Image courtesy of Lynden

TELECOM & TECH

In September GCI announced the company had achieved 3 million accident free manhours, despite working in remote locations and challenging weather conditions.

37 | GCI Celebrates Safety Milestone

3 million accident free hours By Tasha Anderson

TRANSPORTATION

76 | By Air, Sea, Rail, or Land

The logistics of multi-modal transportation in Alaska By Peg Gould

OIL & GAS

82 | Industry Invests Billions in Exploration, Production Efforts Preparations underway for upcoming winter push By Alaska Business Staff

86 | Q&A with Glacier Oil & Gas CEO Carl Giesler

Development, political changes, and Cook Inlet

TOURISM

112 | International Travelers

Market it and they will come By Tom Anderson

Image courtesy of GCI

Resource Development Special Section 90 | Potential for Progress

Alaska’s commercial timber industry requires federal support By Owen J. Graham

94 | A Portrait of Southeast Alaska’s Sawmills

Despite challenges family-owned, boutique sawmills remain devoted to timber life By Heidi Bohi

98 | Alaska’s Salmon Hatcheries

Strengthening Alaska’s wild salmon population By Jessica Rohloff

100 | Alaska’s State-Managed Hatcheries

Supporting and sustaining sport fishing in Southcentral and the Interior By Tasha Anderson

102 | At-Sea Processing

Catching, preparing, and selling fish at sea By Heidi Bohi

106 | Boatyard Operations

Success through managing requirements and maintenance processes By Tracy Barbour

Alaska Business | November 2017 www.akbizmag.com

FROM THE EDITOR VOLUME 33, NUMBER 11 Published by Alaska Business Publishing Co. Anchorage, Alaska EDITORIAL STAFF Managing Editor Kathryn Mackenzie 257-2907 editor@akbizmag.com

Associate Editor Tasha Anderson 257-2902 tanderson@akbizmag.com Art Director David Geiger 257-2916 design@akbizmag.com Art Production Linda Shogren 257-2912 production@akbizmag.com Photo Contributor Judy Patrick BUSINESS STAFF President Billie Martin VP & General Manager Jason Martin 257-2905 jason@akbizmag.com VP Sales & Marketing Charles Bell 257-2909 cbell@akbizmag.com Advertising Account Manager Janis J. Plume 257-2917 janis@akbizmag.com Advertising Account Manager Holly Parsons 257-2910 hparsons@akbizmag.com Advertising Account Manager Christine Merki 257-2911 cmerki@akbizmag.com Accounting Manager Ana Lavagnino 257-2901 accounts@akbizmag.com Customer Service Representative Emily Olsen 257-2914 emily@akbizmag.com 501 W. Northern Lights Boulevard, Suite 100 Anchorage, Alaska 99503-2577 (907) 276-4373 | Toll Free: 1-800-770-4373 Fax: (907) 279-2900 www.akbizmag.com Editorial email: editor@akbizmag.com ALASKA BUSINESS PUBLISHING CO., INC. 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; Fax: (907) 279-2900, ©2017, Alaska Business Publishing Co. All rights reserved. Subscription Rates: $39.95 a year. Single issues of the Power List are $15 each. Single issues of Alaska Business are $3.95 each; $4.95 for October, and back issues are $5 each. Send subscription orders and address changes to the Circulation Department, Alaska Business, 501 W. Northern Lights Boulevard, Suite 100, Anchorage, Alaska 99503-2577. Please supply both old and new addresses and allow six weeks for change, or update online at www.akbizmag.com. Manuscripts: Email query letter to editor@akbizmag.com. Alaska Business is not responsible for unsolicited materials. Photocopies: Where necessary, permission is granted by the copyright owner for libraries and others registered with Copyright Clearance Center to photocopy any article herein for $1.35 per copy. Send payments to CCC, 27 Congress Street, Salem, MA 01970. Copying done for other than personal or internal reference use without the expressed permission of Alaska Business Publishing Co., Inc. is prohibited. Email specific requests to editor@akbizmag.com. Online: Alaska Business is available at www.akbizmag.com/ Digital-Archives, www.thefreelibrary.com/Alaska+Business+Monthly-p2643 and from Thomson Gale. Microfilm: Alaska Business is available on microfilm from University Microfilms International, 300 North Zeeb Rd., Ann Arbor, MI 48106.

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Welcome to Mining Month at Alaska Business

elcome to the Alaska Business special Mining Issue. As an Alaska-based, business-focused, community-minded publication (I love hyphens, what can I say?), we spend a lot of time talking about oil and gas. Many argue it is the foundation of Alaska’s economy, but oil and gas are not the only natural resources that make significant contributions to the state’s fiscal well-being. Export activities for mining commodities account for about $1.5 billion, more than one-third of the state’s total exports, according to “The Economic Benefits of Alaska’s Mining Industry” published earlier this year in by the Alaska Miners Association. Not only are Alaska’s six large operating mines, hundreds of small placer mines, and industry-related support services responsible for billions of dollars in exports, they account for thousands of jobs for Alaskans statewide. Last year the mining industry in Alaska provided 4,350 direct mining jobs and 8,600 total direct and indirect jobs. Since mining offers some of the highest paying jobs in the state at an annual average wage of $108,000 (more than twice the state average for all sectors of the economy), it only follows that the mining industry would be a major contributor to the state in the form of $23 million in local government revenue through property and other taxes; $81 million in state government-related revenue including rent, royalties, fees, and taxes; and $675 million in total direct and indirect payroll, according to the report, prepared by the McDowell Group at the behest of the Alaska Miners Association to research the economic impact of mining in Alaska. Exports, job growth, and taxes are not the only contributions made by this sector of Alaska’s vast and abundant natural resources. Exploration is key to growth potential for any natural resource, and in 2016 alone the mining industry spent more than $65 million on exploration activities and another $120 million on mine construction and capital investment. “Exploration activity is so welcome to Alaska not only for its potential to further new mines but also because the immediate economic benefits largely stay in Alaska. Exploration activity by nature includes the necessity of flight services, lodges and camps, and food services providers that are chiefly provided by Alaska businesses and individuals… exploration of new deposits and early-stage projects across Alaska ensued this field season, again signaling that the eyes of investors are on Alaska and what its geology has to offer,” says Deantha Crockett, executive director of the Alaska Miners Association, in her expert commentary published on page 38 in this issue. Along with an extensive update on Alaska’s mining industry, we are also proud to present the 2017 Resource Development special section with an overview of the state’s timber industry by Alaska Forest Association Executive Director Owen Graham, a profile of family-owned sawmill operations in Southeast Alaska, and a deepdive into the amazing world of at-sea fish processing, as well as Alaska’s state-managed and privately-operated salmon hatcheries. Thank you again to the entire Alaska Business team for putting together another exceptional issue full of news, information, and expert opinions celebrating Alaska’s natural resources. Read on!

—Kathryn Mackenzie, Managing Editor, Alaska Business November 2017 | Alaska Business

FINANCIAL SERVICES

Angels in Alaska Alaska’s growing entrepreneurial ecosystem By Jessica Rohloff

s recently as five years ago the startup scene in Alaska was sparse but—with the creation of the 49th State Angel Fund and a growing list of events and resources to support entrepreneurs statewide— that situation is rapidly changing. The 49th State Angel Fund was created by the city of Anchorage in 2012. Since then the entrepreneurial ecosystem has begun to take hold, led by organizations and individual investors with foresight into Alaska’s economic situation. This concerted effort has borne fruit and continues to grow. There are now business plan competitions, hackathons, maker fairs, and a variety of other events to connect people with the resources they need to launch successful businesses. In addition to events like Startup Weekend and the hackathons, there are also brick-and-mortar pillars of the startup community such as The Boardroom in Anchorage or Hub in Fairbanks. The 49th State Angel Fund, however, is unique. As the fund’s Director Joe Morrison says, “Most municipalities are not running a venture capital function out of city hall like we do.” It’s primarily focused on being a “fund of funds.” Rather than picking investment opportunities, the Municipality partners with other angel and seed investment funds which then make the call as to which companies are actually ready for capital investment.

‘Angel Investing is a Team Sport’ Wherever there’s money there are investors, but what’s changed in Alaska is that there is an ecosystem of people working together. “What’s new is that you have an organized community of investors,” says Nolan Klouda, executive director of the Center for Economic Development at the University of Alaska Anchorage. “That’s something we haven’t had until recently. The 49th State Angel Fund 8

was a key factor in organizing the investor community, rallying people around entrepreneurship in general.” According to Morrison, individual investors are “doing a large part to lead the charge.” One of those individuals is Allan Johnston, co-president and “chief encouragement officer” at The Entrepreneurs and Mentors Network. Johnston points out that community is key because “angel investing is a team sport.” A vigorous investment environment may not be sustainable if it is uncoordinated and comprised of solo investors. Another valuable aspect of investor teamwork is that, when angel investors are looking at potential companies, they may not always be familiar with the business line in which that company operates. With a team of people involved in investing, each person brings with him or her life experiences and industry knowledge that the solo investor cannot match. Johnston says it’s a good idea to bring someone on board who has experience in the industry or sector in which the team is considering investing. “You should do this even before you invest,” says Johnston. “It helps to know someone who can go in and fix something or find an exit if something goes wrong.”

Mentorship is More Valuable than Money Angel investors provide more than just capital to help new companies get off the ground. Entrepreneurs and new business owners need guidance to help them avoid the many obstacles that every startup faces. “Money isn’t the problem; it never has been. The problem is mentorship,” says Johnston. Connecting those who have “been there, done that” with those who “wanna-go-there” is a crucial part of creating successful new businesses. Alex Worthen, vice president of the Alaska Investor Network, agrees. “Angels provide

mentorship, expertise, and guidance. It’s not all about the money. It’s a partnership—a marriage of sorts. As an investor, you can be more or less involved with the companies you fund.” A lot of angel investors have had long, successful careers in a particular industry, so they gravitate toward companies that they hope will make good use of their years of expertise. Getting the right talent on board and sourcing advice in the early stages is crucial for startup success. “For the longest time we had an ad-hoc system here,” says Bill Popp, president and CEO of the Anchorage Economic Development Corporation. Today Alaska is home to investment funds that are populated by people who are talented and possess the skills and experience to help entrepreneurs get things done. “We’re taking advantage of some extremely bright individuals with great backgrounds,” says Popp. “There’s a fair amount of money flowing right now,” he says. “The areas of opportunity are more about helping to grow the ecosystem and create a stronger entrepreneurial community so people can find mentors and partners.”

Big Wins in Small Places Alaska may not be an intuitive investment environment to some, but Morrison points out that there are examples of large companies that originated in small or rural communities. Many aerospace companies came out of Wichita, Kansas, and Viking (a kitchen appliance/equipment manufacturer) was started in a small town in the South. Morrison is optimistic that Alaska startups will find that same success. “I think Alaska has made great strides in the last five years toward creating a startup ecosystem and support for entrepreneurship.” Jon Bittner, executive director of the Alaska Small Business Development Center, knows

Alaska Business | November 2017 www.akbizmag.com

people may be inclined to say Alaska isn’t Silicon Valley—and they’re right. “Our Facebook moment isn’t going to look the same as anyone else’s, but I can tell you what it will look like. Take Alaska Airlines: they started as a tiny rural airline with three routes, and they bought Virgin Airlines,” Bittner says. Morrison is interested in consumer-oriented companies with an Alaska focus, such as a clothing, packaged food, or bottled water companies. He sees a lot of potential in food companies and food systems, as well as consumer goods. Angels want to invest in scalable startups with the ability to grow and replicate quickly. This is a concept that is still in its infancy in Alaska. Worthen and other angel investors have invested in companies in a wide variety of business lines including vegetable hydroponics, search and rescue, jet ski manufacturing, and oilfield service companies. “We’ve done more small investments in a wider range of startups with the goal of getting them into the Alaska ecosystem. We’ve made fewer large investments in more established startups, largely because we’ve made those types of investments over the last 2.5 years, and right now our fund is fully invested,” he says.

Latent Angels There are those in Alaska who have the means and potential to be angel investors but are unaware of their qualifications or even their opportunity to do so. Worthen says there is a large group of latent angel investors, such as doctors, lawyers, or other retired professionals, who meet the qualifications for an accredited investor. “An accredited investor is a legal IRS definition,” he says. The accredication sets minimums for income and liquid assets. “A lot of people who’d qualify as angels aren’t participating but could. There’s a lack of awareness.” Worthen continues, “Getting that information out there and letting people know they can invest in these asset classes is important. Doctors, lawyers, CPA firm partners—lots of working professionals do qualify but just haven’t realized it yet.” Companies seeking investment are responsible for verifying that accreditation status. If a company fails to do its due diligence, the onus falls on the investee rather than the investor. That’s not to say there aren’t risks involved for angel investors. Angel Investing: Risky but Rewarding For those considering becoming angel investors, Worthen cautions “Don’t stake your retirement on it,” he says. “Participate with money that you’re not afraid to lose because it’s inherently high risk.” That said, there is plenty of opportunity for potential investors to “do good and do well” by investing in Alaska. Morrison says that investors in the Last Frontier face particular challenges. “We need to think carefully about how we’re going to invest in local companies. You need to have some idea of how you’re going to get out of the deal because when angels risk their capital and lose money, it quickly becomes an www.akbizmag.com

November 2017 | Alaska Business

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unsustainable model unless they start to see some wins.” The issue is that traditional angel investing is an equity investment, which does not provide a clear path to liquidity. If the business founders never sell the company, investors will not get their money back. Similarly, if an angel invests in a business with stagnant growth, it is unlikely that even the principal of the investment will be recouped. “It’s high-risk investing,” Worthen says. “A lot of investments fail along the way, so you don’t want to pull other people into the fire just because you’re there.”

The Value of Failure There’s an old adage in the angel investment world: “You’re really not fundable until your third business.” Not only is starting a business hard work, but it’s also important for would-be entrepreneurs to understand the value of failure. As Popp says, “Failure is one of the greatest learning experiences an entrepreneur can have.” That said, failure needs to be managed in a positive way. One of the best ways to do that is to ask what lessons can be learned from that failure. This is crucial because a lot of young businesses are going to fail. Johnston advises that new entrepreneurs reach out to people who have already been successful in their particular business sector. “If you truly listen, they probably know where there are some capital sources that would love to fund the business you want to get into so you have a strategic partner to help you develop and grow the business,” he says. “It’s possible that they’ll even buy you out at a later date when you get it up to scale.” “Deals have a habit of flying under the radar for a while until we get news,” Popp says. Each fund has its own lifecycle, so there’s an ebb and flow. “It’s a long, hard slog, and then suddenly you’re off to the races. I’ve seen a number of businesses that were on death’s door and then suddenly everything comes together.” Entrepreneurship Provides Many Opportunities Economic development data shows that between 2005 and 2014, businesses less than one year old created a net average of 5,200 private sector jobs each year. “The more entrepreneurship we can develop in Alaska, the sooner we will have a sustainable and diversified business environment,” Johnston says. “I’m excited that we’re seeing this sustained passion for trying to get new businesses off the ground in the face of challenging economic times. It’s great to see people willing to take the risk,” Popp says. “People invent awesome things in Alaska every day, but we don’t think of them as businesses,” Bittner says. “There are places all over the world that need that kind of technology and know-how, but we just never thought further than Interior Alaska. I think that’s going to change.” R Jessica Rohloff is a freelance writer and aspiring Alaskan.

Alaska Business | November 2017 www.akbizmag.com

FINANCIAL SERVICES

Northern Leader fishing vessel. Image courtesy of Alaskan Leader

Unique Financial Arrangements Fund Natural Resource Enterprises Regional corporations, local, state organizations help fisheries stay afloat By Tracy Barbour

inancing for natural resource industries is being manifested in distinctive ways as Alaskans capitalize on various arrangements to fund their commercial activities. Community Development Quota (CDQ) organizations and commercial fishing operations are forming joint ventures. CDQs are also providing financing for fishing permit leases and purchases; vessel purchases and 12

upgrades; and refrigeration systems and ice. Traditional financial institutions and the state of Alaska offer loans to support commercial fishing operations. And Alaska Native Regional Corporations are allocating timberland to a lucrative carbon credit program. Here is a look at how some of these financial endeavors are playing out around the state.

Bristol Bay Economic Development Corporation As one of six western Alaska CDQ organizations, Bristol Bay Economic Development Corporation (BBEDC) participates in a program that allocates a percentage of all Bering Sea

Norm Van Vactor, CEO, Bristol Bay Economic Development Corporation Image courtesy of Bristol Bay Economic Development Corporation

“We are extremely proud of what we do for our residents. I can’t imagine what the landscape would look like if it wasn’t for our organization doing what we are doing.”

—Norm Van Vactor CEO, BBEDC

Alaska Business | November 2017 www.akbizmag.com

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Bering Leader and Northern Leader, vessels that are part of the Alaskan Leader longline fishing fleet. Image courtesy of Alaskan Leader

Alaska Business | November 2017 www.akbizmag.com

Image © David Little/EPC

to foster economic development activities given that it costs approximately $150,000 to and employment opportunities in its re- purchase a permit. gion, which includes seventeen communities In addition, BBEDC offers financing to in the Bristol Bay and Lake and Peninsula help commercial fishermen acquire and upboroughs, as well as the Dillingham Census grade vessels. It provides financial coaching Area. and helps with the down payment as well as “We are extremely proud of what we do for guarantees the loan. As part of the financing our residents,” says Norm Van Vactor, CEO process, the borrower must complete a busiof BBEDC. “I can’t imagine what the land- ness planning exercise that’s typically faciliscape would look like if it wasn’t for our or- tated by the Alaska Business Development ganization doing what we are doing.” Center. “This helps them have a realistic idea BBEDC offers more than thirty programs of what would be a reasonable amount to pay to benefit residents of the region, includ- for a vessel,” says Paul Peyton, BBEDC’s seaing financial assistance for leasing a limited food industry investment officer. entry permit to fish Bristol Bay. Eligible inBBEDC also helps individuals buy and An aerial view of the eastern edge of Alaska’s dividuals who want to lease a maintain refrigeration systems Copper River Delta, the focus of an innovative permit—which costs $16,000 to or ice. This is particularly impordeal that safeguards old-growth forests and ma- $20,000—can receive a grant for tant because Bristol Bay is one of jor unmined coal reserves while creating long- about half of that amount. “The the last major fisheries in Alaska term income for the region. only restriction is that you have where a significant portion of the and Aleutian Islands quotas for ground- to be a resident of the region and catch is not refrigerated. “If you fish, halibut, and crab. The CDQ program must be actively participating in can refrigerate your catch, it’s was established to provide economically- the fishery,” Van Vactor says. worth a substantial bonus from disadvantaged coastal communities the opBBEDC sees permit leasing the processors,” Peyton says. “For portunity to create capital to develop stable assistance as a pathway toward example, last year the base price local economies based on the fishing indus- encouraging its residents to ulwas 50 cents a pound for sockeye try. These remote communities—encom- timately move toward permit salmon and, if it was refrigerPaul Peyton, passing sixty-five villages and 27,000-plus ownership. After ensuring the inated, it was another 20 cents per Seafood Industry residents—participate in the CDQ Program dividual has satisfied the prereqpound.” Investment Officer, through nonprofit corporations that manage uisite state requirements and has Bristol Bay Economic Some processors will not purand administer their CDQ allocations, insufficient credit history, BBEDC chase unrefrigerated fish, which Development vestments, and economic development proj- can provide a significant grant makes it essential to have a chillCorporation ects. As a not-for-profit CDQ organization, toward the down payment on a ing system. However, a lot of BrisImage courtesy of BBEDC uses its Bering Sea partner invest- loan for the permit. The down tol Bay fishing boats are older and Bristol Bay Economic ments and groundfish and crab allocations payment could be substantial, Development Corporation may be difficult to refrigerate, Akutan, Alaska | Photo by Matt Mead

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Peyton says. But BBEDC’s upgrade program can help owners modify their vessel so they can at least ice their catch. CDQ organizations are increasingly partnering with commercial fishing companies like Alaskan Leader Fisheries. The company is equally owned by BBEDC and Alaskan Leader Group. The partnership has resulted in the construction of three ultra-modern freezer longliners that use weighted lines laid along the ocean floor to catch fish one at a time. To further expand on the relationship, Alaskan Leader engages in value-added processing to create marinated fillet products and pet treats from the fish byproducts. “We’re very proud of their efforts, and they are a great partner,” Peyton says. The partnership with BBEDC also has been very beneficial for Alaskan Leader Fisheries, according to President Rob Wurm. The relationship, which started in the late 1990s, added clout and helped garner financing from institutions such as Wells Fargo. “Nothing shields you from the ups and downs in the fishing business, but the partnership has created strength and a common focus on moving the company forward,” he says. One of the overriding goals of Alaskan Leader is to produce the highest quality cod possible. Part of that entails getting maximum utilization from the limited amount of resources the company is able to harvest from the ocean. “If possible, nothing goes overboard,” Wurm says. “Our goal is to use every part of the fish and every ancillary kind of catch for human and pet consumption.”

Aleutian Pribilof Island Community Development Association Aleutian Pribilof Island Community Development Association (APICDA) is another CDQ organization that supports the commercial fishing and seafood processing industries financially. Larry Cotter, CEO of APICDA, says the role of CDQ groups is becoming more and more important: “The state’s fiscal resources are no longer what they were. The village corporations, for the most part, focus on their shareholders. And there are fewer and fewer entities in a position to invest in the CDQ communities.” Like BBEDC, APICDA has taken ownership in fishing boats to enhance its revenue. For example, it owns 20 percent of the Starbound, a Pollock factory trawler. “We earn by leasing out our allocation, and we also get to share in the profits that are generated,” Cotter says. A couple of years ago, APICDA and the Starbound’s managing partner decided to extend the boat from 240 to 300 feet to diversify its processing capabilities. They had the Starbound cut in half, outfitted with a new middle section, and welded back together. The unusual expansion allows the boat to earn revenue from higher-value products including fish oil and fish meal. But before Starbound’s partners decided to invest in the expansion, they needed to know that the CDQ harvest relationship with APICDA would be good for the next ten years. “They need to rely on that allocation to make sure they could pay the bill off,” Cotter says.

Alaska Business | November 2017 www.akbizmag.com

Based out of Kodiak, the Bering Leader, Alaskan Leader, and Bristol Leader are three of the vessels in the Alaskan Leader longline fishing fleet. Image courtesy of Alaskan Leader

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November 2017 | Alaska Business

“It was pretty unusual to enter into a ten-year agreement. You have to have a lot of faith with all the parties.” APICDA—which supports the villages of Akutan, Atka, False Pass, Nelson Lagoon, Nikolski, and St. George—also owns various seafood processing operations throughout the region. For instance, APICDA Joint Ventures has a 50/50 partnership with the Atka Fishermen’s Association to operate Atka Pride Seafoods. The well-established plant strengthens the local economy by processing about 500,000 pounds of halibut and sablefish annually.

Tribes of Alaska and Sealaska to implement technical assistance programs such as workforce development with the State of Alaska Division of Forestry. Spruce Root develops and implements workforce training programs specific to certifying forest technicians who can be employed by the state to conduct pre-commercial thinning work. “Without this kind of support, there is little regionwide workforce development and resources available to help shareholders and others to build and sustain this skill set throughout the region,” Davis says. “Sealaska and Spruce Root see opportunities for this program to be replicated in other industries across the region and will continue to build on it.”

Sealaska Helping through Spruce Root Sealaska Corporation is the largest Alaska Native Regional Corporation and largest private landowner in Southeast Alaska. The Northrim Bank Finances company is actively using its resources to Fishing and Timber Businesses help shareholders and their descendants sup- Northrim Bank understands that resource port their business endeavors. industries like commercial fishing and timIn 2012, Sealaska launched Spruce Root, a ber play a vital role in maintaining a strong community development finanand diverse economy in Alaska, cial institution, for the purpose of according to Marc Guevarra, an providing local small businesses assistant vice president and loan and entrepreneurs throughout officer at Northrim. ConsequentSoutheast Alaska access to capily the bank strives to provide tal in the form of loans. “It is a services that will benefit these financing vehicle option availbusinesses and their owners so able for local small businesses in that they can continue to be sucunderserved communities seekcessful. ing access to capital that otherFor example, Northrim Bank wise isn’t provided by traditional offers various financing options banking,” says Ed Davis, executo help individuals who want to Marc Guevarra, tive director of Spruce Root. start or maintain a business in the Assistant Vice Sealaska recognizes that its rutimber industry. Options include President and Loan ral communities are heavily delines of credit for working capital; Officer, Northrim pendent on natural resources such term loans for equipment, maBank as timber and fisheries to sustain chinery, and vehicles; and financImage courtesy of local economies, Davis says. Coning for real estate and timberland. Northrim Bank sequently, Sealaska, Spruce Root, When it comes to commerand other organizations have cial fishing financing, there are partnered to form a region-wide unique factors to be considered, network known as the Sustainable according to Jamey Young, a vice Southeast Partnership. “The value president and commercial loan of this partnership is it brings toofficer at Northrim Bank. A magether a collaboration of different jor factor is that the Alaska Diviorganizations representing many sion of Economic Development different interests, including fisheries loan program and CFAB federal/state government, tribal (Alaska Commercial Fishing and government, city, and native corAgriculture Bank) are the only porations sharing resources to detwo entities that can use limited Jamey Young, velop and build sustainable local entry permits as collateral. “This Vice President and community projects that can be means that Northrim can give a Commercial Loan Officer, Northrim replicated throughout the region,” loan for the purpose of buying a Bank he says. permit, but other collateral, such One example of this is the as home equity, would need to seImage courtesy of Northrim Bank Hoonah Native Forest Partnercure the loan,” Young says. “But ship, which involves an agreeunlike the limited entry permits, ment between the US Forest Service, the state Northrim can take a collateral-lien position of Alaska, City of Hoonah, Hoonah Indian in quota shares.” Association, The Nature Conservancy, and Generally, there are two kinds of credit Alaska Native Corporations. “This kind of facilities utilized by commercial fishermen— collaboration is a model that will foster eco- term loans with regular monthly payments nomic development across different interests and lines of credit in which the balance is while achieving the common goal of sustain- expected to be paid at some point during ability,” Davis says. “Sealaska/Spruce Root the year. Vessel financing is a key part of have dedicated resources to support the mis- Northrim’s lending to the commercial fishsion of building more resilient communities.” ing industry. Loans for both quota shares and Spruce Root also partnered with the Cen- vessels are best done as term loans. However, tral Council of the Tlingit and Haida Indian lines of credit are best utilized for short-term 18

Agricultural Revolving Loan Fund Fosters Industry Growth By Tracy Barbour

laskans who need financing to grow a farming business can tap into the Agricultural Revolving Loan Fund (ARLF). Farming requires a tremendous up-front investment, and ARLF can provide funding to cover a variety of expenses—often with more speed and ease than a traditional lender, according to Arthur Keyes, director of the Division of Agriculture, part of the Alaska Department of Natural Resources. ARLF offers short term, chattel, farm development, irrigation, product processing, and clearing loans with favorable interest rates. ARLF made six loans totaling $460,000 in fiscal year 2016 and eleven loans totaling $1,067,000 in fiscal year 2017. Many of those loans went to farmers in the Matanuska-Susitna Valley and Delta Junction area. There is great potential in Alaska to feed people through agriculture, and Alaska’s agricultural industry is growing, Keyes says. “Fifteen years ago, we had a dozen farmer’s markets in Alaska, and today we have over forty,” he says. That’s a welcome trend, especially given Alaska’s distance from the rest of the nation and food insecurity, Keyes says. Alaskans benefit directly from every farmer who is producing a crop. It increases the state’s food security and strengthens the economy. Recently, the state launched the $5 Alaska Grown, Five Month Challenge to help grow the agricultural industry. The program, promoted in stores such as WalMart, Fred Meyer, and Carrs-Safeway, encouraged people to spend $5 per week on Alaska-grown products from June through October. Keyes encourages consumers to continue the program year round. “If every Alaskan consumed $5 worth of products a week for twelve months, it would put more than $180 million back into the economy,” he says. R

financing needs—such as seasonal, start-up expenses. Northrim Bank works with partner agencies such as the US Small Business Administration and Bureau of Indian Affairs to provide additional enhancements to its customers. The benefits can come in the form of loan guarantees, sharing the loan risk with loan participation, or helping with loan needs that might be above the limits of the partner agency. “These enhancements can be helpful if the loan makes good sense, but not enough down payment is available, not enough collateral is available, or a longer repayment term is needed,” Young says.

Alaska Business | November 2017 www.akbizmag.com

The costs related to starting a commercial fishing business can be very high. “A limited entry permit for salmon gillnet fishing can easily cost more than $100,000, depending on the area, and a ‘starter’ boat is going to be in the $50,000 range at the low end for something that can be considered a turn-key operation,” says Young. “Nets, insurance, fuel, repairs, maintenance, moorage, and loan payments can quickly add up to leave very little to carry someone through until the next season.” Fishing is more than just setting a net out or dropping a string of baited hooks, Young says. He should know: Young fished commercially (as a boat and permit owner) in the Southeast gillnet fisheries for six years, owned IFQs, and fished for halibut in the Southeast for the past five years. Staying on top of the bookkeeping, regulatory changes, and maintenance issues can be a major challenge. He advises: “Don’t be afraid to admit you don’t know everything. Get good advice from others who have been successful, from seasoned fishing professionals to lenders, accountants, and legal professionals. Realize that fishing is subject to even more uncertainty than other businesses and has different business cycles.”

Chugach Capitalizes on Carbon Credits Program Alaska Native Corporations are using creative methods to leverage their resources for economic gain. Earlier this year, for example,

Chugach Alaska Corporation announced a deal to sell its Bering River coal rights to New Forests, a sustainable forestry and conservation investment manager. New Forests will retire those rights by transferring them to The Nature Conservancy and the local Native Conservancy land trust, while generating revenue through the California Cap-andTrade carbon market, according to a news release. As part of the agreement with New Forests, Chugach must actively manage and maintain the land to retain high carbon stocks in the forests in exchange for the opportunity to sell carbon credits to businesses regulated under California’s greenhouse gas pollution reduction program. (The coal rights were transferred in fee to The Nature Conservancy, a nonprofit conservation organization, with a restrictive covenant against development held by the local Alaska Native-controlled Native Conservancy Land Trust.) Under the carbon credit project, Chugach will preserve 115,000 acres of its forested land in Prince William Sound for one hundred years. The land was inventoried this past summer, and a third-party verification will be completed next year to determine how many carbon credits it could earn. “We’re expecting several million credits—which will translate into a considerable amount of money,” says Josie Hickel, senior vice president of energy and resources for Chugach. However, Hickel says, the real benefit of the deal equates to more than just econom-

ics because the acreage involved represents harvestable timberland as well as subsistence and heritage lands for Chugach’s 2,500 shareholders. Given that Chugach still owns and manages the land, it can realize economic benefit from the carbon credits project for its shareholders while retaining use of the acreage for subsistence activities. “We always want to make sure we are striking a balance between the economic benefit as well as the traditional value of the land,” she says. The carbon credits program is highly regulated, and it comes with certain costs, risks, and requirements. Chugach will bear the expense and effort of maintaining its trees in a healthy way. Periodic audits will be conducted to ensure the carbon credits are being properly maintained. “But in the long run, we still feel it is a very viable project,” Hickel says. Chugach’s leadership was instrumental in lobbying to get Alaska included in the California Cap-and-Trade program, which creates incentives to reduce greenhouse gas emissions and to move to cleaner forms of energy. Now the door has been opened for other land owners to take advantage of the program. Currently, there are several other Alaska Native Corporations participating in or exploring the option of undertaking a carbon credit project. R

Tracy Barbour is a former Alaskan.

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OPPORTUNITY The Arctic is changing, presenting new opportunities in our backyard through greater access, new transportation routes, tourism and infrastructure potential, and untapped natural resources. As Arctic Iñupiat, we have the responsibility to unite – to drive a vision for the future of our region that is our own, and to engage in policy that will positively affect our people for generations to come.

Our voice. Our vision.

voiceofthearcticinupiat.org MEMBER ORGANIZATIONS Arctic Slope Native Association City of Anaktuvuk Pass City of Point Hope Native Village of Atqasuk Olgoonik Corporation Arctic Slope Regional Corporation City of Atqasuk City of Wainwright Native Village of Point Lay Tikigaq Corporation Atqasuk Corporation City of Utqiaġvik IỊisaġvik College North Slope Borough Ukpeaġvik Iñupiat Corporation Native Village of Kaktovik Kaktovik Iñupiat Corporation Nunamiut Corporation Native Village of Point Hope Wainwright Tribal Council

EDUCATION

Industrial Hands-on Training as a Path to Prosperity Available jobs outpace qualified applicants in some sectors

ABOVE: A Northern Industrial Training welding student builds an anvil and forge.

By Judy Mottl

laska’s employment rate may be on the decline, but there are still more than a few job hot spots within the state’s industrial segments and a slew of hands-on training and educational programs to help job hunters become qualified for these often high-demand, high-pay positions. Career opportunities abound in many non-construction occupations—from truck drivers and mechanics to pipeline welders and diesel technicians, to name just a few— and hands-on training and educational providers are at the ready with required courses, certifications, and skill-building programs. The overall industrial employment scenario, for job seekers and training providers, will likely get brighter given the average age of a journeyman in Alaska is now above fifty— and that translates to a greater demand for skilled industrial workers in the next decade. That’s encouraging news for job candidates seeking that first paycheck out of high school, facing a mid-life career change, or those whose jobs are vanishing due to Alaska’s current economic climate.

The Many, Many Hands-on Training Options Today’s industrial job seekers have a diverse list of hands-on training and educational options from which to choose. The list includes higher education, such as University of Alaska Anchorage’s (UAA) Community & Technical College; private sector training from providers such as Northern Industrial Training and Alaska Vocational Technical Center (AVTEC); as well as occupational programs offered by the Fairbanks Alaska Area Plumbers & Pipefitters Local 375. 22

LEFT: A Northern Industrial Training student performing a flux cored arc welding (FCAW) repair job on a plow. Images courtesy of Northern Industrial Training

Yet the list is not as hearty as it once was, acknowledges Denise Runge, dean of UAA’s Community & Technical College. “There has been some contraction of training opportunities, primarily due to declining state budgets and subsequent declines in support for the wide variety of organizations that provide such training, from K-12 to the University of Alaska system to the various community and rural training centers,” she says. “With very careful planning and resource reallocation, we have been able to preserve the number of classes offered and have been able to maintain and, in some cases, even make modest upgrades to some of the needed equipment.” Joel Condon, director of the Community & Technical College’s building technology division, believes cuts are inevitable if funding isn’t shored up. “We have been fighting to

maintain current educational opportunities for Alaskans, but it is becoming an increasingly difficult task,” he says. “With further cuts, it will be increasingly difficult to maintain existing educational resources.” But others in the hands-on educational segment are seeing growth and greater competition. “As a post-secondary education provider, I can tell you that competition [among training educational programs] is increasing in Alaska,” says Joey Crum, president and CEO of Northern Industrial Training. “This is in large part due to the fact the state subsidizes so many different schools whether they are state-owned or not.”

Job Demand and Hiring Trends While state subsidies play a role when it comes to educational and learning opportunities, industry hiring trends also play a key role.

Alaska Business | November 2017 www.akbizmag.com

“SAFELY DELIVERING WHAT YOU NEED, WHEREVER IT NEEDS TO GO.” - RANDY EYTH, CARLILE LINE DRIVER

“We have fewer jobs available in Alaska compared to 2013 to 2015, but a demand for people skilled in the trades still exists,” says Crum, noting most calls he’s getting are from employers seeking candidates for truck driver and mechanic roles. “The skill level and type of driver needed is across the board as far as type of vehicle and type of cargo hauled. The mechanics requests are coming from diesel and heavy-duty shops, as well as from ATV and outboard mechanic businesses,” he says. Another hiring trend is a demand for a multi-skilled hands-on industrial worker. Job seekers are interested in such roles because they present an opportunity to potentially stay on a job from start to finish. Employers benefit because they can streamline hiring. “An example would be a heavy equipment operator or a welder coming to get their CDL so that they are more employable, but the biggest trend we have seen is the number of people with bachelor’s degrees attending classes to become skilled in a trade,” notes Crum. The Alaska Process Industry Careers Consortium (APICC) is seeing the same trend, says Martha Peck, APICC outreach and education coordinator. “For example, the Ketchikan shipyard, run by Vigor Alaska, sees value in training workers across multiple trades. Rather than having skills in a single trade [electrician, welder, industrial coatings], skills across the spectrum of ‘shipbuilding’ add value to the company and increase the employee’s ability

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to stay working year-round,” explains Peck. Jeff Libby, director of the UAA’s Community & Technical College transportation and power division, is seeing an increase in the number of students, and employers, seeking industry-recognized certifications. “Industry partners are requesting we continue to add relevant certifications to help our students find gainful employment within related fields,” says Libby, whose division includes the program in diesel power technology, a welding and nondestructive testing certificate, and an automotive technology program. The Community & Technical College is experiencing a greater demand for diesel technical and heavy equipment mechanics which, according to Runge, reflects strong growth in transportation and warehousing employment sectors. “Most of the traditional industrial trades in Alaska continue to face high numbers of job openings with relatively few new applicants who meet the needed qualifications and experience. Likewise, modest continued growth in utilities and non-oil and gas mining supports demand for many of these trades,” she says. The college boasts 100 percent job placement for graduates from its diesel power technology program for the past two consecutive years and is having trouble meeting demand for skilled workers. “We received numerous phone calls this summer from a variety of businesses looking for qualified diesel technicians from our

program and, unfortunately, we did not have enough students to meet the demand,” says Libby. “Each of our students had already accepted positions prior to graduating. The opportunities for individuals with this training varied from heavy equipment maintenance and repair, maintaining and repairing power generation systems, service and repair within the trucking and transportation industry including the railroad, several fleet service centers, and the maritime industry,” he adds. In fact, the demand for diesel mechanics is so strong AVTEC has a waiting list of students wanting to enroll in its training program. “We have wait lists in certain skills such as diesel mechanics and welding as those are high-demand occupations,” says AVTEC Director Cathy LeCompte, noting the school has a 90 percent job placement rate for graduates. While hiring is down in some industrial segments, particularly vertical construction, there is strong demand in horizontal construction, notes UAA’s Condon. “These civil infrastructural projects have sustained employment opportunities, and many companies that specialized in vertical construction are shifting emphasis to horizontal construction,” he explains.

Industry Change Fosters Program Expansion Alaska’s robust hands-on training educational spectrum is due, in part, to providers and institutions being quick and nimble to respond to industry hiring needs, according

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qualified workforce is a requisite asset for any industry. And sourcing a sustainable workforce that brings appropriate capabilities has long challenged Alaskan employers. In 1999, the need to promote skills and work-readiness of potential employees sufficient to meet specific hiring needs drove creation of the nonprofit Alaska Process Industry Career Consortium (APICC). In partnership with educators, trainers, community members, and government agencies, process industry companies established APICC to create, connect, and enhance the quality of training and education programs available in Alaska. Cari-Ann Carty, Executive Director of APICC, says, “We want to make sure that training is available to meet shortages, and that Alaskans are ready for those career opportunities.” APICC is committed to creating a highly trained, sustainable workforce that meets needs of Alaska industries. Through its outreach, partnerships, and advocacy, APICC assesses current and projected workforce needs, develops and promotes curricula to build appropriate skills and deliver credentialed training, promotes Alaska hire, and identifies job opportunities and career paths. Hundreds of Alaskans have been prepared for and have filled high-paying industry jobs—benefitting Alaskan families and Alaska’s economy. A two-

©Judy Patrick Photography

APICC Delivers Workforce Solutions to Alaska Industries The Board of Directors for the Alaska Process Industry Careers Consortium “Industry leaders devoted to helping prepare Alaska’s future workforce” year degree program to certify process technicians meets the needs of the oil and gas industry while creating career opportunities. Research conducted by the Institute of Social and Economic Research found that 85 percent of program graduates were still working in the oil and gas industry earning an average annual salary of $105,000 five years after receiving degrees.

Although founded to provide process technicians for the oil and gas and mining industries, APICC serves and has been achieving results for a much broader range of industries. The organization recently was instrumental in assisting Vigor Industrial, an operator of shipyards in Alaska, with creation of an in-house training program to advance incumbent workers and grow a local workforce. APICC and Maritime Works cooperated in establishing a curriculum to provide instruction and certifications in construction and shipyard skills and launching registered apprenticeships for welders and pipefitters at the Ketchikan shipyard. APICC initiatives include managing the North Slope Training Cooperative (NSTC), which delivers standardized health, safety and environmental – PA I D A D V E R T I S E M E N T –

training programs required by many employers; facilitating Teacher Industry Externships (TIE) that enable teachers to gain experience working alongside skilled tradespeople; implementing YES, an employability skills program to help students gain soft skills required to be work-ready; sponsoring Workforce Wednesday segments on KTVA television broadcasts to enhance awareness of varied careers in the Alaska job market; and providing accredited training and certification for instructors of skilled crafts through the National Center for Construction Education and Research (NCCER). “APICC members all have the same issue: how to get qualified people for our workforce needs,” says Heather Spear, Senior Human Resources Director for Calista and APICC Board Secretary. She adds that collaboration with other members and “idea-sparking” forums featured during the annual meeting provide valuable knowledge she can use at her company. Calista, along with educational institutions, public agencies and trade groups, benefits from the successful efforts to enhance workforce capabilities. Carty says, “APICC members are Alaska companies and individuals who share our goals and have a stake in developing a competitive, dynamic, welltrained Alaska workforce.”

Learn more about APICC: apicc.org I 907.770.5250

“Hands-on training is a crucial element in this industry. Our signatory contractors have the ability to hire employees that have had extensive industry exposure through our apprentice and journeyman training programs.”

—John Plutt President and Training Director Plumbers & Pipefitters Local 375 Training program

to Runge. Students, she adds, are also aware of the dynamics in the labor market. “The construction industry has been thoroughly engulfed in the technology revolution,” she says. “The industry has many opportunities to increase efficiencies and digital technology provides effective tools to implement these changes. In construction management we are finding that many students in industry internships are using digital technologies daily throughout their internships.” Industry skill demand changes spur educational program changes, Runge notes. For example, in 2000 there was a single program at UAA called Architectural and Engineering Technology that supplied the construction industry with draftspersons knowledgeable in building construction methods and materials. This program, explains Runge, then led to growth of additional programs such as the Construction Management Program and the

Occupational Safety and Health program. The Community & Technical College isn’t alone in its flexibility and ability to adjust to industrial sector trends. The Fairbanks Alaska Area Plumbers & Pipefitters Local 375 Training program also adjusted to meet new employer needs by expanding skill building options. “Hands-on training is a crucial element in this industry. Our signatory contractors have the ability to hire employees that have had extensive industry exposure through our apprentice and journeyman training programs,” says President and Training Director John Plutt. “Our training has expanded to meet the industry needs,” he adds. One example is a training program focused on pipeline welding to help with the shortage of welders. “Our training continues to grow to meet the increasingly stringent industry standards.” It isn’t just training providers, labor programs, and university curriculums that are help-

ing would-be workers gain in-demand skills. APICC, launched in 1999 by a group of oil and gas companies, focuses on developing qualified, highly-trained workers and offers degree programs in conjunction with universities, including University of Alaska Fairbanks and the Kenai Peninsula College in Soldotna. The consortium developed a Process Technology Degree program (PTEC)—endorsed by the North American Process Technology Alliance—and the Youth Employability Skills (YES) program. The latter is undergoing changes due to new industry hiring needs. “We have since reworked the [YES] program and [are] currently writing curriculum for it. This came about after interviewing industry [employers] and asking what needs to be added to the soft skills. From this input, we have added a great deal to accommodate issues employers currently face,” says APICC’s Peck. The consortium manages the North Slope Training Cooperative, created to develop and maintain high quality, standardized health, safety, and environmental training programs for operating companies and contractor employees on North Slope and industrial sites throughout Alaska. It also developed the Assessment Center for the National Center for Construction Education and Research, a national nonprofit organization that created industry-endorsed training curricula leading to industry-accepted national credentials in more than seventy craft areas. “We have a number of outreach projects to inform Alaskans about in-demand careers and the training/education required to be qualified for these careers. We work with industry to help them with their workforce development. We work with higher education to supplement or create needed training programs,” explains Peck. These initiatives, Peck adds, are proving valuable to providing employers with a skilled workforce. “Hands-on training is important. The more realistic the training is the better. Welders who receive all their training in a lab or shop environment are less likely to be successful when hired on a job site where most work takes place outside, where they are required to weld in less than ideal positions like laying on their backs, crawling in or under, [or] weld while on a ladder,” notes Peck. Such an educational hands-on experience also benefits employers, which often have inhouse training programs. “For PTEC graduates, having an internship with an industry employer between their first and second year of schooling better prepares them for the workplace upon graduation. When a company hires a graduate of the PTEC program, they fine tune the training to fit the job the graduate was hired for, and many employers have a three- to fouryear internal training program to advance graduates’ skills,” she adds. R

Judy Mottl writes about important issues country-wide with an affinity for Alaska. 26

Alaska Business | November 2017 www.akbizmag.com

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REAL ESTATE

Standing in the Landlordâ&#x20AC;&#x2122;s Shoes

Alaska Business | November 2017 www.akbizmag.com

Seeing Yourself as a Prospective Tenant By Jeff Grandfield and Dale Willerton

ecuring a commercial tenancy isn’t always an easy process. For one, landlords and tenants have different motivations. For landlords, owning commercial property and leasing space to tenants is their primary goal. For tenants, however, leasing space is not the primary goal. Instead, the commercial tenant should focus on running a profitable business or providing great service. The property is a place to attract customers to your business—it’s not an end unto itself. Commercial tenants don’t always want to lease space; it’s simply a requirement if they want to see their business goals come to fruition—a means to an end, if you will. Therefore, landlords and commercial tenants are not equal. The tail can’t wag the dog. If the landlord is the dog, then the tenant is the tail. And, as we know, dogs chase their tails. Consider that a commercial tenant typically only has one landlord, whereas a commercial landlord may have hundreds (or even thousands) of tenants. The relationship between a tenant and landlord is not like an equal marriage with common goals. It amazes us how, during the leasing process, many landlords avoid meeting their tenants in person—and most tenants avoid meeting their landlords. When it comes to new lease deals, often there’s a real estate agent (or two) brokering the deal between the parties. Rarely, in our experience, does the agent try to bring the landlord and tenant together to meet personally or to even talk by telephone. Being busy is no excuse. If a tenant isn’t creating a relationship with the landlord and making deposits to that relationship, how can the tenant ever expect to make a withdrawal when they need a favor?

How to Encourage a Landlord to Approve Your Tenancy Sweeten the pot. If you have an existing location and the landlord is local, invite him to come visit you to see your operation. Giving a gift certificate for your business can also work well for new and start-up companies and can make you look good. Explain your business concept. Are you opening an independent business or joining a franchise? Do you have a successful business history? Are you offering something different that your competitors? Is there an increased demand for your type of business? Don’t assume that the landlord understands everything about your business. The Lease Coach likes to show landlords newspaper and magazine articles which talk about the growth of certain types of businesses. You may, however, have your tenancy request rejected. This may be done for any number of reasons. Often, a smart landlord is striving for a specific tenant mix within his or her property. For example, consider that if www.akbizmag.com

a landlord is developing a retail plaza, he or she may prefer to hold out on leasing space to a take-out/delivery restaurant location and look for a sit-down restaurant that attracts more customers to the center. Franchise tenants can also be preferred over independent tenants as franchisors have recognizable names and will help to draw more customers to the property. Additionally, landlords sometimes reject tenants who have insufficient capital or bad credit scores. We have also seen landlords turning away prospective tenants who desire to lease less than available commercial space. If you want to save yourself a lot of time kicking tires on different properties, find out what the landlord wants right up front. Ask the agent, “Do you think the landlord wants a (your type

of business) tenant for this property?” The agent’s answer will let you know the landlord’s desires. R

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CONSTRUCTION

Image courtesy of Lake Hood Hangars

In July the concrete walls at the new Lake Hood hangar facility were poured, as seen in this aerial view that features the Ted Stevens Anchorage International Airport in the background.

New Hangar Construction at Lake Hood Building one of three nears completion

By Tasha Anderson

n September, Anchorage’s rainy season was in full force and causing a work slow-down on a new building conceived of and developed by Lake Hood Hangars. Seth Kroenke, president of Remote Alaska Solutions, the general contractor for the new building, said in late September the building’s roof was 85 percent complete. “Within a couple of days—as soon as the rain lets up again—we’ll have the roof completed, dried, and done.” The structural elements of the building’s walls and roof were 95 percent complete. Once the roof dried in, the plan was to immediately launch into pouring the concrete floor 30

slabs. “In the next three weeks we’ll be finishing the roof, getting slabs installed, getting asphalt installed, and starting with outside cladding,” according to Kroenke. Lake Hood Hangers Developer and Owner Steve Zelener says, “More than likely by November we will already have the taxiways, the concrete pads, and a lot of the siding already installed on the building and the doors.” This work is all in anticipation that Lake Hood’s newest building, which boasts six hangars, will be available for occupancy in early December.

Long Development Lake Hood Hangars initiated construction on the hangar building earlier this year, driving pile in March and hosting an official ground breaking April 19. But the company had plans to develop the property since 2010, a few years after purchasing the lease. Zelener explains, “All the land at the airport is lease land; there’s

no private land at the airport, it all belongs to the State, which leases the land to private companies or developers or individuals for the purpose of hangars or offices or things like that.” Zelener says three significant challenges stretched the property’s development from conception in 2010 to a first fill and grade dirt work permit filed in 2015 to ground breaking in 2017. One challenge was that in 2010 the economy in the Lower 48 was struggling to emerge from the 2007-2008 financial crisis (although Alaska’s economy was still relatively steady at that time). “We couldn’t get enough enthusiasm and financing,” he says. The second challenge the company had to address was the cost of development, “especially at Lake Hood,” Zelener says, where soil conditions are poor, which can increase the cost of construction exponentially. Third, development at Lake Hood is complicated by the “cumbersome and problematic” permit-

Alaska Business | November 2017 www.akbizmag.com

ting and regulatory environment. “Not only do you need Municipality [of Anchorage] permission and permits but you need DOT permission, [Ted Stevens Anchorage International Airport] permission, FAA permission, and US Corps of Engineers permission; so you have all these agencies that you’re constantly dealing with and each one has their own issues and you have to overcome them.” Regardless of the challenges, Lake Hood Hangars persevered and developed an innovative, durable, highly functional hangar facility in a prime location.

Finding the Right Build Initially Lake Hood Hangers planned to erect a pre-fabricated metal hangar structure, which can save construction time and cost, depending on several factors. Zelener says it was estimated that, to support the weight of a pre-fab building, before construction 10 feet or more of material would have to be excavated and replaced with new fill. Lake Hood Hangers Project Manager Stormy Jarvis says, “A year ago they said, ‘No, even if you did that, you’re still not able to place those heavy loads that you want to on here because you have the clay down there and you could still settle 4 inches,’ which is unacceptable,” as typically new-builds should settle less than an inch. Since excavation wasn’t going to solve the bad soil problem, Jarvis looked into pile driving options. The nature of a pre-fab metal structure is such that instead of distributing weight across long, load bearing walls there are point loads, meaning the load is concentrated into specific areas. “To hold up this kind of point load, you have to have tremendous pilings,” Zelener explains. Kroenke says this would have resulted in a “geogrid of piles; basically a structural slab that you place the building on top of” that may have required as many as 500 30-foot piles ranging in size from 12 inches to 2 feet in diameter. Jarvis says, “The foundation became more expensive than the building.” Kroenke clarifies the estimate for the foundation alone was hitting and surpassing the million dollar mark. The super-expensive foundation wasn’t the only obstacle related to choosing pre-fab metal building; the nature of the build would have required a large internal superstructure that jutted 5 feet out from the walls, reducing the usable floor space. Also, to get the height clearances that the company wanted within the building, the metal structure would have needed to be 5 feet taller, which is itself an issue. “The FAA tower overlooking Lake Hood runways requires a certain line of sight,” Zelener says, which means there are strict limitations on building heights. Jarvis says she took another look at the cost of building a concrete structure: “When I took out the foundation numbers and started looking at the two buildings side by side for their costs, the concrete building made sense,” she says.

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ICF Walls Around this time Remote Alaska Solutions was constructing a hangar at Merrill Field using ICF (insulated concrete form) walls, which www.akbizmag.com

November 2017 | Alaska Business

In April of this year Lake Hood Hangars had a ground breaking for their new hangar facility, which will house six hangars available for lease or sale. From left to right: John Parrott, Airport Manager of Ted Stevens International Airport; Stormy Jarvis, Lake Hood Hangars Project Manager; Steve Zelener, Developer/ Owner of Lake Hood Hangars; Seth Kroenke, President of general contractor Remote Alaska Solutions; and Anchorage Mayor Ethan Berkowitz. Image courtesy of Lake Hood Hangars

Lake Hood Hangars was able to examine in action. “When you’ve never seen something, you don’t know how it’s going to work, but when you can come and feel it and you can be in it, it starts making sense,” Zelener says. ICF walls made a lot of sense, and the company determined in July of 2016 to move forward with a concrete building design. Kroenke explains that ICF walls begin with a foam form. The forms are put in place

and then rebar is inserted both horizontally and vertically, creating a rebar mat within the forms. “It’s all specified by the engineers, with the seismic loads and wind loads and the wall’s height factored in,” he says. After the rebar is put in place the forms are filled with high strength concrete. “The entire void [within the form] turns into a poured, structural concrete wall all the way to the roof.” Pouring the concrete is strategic, he says.

“Vertical concrete is actually very complex; you have to know fluid dynamics and the chemical and hydration properties of concrete to do it well.” For the new hangar building at Lake Hood, the concrete was poured in two lifts: the first was 16.5 feet and the second was 12 feet. “The 16.5-foot lift was a 225-yard pour and took us all day—it was ten hours of pouring,” and required twenty-four concrete trucks, Kroenke says.

Alaska Business | November 2017 www.akbizmag.com

The resulting wall is 13.25 inches wide, comprised of 8 inches of concrete (filled with rebar) sandwiched between approximately 2.5 inches of foam. Embedded about half an inch inside the foam every 8 inches are 1.5 inch polymer ties, which act as studs, allowing cladding to be attached to the external and internal walls. The ICF walls can accommodate a range of interior and exterior finishes, from steel cladding to drywall on the interior. “For this project we’re going to look at some more progressive [internal finish] ideas.” One option is to use Vortex, a spray-on rubber liner similar to the Rhino Linings often found in truck beds. By spraying it directly on the foam, “it even has a little bit of flexibility because foam isn’t as dense as a steel pickup truck, so it has a little bit of give. It’s going to take some abuse and probably have some memory and spring back versus [forming] dents and holes,” Kroenke says. It will be cost effective and better in the longterm for the end user. The ICF walls also provide a sound barrier for hangar occupants and have a high R-value, which increases the comfort of the hangars and reduces heating costs. Another feature of the ICF walls is that they have no organic component, “and you don’t have to worry about mold or rot. Those types of compromises where you have high moisture and high temperature swings and constant issues with temperature dew point meeting inside your wall cavity—it just doesn’t matter,” he says. The ICF walls are

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Image courtesy of Lake Hood Hangars

By August the walls of the new Lake Hood hangar facility were in place and construction of the roof structure was underway.

November 2017 | Alaska Business

of space can be lost, depending on the size of the door. The cable-operated bi-fold doors open slowly, often taking minutes, which can be an eternity of watching heated air rush out of a building. Further, the cables are prone to breaking. Zelener explains: “We’ve had instances in this hangar where in December, on Christmas Day, [a hangar tenant] couldn’t get their planes out because the cables were broken. It’s a real emergency, and it costs a fortune, but you have to get the planes out because they’re scheduled to be somewhere. It’s a real problem.” The doors at the new hangar facility are 60 feet long and 20 feet high and open all in one piece, operated by a hydraulic system, what Zelener calls a much more reliable door. “They’re really fast,” Jarvis says. “[Kroenke] put hydraulic doors on the hangar at Merrill Field so we could go out there and see them in use and it was so fast to see them go up and down.” Aside from being slow, a bi-fold door system adds stress to the hangar structure. Kroenke says at the new building there’s “zero load introduced to the building by opening the door” because the hydraulic doors are built onto their own metal structure. Since the door opens as one unit and pulls into the building, it doesn’t take up precious doorway clearance.

Image courtesy of Lake Hood Hangars

By early October the micro-rebar reinforced concrete slab had been poured at the new hangar facility at Lake Hood.

supported by 108 piles measuring 10 inches in diameter and 30 feet in length.

Flat Roof, Hydraulic Doors For a homeowner in Alaska a flat roof is a disaster waiting to happen. For commercial properties, especially a hangar facility, a flat roof is generally the best option, Zelener says. At commercial properties it’s important to have perimeter parking and planes must be able to safely travel in and out of the building, none of which is possible if huge banks of snow are randomly dropping off the building onto cars and aircraft. The roof of the new Lake Hood hangar facility is sloped slightly toward the middle 34

of the building, where runoff from the snow drains. Kroenke explains the roof is designed to sustain snow loads in even the worst possible circumstances. “You don’t have to store snow, and you don’t have to worry about snow sliding off the roof,” Zelener says. “For example, we have a hangar here in this building that has a slope and you can’t park cars next to the hangar because the snow will slide and hit your car.” Many existing Lake Hood hangars feature bi-fold doors, which fold in the middle as they’re raised. “Basically [the door] hinges in half as it goes up, and then you lose space on tail height clearance and getting an aircraft into the hanger,” Jarvis says—up to 3 to 4 feet

Innovative Slab “It goes back to our dirt and this monster excavation that we’ve been trying to avoid,” Kroenke says. “What new and innovative ideas and building products can we utilize to offset the risk of inferior dirt?” He says the project used several. The slab areas were prepared for construction through a period of surcharging, which essentially means adding weight (more than it is anticipated the site will ultimately bear) to compress the soil over a period of time. At the hangar facility the surcharging took place for several months, during which surveyors and engineers monitored and recorded dirt elevation data. Kroenke says, “Really that was kind of redundant, but we wanted to insure to the end user that we’ve done our homework and looked for ways to minimize settlement risk.” Following surcharging, approximately 3 feet of fill was required to bring the entire development site up to grade—to tie into the surrounding roads and taxi lanes—and under the slabs the construction team laid geogrid, “a matting that’s used in civil applications to provide rigidity to soils,” he says. The project is taking advantage of a new material to increase the strength and durability of the concrete slab that forms the floor of the six hangars: twisted steel micro rebar from Helix Steel. “They are tiny strands of metal [approximately 1 inch long]: it looks like a square needle that they grabbed both ends and twisted, so it has a helical pattern,” Kroenke says. The micro rebar is mixed into the concrete; pallets of it will be integrated into the slab at the hangar facility. “When the concrete dries around it it’s nearly indestructible. It minimizes cracking in concrete by up to 93 percent. It has the ability to replace rebar and is considered structural,” he says.

Alaska Business | November 2017 www.akbizmag.com

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“In this case it’s not, we’re going to lay down a pretty robust rebar mat, and we are going to incorporate the helix.” Jarvis explains this robust floor slab is “not just designed for the small lightweight planes that we’re going to park on it”—no, it’ll hold the weight of a 737. “But,” Kroenke adds, “that was a cheaper alternative that added more value than digging out all the dirt.”

Convenience and Longevity This is just the first of three proposed buildings. Building 1 is approximately 24,000 square feet and is currently divided into six hangars that will feature a finished restroom with shower, LED lighting, floor drains, and radiant in-floor heat in addition to the insane slab, hydraulic doors, flat roof, and soundproofing, insulating walls—and there are no columns or encroaching superstructures that impede utilizing all of the floor space. Interior ceiling height is clear at 24 feet, and every hanger will have a mezzanine (clear to 14 feet and 2 inches underneath) suspended from overhead girder trusses to prevent tail damage. The building is a mixed use property, meaning the hangars can be sold or leased to a number of interested parties, private or commercial. All together this allows tenants a range of uses from simply storing planes to running an aviation-related business. Jarvis says this is the largest private investment in general aviation at Lake Hood in more than fifteen years and couldn’t be more timely considering floatplane slip storage at Lake Hood has a ten-year wait list and there haven’t been any new, multi-unit developments at Lake Hood in recent years. And that’s just the facility. “It’s all about location,” Zelener says. “As Anchorage grows, the amount of planes grows, but the airport might not be able to grow, and the lake is certainly not going to grow.” The hangar lot, which will hold all three hangar facilities, is located at the intersection of Aircraft Drive and Victor Taxiway with immediate access to Lake Hood and the runway at Ted Stevens Anchorage International Airport. “Through [our Lake Hood] property and the public ramp, there’s access directly to the lake,” Zelener says. “Victor Taxiway is the only taxiway to access the international airport. So, for all general aviation airplanes, that’s the only point where they can gain access to the ‘big runways’ from Lake Hood. The hangar is also within walking distance of the domestic terminal of Ted Stevens Anchorage International Airport and is just a short trip by car to International Airport Drive for those who are commuting.” In addition to the hangar facility, Zelener is developing additional float plane tie downs across the street from the new hangars at his Lake-Aire Complex, to which tenants will have a priority leasing opportunity. “Location is critical,” Zelener says. “We have a fantastic location.” R Tasha Anderson is the Associate Editor for Alaska Business.

Alaska Business | November 2017 www.akbizmag.com

TELECOM & TECH

Image courtesy of GCI

GCI employees are conscious of safety as they perform a variety of tasks, whether it is providing services at a customer’s home or installing or moving massive pieces of equipment in extreme conditions.

GCI Celebrates Safety Milestone 3 million accident free hours By Tasha Anderson

omegrown Alaska telecommunications company GCI announced in September that it was celebrating more than 3 million hours of safe operations both on Alaska’s North Slope and in the Gulf of Mexico, “a remarkable achievement for a company that specializes in climbing 300foot towers, aligning satellite dishes during Alaska’s Arctic winters, and maintaining networks on offshore oil rigs,” according to the company. A safety achievement of this magnitude is never an accident, and GCI deliberately built a company culture of safety. Director of Safety and Risk Management Philip Ulmer says, “Many years ago the company adopted its basic principles that established how every employee can create positive relationships with other employees and communicate effectively to promote ideas… The safety culture of the company evolved to where it was a priority to break down any barriers for employees to report unsafe conditions or prowww.akbizmag.com

cesses. GCI’s strength is to have a collaborative work environment to develop solutions to manage the risks to people, property, and the environment. The building blocks for our safety culture are the employees who have the freedom to speak up and believe they will be not be subject to explicit or implicit retaliation for sharing their concerns.” Ulmer says that from day one new employees are invited to participate in GCI’s culture of safety: “During on-boarding the new employee is instructed to report unsafe work situations immediately to their supervisor. The employee also has computer access to the entire company safety management system process documents and other internal processes—examples include ergonomics, emergency response, and company fleet vehicle safety.” While GCI employees may face potentially dangerous situations at remote locations or on offshore rigs, much of their work is conducted in neighborhoods and local communities, and having an eye for safety is vital at either end of the spectrum. “Our employees know they are observed by the public eye when they are driving company fleet vehicles on our streets or seen wearing the company logo in their own neighborhoods or eating lunch at a restaurant. Last year we recog-

nized an employee who was doing his routine job duties at a residence when the customer had a critical health issue occur. Our employee took charge of the medical emergency situation and called 911 to initiate response action. He stayed with the customer until professional help arrived. After his work day was finished he made a call to our customer to see how [the customer was] doing—he cared about the welfare of our customer and showed that by a simple act of caring,” Ulmer says. In the September release lauding GCI’s safety record, Rick Hansen, senior director of GCI’s Industry Solutions Team, said, “Everyone who works for our team works to meet our own tough safety standards of no ‘lost time’ accidents or accidents of any kind. We want to help our customers meet their safety standards and have each of our employees go home safely at the end of their shift.” GCI employees logged more than 3 million hours since their last lost time accident and more than 1.5 million hours since the last recordable safety incident. R

Tasha Anderson is the Associate Editor of Alaska Business. November 2017 | Alaska Business

SPECIAL SECTION

Mining

Alaska’s Mining Industry ‘Resilient, innovative, and proud’ By Deantha Crockett

’ve been fortunate enough to live in Alaska my entire life. I’m proud to call this state home, and I’m equally proud to represent Alaska’s mining industry. This year brought change to our industry on so many fronts, and among these changes a theme emerged: mining is an industry with the potential for significant growth, which would mean more good jobs, more revenue, and more diversity for the economy on a local, state, and national level. Changes? I’m glad you asked. As this year’s field season (from approximately May to October when Alaska’s environment allows us to explore the land) drew to a close, it became apparent that 2017 brought a significant uptick in interest in the state’s mining industry. Increased activity at exploration copper, zinc, and precious metals projects from the Ambler Mining District above the Arctic Circle to the polymetallic Palmer Project near Haines in Southeast showed that companies are interested in furthering Alaska’s promising mineral development projects toward operation. In Southwest Alaska, we saw an additional drilling program at the Donlin Gold Project to obtain more ore samples for geochemical analysis, and the Environmental Protection Agency’s actions to withdraw prior preemptive veto actions at Pebble have given the copper, gold, and molybdenum project new life as additional drilling took place to update permit application data. North of Fairbanks, Livengood Gold continued project optimization and in early spring released a new prefeasibility study for its identified 20 million ounces of reserves. On Prince of Wales Island, the Dotson Ridge Rare Earths Project continued pursuit of its ore separating technology and the Niblack Project continued marketing its proven polymetallic reserves to investors. Exploration activity is so welcome to Alaska not only for its potential to further new mines but also because the immediate economic benefits largely stay in Alaska. Exploration activity by nature includes the necessity of flight services, lodges and camps, and food services providers that are chiefly provided by Alaska businesses and individu38

Photo by Dave Harbour

als. This wasn’t contained to just the development projects described above—exploration of new deposits and early-stage projects across Alaska ensued this field season, again signaling that the eyes of investors are on Alaska and what its geology has to offer. I believe the reason behind the positive changes in mineral investment in Alaska has many facets, but two of which we can be confident are the increase in the market prices of many mined commodities and a new federal regulatory climate. While the former is largely out of the control of industry and regulators alike, the new permitting efficiency efforts out of federal regulatory agencies has signaled to investors across the globe that the United States is eager to develop its resources and grow its domestic economy. The Trump Administration’s priority to grow US infrastructure will certainly rely on mining, providing for a new look at projects in Alaska. Allow me to stop right here and clarify what I have found to be an increasingly common misconception. A desire for permitting efficiency is not, under any circumstances, an action to make it less protective of humans, the wildlife, or the environment. It takes dozens of local, state, and federal agency permits to approve an application for a mine in Alaska. The planning and environmental review, testing, and approval process to obtain these permits takes many years and likely billions of dollars on behalf of the developer, from start to finish. The process involves a

lengthy and consistent stream of public process and gathering input, and it is important to understand that it does not guarantee approval. Every mine is different and requires a tailor-made plan for environmental mitigation. And I am proud to tell you that in many cases, Alaska’s mines go beyond their permit requirements to achieve the exemplary environmental records they all hold today. In Alaska, mining is done right. While safety and the environment are cornerstones of our industry, the hat trick for us is to also significantly contribute to the economy on a local, state, and national level. Alaska’s large and small scale mines employ nearly 5,000 people each year in more than fifty Alaskan communities, paying an average wage of $108,000 per year. These are stable, yearround jobs with double the amount of the state’s average annual wage and in many cases exist in communities with few other economic opportunities. The mines also provide significant local government revenue in property taxes and other payments to the City and Borough of Juneau, Fairbanks North Star Borough, Northwest Arctic Borough, Denali Borough, City of Nome, and more. Finally, the industry contributes significant revenue to the State of Alaska through Alaska Mining License Tax, Alaska Corporate Income Tax, royalties on State of Alaska land, rental claim fees and taxes, and more. In fact, the net benefit is considerable. The state receives far more revenue from mining than it costs the

Alaska Business | November 2017 www.akbizmag.com

MINING SPECIAL SECTION | INDUSTRY COMMENTARY

“In Alaska, mining is done right. While safety and the environment are cornerstones of our industry, the hat trick for us is to also significantly contribute to the economy on a local, state, and national level. Alaska’s large and small scale mines employ nearly 5,000 people each year in more than fifty Alaskan communities, paying an average wage of $108,000 per year. These are stable, year-round jobs with double the amount of the state’s average annual wage and in many cases exist in communities with few other economic opportunities.”

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state to manage the industry. This is partly because the state’s permitting and monitoring costs are billed to the companies. As a result, most of the revenue from mining taxes and fees helps pay for valuable state services such as schools, public safety, and state roads. Alaska’s mining industry is resilient, innovative, and proud. Our six large operating mines, dozens of development projects, sand and gravel operations, and hundreds of small placer mines—as well as the support industry that services the mines—are all willing to continue working hard to ensure our industry remains safe, environmentally responsible, and a good economic partner to Alaskans. I hope you will join us to learn more about the impressive contributions of mining at AMA’s Annual Convention November 5-11 at the Dena’ina Center in Anchorage. We will celebrate mining achievements, learn about the future of the industry, and together address the challenges that lie ahead. To learn more about this event and Alaska’s miners, please see us at our website, alaskaminers.org. We can’t wait to share more of our story. R Deantha Crockett, born and raised in Alaska, is the Executive Director of the Alaska Miners Association, which advocates for and promotes responsible mineral development in the state of Alaska. www.akbizmag.com

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November 2017 | Alaska Business

SPECIAL SECTION

Mining

Alaska 2017 O Mining in Review By Curtis J. Freeman 40

ver the course of the last year, the Alaska mining industry has seen significant changes as the industry moves out of a four-plus year depression and started into a recovery that was felt with increasing effect over the last nine months. Metals prices affecting Alaska producers have been relatively stable or increasing, particularly for zinc and gold, the two metals that generate the most revenue from Alaskaâ&#x20AC;&#x2122;s operating mines. In addition, copper prices surged above the magical $3 per

Alaska Business | November 2017 www.akbizmag.com

MINING SPECIAL SECTION | MINING IN REVIEW

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Image courtesy of Bering Shai Rock & Gravel

pound mark, re-invigorating development of at least three advanced copper prospects across Alaska. On the exploration front, gold, copper, and polymetallic prospect continued to be the focus for this sector. The junior exploration sector remains somewhat depressed due to lack of risk capital investor interest; however, producing www.akbizmag.com

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November 2017 | Alaska Business

MINING SPECIAL SECTION | MINING IN REVIEW

companies of all sizes have come back to Alaska in search of the elephant-sized deposits for which Alaska is justly famous. Stay tuned, there is more to come!

WESTERN ALASKA n Teck Resources Limited and partner NANA Regional Corporation announced year-end 2016 and first half 2017 results from its Red Dog mine. For 2016, the mine produced 583,000 tonnes of zinc in concentrate at an average grade of 17.2% with mill recoveries steady at 84.7%. The mine also produced 122,300 tonnes of lead in concentrate for the year at an average grade of 4.9% with slightly lower mill recoveries of 56%. Gross operating profit for 2016 was $668 million. Mill throughput for 2016 was up slightly at 4,250,000 tonnes. During 2016 the mine paid royalties of $282 million versus royalties of $178 million in the year-previous period. In the first quarter of 2017, ore from the higher-grade Qanaiyaq pit was introduced to supplement declining grade ore from the Aqqaluk pit. First quarter zinc production was 120,500 tonnes of zinc in concentrate from ore averaging 14.7% with mill recoveries of 80.3%. The mine also produced 28,900 tonnes of lead in concentrate from ore grading 5.5% with mill recoveries decreasing to 51.6%. During the 2nd quarter of 2017 the mine produced 127,800 tonnes of zinc in concentrate from ore grading 14.2% with mill recoveries of 80.6%. The mine also produced 31,600 tonnes of lead in concentrate from ore grading 5.2% with mill recoveries of 54.7%. The mine posted a $235 million operating profit for the first half

of 2017 and recorded royalty costs of $70 million in 2017. In accordance with the operating agreement between Teck and NANA, the mine currently pays to NANA a 30% royalty on net proceeds from production. This royalty increases by 5% every fifth year to a maximum of 50%, with the next adjustment to 35% occurring in the fourth quarter of 2017. The 2017 concentrate shipping season commenced on July 1, with expected sales of 145,000 tonnes of contained zinc in the third quarter and 165,000 tonnes in the fourth quarter. n Solitario Zinc Corporation (formerly called Solitario Exploration & Royalty Corporation) completed its acquisition of Zazu Metals Corporation and with it the Lik lead-zinc-silver deposit near Red Dog. Solitario, (which changed its name following the acquisition of Zazu Metals) now holds a 50% operating interest in the Lik deposit with Teck Resources Limited owning the other 50%. Solitario acts as the project manager. At a 5% cut-off grade, indicated open pit resources at South Lik stand at 16.85 million tonnes grading 8% zinc, 2.7% lead, and 50 gpt silver. Indicated open pit resources at North Lik stand at 0.44 million tonnes grading 10% zinc, 2.8% lead, and 59 gpt silver. At a 7% cut-off grade, indicated underground resources at South and North Lik stand at 17.29 million tonnes grading 8.1% zinc, 2.7% lead, and 50 gpt silver. At a 5% cut-off grade, inferred open pit resources at South Lik stand at 0.74 million tonnes grading 7.7% zinc, 1.9% lead, and 13 gpt silver. Inferred open pit resources at

North Lik stand at 2.13 million tonnes grading 8.9% zinc, 2.9% lead, and 46 gpt silver. At a 7% cut-off grade, inferred underground resources at South and North Lik stand at 5.34 million tonnes grading 8.7% zinc, 2.7% lead, and 38 gpt silver. The company initiated metallurgical testing to determine the potential to recover silver from the deposit. Previous work focused on zinc and lead recoveries, resulting in only 5% recovery of the average contained silver value of 50 gpt silver. With approximately 29.1 million ounces of silver in the Indicated Resource category, and another 6.5 million ounces in the Inferred Resource category, improved silver recoveries have the potential of contributing significant value to the project. Welcome to Alaska, Solitario Zinc! n Graphite One Resources Inc. announced the results of its Preliminary Economic Assessment (PEA) for the project, which indicated the planned operations would have a pre-tax net present value (NPV) of $1.037 billion using a 10% discount rate, with an Internal Rate of Return on capital of 27%. On a post-tax basis, the NPV is projected at $616 million using a 10% discount rate, with an Internal Rate of Return of 22%. Annual production of coated spherical graphite and other graphite specialty materials is projected at 55,350 metric tonnes when full production is reached in year six. At full production rates, the project has a minimum of forty years of indicated and inferred resources grading 7% carbon as graphite already outlined. Payback on investment would be four years at a mining rate

Alaska Business | November 2017 www.akbizmag.com

MINING SPECIAL SECTION | MINING IN REVIEW

Image courtesy of Bering Shai Rock & Gravel

A Bering Shai Rock & Gravel employee crushes gravel.

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November 2017 | Alaska Business

MINING SPECIAL SECTION | MINING IN REVIEW

of 1 million tonnes per year grading 7% carbon as graphite. As might be expected, changes in the market price of graphite had the largest impact on operational economics. The company also announced that it has received a site assessment report for its advancedâ&#x20AC;?materials graphite refinery facility prepared by the Alaska Industrial Development and Export Authority indicating that Homer, Kenai, Port Mackenzie, and Seward currently have year-round road-accessible ports with barge landings, docks, and container handling capacity and the in-place electrical generating capacity to meet the refineryâ&#x20AC;&#x2122;s power needs. n NovaGold Resources and Barrick Gold announced an $8 million budget for project optimization at their 39 million ounce Donlin gold project. The equal partnership project is largely on land leased from Calista Corporation. The partners determined that a more cost-effective project execution plan could substantially reduce upfront capital costs related to mine construction and have approved a drill program designed to collect geologic and geotechnical data this year to accomplish that goal. On the permitting front, the US Army Corps of Engineers is working with the cooperating agencies to complete the final Environmental Impact Statement, with anticipated publication in early 2018. In addition, the project completed an updated preliminary jurisdictional wetland determination, continued developing a compensatory wetland impact mitigation plan, and moved forward on issuance of major State permits, including air quality permits, integrated waste

management permits, reclamation and closure plan approvals, and water discharge permits. The company also opened a docket for a special permit to construct the natural gas pipeline through the Pipeline and Hazardous Materials Safety Administration. The partners anticipate spending a total of $20 million in 2017 to advance the project. n Northern Dynasty Minerals announced through its wholly-owned subsidiary Alaskabased Pebble Limited Partnership that the Environmental Protection Agency has agreed to terminate previously initiated pre-emptive actions that would have prevented future development of the Pebble copper-molybdenum-gold deposit. The agreement ends all litigation between the parties and allows the project to move forward through the exploration, development, and production processes currently in place at state, local, and federal levels. The company also has received a miscellaneous land use permit from the Alaska Department of Natural Resources. Among other requirements, the permit contains provisions requiring a performance guaranty in the amount of $2 million related to any potential reclamation liability arising out of permitted activities. The company indicated that will be advancing a program of work in 2017 to prepare the project to initiate permitting under the Federal Clean Water Act and the Federal National Environmental Policy Act. n Quaterra Resources announced a core drilling program of between two and four holes at

the Groundhog copper prospect, a 40,000-acre property situated on the Alaska Peninsula. Quaterra has an option to purchase a 90% interest in Groundhog. The program is operated by Chuchuna Minerals Company, an Alaska company jointly-owned by Kijik Corporation, the ANSCA village corporation for the community of Nondalton, and Alaska Earth Sciences, an Anchorage-based mineral exploration company. Work included siting holes to test several existing shallow induced polarization geophysical anomalies and completion of 16.5 kilometers of new induced polarization geophysical surveys. Two of the holes will test anomalies under shallow Tertiary volcanic cover and one hole will test an anomaly under glacial till. The property is located along the northern extension of a 10-kilometer wide north-northeast trending structural zone that hosts a number of other porphyry copper-gold prospects. Regional magnetic data suggest that geology similar to that at Pebble extends under cover for an additional 30 kilometers northeast from the Pebble deposit. n Redstar Gold Corp. announced encouraging drilling, soil sampling geophysical survey results from its recent field efforts at the Unga gold-silver project near Sand Point. Exploration drilling extended the known strike length of Shumagin vein system to 1,600 meters by intersecting the Shumagin structure in ten out of twelve holes. Significant drilling results from the 1,350 meterlong Shumagin zone include hole 17SH034,

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ÂŠJudy Patrick Photography/ Courtesy of Donlin Gold

The Donlin Gold project is located ten miles north of Crooked Creek; the surface land is owned by The Kuskokwim Corporation and subsurface rights belong to Calista Corporation. As part Donlin Goldâ&#x20AC;&#x2122;s agreement with the landowners, the company has a strong local and shareholder hire initiative.

which intersected 2.2m grading 9.9 gpt gold and 29.3 gpt silver, and hole 17SH033, which intersected 0.7m grading 5.7 gpt gold and 30 gpt silver. Additional drill results are pending. Other work completed in 2017 includes 15.5 line-kilometers of ground magnetics, 8.7 line-kilometers of induced polarization ground geophysics, and collection of 600 soil samples over a 4.5 kilometer zone extending

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from the Orange Mountain to the Shumagin area. The soil sampling efforts extended all of the zones tested and provide sufficient data to allow follow-up work on several of the newly defined targets while conducting drilling on more advanced prospects during the Phase 2 program, scheduled to begin in September. The company is also planning to conduct a preliminary metallurgical assessment of

n CopperBank Resources announced a tworig drilling program at its Pyramid project located on Aleut Corporation lands on the Alaska Peninsula. The first phase of drilling is composed of a minimum of 3,000 meters of drilling designed to test the lateral extensions of known porphyry style copper mineralization, including higher grade zones. The second phase of drilling will take bigger step-outs to test areas of known mineralization and/or alteration observed at the surface. An alteration halo of approximately 12 square kilometers was reported by the US Geological Survey, inside of which is the 2-square-kilometer area outlined by drilling to date. Earlier in the year the company secured Alaska engineering firm DOWL to provide initial infrastructure planning in developing a rough order of magnitude understanding for several components of conceptual infrastructure, including potential port site locations, onsite power generating options, and supporting road networks. Inferred mineral resources at the project are of 122 million tonnes grading 0.41% copper, 0.02% molybdenum, and 0.1 gpt gold.

INTERIOR ALASKA n Kinross Gold announced year-end 2016 and first half 2017 results from its Fort Knox mine.

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gold-silver mineralization hosted in the Shumagin zone, including bulk mineral analysis, coarse gold particle studies, grind calibrations, gravity concentration testing, cyanide leach performance testing, and flotation tests.

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with a mill recovery of 83%. The heap leach saw additions of 3,885,000 tonnes of ore grading 0.23 gpt gold. During the second quarter of 2017 the mine produced 91,848 ounces of gold at a cost of $635 per ounce. Production decreased compared with second quarter of 2016 largely due to a colder spring season that affected heap leach performance, which was offset by an increase in mill grades. The mill treated 3,069,000 tonnes of ore grading 0.86 gpt gold with a mill recovery of 84%. The heap leach saw additions of 5,830,000 tonnes of ore grading 0.26 gpt gold.

©Judy Patrick Photography/Courtesy of Donlin Gold

In addition to providing thousands of local jobs and economic growth, Donlin Gold’s exploratory efforts and potential mine development will also benefit all Alaska Native shareholders through 7(i) and 7(j) revenue sharing.

For the year the mine produced 409,844 ounces of gold at a cost of $741 per ounce. The year-end 2016 resources included proven and probable reserves of 104,689,000 tonnes grading 0.4 gpt gold (1,506,000 ounces). Measured and indicated resources were 95,024,000 tonnes grading 0.5 gpt gold (1,440,000 ounces). Inferred mineral resources were 13,036,000 tonnes grading 0.5 gpt gold (193,000 ounces). The company in-

dicated the exploration drilling of the East and South Wall of the existing pit returned positive results and anticipated additions to inferred resources during 2017. For the first quarter 2017 the mine produced 93,038 ounces at a cash cost of $617 per ounce, a significant year-over-year increase due to higher mill grades compared to the year-previous period. The mill treated 2,933,000 tonnes of ore grading 0.75 gpt gold

n Freegold Ventures Limited announced results from its twenty-seven-hole oxide-zone core drilling program north of the current resource area at its Golden Summit gold project in the Fairbanks District. Significant results include 39 meters grading 0.72 gpt gold in hole GSDL17-10; 56.5 meters grading 0.51 gpt gold in hole GSDL17-11; 52.5 meters grading 0.56 gpt gold in hole GSDL17-13; 54 meters grading 1.4 gpt gold in hole GSDL17-16; 67.5 meters grading 0.41 gpt gold in hole GSDL1723; and 70.5 meters grading 0.82 gpt gold in hole GSDL17-26. Hole GSDL 17-16, in which visible gold was noted in drill core, intersected a high grade east-west trending vein in an area previously untested for gold mineralization. In addition, holes GSDL 17-17 and 17-18, the northernmost holes drilled during this program, intersected intrusive mineralization in an area where intrusive has not previously been encountered.

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n International Tower Hill Mines approved a $6.3 million 2017 budget for its flagship Livengood gold project. The company also indicated that it completed a $14.7 million acquisition of certain mining claims and related rights in the vicinity of the deposit. The 2017 work program is designed to follow up on improvements announced with the October 2016 Pre-Feasibility Study. Efforts will focus on improving the mineralization and alteration models used to support the resource block model, evaluating alternative block models for production schedule opportunities, and completing several phases of metallurgical work to better define and optimize the flowsheet and recovery parameters. The 2017 work program has been specifically designed to target those aspects of the project that could deliver the highest net present value increase for the least expenditure. n Freegold Ventures Limited commenced a core drilling program at its Shorty Creek coppergold porphyry project in the Livengood District. The Hill 1835 prospect, discovered in 1985 but on which limited drilling was done in 1989-1990, was drilled in 2015 and 2016. Significant results from previous work include hole SC 15-03 that returned 91 meters grading 0.55% copper, 7.02 gpt silver, and 0.14 gpt gold. Hole SC 16-01 intersected 434.5 meters grading 0.36% copper including 207 meters grading 0.45% copper and hole SC 16-02 intercepted 409.6 meters grading 0.29% copper including 93.5 meters grading 0.38% copper, with both holes ending in mineralization.

Mineralization on Hill 1835 was intersected in drill holes to a minimum depth of 500 meters and remains open in all directions. Mineralization consists of sulfide-bearing quartz stockwork veining and disseminated sulfide within strong secondary biotite alteration and anhydrite primarily situated within a flysch unit intruded by quartz feldspar porphyry sills and/or dykes. Disseminated and fracture-controlled pyrite, pyrrhotite, chalcopyrite, arsenopyrite, and bornite have been identified in drill core. Four additional targets (Hill 1890, Hill 1870, Steel Creek, and Quarry) were identified by airborne magnetics and electromagnetic geophysics, ground induced polarization geophysics, and soil sampling. Results are pending from the company’s 2017 drill program. n Endurance Gold Corporation acquired 100% ownership of the South Fork, Trout, and Wolverine prospects, which have become incorporated into its Elephant project in the Rampart-Eureka-Manley Hot Springs district. At the South Fork prospect assay results from sampling returned gold values up to 6.60 gpt gold. The oxidized sulfide mineralization is associated with quartz veining, vein stockwork, and quartz healed breccia hosted in hornfels altered clastic sediments. East-west striking felsic dikes cut the meta-sediments and structure in several locations. Anomalous gold is associated with anomalous lead, arsenic, bismuth, and silver. The company also completed 43 line-kilometers of induced polarization surveys and 39 line-kilometers of magnetic surveys. The 2017

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induced polarization survey are dominated by a linear east-west trending resistivity low that corresponds to the Elephant Mountain Fault and three less dominant northwesterly trending resistivity lows that intersect the Elephant Mountain Fault complex. Two of these northwesterly trending resistivity lows are coincident with anomalous gold-in-soil, including the high priority South Zone soil anomaly where drilling in 2016 intersected 4.6 meters grading 4.09 gpt gold in hole EL16-14A and 4.6 meters grading 3.87 gpt gold in hole EL16-14B. n Contango ORE announced new drilling results and updated mineral resource estimates from the Peak project, a joint venture with a wholly-owned subsidiary of Royal Gold. The measured and indicated resources for the combined Main Peak and North Peak deposits, at a gold price of $1,200 per ounce with a cut-off grade of 0.5 grams per tonne, include a measured resource of 484,000 tonnes grading 6.25 gpt gold, 16.73 gpt silver, and 0.15% copper. Indicated resources at the same cut-off came in at 10,117,000 tonnes grading 3.51 gpt gold, 14.06 gpt silver, and 0.6% copper. Adding in additional mineralized materials, the total gold resources at 0.5 gpt gold cut-off comes to 15,650,000 tonnes grading 2.98 gpt gold, 14.68 gpt silver, and 0.16% copper containing 1,502,000 ounces of gold and 7,387,000 ounces of silver. The new resource constituted a 59% increase in total gold resources over the previous resource estimates of early 2014. The companies also released additional drilling results

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NovaGold Resources and Barrick Gold, equal partners in the Donlin Gold project, announced an $8 million budget for project optimization. Donlin Gold anticipates the EIS will be published in early 2018. ©Judy Patrick Photography/ Courtesy of Donlin Gold

from two phases of drilling conducted in 2017. Significant results included hole 17320, which returned 6.62 meters grading 7.81 gpt gold; hole 17326, which returned 6.26 meters grading 11.98 gpt gold; hole 17331, which returned 16.85 meters grading 8.68 gpt gold; hole 17335, which returned 25.51 meters grading 4.87 gpt gold and an additional 12.31 meters grading 14.04 gpt gold; hole 17344, which returned 22.56 meters grading 3.64 gpt gold; hole 173345, which returned 3.66 meters grading 9.07 gpt gold; hole 16312, which returned 29.12 meters grading 7.12 gpt gold; hole 163313, which returned 28.04 meters grading 8.80 gpt gold and an additional 5.36 meters grading 3.2 gpt gold; hole 16317, which returned 7.62 meters grading 8.72 gpt gold; and hole 16320, which returned 6.62 meters grading 7.81 gpt gold.

ALASKA RANGE n Millrock Resources announced an update on its Liberty Bell project, located in the Bonnifield Mining District. The program is funded by a subsidiary of Kinross Gold Corporation. The project targets distal skarn gold deposits and possibly porphyry copper-gold deposits. The company reported that approximately 1,600 soil samples were collected from the property as well as stream sediment and rock samples. Once results are received and compiled with existing project data, drill targets will be selected for a proposed 2018 program. Kinross can earn a 70% joint venture interest by providing $5 million in exploration funding and property maintenance over five years, paying up to $145,000 in management fees 50

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if Millrock manages exploration programs throughout the duration of the agreement and paying advanced minimum royalties totaling $145,000 over the five year period. The project consists of claims owned outright by Millrock and other claims upon which it holds an option to purchase a 100% interest from Boot Hill Gold, a private Alaska firm. n White Rock Minerals announced its first mineral resource estimate at its Red Mountain lead-zinc-silver-copper-gold project in the Bonnifield District. Using a 3% zinc cut-off grade, the Dry Creek Main deposit contains 2.4 million tonnes grading 4.7% zinc, 1.9% lead, 0.2% copper, 69 gpt silver, and 0.4 gpt gold. The nearby West Tundra Flats deposit contains 6.7 million tonnes grading 14.4% zinc, 6.2% lead, 0.1% copper, 189 gpt silver, and 1.1 gpt gold. Mineralization on both targets crops out at surface and remains open at depth. The company has identified more than thirty-five targets in its 143-square-kilometer land package that have similar conductivity signatures as Dry Creek and West Tundra Flats. The company’s plans for 2017 include surface geochemical sampling and ground geophysics over known conductivity targets to define drill targets for follow-up. n Coventry Resources commenced its exploration program on the Stellar copper-gold project. Earlier in 2017 Coventry agreed to acquire 100% interest in Stellar from Vista Mineral Pty and Millrock Resources with the new entity, Polaris Mineral Limited, owning Stellar and Coventry’s www.akbizmag.com

now adjacent Caribou Dome sediment-hosted copper project in the Valdez Creek District. The resulting contiguous property position covers a 35-kilometer long block of claims in the central Alaska Range. At Stellar, diamond drilling is being conducted at the high grade Zackly coppergold deposit with two rigs. At Zackly resource estimates comprise 1.5 million tonnes grading 2.9% copper and 4.51 gpt gold. One rig will evaluate the eastern and western extensions of the Main Skarn already identified in previous induced polarization surveys while the second rig will twin approximately twelve of the historically drilled holes in the Main Skarn to verify grade-thickness intervals, provide structural data, and allow an industry-compliant resource estimate to be completed. In addition to drilling, induced polarization surveys and geological mapping will be undertaken at Zackly and the nearby Mars and Jupiter copper-gold targets. Coventry Resources also announced its first mineral resource estimate at its Caribou Dome sediment-hosted copper project in the Valdez Creek District. The estimate came in at 2.8 million tonnes grading 3.1% copper using a 0.5% copper cut-off. Approximately 60% of the mineral resource, comprising 1.6 million tonnes, occurs within about 15 meters of surface and has an average grade of 3% copper. Within that domain, approximately 935,000 tonnes averages 4.4% copper at a 2% cut‐off grade may form part of an open‐pit resource. The company has undertaken a preliminary scoping study based on using the near surface material for a low capital cost, open‐pit starter operation. Copper

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CORPORATE

ÂŠ Judy Patrick Photography/Courtesy of Donlin Gold

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Donlin Gold exploratory and field work activities have been ongoing and have provided many job opportunities in the region; the company recently announced an $8 million budget for project optimization.

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n Avidian Gold acquired the Golden Zone project in the Chulitna District. The property contains numerous igneous-related prospects of Late Cretaceous-early Tertiary age in three north-northeast-aligned fault blocks which appear to become younger in age from northwest to southeast. The most northwesterly and probably oldest block, the Golden Zone Corridor, contains the GZ Breccia Pipe deposit that hosts an industry-compliant indicated resource of 267,400 ounces of and 1,397,800 ounces of silver in 4,187,000 tonnes of rock grading 1.99 gpt gold and 10.38 gpt silver. This corridor can be traced for more than 4 kilometers and hosts a number of other mineral occurrences exposed in trenches and/or drill holes. The central corridor, the Long Creek Corridor, is more than 2 kilometers long and hosts three occurrences of high grade gold-copper veins, including a drill intercept of 13.72 m grading 7.01 gpt gold, 94.1 gpt silver, and 4.0% copper that may relate to an underlying porphyry system. The easterly block, the Silver Dikes Corridor, contains a mineralized rhyolitic dike swarm. n Miranda Gold Corporation announced that its joint venture partner and operator Gold Torrent secured financing to put the Lucky Shot gold project into production with an intended start-up date of December 2018. At a 5 gpt gold cutoff, measured and indicated mineral resources at the project stand at 121,500 ounces of gold contained in 206,500 tonnes grading an average of 18.3 gpt gold. An additional 35,150 ounces of gold contained in 59,000 tonnes grading an average of 18.5 gpt gold is classified as inferred mineral resources. Last summerâ&#x20AC;&#x2122;s preliminary feasibility study laid out a mine plan and cost estimate with annual gold production of approximately 25,000 ounces of gold per year at an underground mining rate of 200 tonnes per day. The mine plan includes a total of 87,612 ounces of gold contained in 174,500 tonnes at a grade of 15.6 gpt gold in the proven and probable reserve categories. Historic milling achieved 89% gold recovery with gravity processing alone, and recent metallurgical work shows gravity-only milling should be sufficient for acceptable gold recoveries. All-in sustaining costs are estimated at $675 per ounce.

NORTHERN ALASKA n Trilogy Metals announced early in 2017 a significant step in advancing the Upper Kobuk Mineral Project, a business relationship owned and controlled by Trilogy and NANA Regional Corporation. Trilogy entered www.akbizmag.com

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mineralization remains open to depth and along strike with recent exploration efforts suggesting copper mineralization can be traced over at least 7 kilometers by soil and induced polarization geophysics on the southwestern end of the system where the current resource has been outlined. In addition, a 5-kilometer long copper-in-soil and rock anomaly has been identified in favorable rocks units over 11 kilometers northeast of the current resource. The current resource covers only 0.8 kilometers of this 18plus kilometer-long mineralized belt, suggesting significant up-side potential for the project.

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into an agreement with Alaska newcomer South32 Limited whereby South32 has the option to earn 50% of Trilogy’s interest in the Arctic and Bornite projects, the Exploration and Option to Lease Agreement with NANA Regional Corporation, and the remainder of Trilogy’s state mining claims along the 100-kilometer-long Ambler volcanogenic massive sulfide belt. South32 must contribute a minimum of $10 million each year, for a maximum of three years, to keep the option in good standing. To subscribe for 50% of the joint venture, which it may do at any time, South32 would be required to contribute a minimum of $150 million, plus any amounts Trilogy spends at the Arctic deposit over the next three years, to a maximum of $5 million per year. South32’s initial $10 million expenditure in 2017 was spent on exploration at the Bornite deposit to test the extension of high-grade copper previously intersected at the deposit, including hole RC13-0224 which intersected 236 meters of continuous mineralization averaging 1.9% copper. The partners plan to drill up to seven holes, up to 1,400 meters deep, to test an area measuring one kilometer east-west by 400 meters northsouth. Welcome to Alaska, South32 Limited! Trilogy Metals retained several consulting firms to complete a pre-feasibility study on its Ambler volcanogenic massive sulfide deposit, also part of the Upper Kobuk Mineral Project. The pre-feasibility work is targeted for completion in early 2018. The company is proposing a 10,000 tonne per day, open pit mining operation with a typical crush-grind-float flow sheet producing significant tonnages of copper and zinc concentrates and lessor lead concentrate containing significant quantities of precious metals. This summer the site investigation work included determination of the optimal location for the mill and power plant, tailings and waste sites, and other supporting infrastructure and facilities. At a base case 0.5% copper equivalent cut-off grade, current inpit Indicated Resources are 36 million tonnes at 3.07% copper, 4.23% zinc, 0.73% lead, 0.63 gpt gold, and 47.6 gpt silver. In addition, at the same cut-off grade, the deposit is estimated to contain in-pit Inferred Resources of 3.5 million tonnes at 1.71% copper, 2.72% zinc, 0.60% lead, 0.36 gpt gold, and 28.7 gpt silver. n Goldrich Mining Company announced that Goldrich NyacAU Placer resumed placer gold mining at the Chandalar gold project in the Chandalar District. The forecast for 2017 production is approximately 13,500 ounces of fine gold at a cost of approximately $700 per ounce. This compares to actual production of 3,857 and 8,227 ounces of fine gold in 2015 and 2016, respectively, and a 2016 cost of approximately $960 per ounce. The 2017 forecast assumes 120 days of plant operation, nineteen hours a day, with a processing rate of 308 bank cubic yards per hour. Total plant capacity after modifications made earlier in 2017 is expected to be 400 yards per hour. The company also approved a 122-hole sonic drill program expected to total 7,700 feet with an average hole depth of 63 feet. The drill plan is designed to further define mineralized placer

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material between Line 8.6 to Line 12 as well as test for potential mineralized material from Lines 13 to 17.5. Each Line is approximately 500 feet apart and drill lines will be spaced roughly 250 feet apart. The partners have completed more than 15,000 feet of drilling to date on the upper half of the placer project and outlined 10.5 million cubic yards of mineralized material at an average head grade of 0.025 ounces of gold per cubic yard for an estimated total of approximately 250,000 contained ounces.

SOUTHEAST ALASKA n Hecla Mining announced year end 2016 and first half 2017 production results from the Greens Creek mine on Admiralty Island. The total cash cost per ounce of silver produced for 2016 was $3.84 per ounce versus $3.91 per ounce in 2015. The average grade of ore mined during the year was 14.55 ounces of silver per ton, up significantly from the average grade of 13.50 ounces per ton in the year previous. For the year, the mine produced a record 9,253,543 ounces of silver, 53.912 ounces of gold, 20,596 tons of lead, and 57,729 tons of zinc. The 2016 silver production total was the highest since Hecla acquired 100% ownership of the mine in 2008. The mill operated at an average of 2,229 tons per day in 2016. Year-end 2016 reserves and resources for the mine including proven and probable reserves of 7,594,000 tons grading 11.7 ounces of silver per ton, 0.09 ounces of gold per ton, 2.9% lead, and 7.6% zinc. In addition, the mine contains measured and in-

resources of the East Ore, NWW, Upper Plate, West, 9A, and Deep Southwest zones for possible conversion to reserves. The mine is forecasting 2017 production of 7.4million to 8 million ounces of silver and 54,000 to 60,000 ounces of gold at a cash cost of $2.50 per ounce of silver equivalent.

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Phase 1 of Bering Shai Rock & Gravel’s potential dock facility.

dicated resources of 1,785,000 tons of indicated resources grading 10.8 ounces of silver per ton, 0.09 ounces of gold per ton, 3.1% lead, and 7.8% zinc. The mine also reported inferred resources of 3,397,000 tons grading 11.9 ounces of silver per ton, 0.08 ounces of gold per ton, 2.9% lead, and 7.2% zinc. For the first half of 2017 the mine produced 3,861,344 ounces of silver and 26,726 ounces of gold, both significant but expected decreases compared to record 2016 production levels due to lower ore grades. The mine also produced 9,229 tons of lead and 30,186 tons of zinc. Average grades mined include 12.4 ounces of silver per ton, 0.099 ounces of gold per ton, 2.86% lead, and 7.5% zinc. The mill operated at an average of 2,241 tons per day in the first half of 2017. Cash cost of production was $1.26 per ounce of silver compared to $4.61 per ounce in the year previous period. On the exploration front, the mine continued to refine and upgrade

n Coeur Mining announced year-end 2016 and second half 2017 production results from its Kensington gold mine near Juneau. For 2016, production was 124,331 ounces of gold, a slight decrease compared to the 126,266 ounces of gold produced in the year previous period. The mine processed 620,209 tons of ore grading 0.21 ounces of gold per ton. Average recovery was 94.7%. Average cash costs for the year were $790 per ounce. Year-end 2016 resources and reserves at the mine include proven and probable reserves of 2,616,000 tons grading 0.190 ounces of gold per ton (497,000 ounces) and measured and indicated resources of 3,125,000 tons grading 0.279 ounces of gold per ton (871,000 ounces). Total inferred resources for Kensington are 1,579,000 tons grading 0.276 ounces of gold per ton (436,000 ounces). During the first quarter 2017 the mine produced 26,197 ounces of gold grading 0.17 ounces of gold per ton with an average recovery of 94%. In the second quarter 2017 the mine produced 26,424 ounces of gold grading 0.17 ounces of gold per ton with an average recovery of 93.2%. The lower first-half 2017 production was related to anticipated lower head grades due to mine sequencing. Higher grades, recoveries, and production are anticipated for

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the remainder of 2017. The company indicated that accelerated 2017 surface and underground exploration would be focused at Kensington Main as well as at Jualin, Raven, and several new veins discovered through surface sampling programs. The company also indicated that development of the decline into the high-grade Jualin deposit is progressing with initial production from Jualin anticipated for late 2017. The company expects full-year 2017 production from the mine to reach 120,000 to 125,000 ounces of gold. n Constantine Metal Resources and its joint venture partner Dowa Metals & Mining Co. announced drilling results from the planned 7,000 meter, $7 million program at its Palmer volcanogenic massive sulfide project near Haines. Results from the newly-discovered

Nunatak AG zone, 3 kilometers for the current resource base, included hole CMR17-92, which returned 17.8 meters grading 11.7% zinc, 0.2% copper, 6.3 gpt silver, and 0.2 gpt gold and 6.7 meters grading 5.7% zinc, 2.2% lead, 30 gpt silver, and 0.2 gpt gold; hole CMR17-94, which returned 24.6 meters grading 260 gpt silver, 0.5 gpt gold, 1.4% zinc, and 0.5% lead, including 10.3 meters grading 461 gpt silver, 0.9 gpt gold, 2% zinc, and 0.7% lead; and hole CMR17-96, which returned 20.4 meters grading 9.9% zinc, 0.2% copper, 14.4 gpt silver, and 0.1 gpt gold. Strong metal zonation occurs between holes, grading from silver-gold-barite dominant to zinc dominant. Mineralization varies from massive barite-sulfide to semi-massive sulfide, stockwork, and replacement. Additional drilling is continuing with assays pending. Inferred

Fueling Alaska’s economy since 1943

Four generations of Usibelli families

have called the Healy area “home.” That’s why Usibelli Coal Mine pioneered a successful land reclamation and restoration program in 1970 -long before it was required by law.

usibelli.com info@usibelli.com (907) 452-2625

@usibelli 58

UsibelliCoalMine

mineral resources at the project total 8.1 million tonnes grading 1.41% copper, 5.25% zinc, 0.32 gpt gold, and 31.7 gpt silver. n Grande Portage Resources Ltd. commenced diamond drilling at its Herbert project, a mesothermal vein gold deposit near Juneau. The company is in the midst of drilling up to 19,000 feet in approximately thirteen holes from up to four different platforms which will test up to four separate major veins and their satellite structures. The company will specifically target the Main, Deep Trench, Ridge, and Goat veins and will test targets significantly deeper and further to the east than in past campaigns. Recent drill intercepts established a strike length of more than 350 meters; however, when combined with a discovery of new outcrops along the eastward projection of the vein, a total of approximately 700 meters of strike length is now indicated. The deepest drilling to date shows good visuals some 200 meters from the surface. One of the newly-discovered outcrops of the Goat vein returned 4 feet grading 231 gpt gold and 49.8 gpt silver. Mineralization is hosted in a quartz vein with disseminated arsenopyrite, pyrite, galena, and sphalerite and visible gold. Drill assays from the 2017 program are pending. The project hosts industry-compliant indicated resources of 821,100 tonnes containing 182,400 ounces of gold at 6.91 gpt gold. It also hosts inferred resources of 51,600 tonnes containing 12,800 ounces of gold at 7.73 gpt gold. n Zarembo Minerals Company announced results from analytical work completed at its Frenchie volcanogenic massive sulfide project near Wrangell. Holes drilled in 2006 and 2007 contained bedded semi-massive to massive precious metal enriched zinc-lead-copper sulfide mineralization in pervasively quartzsericite altered metasedimentary rocks. Zinc to lead ratios are relatively high (~10:1) in areas with low-grade disseminated and semi-massive mineralization while zinc to lead ratios are considerably lower (<5:1) in areas in which massive sulfide mineralization is best developed. Silver to gold ratios are highly variable and range from 5.1 to 684. Silver values appear to be closely linked to zinc and lead values, but gold is less clearly associated with elevated base metal values, partly because few gold analyses were available from previous exploration efforts. New work was focused on better defining the grade and distribution of gold at the project by conducting metallic sieve analyses. The effort revealed that 92% of the gold in reanalyzed samples is in the coarser, +80 mesh, size fraction that is normally discarded when a standard gold fire assay is conducted. As a result a previously sampled 16.5 foot thick outcrop on the project now grades 4.4 gpt gold along with zinc to 4% and minor lead and silver. R Curtis J. Freeman, CPG #6901, is head of Avalon Development Corporation, PO Box 80268, Fairbanks, AK 99708. Phone: 907-457-5159. Fax: 907-4558069. He can also be contacted by email at avalon@alaska.net or found online at avalonalaska.com.

Alaska Business | November 2017 www.akbizmag.com

EET I N

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Professor Zeynep Kılıç THE MEETING: The Agriculture, Food and Human Values Society ASFS/ AFHVS Conference June 2019 500 delegates Estimated Economic Impact: $639,100

ere’s food for thought: locals help book meetings in Anchorage. Professor Zeynep Kilic is a prime example. When the Agriculture, Food and Human Values Society was chewing over where to hold its next meeting, Kilic gave them a taste for Alaska. The society booked Anchorage, with plenty of space to grow their meeting, and the city gets a new crop of delegates visiting and exploring our destination.

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SPECIAL SECTION

Mining

Water Management at Alaska’s Operating Mines Process water, groundwater, and runoff all managed with care By Tasha Anderson

ining operations in Alaska are held to high standards when safeguarding people and the environment. A crucial factor of environmental stewardship is managing water, which in Alaska is a significant endeavor considering both the ubiquity and volume of water in the state. Mines operating in Alaska are responsible not only for water directly related to their mining processes but are often required to monitor the quality of bodies of water near their facilities or activities. What each mine is responsible for in terms of water management is dependent on the mine’s operations and location. The Division of Water, part of the Alaska Department of Environmental Conservation, is tasked with improving and protecting the quality of Alaska’s water. Specifically, the Alaska Pollutant Discharge Elimination System (APDES) program issues permits to authorize the appropriate discharge of water to the environment.

Fort Knox Fort Knox, an open-pit gold mine north of Fairbanks that’s been in operation since 1994, has a closed system for process water (water which cannot be classified as drinking water and is used in connection with technical plants and industry processes) and maintains an APDES permit to discharge extracted, non-contact, non-process groundwater from pit dewatering wells. The mine processes ore onsite at a carbonin-pulp mill; other onsite facilities include the tailings storage facility (TSF), constructed wetlands complex, freshwater reservoir, and the Walker Creek Valley heap leach facility. Fort Knox operates as a zero-discharge facility, which is possible because the TSF and mill form a closed system for process water. Water that has been used at the carbon-inpulp mill to process mined material is sent to the tailings facility as part of the tailings slurry, and water is pumped to the mill from the TSF decant pond (a structure that uses sedimentation to remove settleable matter and turbidity—aka cloudiness/haziness— from wastewater). In plain terms; none of this water is discharged to the environment. 60

According to the “Fort Knox Annual Activity Report for Reporting Year 2016” published in February 2017, the mine maintains dry conditions via a system of thirty-four dewatering wells (of which three are inactive) and four Fish Creek wells. For 2016 the average pumping rate from the dewatering system was 2,120 gallons per minute. The majority of that water, 70 percent, was pumped directly to tailing impoundment; 16 percent was pumped directly from Fish Creek wells to the mill; and 14 percent was discharged to the Old Fish Creek Channel, from where it flows into the mine’s freshwater reservoir. Fort Knox applied for and was granted an APDES permit to discharge non-contact, non-process groundwater to the Old Fish Creek Channel in 2012, but discharge of groundwater (not requiring treatment) only began in March 2015. In June of 2016 a reverse osmosis water treatment system became operational for dewatering groundwater that does require treatment. In total in 2016, 607 acre-feet (an acre-foot is a unit of volume equal to a sheet of water one acre in area and one foot deep) of treated and non-treated dewatering well groundwater was discharged to the Old Fish Creek Channel. A bathymetric (the study of water depth) survey was conducted at the decant pond at the Fort Knox TSF and showed the decant pond contains approximately 10,095 acrefeet of water, an increase in the pond’s volume attributed to abnormally high rainfall in 2014-2016. Fort Knox engages in ongoing water management activities including storm water control and the dewatering well groundwater discharge to reduce the additional volume created by an abnormal increase in rainfall.

Red Dog Red Dog is an open-pit zinc and lead ore mine that’s been in operation since 1989. It’s located approximately ninety miles north of Kotzebue in the Delong Mountains, and its onsite water treatment system includes industrial water treatment plants and a sewage treatment plant. The Red Dog water treatment plants are comprised of the TSF, water treatment tanks, high density sludge clarifier, and sand filters. Water from many sources feed the TSF, including mill tailings, mill process water, water treatment sludge, mine waters, and ambient precipitation runoff. TSF water is often referred to as reclaim water, and the first treatment step is to remove cadmium, which is accomplished by adding sodium sulfide

to a water pipeline while the water is transported to water treatment tanks. The sodium sulfide reacts with the dissolved cadmium and forms insoluble cadmium sulfide, which remains stable throughout the water treatment process. The reclaim water then flows into a 6,500 cubic-foot rapid-mix tank, where reacted lime and recycled solids are added to the water to adjust the pH to approximately 10.3. The water then flows into a 50,000 cubic-foot lime reactor where the water is sparged with compressed air (meaning air bubbles stir up and mix the water). This ensures the full oxidation of all ions in the solution—also known as precipitation, the ions are altered in form from a dissolved state to a solid state, essentially from soluble metals to insoluble metalhydroxides. From this tank the water flows to a clarifier feed well; at some point flocculant is added, either in the clarifier feed well or in a floc mix tank immediately upstream of the clarifier. Flocculant coalesces the smaller particles into larger solids. In the clarifier the solids are allowed to settle and are then removed through the underflow, while the treated water leaves the clarifier through the overflow. Finally, the treated reclaim water runs through sand filters, which remove any residual solids. Automated pH and turbidity meters take final measurements to determine whether the water meets mandated standards and can be discharged into Red Dog Creek or if the water needs to be returned to the tailings impoundment. At Red Dog water is processed at two plants: Water Treatment Plant 1 operates year-round at a rate of 6,000 gallons per minute. This water is not discharged to the environment but is directed to the mill for ore processing. Water Treatment Plant 2 operates seasonally, and it is this plant that discharges water at Outfall 001 at the Middle Fork of Red Dog Creek at a maximum capacity of 14,500 gallons per minute (this plant has the ability to provide water to the mill when necessary). In 2016 Red Dog completed construction of a new lime slaker building in time for the discharge season. The lime slaker project allowed for complete treatment of all captured main waste stockpile rock drainage water, which increased in 2015 compared to previous years. In the Q1/Q2 2016 Red Dog-Suvisi (Red Dogs’ newsletter), General Manager Henri Letient said, “I am pleased with the way we started the annual discharge season. Discharge of treated water to Middle Fork Red Dog Creek was initiated on May 1 with well over 600 million gallons of treated water

Alaska Business | November 2017 www.akbizmag.com

Usibelli Usibelli Coal Mine is Alaska’s only operating coal mine. It was founded in 1943 by Emil Usibelli and remains a family-run business today. The mine site is located near Healy, 115 miles south of Fairbanks and 250 miles north of Anchorage. Usibelli operates year-round and averages production between 1.2 million and 2 million tons of coal a year. One unique aspect of Usibelli is that the company has any water management requirements at all considering it doesn’t use any water in its mining process. To access the coal seams, overburden (material that lies on top of a coal seam) and interburden (material between the coal seams) need to be removed. A 1300W Bucyrus-Erie Walking Dragline, nicknamed “Ace-in-theHole” by Healy school children, removes the bulk of the overburden, while dozers move overburden short distances or from locations difficult for the dragline to access. Shovels then strip the overburden and load the uncovered coal into haul trucks. These, of course, aren’t hand-held shovels; they’re large machines with buckets that can haul approximately 26 cubic yards of material and can load a 150-ton haul truck in about four passes. The coal is then crushed and it’s ready for transport. The water that Usibelli is responsible for drains from active mining areas or is runoff water from recently reclaimed lands. Usibelli has an onsite laboratory, and half of that lab’s work is dedicated to water testing. According to the company, water is collected during the summer season from May to October. Once collected, the water is tested for iron, manganese, settleable and suspended solids, turbidity, and pH. At Usibelli operations, water is directed into a series of settling ponds, wherein the water is brought into compliance with Usibelli’s APDES permit. Water in the settling ponds is treated with flocculant to enhance the removal of sediment. After settling, the water passes through a treatment train consisting of passive aeration, which removes iron; dolomite beds to remove manganese; and a polishing pond before discharge. Economic Impact Mining can be done right, and in Alaska there is appropriate and consistent oversight to ensure that mine operations do not pose unnecessary risk to the environment. When mining is approached in a responsible and safe way, it’s a huge economic boon for the state, especially for the rural communities in which much of the mining industry’s exploration and production takes place. According to “The Economic Benefits of Alaska’s Mining Industry,” prepared in consultation with the McDowell Group and published in January 2017, in 2016 the mining industry was responsible for 4,350 direct mining jobs and 8,600 direct and indirect jobs. The industry paid $675 million in total direct and indirect payroll and made www.akbizmag.com

$111 million in payments to Alaska Native Corporations in addition to $81 million in state government related revenue through rent, royalties, fees, and taxes. The report states that direct mining jobs are “mostly year-round jobs for residents of more than fifty communities throughout Alaska, half of which are found in rural Alaska where few other jobs are available.” Those jobs are also some of Alaska’s highest paying at an estimated average annual wage of $108,000. Additionally, it’s estimated the mining industry spent more than $65 million on exploration in 2016 and has spent more than $3.4 billion on exploration since 1981. Last year the report estimates that $120 million was spent on mine construction and capital in-

vestment. In 2015, the commodities claimed through mining activity had an estimated export value of $1.5 billion, or 32 percent of Alaska’s total exports. According the Alaska Miners Association, “Alaska is a state steeped in a tradition of exploration, mining, and production… Roads, docks, bridges, buildings, renewable energy sources like the hydro plants in Southeast—much of Alaska’s vital infrastructure—was built on mining. Mining today plays an active role in Alaska’s growth and economic well-being.” R Tasha Anderson is the Associate Editor for Alaska Business.

Electrician Welder Engineer Safety Trainer CENTER for MINE TRAINING Equipment Operator Considering a career as a Mechanic ? Millwright Geologist Medic Driver Accountant Carpenter Blaster Expeditor Chef Driller Environmental Scientist Administrator Discover PATHWAYS TO MININGLawyer CAREERS Geophysicist in Mine Mechanics and 140 other jobs Truck Driver Surveyor www.uas.alaska.edu/career_ed/mining Builder Machinist Fueling Technician Analyst This workforce product was funded by a grant awarded by the U.S. Department of Labor’s employment and Training Administration. The product was created by the grantee and does not necessarily reflect the official position of the U.S. Department of Labor. The U.S. Department of Labor makes no guarantees, warranties, or assurances of any kind, express or implied, with respect to such information, including any information on linked sites and including, but not limited to, accuracy of the information or its completeness, timeliness, usefulness, adequacy, continued availability, or ownership. UAS is an AA/EO employer and educational institution and prohibits illegal discrimination against any individual: www.uas.alaska.edu/policies.

November 2017 | Alaska Business

MINING SPECIAL SECTION | WATER MANAGEMENT

already discharged from the pond, 100 percent in compliance with regulatory limits.”

SPECIAL SECTION

Mining

Pebble Mine Update A few hurdles cleared, others remain By Sam Friedman

he Pebble Mine project cleared a major legal and regulatory hurdle in May when it reached a settlement with the Environmental Protection Agency (EPA) over pending lawsuits and regulations. But a big economic barrier to mine construction remains: the project needs a new partner. As of this fall Pebble Mine owners say they’re ready to start filing federal mining permits before the end of 2017, starting the march toward construction. It’s the first movement in years for the huge copper and gold mine project. However, the Pebble project now has a capital problem that didn’t exist the last time the company was on the verge of filing permits. Then, several large mining companies owned part of the claim. Since 2015, the Pebble Limited Partnership has been a “partnership” of one. It is 100 percent owned by Vancouver, 62

Canada-based Northern Dynasty Minerals, a company with no revenue and a small market capitalization of about $500 million. The company reports it is trying to finding a new partner by the end of 2017.

Project History The Pebble Mine site is the largest undeveloped gold deposit in the world, according to the mining claim’s owner. The deposit is also a rich source of copper and molybdenum. But it’s not in an easy place to develop. The mine site happens to be in the watershed of the largest sockeye salmon run in the world. If the mine’s tailings aren’t stored properly during the lifetime of the mine and beyond, they could poison the salmon spawning grounds. Mine opponents say that even without a disaster, the mine’s water consumption would degrade the salmon habitat. Even without the

risk to salmon, mine development wouldn’t be easy. The mine is in a remote location 200 miles southwest of Anchorage that would require the construction of an expensive power plant and development of port and roads facilities. The project is named after California’s Pebble Beach Resort because the rolling hills of tundra looked like the famous golf course to a geologist flying over the area in 1988. Northern Dynasty bought the prospect in 2001.

EPA Settlement In 2014—claiming its authority under Section 404(c) of the 1972 Clean Water Act—the EPA attempted to pre-emptively restrict a Pebblearea mine’s ability to put mine tailings into streams and wetlands. Between 2014 and May 2017, Pebble sued the agency several times. The company argued it wasn’t fair to make assumptions about the scope of the mine until

Alaska Business | November 2017 www.akbizmag.com

Image courtesy of Pebble Limited Partnership

“I generally describe the public opinion as: a pretty set number of people for it, a pretty set number of people against it, and a very fluid middle. Alaska’s economy is in a recession right now; it’s a little sluggish and I think people are interested in knowing what opportunities are out there on the horizon.”

— Mike Heatwole Vice President of Public Affairs Pebble Partnership

through shares in Northern Dynasty, but sold (in the case of Mitsubishi) or gave away (in the case of Rio Tinto) their shares. As of September, Pebble Vice President of Public Affairs Mike Heatwole in Anchorage says the company hopes to find a new partner before the end of 2017. However, he could not disclose which companies are interested in Pebble because the company has made nondisclosure agreements. “Pebble, as very significant mineral asset, is of interest to a wide range of mining companies,” he says. “We’re in active conversations with several parties.”

it formally filed mining plans. It also accused the government agency of colluding with antimine activists to reach its conclusions. The dispute abruptly changed course with the November 2016 presidential election. President Donald Trump named as his EPA Administrator Scott Pruitt, a man with a history of suing the EPA in his role as Oklahoma’s attorney general. Under Pruitt’s leadership, the EPA and Pebble reached a settlement in May. Pebble agreed to withdraw its lawsuits and the EPA agreed to not take action to restrict the mine for 2.5 years, or until Pebble formally files for its federal mining permits. “We are committed to due process and the rule of law and regulations that are ‘regular.’ We understand how much the community cares about this issue, with passionate advocates on all sides,” Pruitt said in a statement. www.akbizmag.com

“The agreement will not guarantee or prejudge a particular outcome, but will provide Pebble a fair process for their permit application and help steer [the] EPA away from costly and time-consuming litigation.”

Finding a Partner The Pebble Partnership lost all of its mining partners in the last six years. Back in 2007, Northern Dynasty teamed up with Londonbased mining giant Anglo American to form the Pebble Partnership. Under the deal, Anglo American needed to spend about $1.5 billion on developing the project to keep its 50 percent stake in the business. Anglo American walked away in 2013 after sinking half a billion dollars into the project. Major mining firms Mitsubishi Corporation of Japan and Rio Tinto of Australia also previously owned part of the Pebble project

Stock Value Northern Dynasty’s value on the New York Stock Exchange fell off a cliff in the 2010s, dropping from a 2011 high of $21 to a low of $0.22 in 2016 as the EPA threatened restrictions and partners pulled out. The stock value surged after the presidential election, quadrupling in value from its Election Day valuation of $0.75 to a high of $3.36 in February on expectations that the federal government under President Trump would be more likely to permit the mine. In February, hedge fund Kerrisdale Capital Management of New York shorted the company’s stock and wrote an article that challenged the narrative that the mine is any more likely to get built under a more pro-development EPA. Kerrisdale, which as a short-seller benefits by the stock losing value, accused Northern Dynasty of vastly under-representing how much it would cost to develop the mine. The stock value fell sharply but rebounded slightly over the summer. As of late fall, the stock was more than twice its pre-election price. State Regulations and Public Opinion Since the last time the Pebble Partnership planned to file for permits, there’s a new obstacle to mine development within Alaska—a potential Alaska legislature veto of the project. In 2014 Alaska voters, by an overwhelming margin, passed Ballot Measure 4, known by supporters as “Bristol Bay Forever.” The ballot measure requires any large mine in the November 2017 | Alaska Business

MINING SPECIAL SECTION | PEBBLE MINE

One of the older Pebble deposit test drill sites as it appeared in summer 2017.

MINING SPECIAL SECTION | PEBBLE MINE

Workers hike to a camp at the Pebble deposit. Image courtesy of Pebble Limited Partnership

Bristol Bay area to receive approval from the state legislature in addition to state permitting offices. With the legislature tied to any permitting decision on Pebble mine, public support in Alaska is key to the project’s ability to move ahead. Pebble’s Heatwole says the company conducted research that shows there is “significant support” for the project. However, the company hasn’t released its polling numbers. Heatwole says public opinion has swung in the mine’s favor as Alaska’s economy has deteriorated because the mine would be a major employer. “I generally describe the public opinion as: a pretty set number of people for it, a pretty set number of people against it, and a very fluid middle,” he says. “Alaska’s economy is in a recession right now; it’s a little sluggish and I think people are interested in knowing what opportunities are out there on the horizon.”

A Smaller Mine? When the EPA issued its restrictions on the Pebble mine in 2014, the agency studied a hypothetical Manhattan Island-sized project that would cover 13.5 square acres between 64

the mine’s pit, waste rock, and tailings storage facility. The pit in the mine considered by the EPA would have been three-quarters the depth of the Grand Canyon. Those figures were based Northern Dynasty’s descriptions of the project in a filing to the Securities and Exchange Commission in 2011. The EPA concluded that even the smallest mine Northern Dynasty described in 2011 could “result in unacceptable adverse effects on fishery areas.” One of Northern Dynasty’s main complaints about the EPA is that it used the old 2011 figures when evaluating the environmental costs of the company’s plans. In recent years, Northern Dynasty has said it plans to build a significantly smaller mine than first envisioned. On October 5, the Pebble Partnership released details of its smaller mine plan at a presentation for Alaska’s Resource Development Council. The new plan for the mine includes a 5.4 square-mile footprint for the pit, waste rock, and tailings storage facility. That covers an area that’s 40 percent the size of the facilities studied by the EPA. In addition, the company scaled back its road construction plans by replacing part of an access road with a ferry on Iliamna Lake.

The company said it would keep mine tailings in only one of the two main river valleys near the mine site. Mine opponents such as Bristol Bay fishermen and Alaska Native governments haven’t been mollified by talk of a smaller mine. Alannah Hurley is the director of the United Tribes of Bristol Bay, a consortium of fourteen Native governments in the Bristol Region that was formed to fight Pebble mine construction. Hurley says her organization opposes even a “small” mine in the Bristol Bay Watershed. “Mines expand over time to extend their lifetime. This is a tried and true tactic of mining companies. They’ll apply for this quote unquote smaller mine to get their foot in their door,” she says. “It doesn’t make sense that out of one side of its mouth Pebble Limited Partnership is literally telling their shareholders and investors that they are looking to develop one of the world’s largest deposits and then out of the other side of their mouth telling Alaskans that they’re looking at a smaller project.” R Sam Friedman is a freelance reporter. He lives in Fairbanks.

Alaska Business | November 2017 www.akbizmag.com

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SPECIAL SECTION

Mining PolarX and Millrock Drill at Stellar Copper-Gold Project Companies ‘extremely encouraged’ by presence of high-grade mineralization By Kathryn Mackenzie

illrock Resources successfully completed a late-season drilling program at the Stellar Project in the Valdez Creek Mining District in the Central Alaska Range, reporting “visible results” during drilling at the high‐grade Zackly copper-gold skarn deposit with mineralization observed in all holes. Drilling at the Stellar Project, located about 186 miles north of Anchorage, commenced in late August. The program objective is to establish a modern resource for the Zackly deposit with the idea that, after further exploration, the project has the potential to be developed into a producing mine site. “We know from historical work that was done in the 1980s and early ‘90s that there is a high grade copper-gold deposit named Zackly,” says Frazer Tabeart, managing director and CEO of PolarX. “The style of mineralization at Zackly is often associated with larger porphyry systems, so if we can drill more holes and expand the amount of metal mineralization in the ground by making discoveries deeper or along strike, then it’s possible that a major discovery leading to a mine could be developed.”

Zackly: Yesterday, Today, and Tomorrow The Zackly area was explored from 1981 to 1994 by a number of hopeful companies. Some of the exploration programs included surface sampling, trenching, geophysics, and both core and reverse circulation drilling, totaling approximately 12,000 meters in about 85 holes. Three historical resource estimates in 1982, 1987, and 1993 were completed for the Zackly Main Skarn zone, one of the three known mineralized skarn zones located along the Zackly skarn trend. Millrock President and CEO Gregory Beischer says Millrock, the previous project owner, was initially attracted to the area by the potential discovery of a large porphyrystyle deposit. “This would be a great big prize to find, and we see some evidence that such a porphyry deposit could exist. There still will be a great deal of exploration work to do to make such a discovery, but indications are good so far and it appears that we’ve been able, through this recent drilling program, to re-establish the resource that was known and reported historically at Zackly, and it might even get a little bit bigger as a result of the work this year,” says Beischer. He notes the company is looking

forward to the 2018 drilling season when PolarX will drill for strike and depth extensions at Zackly and for a deeper porphyry deposit. PolarX and Millrock have reason to remain optimistic since geological evidence for a buried porphyry intrusive that provided heat, fluids, and copper was observed in several holes. Another important goal of the drilling program is to bring the resources to modern reporting standards that have been developed over the past year or so, says Beischer. PolarX agreed in a press release saying the drilling program’s primary objective was to establish a modern resource for Zackly that meets the standards of the Australian Joint Ore Reserves Committee for mineral resource reporting.

Assay Results Foretell Stellar Future Thirteen holes for 1,920 meters have been drilled, with two holes of approximately 150 meters each remaining to be drilled. The area’s mountainous, hilly terrain offers excellent exploration logistics as evidenced by this stage of drill findings, first announced by owner PolarX in October 2017. Tabeart says samples from the drill core were submitted to a Fairbanks laboratory in late fall. “Upon receipt of all assays, PolarX will be able to calculate the currently estimated amount of metal represented in the ground to date by the drill holes and see if we’re able to confirm the historic reports indicated in excess of 200,000 ounces of gold and 95 million of pounds of copper.” PolarX says it is “extremely encouraged by the presence of the higher-grade minerals observed in drilling to date and has accelerated laboratory assays.” Though the companies’ current findings are certainly encouraging, talk of a producing mine is still premature. “Even a prefea-

NANA Regional Corporation Updates Alaska Business on Activity at Upper Kobuk Mineral Projects Mineral exploration in the Ambler Mining district uses proven partnership model

n June, Trilogy Metals, in partnership with global miner South32, began the summer exploration season at the Upper Kobuk Mineral Projects (UKMP). NANA Regional Corporation has an exploration and mining lease agreement in place with Trilogy Metals to explore and develop this high-potential mineral district. This year’s program will focus on advancing the Arctic copper-zinc-lead-silver-gold deposit to pre-feasibility and continue exploration drilling at the Bornite Deposit (a copper prospect in Northwest Alaska). Tuuq Drilling, a NANA-owned company, and Major Drilling, an international drilling services company, are undertaking the 12,000-meter exploration drilling program at Bornite, bringing years of expertise and experience from similar work at Red Dog Mine, also located on NANA lands. NANA owns and manages about 2.2 million acres of land in Northwest Alaska that is home to some of the largest and richest base-metal deposits on the globe, and this year is poised to be one of the most significant in the sixty-year history of exploration in the region. Along with launching exploration of the Bornite Deposit, the Red Dog Mine continues to be one of the world’s most significant producers of zinc and employs a significant number of NANA shareholders as part of the operator’s agreement with the Alaska Native Corporation. As Trilogy Metals and NANA continue exploration at the UKMP, the same incorporation of local values—a model that was established at Red Dog Mine— remains at the forefront of efforts. This model is an outstanding example of a

developer working with an Alaska Native corporation landowner to ensure that local values and knowledge are incorporated into all elements of project development. Just as the Red Dog Mine’s operator considered cultural, environmental, and economic factors, NANA and Trilogy Metals have built a similar framework of values:  Establishing an Oversight Committee that regularly reviews plans and project activities.  Promoting local NANA shareholder hire and contracting.  Creating a scholarship fund to promote education in the region.  Establishing a Subsistence Committee to protect subsistence and the Iñupiaq way of life. Because of the commitment that NANA has made to the people of the region, it has worked to build a partnership that allows shareholders to benefit directly from the UKMP project in the same way they have from Red Dog Mine. With this model of responsible resource development—rooted in consensus, cooperation, and mutual respect between the developers and the people of the region—the exploration at the UKMP, and throughout the NANA region, will offer meaningful benefits for NANA shareholders and Alaskans statewide. R

Alaska Business | November 2017 www.akbizmag.com

Maps courtesy of PolarX Ltd.

sibility study couldn’t possibly be completed for at least another year, and that would require a lot more drilling. Essentially more discoveries or extensions of either of the known deposits on the property would have to be made before it would be possible to even make a prefeasibility study,” says Beischer.

100 percent-owned Stellar Project showing the location of Zackly within much larger untested soil sampling anomalies.

“We still have plenty of drilling and feasibility studies to complete, plus the required permitting activities before we will know if a mine can be developed, but we’re extremely encouraged by what we’ve seen to date,” concludes Tabeart. Leading up to this field season, Millrock collected approximately 950 soil and 760 rock

samples for assay and/or spectral analysis, as well as 99 stream sediment samples throughout the project area. A new electromagnetic/magnetic/radiometric survey was also conducted over the property in 2013 in cooperation with the State of Alaska Division of Geological and Geophysical Surveys. The work resulted in

FRESHLY PREPARED FOODS — Wherever you are whether it’s in the Arctic or in Cincinnati

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November 2017 | Alaska Business

MINING SPECIAL SECTION | MINERAL EXTRACTION

Stellar and Caribou Dome projects showing the location of Zackly.

MINING SPECIAL SECTION | MINERAL EXTRACTION

Drill collar locations for the 2017 Zackly drilling campaign. Map courtesy of PolarX Ltd.

the definition of at least seven additional copper and/or gold prospects and anomalies. The aeromagnetic anomalies encompassing Zackly extend both northwest and southeast of the project, potentially reflecting extension of surface mineralization, PolarX pointed out in a release detailing the project findings. Key findings from the September drill project reported by PolarX are as follows:  Multiple phases of mineralization are evident in most of the drill holes.  Phase 1: An initial mineralizing event likely occurred when a diorite intrusion formed marbles and weakly mineralized skarns in the adjacent silty-limestones and volcanic rocks, and introduced disseminated iron, copper, and molybdenum sulfides.  Phase 2: Stronger and later overprinting mineralization events are also evident in most of the new drill holes, including widespread garnet-bearing skarns containing clots, veins, and disseminations of covellite, native copper, and bornite, with local formation of secondary chalcocite.  Zones of massive magnetite-bornitechalcopyrite skarns up to several meters downhole thickness. Further drilling is planned to establish the potential scale and commercial extent of the mineralized system at Zackly. PolarX says the current results provide significant exploration impetus for its other nearby targets in the same region including its Mars, Jupiter, Gemini, Moonwalk, and Senator prospects. “These combined targets each show high-order soil anomalies spanning several kilometers,” says PolarX. PolarX is in the midst of processing and reviewing Induced Polarization (IP) testing on some of the aforementioned locations, which the company intends to report on once completed. An IP survey was completed across the strike-length of the existing Zackly deposit and will be used to plan additional drilling for the 2018 campaign.

Millrock, Coventry, and the Sale of Stellar Millrock sold the Stellar project to the company that was then called Coventry Resources in August 2017. After the transaction Coventry changed its name and brought Millrock on to conduct the drill project. Following the sale, Millrock now owns 10.7 percent of the issued and outstanding shares of PolarX. The Stellar Project comprises 182 contiguous State Mining Claims and is located immediately adjacent to PolarX’s existing Caribou Dome Copper Project. The claims cover a total area of 11,784 hectares. Millrock, which primarily acts as a project generator for the mining industry by identifying, packaging, and operating large-scale projects for joint venture, is entitled to milestone and royalty payments related to the Stellar project. “I know that if we find at least a million ounces of gold, then there is a pretty big payment for Millrock—a million dollars I believe—but really it’s the royalties upon production from a mine that would be where real serious money’s involved. Our royalty is 2 percent, so that could add up to a lot in a large deposit,” says Beischer. Both Millrock and PolarX will continue to release results from field programs as they are processed and finalized. R 68

Alaska Business | November 2017 www.akbizmag.com

Schematic geological crosssection showing postulated early skarn development.

% Copper in Mineralisation 100 79.8 66.4 63.5 34.8

Native Copper Chalcocite Covellite Bornite Chalcopyrite

Phase 1

Phase 2

Covellite & Bornite

Early iron and molybdenum sulphides in dioritic endoskarn Hole ZM17010, 92.84m

Potassic alteration comprising K-Feldspar (pale pink) and secondary Biotite (black) overprinting earlier diorite ZM17010 91.6m

Covellite and Bornite bearing skarn, Hole ZM17008, 89.3m

Native Copper

Bornite

Bornite + Chalcopyrite

Finely disseminated Native Copper in red and green garnet skarn, ZM17010 153.7m

Bornite mineralisation in garnetiferous skarn, ZM17010, 179.4m

Massive Magnetite+Bornite+Chalcopyrite skarn overprinting massive green garnet skarn ZM17010, 185m

Porphyry Veins + Native Copper

Multiple porphyry style veins containing Native Copper overprinting green garnet skarn, ZM17010 157-158m All maps and images courtesy of PolarX Ltd.

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November 2017 | Alaska Business

MINING SPECIAL SECTION | MINERAL EXTRACTION

The Process of Mineralization

MINING SPECIAL SECTION

ALASKA BUSINESS 2017

MINING DIRECTORY COMPANY TOP EXECUTIVE

Alaska Aggregate Products LLC 2525 C St., Suite 305 Anchorage, AK 99503 Phone: 907-562-2792 | Fax: 907-562-4179 Avalon Development Corp. PO Box 80268 Fairbanks, AK 99708 Phone: 907-457-5159 | Fax: 907-455-8069 Bering Shai Rock & Gravel LLC PO Box 196 Unalaska, AK 99685 Phone: 907-581-1409 | Fax: 907-581-3409 Clark Wiltz Mining PO Box 586 Talkeetna, AK 99676 Phone: 907-841-3213 | Fax: 907-733-2488

YEAR FOUNDED / ESTABLISHED IN ALASKA

Kirk Zerkel, Pres. info@aicllc.com ak-gravel.com Curt Freeman, Owner/Pres. avalon@avalonalaska.com avalonalaska.com Diane Shaishnikoff, Owner/Mgr. Dianeshai@gmail.com beringshairock.com Douglas Clark, Pres.

WORLDWIDE / ALASKA EMPLOYEES

MINING DISTRICT | COMMODITY | RECENT PROJECTS

2006 2006

65 65

1985 1985

25 25

2004 2004

17 17

Recent Projects: City of Unalaska new water treatment facility. Installed power, water mains. Provide all rock materials for Turnagain Marine. UMC Project. Mining District: Aleutian Chain Commodity: Spec rock, rip rap, armor stone, gravel.

1992 1992

1 1

Recent Projects: Mining. Mining District: Mt. McKinley Recording Commodity: Gold.

Recent Projects: Fort Knox: Dam Raise, Heap Leach, Lime Silo & RO Water Treatment Plant. Kensington Mine: Road & ARD Capping, CWTP Effluent Line, Guard Railing & Ore Crushing. Buckhorn Mine: Surface Reclamation. Mining District: Statewide Commodity: Pit run gravel, processed aggregates, Redi-Mix concrete, mining and resources, infrastructure support. Recent Projects: Tetlin Gold project. Golden Summit gold project. Richardson gold project. Honolulu copper-gold project. Mining District: Multiple Commodity: Precious metals, base metals, platinum group metals, rare earth metals.

ganescreek@yahoo.com

Our Legacy: Our People For more than two decades, we’ve been one of the largest private sector employers in Interior Alaska. Hiring Alaskans has been a top priority and, today, 100% of our employees are local residents. We’ve provided good jobs with good pay and benefits and offered our people the opportunity to take on new career challenges. As Alaska’s longest producing gold mine, our people get the credit for our success − past, present, and future.

Celebrating 70

20 YEARS

Alaska Business | November 2017 www.akbizmag.com

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MINING SPECIAL SECTION | 2017 MINING DIRECTORY

COMPANY TOP EXECUTIVE

Coeur Alaska, Inc. 3031 Clinton Dr., Suite 202 Juneau, AK 99801 Phone: 907-523-3300 | Fax: 907-523-3330 Constantine Metal Resources Ltd. PO Box 315 Haines, AK 99827 Phone: 907-766-2057 Diamond Gold Corp. HC 89 Box 5601 Willow, AK 99688 Phone: 907-521-6480 Donlin Gold LLC 4720 Business Park Blvd., Suite G-25 Anchorage, AK 99503 Phone: 907-273-0200 | Fax: 907-273-0201 Goldrich Mining Co. 2607 Southeast Blvd., Suite B211 Spokane, WA 99223 Phone: 509-535-7367 | Fax: 509-695-3289 Graphite One Resources, Inc. 600-777 Hornby St. Vancouver, BC V6Z 1S4 Phone: 604-697-2862 Heatherdale Resources Ltd. 1040 West Georgia St. Vancouver, BC V6E 4H1 Phone: 604-684-6365 | Fax: 604-684-8092 Hope Mining Co. Inc. PO Box 101827 Anchorage, AK 99510 Phone: 907-274-1906 | Fax: 907-644-0361 Kinross Fort Knox PO Box 73726 Fairbanks, AK 99707 Phone: 907-490-2218 | Fax: 907-490-2290 Millrock Resources, Inc. PO Box 200867 Anchorage, AK 99520 Phone: 907-677-7479 | Fax: 907-677-3599

YEAR FOUNDED / ESTABLISHED IN ALASKA

Wayne Zigarlick, VP/GM jtrigg@coeur.com coeur.com J. MacVeigh, Pres./CEO info@constantinemetals.com constantinemetals.com Ann Ellis, Pres. diamondgoldcorporation@yahoo.com diamondgoldcorporation.com Andy Cole, GM info@donlingold.com donlingold.com William Schara, CEO/Pres. ggallagher@goldrichmining.com goldrichmining.com Anthony Huston, Pres./CEO anthonyh@graphiteoneresources.com graphiteoneresources.com David Copeland, Exec. Chairman/CEO info@hdimining.com heatherdaleresources.com Al Johnson, Pres.

WORLDWIDE / ALASKA EMPLOYEES

MINING DISTRICT | COMMODITY | RECENT PROJECTS

1987 1987

2,000 Recent Projects: The Kensington mine recently completed its seventh year of commercial 368 production with a total of 760,308 oz. of gold having been produced from startup in July 2010 through June 2017. Mining District: Juneau Commodity: Gold.

2006 2006

28+ 20+*

Recent Projects: Exploration drilling at Palmer Project. Mining District: Haines Commodity: Base metals, copper, zinc, gold, silver. *Seasonal employees.

1978 1978

3 3

Recent Projects: Fire Brick Mine-Gold, Silver and Copper large mine project, Yentna Mining District. Mining District: Yentna Mining District Commodity: Gemstones, gold, silver, copper, and palladium.

2008 2008

16 16

Recent Projects: EIS and permitting. Mining District: Aniak Commodity: Gold.

1959 1959

3 1

Recent Projects: Goldrich NyacAU Placer with whom Goldrich is a 50% member, is currently placer mining in Chandalar, Alaska. Mining District: Chandalar Commodity: Gold, placer gold.

2007 2010

5 1

Recent Projects: Graphite Creek Project. Mining District: Cape Nome Commodity: Graphite.

2010 2010

0 0

Recent Projects: Niblack Project. Mining District: Alaska Commodity: Copper, gold, zinc, silver.

1923 1923

1 1

Recent Projects: Adding new leasees. Mining District: Seward Commodity: Placer gold, silver.

hopemining.com 1996 1996

Eric Hill, GM anna.atchison@kinross.com kinross.com Greg Beischer, Pres./CEO

2008 2008

660+ Recent Projects: In December of 2016, Fort Knox celebrated its 20th year of production. 660 Mining District: Fairbanks Commodity: Gold.

25 6

info@millrockresources.com millrockresources.com

Recent Projects: Liberty Bell, Stellar, Golden Triangle, Sonora, Mexico. Mining District: Alaska, Southwest USA, British Columbia and Mexico Commodity: Base metals, gold, precious metals, uranium.

COMPANIES

MARINE LLC

ENERGY SERVICES LLC A CIRI COMPANY

A CIRI COMPANY

BUILDING ALASKA FOR MORE THAN

36 years CONTRUCTION, INC

Experts in Resource Development and Heavy Civil Construction

Cruz Construction | Alaska Interstate Construction | Alaska Aggregate Products Cruz Energy Services | Cruz Marine Original

A CIRI CompanyOption

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Alaska Business | November 2017 www.akbizmag.com

MINING SPECIAL SECTION | 2017 MINING DIRECTORY

COMPANY TOP EXECUTIVE

NOVAGOLD 789 W. Pender St., Suite 720 Vancouver, BC V6C 1H2 Phone: 604-669-6227 | Fax: 604-669-6272 Nyac Mining Co./Nyac Gold/NyacAu 1634 W. 13th Ave. Anchorage, AK 99501 Phone: 907-279-6094 | Fax: 907-279-6867 Oxford Assaying & Refining Corp. 3406 Arctic Blvd. Anchorage, AK 99503 Phone: 907-561-5237 | Fax: 907-563-8547 Pebble Limited Partnership 3201 C St., Suite 404 Anchorage, AK 99503 Phone: 907-339-2600 | Fax: 907-339-2601 Polar Mining, Inc. 5836 Poker Creek Cir. Fairbanks, AK 99712 Phone: 907-455-4198 Sumitomo Metal Mining Pogo LLC PO Box 145 Delta Junction, AK 99737 Phone: 907-895-2841 | Fax: 907-895-2866 Teck Alaska-Red Dog Mine 3105 Lakeshore Dr., Bldg. A, Suite 101 Anchorage, AK 99517 Phone: 907-754-3800 | Fax: 888-900-1179 Tower Hill Mines 506 Gaffney Rd. Fairbanks, AK 99701 Phone: 907-328-2800 Trilogy Metals Inc. Suite 1150-609 Granville St. Vancouver, BC V7Y 1G5 Phone: 604-638-8088 | Fax: 604-638-0644 Usibelli Coal Mine, Inc. 100 Cushman St., Suite 210 Fairbanks, AK 99701 Phone: 907-452-2625 | Fax: 907-451-6543

YEAR FOUNDED / ESTABLISHED IN ALASKA

Gregory Lang, Pres./CEO info@novagold.com novagold.com Mike James, Pres.

WORLDWIDE / ALASKA EMPLOYEES

MINING DISTRICT | COMMODITY | RECENT PROJECTS

1998 1999

29 16

1982 1982

62 62

1980 1980

7 7

Recent Projects: Oxford is proud to be the only local gold buyer, assayer, refiner and bullion dealer to maintain two locations in Alaska for more than 30 years. Mining District: Alaska Commodity: Gold, silver.

2007 2007

8 7

Recent Projects: Worked to remove EPA preemptive block of project, renewed summer work program, focus on initiating permitting in 2017. Mining District: Southwest Alaska Iliamna Commodity: Copper, molybdenum, gold, silver.

1981 1981

6 6

Recent Projects: The mine in Fox is going on 20 years. Mining District: Fairbanks Commodity: Base metals, gold, placer gold, gravel.

2005 2005

320 320

Recent Projects: Pogo continues to produce gold at the site and do exploration within the claim area. Mining District: Goodpaster Commodity: Gold.

Recent Projects: NOVAGOLD has 2 large high-grade assets: its flagship world-class Donlin Gold project in Alaska, and Galore Creek in British Columbia with potential to be one of the largest copper mines in Canada. Mining District: Kuskokwim Gold Belt Commodity: Gold, placer gold, precious & base metals. Recent Projects: Placer gold mine at NYAC, AK and at Little Squaw Cr, AK. Mining District: Southwestern Alaska and Northern AK Commodity: Gold.

mjames@nyacak.com Toni Goodrich, Pres. facebook.com/oxfordmetals oxfordmetals.com Tom Collier, CEO receptionist@pebblepartnership.com pebblepartnership.com Dan May, Pres. pmi@ak.net Chris Kennedy, GM pogominealaska.com Henri Letient, GM reddog.info@teck.com teck.com Karl Hanneman, CEO info@ithmines.com ithmines.com Rick Van Nieuwenhuyse, Pres./CEO info@trilogymetals.com trilogymetals.com Joseph E. Usibelli Jr., Pres./CEO lisa@usibelli.com usibelli.com

1989 10,700 Recent Projects: Red Dog Operations is one of the worldâ&#x20AC;&#x2122;s largest zinc mines, located in 1989 550 northwest Alaska. teck.com/operations/united-states/operations/red-dog/. Mining District: Noatak Commodity: Base metals, lead, zinc. 2006 2006

8 8

2012 2012

55 45

1943 1943

183 148

Recent Projects: The Company on April 10, 2017 filed a NI 43 101 on an optimized configuration for its Livengood Gold Project that will process 52,600 tons per day and produce 6.8 million ounces of gold over 23 years. Mining District: Livengood, Fairbanks Commodity: Gold. Recent Projects: Arctic Project is moving towards a PFS targeted for Q1 2018. Bornite Project with a $10M exploration program during the summer of 2017 is focused on significantly expanding the existing resource. Mining District: Ambler Commodity: Copper, zinc, lead, silver, gold. Recent Projects: Construction of the Jumbo Dome Road Corridor is nearing completion. This 7-mile road provides access to Jumbo Dome mine, which is permitted for 83 million tons of coal. Mining District: Healy Commodity: Coal.

Alaska Business | November 2017 www.akbizmag.com

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TRANSPORTATION

Image courtesy of Lynden

Lynden’s multi-modal capabilities allow customers to balance speed and cost by shipping via air, land, and sea.

By Air, Sea, Rail, or Land The logistics of multimodal transportation in Alaska By Peg Gould

laska’s transportation industry excels at finding creative and innovative methods of moving vital cargo throughout the state. The many machinations transportation companies undertake on a daily basis just to perform their jobs involve planning for unexpected inclement weather, being able to maneuver to locations only accessible by sea or air, and possessing a deep knowledge of the state and all of its transportation quirks. Every method of transportation—rail, boat, truck, or air— plays an integral role in the art and science of transporting products that keep the state in business.

Quality of Life Paul Friese, vice president of Alaska sales for Lynden Transport, has had a front-row seat to Alaska’s transportation action for twentysix years and plays a major role in overseeing growth and economic development for the company. Friese’s views on transportation processes are broad and creative. Access to multimodal transportation options is key to sup76

porting the businesses and communities Lynden serves in Alaska or other locations. Friese says Lynden is well-positioned to meet any of Alaska’s unique transportation needs through its dedicated work force, including many employees who, like him, have been with the firm for twenty years or more. “We don’t just move freight,” Friese says. “We move the things that keep Alaska going.” Keeping Alaska going involves the efficient, expedient transport of food, clothing, fuel, building materials, seafood, oil and gas and mining resources, and recreational equipment; and those are all common for the state. There are other materials and items that present unique logistics challenges.

Economic Downturn Low oil prices and the economic downturn in Alaska have led some companies to offer more transportation options in order to meet (or beat) transit and delivery goals. Lynden continues to offer a full range of multi-modal transportation options including truckload and less-than-truckload transportation, scheduled and charter barges, rail barges, intermodal bulk chemical hauls, scheduled and chartered air freighters, domestic and international air forwarding, international ocean forwarding, sanitary bulk commodities hauling, and, of course, multi-modal logistics. Because of Alaska’s limited road infrastructure, it may take multiple modes of movement

to transport items from one location to another. Freight may start out in the air, be later loaded onto a barge, and then transported by rail or road to the final destination. One way to save transportation costs is to build bigger payloads, and Lynden can move more than 60,000-pound loads on its barges. Utilizing large trailers and containers and shipping in bulk can reduce the cost per unit, gallon, or pallet. Friese says Lynden’s goal it to provide what their customers need: “If they are successful, we are successful—it’s a partnership.” Many of Lynden’s construction industry clients use all modes of transportation to move required materials to complete critical projects; such materials often begin their Alaska trek on the water, using a barge whenever project time constraints allow them to do so. For time-sensitive shipments, Lynden expedites the transportation process by using its 48-hour QuickTrans service that runs twice a week from Fife, Washington, to Anchorage, or utilizing air freight options. While it’s not always simple, customers are given a single point of contact to help them understand the need for multi-modal transportation and to decide which options work best for their particular situation. Lynden has two primary receiving locations in Washington state in Tacoma and Seattle for scheduled service to Southeast, Western, and Southcentral Alaska. The company also moves rail cars for the Alaska Railroad via its rail barges, which dock at

Alaska Business | November 2017 www.akbizmag.com

An Alaska Marine Lines barge, with containers and trailers carefully stowed, passes by Juneau. Image courtesy of Lynden

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Whittier for offloading and movement to Anchorage and Fairbanks. From Whittier, Friese says, Cordova and Valdez are served via the company’s Integrated Tug and Barge (ITB) service; platforms and containers offloaded in Whittier are loaded to the ITB for transport to locations in Prince William Sound. The cost of any project depends on factors such as size, weight, dimensions, origin, destination, and speed required. These often vary by industrial sectors; for example, the fast-paced hotel industry tends to need things done yesterday. At Lynden, Friese says, two questions greet potential customers: when is it ready to ship and when does it need to be on site? Optimal transit and delivery targets are then assessed with a degree of customization or what Lynden calls dynamic routing where “you only pay for the speed you need.” Many clients, including those in hospitality lines of business, seek to decrease delays and cut costs, two of the driving forces behind customized multi-modal transportation plans. Other sectors that often need expedited shipping are oil and gas, construction, mining, retail and manufacturing, and seafood, (also known as Alaska’s major industries). Transportation is a competitive field, and Friese agrees that access to proper equipment to get the job done efficiently can be a major competitive advantage for any company. Much depends on the type of equipment required—the more specialized the move, the fewer companies that have the equipment and experience to remain competitive for demanding projects. Asset-based Lynden takes pride in servicing projects to, from, and within Alaska, and if the company lacks the appropriate equipment, “we have partners we reach out to,” says Friese.

The Cost Factor and Decision Making Though Alaska presents a multitude of logistical transportation puzzles, most can be solved through the use of mixed modes of transportation. However, cost, size, and weight still remain important factors that must be considered during any move. “There are restrictions on size and weight, based on bridges and equipment,” Friese says,

Alaska Business | November 2017 www.akbizmag.com

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Image courtesy of Lynden

A Lynden Transport truck hauls freight to a remote site on the North Slope.

Alaska Business | November 2017 www.akbizmag.com

“but we do get involved with many projects as they are getting started and work with the engineers on the size of the unit they can build and still move cost-effectively. Most things can be moved if cost is not a factor.” But realistically, no matter how early or detailed the moving plan, “it almost always is.” Key factors to consider when shipping anything in Alaska are transit time; size, weight, and dimensions; origin and destination; and whether special handling is needed, for example for hazardous materials. A possible additional cost to consider is whether the items would benefit from additional insurance coverage.

Moving the Delicate and Unwieldy Moving particularly delicate, oddly-shaped, or unwieldy items to or from Alaska can test even the most skilled transportation organizations’ abilities because moving such cargo involves special challenges. Companies today have, as a goal, greater involvement with the customer and project from the concept phase through to fruition. Lynden forms a team and assigns a project manager for its complicated moving projects. In September Lynden published “It Takes a Village,” an article in which the company detailed a recent transportation project that involved air, sea, and surface transportation to move a signature thirty-foot, wave-shaped desk designed to resemble undulating water to its new home in Ward Village, a sixty-acre planned community in Hawaii. Randy Gentz, president of Hospitality Freight Company, said in the article, “The oversized desk for the lobby was a beast and one of the most difficult things we have ever asked Lynden to ship for us.” The desk’s dimensions are thirty feet by eight feet, it’s fragile, and it’s valued at $250,000, all factors that contribute to a difficult, but not impossible, move. The resin desk was designed in England and arrived in Honolulu in a special crate, and because of its size a sky crane was required to set it into place. The article states, “Lynden’s array of air, sea and surface choices allows customers to create customized domestic or international transportation plans to accommodate a mix of slower moving freight as well as expedited cargo.” R

Peg Gould is a veteran Alaska Business freelancer currently residing in Colorado.

Image courtesy of Lynden

Port Problems and Future Solutions Many factors can negatively influence the success of transportation companies in Alaska, including state budgetary restrictions, oil taxes, federal spending, and the price of oil long term. Given that most items coming to Anchorage by sea arrive at the Port of Anchorage, its need for significant port repairs is an additional threat to the long-term success of transportation industry. “That’s accurate,” Port of Anchorage External Affairs Director Jim Jager says of the need for port improvements. “It’s a real issue that our docks are corroding away.” Anchorage docks date back to 1961 and are suffering a slow-motion fugue of corrosion and age. Engineering studies show that Port of Anchorage wharf piles have lost up to three-quarters of their original thickness, have reduced load-bearing capacity, and are unlikely to survive another significant earthquake. What Jager called a flawed attempt to expand and replace Anchorage docks started in the early 2000s but was suspended in 2012 because of construction and cost issues. Now a smaller port modernization program is moving forward at the Port of Anchorage to improve safety and efficiency. Workers are scheduled to start transitional dredging and other work next summer before constructing a new petroleum and cement terminal in 2019. Dock replacement will be conducted in

phases to enable ongoing port operations and is expected to take seven to eight years to complete. The new docks are designed to survive extreme seismic events and Cook Inlet’s harsh marine environment for at least seventy-five years.

An Alaska Marine Lines rail barge, with rail cars loaded below the stacks of containers, departs Seattle destined for Alaska.

www.akbizmag.com

November 2017 | Alaska Business

OIL & GAS

Industry Invests Billions in Exploration, Production Efforts

Preparations underway for upcoming winter push By Alaska Business Staff

il and gas exploration is always underway in Alaska no matter the season. From conception to the moment the black liquid begins to flow, oil and gas is an industry in constant motion.

Production Increases Part of that motion is production. Even with the stateâ&#x20AC;&#x2122;s continued lower-for-longer oil pricing (June of 2015 was the last month during which Alaska North Slope crude averaged more than

Alaska Business | November 2017 www.akbizmag.com

$60 per barrel), overall production still managed to increase in 2016. The volume of oil moving through the Trans Alaska Pipeline System (TAPS) experienced its first calendar year-over-year increase since 2002, according to Alyeska Pipeline Service Company, which reports that in 2016 on average 517,868 barrels of oil per day traveled through TAPS, an increase of nearly 2 percent from 508,446 barrels per day on average in 2015. “More oil is the best long-term solution for sustaining TAPS, from a technical and operational standpoint,” said Thomas Barrett, Alyeska president, in a late fall press release. “It’s also the best thing for Alaskans and our economy. Every barrel matters to us. The more throughput, the better we can plan for the continuing safe operation of the pipeline.” After forty years in operation, TAPS has mostly reported annual throughput declines since its peak flow of 2 million barrels a day in 1988. The only exceptions were slight yearover-year increases in 1991 and 2002. Alyeska employees anticipate and respond to increasing challenges brought on by the declining oil flow. Lower flow leads to slower moving oil, which in turn allows the oil time to cool, with the potential for ice formation in the line and for water and wax to drop out of the flow stream and accumulate, the company reports. But even as Alyeska continues to adjust to lower flows by taking measures such as adding heat to the pipeline and modifying

pipeline pigging operations, industry experts agree that the best-case scenario is bringing more oil to TAPS. “We’re supportive of an external environment that encourages responsible resource development and helps us sustain TAPS’ flow level and work toward future throughput increases,” Barrett said.

Where’s the Development? As oil exploration and development companies prepare for the North Slope winter production season, permitting for a variety of wells from a range of industry leaders is in full effect. According to the Alaska Oil and Gas Conservation Commission, there were about a dozen development permits approved in September and another twentytwo completed development and testing permits in the same month. ConocoPhillips Alaska was approved to continue its development efforts at wells located at its Kuparuk River Unit—North America’s second largest oil field, located about forty miles west of Prudhoe Bay. Production at Kuparuk began in 1981, increasing to a record rate of 322,000 barrels per day in 1992, and reaching a production milestone in July 2005 when cumulative production reached 2 billion barrels. It has since has produced more than 2.5 billion barrels to date. ConocoPhillips and its co-owners have invested more than $5.6 billion to develop the field and optimize oil recovery, according to the company’s website.

The September development permits approved by Alaska Oil and Gas Conservation Commission are for Kuparuk River Unit wells 2A-22A, 2A-22AL1, 2K-04L1, 2K-04L1-01, 2K-04L1-02, 2Z-13AL2, and 2Z13AL2-01. According to ConocoPhillips, the company announced contracts for Doyon 142 in 2014 for a new-build rotary rig; contracts for Nabors CDR3, a Coiled Tubing Drilling rig; and a new viscous oil development at Kuparuk called 1H NEWS. Doyon 142 began drilling at Kuparuk in early 2016, and Nabors CDR3 began drilling in late 2016. New Kuparuk Drill Site 2S (DS2S) struck first oil in October 2015, celebrating its twoyear anniversary last month. This first new drill site at Kuparuk in more than a dozen years is expected to add about 8,000 barrels of oil per day gross at peak production. Completed well permits at the Kuparuk drill site for September include: Kuparuk River Units 1H-118, 3H-26L1, 3H-26L1-01, and 3H-26L1-02.

BP Alaska at Prudhoe Bay BP Exploration Alaska received September development approval permits for Prudhoe Bay Units 04-21A, P-04L2, and H-37B. These three permits are a small sampling of the flurry of ongoing activity undertaken by BP Alaska, which currently operates approximately 1,200 wells and has produced more than 12.5 billion barrels of oil during the past four decades of production at Prudhoe Bay.

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BP’s development facilities at this location include the aforementioned 1,200 active wells on forty-five pads, seven oil and gas separation facilities, two gas plants (handling and injection), a power plant, two seawater plants (treatment and injection), a crude oil topping plant, approximately 850 miles of flowlines (cross country pipelines) and 450 miles of well lines (running from wellhouse to processing facility), approximately 230 miles of roads, two docks, and hazardous and solid waste management facilities, BP Alaska reports. Oil development permits completed in September included Prudhoe Bay Unit L221B and L2-29A. In addition to its 48 percent ownership in TAPS, BP also owns about 38 percent of the Kuparuk Pipeline, half of the Milne Point Pipeline (Hilcorp is the other owner), and 32 percent of the Point Thomson Export Pipeline. Milne Point is located about twenty-five miles west of Prudhoe Bay and produces about 19,000 barrels of oil per day. Cumulative oil production from Milne Point is 322 million barrels of oil. BP’s cumulative net production is about 239 million barrels of oil. Milne Point produces from three main reservoirs: The Kuparuk and Sag River reservoirs produce lighter oil horizons while the Schrader Bluff reservoir produces viscous oil. All production fluids are processed through the Milne Point Unit production facilities. BP shares ownership of the Greater Kuparuk Area with ConocoPhillips, Chevron, and ExxonMobil, which includes the satellite fields of Tarn, Tabasco, Meltwater, and West Sak. ConocoPhillips is the area’s field operator. Oil from these fields is processed through Kuparuk production facilities and then piped twenty-eight miles to Pump Station 1, at the beginning of TAPS. At Point Thomson, production project start-up began early last year with an initial first production rate of about 5,000 barrels per day of condensate and 100 million standard cubic feet per day of recycled gas through two wells. The site operator is ExxonMobil, which holds a working interest of 62 percent while BP holds a 32 percent working interest. Located sixty miles east of Prudhoe Bay along the shoreline of the Beaufort Sea, Point Thomson is estimated to hold about 25 percent of known North Slope natural gas and is considered key to the success of the potential Alaska LNG project. Development of Point Thomson included a multibillion dollar investment for well drilling and to construct processing facilities, gravel pads, pipelines, and supporting infrastructure including an airstrip, base camp, and sea barge docks and piers.

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Hilcorp Alaska Hilcorp Alaska, a unit of privately held Texasbased Hilcorp Energy Co., has been particularly busy this year, investing more than $3 million for exploration rights to fourteen federal offshore leases over some 76,600 acres in Cook Inlet. In September, Hilcorp Alaska completed a dozen oil and gas development and testing

Alaska Business | November 2017 www.akbizmag.com

permits at its operations in the Cook Inlet. The company was also approved for another development permit at Granite Pt St 11-24rd. Hilcorp Alaska operates primarily in the waters of Cook Inlet through the North Cook Inlet unit, the Granite Point unit, the Middle Ground Shoal unit and associated Trading Bay and North Trading Bay units, and McArthur River field. The company completed oil and gas development and testing permits in September at its PEARL 1A-7 wells and at its SEAVIEW 1-7 wells. Perhaps the biggest news for the company is its investment in federal waters of Cook Inlet. The company was the only bidder at the US Bureau of Ocean Energy Management’s lease sale held this past summer, according to the US Bureau of Ocean Energy Management. Hilcorp Alaska invested more than $3 million to obtain exploration rights to fourteen federal offshore leases in Cook Inlet covering about 76,600 acres. The company also leased six tracts for about $922,392 in bids, according to the Alaska Division of Oil and Gas, marking the first major lease investment in the area in decades. Previous federal leases in Cook Inlet all expired years ago without resulting in oilfield development. Along with its investment in federal water leases, Hilcorp Alaska is one of a number of companies showing interest in the Liberty Project located fifteen miles east of Prudhoe Bay in Foggy Island Bay. Hilcorp Alaska filed a Development and Production Plan with the Bureau of Ocean Energy Management—the first of many, many steps in the permitting process, which entails approvals at the local, state, and federal levels. Hilcorp Alaska anticipates permitting alone to take more than two years to complete. If and when all approvals are in place, the company will complete a final analysis and decision as to if and how it will move forward with the project. As of now, the plan calls for construction of a self-contained island connected to land by a subsea pipeline, according to Hilcorp Alaska’s website. The proposed island would be constructed and operated like similar islands that have been developing offshore resources in Alaska for the past three decades including Endicott, Northstar, Oooguruk, and Nikaitchuq. Once approved, the roughly nine-acre, man-made Liberty Island would take about two years to construct. Liberty Island will be home to drilling, production, production support, utilities, camp, and relief-well area facilities.

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Industry in Motion The oil industry in Alaska doesn’t take breaks, and the unique nature of operating on the North Slope means there are exceptional opportunities for exploration and production in the winter. As these companies ramp up for the upcoming winter exploration season, the entire industry remains optimistic about oil in Alaska and the next big discovery. R

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November 2017 | Alaska Business

OIL & GAS

Image courtesy of Glacier Oil & Gas

The West McArthur River Unit, operated by Glacier Oil & Gas, currently produces oil that is now being processed at the Kustatan production facility; in summer 2018 Glacier Oil & Gas is planning to drill at their Sabre oil prospect, located just northeast of the West McArthur River Unit.

Q&A with Glacier Oil & Gas CEO Carl Giesler Development, political changes, and Cook Inlet 86

laska Business is pleased to highlight Glacier Oil & Gas; the company’s CEO Carl Giesler provides insight into the company and oil and gas development in Cook Inlet.

Alaska Business: What are your plans for 2018 in Cook Inlet? Giesler: Generally, in the Cook Inlet, Glacier plans to continue developing our oil assets off the Osprey Platform at our Redoubt Unit. In particular, we plan to replace the ESP and add perforations to RU-09 and add another low-on-structure water-injection well, RU-04. We also look forward to drilling next summer our Sabre oil prospect just northeast of our West McArthur River Unit. That field and our Starfish prospect at our Badami Unit on the North Slope are both potential “company changers.”

Alaska Business | November 2017 www.akbizmag.com

Image courtesy of Glacier Oil & Gas

Glacier Oil & Gas has invested $10 million to redirect oil from the West McArthur River Unit processing facility to the Kustatan production facility, which is more modern and reliable and already processed oil from the companyâ&#x20AC;&#x2122;s Redoubt Unit.

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November 2017 | Alaska Business

Giesler: It’s a pretty direct, slowing impact. Simply-put, the seemingly endless-loop of legislative decisions and discussion on oil and gas tax policy creates uncertainty. The lack of stability and visibility in oil and gas fiscal policy has made attracting capital challenging, even for quite promising risk/reward drilling investments. The seven oil and gas fiscal policy changes in twelve years have not been lost on our equity owners. They’re slower to provide equity drilling dollars than they would be in a more stable policy environment. Particularly with Brent [a sweet light crude oil trading classification] now past $55. It was disappointing to have to delay Sabre from last spring to next summer. We’re concerned that other projects attractive from both a production—and financialstandpoint—could get delayed, too. The policy gyrations have also not been lost on our banks. Many of the banks we’ve talked to about a revolving credit facility literally end the conversation when we mention that our assets are in Alaska. The state’s oil and gas sector has relatively few operators. The current fiscal policy uncertainty compounds the difficulty banks have committing human and financial resources to a relatively small addressable market for lending services. Also,

some banks have been burned by making loans against earned cashable tax credits that have not been paid. And, of course, there’s the knock-on, indirect impacts of the fiscal uncertainty: greater uncertainty means less capital, which means less investment, which means less production, smaller royalty checks to the state, and fewer jobs, etc. To touch specifically on the tax-credit topic that seems to have dominated the conversation the last two-plus years, it’s a bit beside the point. The greater issue for us is the lack of stability and visibility in policy. We “get” that the state’s tough budget predicament made necessary the accelerated sunsetting of the cashable tax credit program. Alaska Business: What is necessary for the oil and gas industry to thrive in Cook Inlet? Giesler: First and foremost, re-establish stability and visibility in the oil and gas fiscal regime. SB21 seems to be working, with production in the state having increased since its adoption. Let it—and the industry—keep working. Operators in Alaska seem to have adjusted to lowerfor-longer oil and are moving ahead with exploration and production projects. Second, broaden the conversation beyond tax policy to revenue generation. From the state’s perspective, a royalty dollar should equal a tax dollar. That begs the question of what policies bring the most revenue to

Image courtesy of Glacier Oil & Gas

Alaska Business: How have legislative decisions regarding oil and gas credits and state tax policy affected your plans for 2018 and beyond in Cook Inlet?

Glacier Oil & Gas has plans to continue developing oil assets at the Osprey Platform in the Redoubt Unit, which they operate.

Alaska. Our thinking is that those policies will be the ones that attract more capital and operators to the state. What builds a more robust and sustainable oil and gas investment/ royalty generation eco-system? With more capital and more operators, the state will have more investment and a more robust oil service sector. That, of course, means more production, royalties, and jobs. Besides, it seems people have become exhausted with the now two-year, seemingly-endless and myopic focus on taxes and tax credits. Finally, “finish the job” on ending the cashable tax credit program: lay out a general payment plan for credits earned, even if it will be over several years. It’s not enough to stop accruing tax credit liabilities; the state needs to follow through on the payments upon which operators relied when making investments. Generally, setting a payment plan will

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help the state’s credibility. More tangibly, it will grow production. My sense is that every operator that gets a dollar for past-earned tax credits will turn-around and invest that dollar in more production. Glacier Oil & Gas certainly will. To the extent we know when earned credits will get paid, we use that knowledge to accelerate our drilling plans. Alaska Business: What is your strategy for weathering the lower-for-longer oil environment; how have you increased efficiency or decreased costs? Giesler: Up-front, we’ve already strengthened our safety profile. After emerging from restructuring, our first investment was to commit more than $10 million to redirect our West McArthur oil from that field’s aging and problematic processing facilities to our more modern and reliable Kustatan facility to the south that processes our Redoubt oil. This project not only significantly reduced safety and environmental risks but also improved our processing efficiency and significantly reduced operating costs. The entirety of our Cook Inlet oil is now processed at a single facility. We also invested close to $1 million to stabilize our subsea pipelines in the Inlet. We’ve also already right-sized our coststructure and reconfigured our team’s capability to “do more with less.” Both G&A [general and administrative expenses] as well as LOE [level of effort, ongoing or periodic activity to support a project] are down meaningfully. Our primary focus now is growing production in a safe, regulatory-compliant, efficient, effective, and financiallyresponsible manner.

Giesler: We’re optimistic generally about the sector and specifically that the safe, responsible production growth in the state over the last couple years will continue. The state has good rock and a lot of it. It also has good people who work hard: from the “boots on the ground” operations teams working to solve a myriad of issues daily to the legislators and public employees working to meet the state’s needs in a lower-for-longer oil price and budget environment. The issues we’re cautious about—oil and gas fiscal and regulatory policy—

will work themselves out. Too many smart people are grappling with them for there not to be reasonable answers. And, our optimism about the state’s oil and gas industry translates into optimism about Alaska itself. The oil and gas sector is the bedrock of the state’s economy; their trajectories are inextricably tied. Thank you to Glacier Oil & Gas and CEO Carl Giesler for this informative inside look at oil and gas operations in the Cook Inlet. R

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WE’ VE GOT YOU COVERED ON THE NORTH SLOPE AND BEYOND

Alaska Business: What are the core values that guide your company, and how have those values aided your company in the face of a challenging industry environment? Giesler: The health and safety of our employees and contractors top the list. We also work hard to be good neighbors to Alaska, taking special interest in safeguarding the environment and minimizing our footprint. And, of course, we want to maintain regulatory-compliance and play by the rules. Next is being technically-driven and financially-disciplined. We’re paid to make investments that result in safe production and generate appropriate risk-adjusted returns on the capital to which we’re entrusted. We’ve adopted a saying at Glacier that our goal is “to be exciting by being boring.” If we operate safely and by the rules and drill good wells that generate jobs and make oil and gas as well as money, we should be both “boring” and “exciting.” Alaska Business: Looking ahead, what do you see for the future of Alaska’s oil and gas industry? What are you optimistic about and what are you cautious of? www.akbizmag.com

F a i r w e a t h e r, L L C | A n c h o r a g e , A l a s k a | w w w. f a i r w e a t h e r. c o m

November 2017 | Alaska Business

SPECIAL SECTION

Resource Development

Potential for Progress Alaska’s commercial timber industry requires federal support By Owen J. Graham

here’s great potential for the commercial timber industry in Alaska, although as with any industry there are challenges. What does exist of the Alaska commercial timber industry can be organized into two regions, Interior or Coastal, each with their own opportunities and difficulties.

Interior Region The Interior region has more than 100 million acres of hardwood and softwood timber, of which roughly 7 million acres is considered commercial timberland that can be managed for sustainable forestry operations. Most of this commercial timberland is isolated and costly to access; however, the Tanana Valley State Forest includes about 2 million acres of timberland located along an arc that runs from the Canadian border through the communities of Tok, Big Delta, Fairbanks, Nenana, and as far west as Manley Hot Springs. This forest is relatively accessible, at least by Alaska standards, and includes both road and rail options for portions of the region. Many of the roads in the forest are winter roads due to the numerous water bodies and broad floodplains that can only be economically accessed during winter months. In addition to public lands, there are private forestlands owned by several Alaska Native Corporations intermixed with the Tanana Valley State Forest. Some of these lands are actively managed for forestry activities, especially in the Tok and Nenana regions. There are also commercial forest lands managed by the Alaska Mental Health Trust and the University of Alaska Trust Land Office. While the acreage under active management is relatively small, there is potential for increased activity across the region. The forest currently sustains a small timber industry focused on meeting the needs of local communities for a variety of wood products. There are already several small regional sawmills that produce lumber, timber, house logs, and poles for commercial and residential construction. The largest mill in the region, Northland Wood, located in Fairbanks, produces high-quality, dried and graded lumber from the region’s white spruce forests. A separate Alaska lumber grade stamp was developed and approved for this product, as it was previously lumped in with pine and fir species known at the Spruce/Pine/Fir or SPF grade. 90

White Spruce has better strength characteristics due to Alaska’s slower growing conditions and it was beneficial to differentiate this characteristic. There is also new investment occurring at Young’s Timber near Tok where a range of products are produced including log cabin kits and homes. A facility located in the community of Dry Creek, Milling and Associates, produces similar high-quality products and has built custom log homes throughout Alaska. Of special note, several years ago Milling and Associates shipped two complete cabins in kit form to a customer located in a Middle Eastern country. The other segment of activity in the Interior region is centered on meeting the energy needs of local communities and individual businesses and homeowners. Wood is used in many forms: pellets, chips, compressed fuel logs, and round wood. There are two wood pellet manufacturing facilities with a third in the design and construction phase. The wood pellet facilities are modest in size and the largest is dealing with the challenges of cheap fuel oil prices and the tendency of residential customers to switch back and forth between pellet stoves and oil furnaces based on the price per BTU—as prices fluctuate, consumers choose the cheapest fuel option. A large “base” customer, such as a utility, military base, or university campus, that would consistently use a large volume of pellets would help stabilize and grow the wood pellet industry. While wood pellets may not be the cheapest fuel option today, a large pellet plant would produce a sustainable, locally produced product that would anchor this segment of the wood products industry and greatly advance the overall prospects for additional growth and innovation in this sector of the economy. There are also numerous communities heating public buildings, such as schools, using wood chips or solid wood as their fuel source. One school in Tok is the first combined heat and power operation in the state and produces electricity in addition to heat for the local school. This is an innovative operation that has both a high and low pressure steam option for producing power. When the heat loads are high, they can run a more traditional steam turbine and, when the school’s heating needs are lower, they can cut in a low pressure steam piston.

Coastal Region There are another 7 million acres of commercial timberland in the Coastal Regions. Although about three-quarters of this timberland is managed by the federal government, most (about two-thirds) of the current timber harvesting is taking place on state and private timberlands.

Large scale logging and manufacturing in the coastal region began in 1954. Prior to that date, the timber industry in the coastal region was limited to a few small, familyowned sawmills that produced lumber primarily for local markets—canneries, docks, etc. In the mid-1950s two pulp mills were constructed in Southeast Alaska. These two mills got about two-thirds of their fiber from high-defect, old-growth timber. The pulp mills utilized residual chips from local sawmills to supply the remainder of their fiber needs. Both mills were designed to manufacture high-value dissolving pulp, which was shipped to more than thirty countries around the world. Together the logging, sawmill, and pulp mill operations provided more than 4,000 direct jobs in the region, but after 1990 the federal government began progressively restricting the volume of federal timber available. One after another the local mills were forced to close and the region lost some 3,600 logging and manufacturing jobs. Currently the state manages only about 1 percent of the timberland in the coastal region, but the state is maintaining a small timber sale program that is a vital supplement to the dwindling federal timber supply. This year Alaska will offer a half-dozen timber sales, which combined will provide about double what the federal timber program has offered each of the past ten years. The state, however, cannot sustain this higher level of timber into the future. The region’s largest private land owner, Sealaska Corporation, will be able to sustain operations from its timberlands, but Sealaska would like to improve its economy of scale by supplementing its timber program with federal timber sales.

Politics Continue to Erode the Timber Supply In large part due to the state’s efforts to supplement the timber supply, one mid-size sawmill and a few micro-mills are still surviving in the coastal region. However, last year the federal government adopted an amendment to the management plan for the Tongass National Forest. The amendment mandates an early transition to harvesting young-growth timber. That decision will eliminate local manufacturing in the region within just a few years because the current young-growth trees are thirty or more years from maturity and, at the current age, the trees are too small for the manufacture of anything other than the lowest value lumber. Since Southeast Alaska sawmills must barge their lumber some 800 miles to the Pacific Northwest, the mills would be at a significant economic disadvantage to much larger sawmills located within the Pacific Northwest that produce

Alaska Business | November 2017 www.akbizmag.com

RESOURCE DEVELOPMENT SPECIAL SECTION | COMMERCIAL TIMBER

the same low value lumber. Currently, in order to compensate for the higher cost of shipping lumber from Alaska, the local mills produce higher value lumber products like piano and guitar stock from spruce logs; doors, windows, and molding from hemlock logs; and gazebo stock and other finished wood for Cape Cod-style homes from cedar logs. These high value products enable the mills to be profitable, but the high-value products cannot be sawn from small diameter, younggrowth trees. Last year the Secretary of Agriculture implemented a premature transition to younggrowth harvesting. That decision disregarded the economic realities; the Forest Service is already struggling to prepare economically viable timber sales, and limiting the harvest to just sixty-year old trees will result in exacerbating the economic problems. In addition to eliminating the ability to produce highervalue wood products, the volume of timber per acre in the immature young-growth stands is currently less than half of what it will be when the trees are mature. The young growth stands are just entering their fastest growth period, and over the next thirty to forty years the volume of timber per acre will more than double. Harvesting the young trees now means that the sawmills would have to harvest more than double the number of acres to get the same volume of timber as they would if the trees were allowed to grow to maturity. The current lack of a sufficient economy of scale is yet another major disadvantage for the timber industry in all of Alaska’s regions. In Southeast Alaska the industry was once comprised of pulp mills and sawmills and even a veneer plant that the industry hoped would develop into a plywood facility. Sawing lumber from logs results in a lot of chips, sawdust, planer shavings, and bark. These sawmill residuals represent as much as 40 percent of the fiber in the sawlogs. In the Pacific Northwest, all these sawmill residuals are sold to nearby pulp mills, fiberboard plants, and other integrated manufacturing facilities, but the current small amount of timber harvest in Southeast Alaska will not generate sufficient residuals to support those facilities. Once the young trees are mature (about 90 to 100 years), a young-growth forest comprised of only 20 percent of the commercial timberland on the forest would sustain a fullyintegrated manufacturing industry in perpetuity. Under the current plan, however, timber harvesting will only be allowed on about 6 percent of the commercial timberland. The only way to restore year-round jobs in a viable timber manufacturing industry in Southeast Alaska is to continue supplying mature timber from the national forest because the state and private landowners are already managing their lands to maximize their sustainable timber supply.

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New Hope for the Timber Industry in Southeast Alaska The recent national forest plan amendment process highlighted the need for additional information on the young growth resource www.akbizmag.com

November 2017 | Alaska Business

RESOURCE DEVELOPMENT SPECIAL SECTION | COMMERCIAL TIMBER

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beyond just acres, location, and age. The State Division of Forestry signed a Challenge Cost Share Agreement with the Forest Service shortly after the new forest plan amendment was signed, and one of the initial objectives is to complete an updated forest inventory of some of the young growth stands that are targeted for harvest by the forest plan. This initial inventory will provide better information on the timber volume, location, and economics of managing these immature young growth stands. When the Forest Service acceded to the political decision to restrict the timber supply to just small, low-value young growth trees, some in the timber industry began making plans to end their operations. Then last December, Congress legislated a land exchange with the Alaska Mental Health Trust. This exchange could provide several years of timber for the manufacturers, and that gives the new Secretary of Agriculture the opportunity and the necessary time to revise the management plan for the national forest to include sufficient timber for a manufacturing industry. Both the state and the timber industry have urged the new federal administration to make the most of this opportunity. Finally, while the process to restore a viable timber sale plan for the Tongass is underway, the state is using its Good Neighbor Authority (GNA) to help the Forest Service prepare and administer additional timber sales on the national forest. Results from this initiative are beginning to roll in. In September of this year, the first timber sale sold under a GNA agree-

ment was awarded to Alcan Timber, a Ketchikan-based company. The 1,500-acre young growth timber sale is located in a remote area on Kosciusko Island. A second, much smaller GNA project is underway on Gravina Island near the Ketchikan airport, and additional projects for the region are under discussion. New technologies and improved timber resource inventories in the northern regions of the state are enabling new timber manufacturing opportunities, but the ongoing reduction in timber supply from the Tongass National Forest has forced the closure of many of the timber businesses in coastal regions. The political decision to limit future timber sales to immature young growth trees will eliminate virtually all manufacturing in the region in just a few years. While the transition to young growth harvesting has always been the plan for the Alaska timber industry, it cannot happen until there is sufficient, mature young growth timber to sustain a viable manufacturing industry. The timberland harvested in the 1950s will be mature and large enough to be sawn into high value products in about thirty years. That is when the transition should begin and the transition will be complete when there is sufficient young growth acreage to support an economy of scale adequate to sustain a viable, fully-integrated timber manufacturing industry. R Owen J. Graham is the Executive Director of the Alaska Forest Association.

Alaska Business | November 2017 www.akbizmag.com

Alaska Aerial Media Alaska Based Drone Company Continues to Expand

laska Aerial Media has established a reputation for its impressive cinematography, but it’s much more than a media company. “We’re a full-service drone company that specializes in survey mapping and industrial inspection,” says Partner Beau Bivins. “We provide the most accurate, up-to-date data to help clients make the most informed decisions. The drone is just our tool to acquire the data; the magic happens long after the drone has landed.” Alaska Aerial Media is the first in Alaska to receive Federal Aviation Administration approval to fly unmanned aerial systems (UAS) for commercial purposes. It’s also perhaps the only UAS-focused service provider to meet all the licensing requirements to legally provide these services in the state. The company uses cutting-edge platforms, cameras, and other tools to serve clients such as ConocoPhillips Alaska, Hilcorp, Fairweather Science, and DOWL. UAS is an emerging technology governed by ever-evolving regulations. Hence, Alaska Aerial Media works diligently to remain on the leading edge of those regulations. “Whether it be our closed set authorization that allowed us to fly over essential personnel or the many authorizations we have been granted that allow us to fly in multiple

controlled airspaces, navigating the regulation side of this industry is crucial to our success and our clients’ satisfaction,” Bivins says. Alaska Aerial Media also distinguishes itself through its relentless approach to doing things right. This starts at the macro level with securing the necessary permits and licenses and trickles down to fundamental things like using the best equipment and always being prepared. “With this new industry, it’s easy to cut corners, but at the end of the day, people look to us to set standards for how to operate these systems in the national airspace,” Bivins says. “We take tremendous pride in that and operate at all levels with that in mind.” As more drone service providers enter the market, it’s becoming increasingly difficult for companies to differentiate between professionals and hobbyists.

Alaska Aerial Media has an internal, licensed land surveyor with forty-plus years of experience. This ensures data is acquired and processed according to industry standards and enables the company to tailor products to clients’ needs. “Our licensed surveyor has full authority over any type of survey product, and that helps maintain quality control and helps get the right product to the consumer,” says Partner and Chief Pilot Nick Morrison. Alaska Aerial Media is committed to refining its processes and workflows to maximize value for clients. As a prime example, the company employed high-resolution photo/video and thermal or infrared photo/video to inspect North Slope assets while they’re online—saving the client potentially millions of dollars. Under the same project, it also performed one of the first LiDAR (Light Detection and Ranging) acquisitions from a drone in Alaska. “Alaska Aerial Media is by far a leader in the industry in which we operate, and we’re committed to that remaining true well into the future,” Bivins says.

Alaska Aerial Media I Beau Bivins, Partner I (907) 440-0088 I www.akaerialmedia.com – PA I D A D V E R T I S E M E N T –

SPECIAL SECTION

Resource Development

A Portrait of Southeast Alaska’s Sawmills Despite challenges family-owned, boutique sawmills remain devoted to timber life By Heidi Bohi

t’s that one log. From that one tree. Slice it open and it cuts like butter. Straight grain, pointed right to the sky, and an even texture from the honey and gray skin to the heart of the trunk that says, “We are going to make beautiful music together.” “You can have a whole pile of logs,” Brent Cole says from his home on Prince of Wales Island, “and then you find that one—so straight and so even—that’s what turns me on about what I get to do every day.” Cole is founder, owner, and president of Alaska Specialty Woods, a boutique sawmill in Craig that specializes in producing acoustical soundboards from 100 percent salvaged, dead, downed, and previously-used wood that is purchased from the Tongass National Forest micro-sale program and private parties. He only cuts standing trees if they are dead, he says, and this practice is a part of his brand he intends to always keep. From Asia to the Middle East; throughout Europe, Australia, and New Zealand; and across the United States, Cole says he has shipped his products to customers in more than seventy-five countries worldwide. “If it’s acoustic, we’ve produced a soundboard for it,” including wooden instruments that range from guitars, violins, and pianos to hammered and mountain dulcimers, Native American flutes, Swedish nyckelharpas, and European lutes and Greek bouzoukis. Originally from the Midwest (and after deciding he did not want to buy his father’s turkey farm), Cole worked his way west with plans of becoming a taxidermist in Alaska before settling on Prince of Wales Island in 1987. With some trade school and onthe-job-training, he worked stints in the oil patch, as a physical therapist, and then running a restaurant. When Cole went to look at a house for rent, he began talking to the owner who was moving south. He had a shop where he would split out old Spruce and make guitarbinding wooden billets that he called “music wood.” Cole was intrigued with the concept and the product but needed to make a living and spent the next nine years working for the Phoenix Logging Company in Klawock, un94

til he decided he wanted to work for himself. He had property with a tree on it, a mallet, a worn out chainsaw, and an old pickup truck. And that’s where it started. A family-owned business since its inception, from the onset Cole completely involved his wife and kids in Alaska Specialty Woods as officers, owners, and employees. Everyone did everything from carrying wood to splitting guitar blocks. After their first month in business, they shipped a cord of wood to their first customer and received a check—for $127. It was a huge disappointment, Cole says, but they got a quick lesson in the tonewood timber sector and started to learn what makes sellable material.

Politics, Industry Changes Lead to Uncertainty for Small Operations Since then, Cole has grown the company slowly, eventually buying a log truck, upgrading equipment as market demands dictated the need, taking a few steps forward, and then a few steps back. Two years ago, he began operating out of a 15,000-square-foot facility, a measure of success he attributes to patience, hard work, word of mouth, and repeat customers. Producing a custom retail product has also been an advantage, resulting in steadier work than those sawmills that target high-production manufacturers. Along the way, he has added some of the biggest names in the wood music instrument to his portfolio including Santa Cruz Guitar Company, Lowden Guitars in Ireland, Bedell Guitars, and Gibson Original Acoustic Instruments. Southeast has had few industrial-scale timber harvests in the Tongass for more than two decades, when the transition from oldgrowth logging began in the mid-1990s and the Sitka and Ketchikan pulp mills closed. Today, there is one example of an industrialscale timber harvest and Viking Lumber in Klawock is the main user. Sealaska Timber Corporation and Alcan Forest Products also export round log timber. Cole is one of several small sawmill operators in Southeast who are working to adapt to dramatic changes in the region’s logging industry over the past twenty years while also remaining a part of what was one of the region’s most viable sources of economic development. It is difficult to know the exactly how many operating micro sawmills are in Southeast. By 2015, only a single mid-size sawmill and a half-dozen micro mills still survived in the region when the Forest Service announced a fifteen-year transition, after which only 5 million board feet of mature, old-growth

timber would be available annually. According to the Alaska Department of Commerce, Community, and Economic Development database, there are forty-nine active business licenses for forestry in Southeast, though several are likely firewood companies and larger logging operations such as Sealaska Timber Corporation and Viking Lumber. Today, timber workforce earnings are $17.3 million in the region. While that is a significant figure, the number of board feet harvested annually has fallen by 96 percent from peak levels in the 1990s, according to the “Southeast Conference Comprehensive Economic Development Strategy for 2016 to 2020.” Although the industry’s contribution is still measurable, the future is not promising: employment in the timber industry is still expected to decline in the upcoming years, due to the uncertainty of the supply of timber and the resulting lack of investment in infrastructure, equipment, and personnel. The organization attributes this to several factors. The pending Forest Service Tongass management plan, which phases out cutting of old-growth timber and encourages only cutting young, new growth timber, will reduce—then terminate—access to old-growth timber, which has been the mainstay of industry sales. Litigation over almost every timber sale has made log deliveries to Viking Lumber on Prince of Wales Island—the last mid-size sawmill in the region—uncertain and is a barrier to potential new mills obtaining the financing needed to join the Southeast industry. Timber available for sale is often not economically feasible, constraining supply to Viking Lumber and potential new mills. The poor outlook for the future timber economy is also a disincentive for continued participation in the Southeast industry. The federal government controls 97 percent of the resources, and the communities are surrounded by water and wooded areas, which limits access to the resources, says Robert Venables, executive director of the Southeast Conference. “It only makes sense to let these communities be able to access the resource for survival and sustainability.” The economic development organization is trying to support core opportunities for the timber industry to continue in the region, while working with communities to slowly fill the gap the industry has left. The politics surrounding the timber industry in Southeast continues to be the “poster child” for grassroots debate in Southeast, bringing out divisive, unproductive arguments, Venables says. As the region’s economic development organization, Venables

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RESOURCE DEVELOPMENT SPECIAL SECTION | SAWMILL OPERATIONS

facilitates conference efforts to focus on collective interests of the residents, communities, and businesses in Southeast, taking an active role in comprehensive planning and regional resource management through the voice of the membership and its timber committee.

Creating Sustainability in Tongass All sides of the issue have valid points, though few of them are science based or give enough validity to local input. “Clear cut or leave it untouched—this is the political football that is passed back and forth and it’s not working,” Venables says, adding that the Tongass has not been managed with a sustainable harvest approach in a very long time—if ever. “The many mandates placed on the timber industry and other user groups like renewable energy developers can make the simplest of projects uneconomical very quickly. “There is not a balanced, sustainable approach to managing our resources in the region. There is a concerted effort by many who want to see the Tongass preserved in a picture perfect, ideological way, but it’s a myth to believe it’s going to stay that way. It is large enough that a part can stay that way, but there is enough mass for the timber industry to survive as well, for small family businesses to participate in the industry and allow them to control their lives and well-being, to be able to create income streams for themselves and their families.” As part of its federal mandate to participate in resource management issues, and in response to the region’s needs, the Southeast Conference has made the timber industry and “providing an adequate, economic, and dependable supply of timber from the Tongass National Forest to regional timber operators” one of its top priorities. This includes helping stabilize the regional timber industry, working with the Forest Service to direct federal contracts toward locally-owned businesses, supporting small-scale manufacturing of wood products in the region, advocating for old-growth harvest until a young-growth supply is adequate, and investing in community-based workforce development. A Family Affair Wes Tyler has been working in the timber industry since before the age of ten. His first memories as a young boy in Sweet Home, Oregon, a logging town adjacent to the Willamette National Forest, are of helping with small chores around logging camps and riding in log trucks owned by his father Sam, a well-known log loader operator. After loading fallen logs onto the truck, they would haul them down the mountain to the mills. On other days, he would take Tyler into the woods to watch the men move huge machines and gigantic logs. Every day in the woods was an exciting adventure. As Tyler got a bit older, he was tasked with cleaning up around camp and greasing and fueling the equipment so it would be ready to go the next morning. He learned all about growing and pruning in 4-H forestry and planted hundreds of trees. As a teenager, he took on more responsibility, building fire 96

trails to protect the timber and preparing the ground for planting next year’s crop. The third generation of loggers in his family, eighteen-year-old Tyler moved to Alaska in the late 1960s when his father and uncles saw an ad that read “Loggers Needed in Alaska.” After scouting Southeast, they flew home, packed up everything, and told their crew, “If you want to keep working, come with us.” A group of about twenty employees followed them to Alaska to work for Tyler Brothers Logging. They set up camp at St. John the Baptist Bay, twenty-two miles north of Sitka, where there was a timber sale of about 30 million board feet—then considered small—waiting to be logged. After three years at St. John the Baptist Bay, the logging camp was moved to Zarembo Island, between Petersburg and Wrangell. Tyler worked there for twelve years before moving his wife Susan and two young sons Ryan and Bryce to Hoonah in 1982. The couple built their first cabin from Sitka Spruce and they still use it as a guest cabin. The family business was renamed Whitestone Logging, and he worked under his cousin Bud Stewart for another fourteen years. When it was sold, the new owner decided to start a small sawmill operation to build on the logging business, which Tyler ran. His sons Ryan and Bryce are the fourth generation of Tylers to grow up around the timber industry. Bryce still lives in Hoonah and has worked with Tyler at the family business Icy Straits Lumber and Milling, a small sawmill in Hoonah that produces everything from high value-added woodworking products such as clocks, paper weights, and novelty signs to wood log homes, paneling, siding, decking, and trim, all produced from timber that comes right from his backyard. In addition to local private projects, the sawmill also processes wood for larger commercial customers in Juneau that include the Soboleff Center, Mt. Roberts Tram, Heritage Coffee Shop, Mendenhall Glacier Gift Shop, State and Forest Service cabins, picnic shelters, and tables. Tyler’s story is a textbook case of how economic development and protecting the resource can come together, and he is frequently the voice of this message. “Shades of Green: Stories of Life and Land in Alaska’s Tongass National Forest,” was produced by the Forest Service and features Tyler and his sawmill as a local success story. “Start Your Legacy” is another video that features Icy Straits Lumber and is partially funded by The Nature Conservancy and Sealaska, a regional Native corporation with large timber holdings that is responsible for about two-thirds of industry activity in the region. In 1996, as the timber industry was being decimated, Tyler’s boss said to him: “We need to do something else to preserve the Tongass and maintain some jobs.” They set up a small sawmill. “He pointed at me and said, ‘You go do it,’” and Tyler did. “I didn’t know anything about sawmilling, but I liked building with wood and was eager to take the challenge and see what products could be manufactured from our local timber supply,” Tyler says, looking back.

In 2003, as Whitestone Logging operations began slowing down, he decided to buy the mill operations to help preserve the forest industry jobs in Hoonah. Today, Tyler oversees day-to-day operations. Susan, who is equally involved in the business, is responsible for administration, marketing, product development, and working with customers on cabin interior design and remodels. What sets Icy Straits Lumber apart from other small sawmill operators is that it offers primary and secondary manufacturing. From the tree stump to the end user, the sawmill is involved every step of the way, from procuring the timber to sawing, sorting, kiln drying, and manufacturing the finished products before delivering them to the customer. Working alongside his team of about ten employees, there is nothing Tyler will not do to help make the enterprise thrive, ranging from cutting trees, hauling logs, and running the equipment to delivering products to customers. “It takes a good team to make all of this happen,” Tyler says. “We are fortunate to have employees who care and want to continue living a remote lifestyle, work close to home, and provide for their families.” It is a profession that requires hands-on technical abilities and creative skills—and a lot of long hours and demanding physical work that’s often in a cold, wet, slippery forest. Once the logs are out of the forest, Tyler, Susan, and other employees get to work finding ways to produce new products from young-growth trees that average between 35 and 50 years old. Old-growth trees in the Tongass are typically about 150 years old. Tyler prides himself in maximizing selected tree timber sales, whether they are blown down from lot development or dead standing trees, and he advocates for proper management of the resources. Beyond that, he stays out of the time-consuming politics surrounding the industry. “We just want to keep working to create jobs and produce local wood products that go into homes and businesses in Southeast Alaska,” he says. As Icy Straits moves into its second decade of operation, the Tylers continue to think of new ways to have a livelihood for themselves, their family, and other members of the community that offers a lifestyle based on professional independence and allows them to live off the land and claim one of the most beautiful spots on the planet as home. A lifetime later, facing seventy and still in the timber industry after fifty years, every day is still an exciting new adventure, just as it was the first time Tyler‘s father lifted him up into the front seat of a logging truck. He says he enjoys the remote lifestyle and being surrounded by a community whose lives pivot around the timber industry. Running the business can be a test of survival, Tyler says, but he is proud of the fact that he and his wife have made something from nothing. “It is the toughest, meanest thing we’ve ever tried to do in our lives, but I love the work.” R Heidi Bohi is a freelance writer who has written stories about Alaska since 1988.

Alaska Business | November 2017 www.akbizmag.com

Survivors at the 39th annual Alaska Heart Run, presented by the Alaska Heart & Vascular Institute.

Top sponsors toasting to a healthier community at the Fairbanks Go Red Event presented by Foundation Health Partners.

Lorna Shaw with Pogo Mine and Lisa Herbert with Usibelli Coal Mine “Going Red”.

Corporate Recess, Joe Marushack, President ConocoPhillips Alaska, leading a team walk.

American Heart Association/American Stroke Association

eart disease is the #1 killer in the United States, and stroke is #5. Chances are that cardiovascular diseases have touched the lives of most Alaskans. It is the mission of the American Heart Association/American Stroke Association (AHA) to improve the cardiovascular health of all Americans and in doing so reduce the number of deaths from cardiovascular diseases. “Most people don’t know that the American Heart Association impacts lives every day,” says Janet Bartels, Executive Director for the Alaska Division of the AHA. “Our research guides recommendations to individuals about improved health, to healthcare systems on improved treatments for patients, and to companies about employee wellness and supporting the health of the communities in which they operate.”

Participants from across the state of Alaska walked in the 2017 Anchorage Heart Walk.

Bartels explains one example of the impact of the AHA is the decline in stroke related deaths. Stroke is currently the #5 cause of death in the United States and in past years it was as high as #3. “We’re happy about that trend. Educating the community on the warning signs of stroke along with ensuring hospitals are treating patients immediately has contributed to the decline. These recommendations and patient guidelines are rooted in our improved scientific understanding of stroke as well as breakthrough therapies.” The AHA has invested more than $4 billion dollars in research to improve cardiovascular health, which is more than any other organization outside the federal government. The investment in research is translated into our recommendations and tools. Some examples include advocating for smoke-free workplaces and public spaces, CPR education in schools, and workplace wellness resources. The AHA offers a variety of programs and tools that companies can utilize to impact their own employee health or the health of the community. “Eighty percent of cardiovascular health issues are preventable,” Bartels says. Community education and engagement is a critical element to drive awareness of this important fact. The AHA hosts five signature events every year in Alaska. Go Red For Women in February is an annual luncheon conference series that takes place in Fairbanks and Anchorage. Many women are unaware that cardiovascular disease is the #1 killer of women and the movement was launched to empower women to examine their health, know the risk factors, and make simple choices that have an impact on their lives. – PA I D A D V E R T I S E M E N T –

The AHA also hosts two walks. The Anchorage’s Heart Walk is in September and the Fairbanks Heart Walk is in May. The 40th anniversary of the Alaska Heart Run will take place April 2018 in Anchorage. Although the AHA has had official operations in Alaska for twenty-five years, the Alaska Heart Run was organized through volunteer efforts for many years before. “We could not do our job without the support of our volunteers,” Bartels says. From holding a board position to serving on an Executive Leadership Team to lending resources to support an initiative, these leaders are crucial to advancing the mission in Alaska. In addition to volunteers, the AHA works with various organizations. Bartels says Providence Alaska Medical Center, Alaska Heart & Vascular Institute, and Pogo Mine have made significant financial and resource commitments in Alaska to tackle identified health issues in the community through an ongoing, year-round cause level partnership. Bartels says, “I would love for the business community to know AHA is a trusted leader in cardiovascular health and there are a variety of ways to be involved in support of our mission. Whether through a company initiative or on an individual level, we would love to engage to share ideas and find commonality.” For more information, visit heart.org/ Anchorage or heart.org/Fairbanks, call (907) 865-5300/Anchorage or (907) 4563659/Fairbanks or follow us on Facebook, @AnchorageHeart or @AHAFairbanks.

SPECIAL SECTION

Resource Development

Alaska’s Salmon Hatcheries Strengthening Alaska’s wild salmon population By Jessica Rohloff

laskans love salmon. While the Alaska economy relies on many resource industries, nothing really compares to fish in terms of how fishing speaks to the people of Alaska. It’s the hobby of our youth, the inspiration for our art and literature, the time we spend with friends, how we feed our families, how many of us make a living—a keystone of Alaska’s unique culture. Hatcheries play a significant role in supplementing the wild salmon stock that Alaska relies on every year for food and work. According to the “Alaska Fisheries Enhancement Annual Report 2016” published by the Alaska Department of Fish and Game, there are twenty-eight salmon hatcheries operating in the state. Of those, twenty-four are operated by private, nonprofit corporations, funded primarily from the harvest of a portion of the hatchery returns. Two of the remaining sport fish hatcheries are operated by the state, one is a research hatchery operated by the National Marine Fisheries Services, and one hatchery is operated by the Metlakatla Indian Community. Mike Erickson and his family own and operate Alaska Glacier Seafoods, a seafood processing company in Juneau they founded in 1996 as a hobby to sell shrimp caught in a fourteen-foot aluminum skiff. Since the ‘90s, the business has grown dramatically, processing more than 10 million pounds of fish each year and employing nearly 150 people during peak season. Fish hatcheries have been instrumental in supporting the company’s growth. “I can tell you for sure we’re where we are today because of the hatcheries,” Erickson says.

Alaska Hatcheries Enhance Wild Stocks Typical for the Last Frontier, fish hatcheries here work differently than they do in the Lower 48. Alaska’s hatchery program was explicitly designed to supplement natural production—not replace it. Fish born in Alaska hatcheries are effectively wild. They are released when they are very small and travel out into the ocean to fend for themselves. They have the same diet as wild-spawned salmon and encounter precisely the same conditions. Timothy Joyce, interim general manager for the Prince William Sound Aquaculture Corporation, says that salmon hatcheries are nothing like salmon farms that exist in the Lower 48. “We don’t feed fish to fatten them 98

2016 Total Hatchery First Wholesale Value: $187,000,000

2016 Total Hatchery Return: 27 Million Fish Cook Inlet

Chinook Chum $103,000,000 56%

$3,500,000 2%

Sockeye $23,000,000 13%

600,000 2%

Prince William Sound

Kodiak 2,000,000 7%

15,000,000 56%

Southeast Pink $41,000,000 22%

Coho $12,000,000 7%

10,000,000 36%

Data source: SOA Department of Fish and Game

up and color them; our fish are wild. They’re let go at a very small size and go out into the ocean to compete with everything else.” Hatcheries help salmon eggs and fry survive threats from weather, such as being washed out by a rainstorm or freezing in the winter. “We protect the eggs from that, and then let the fish go to do their own thing,” Joyce says. Hatcheries are carefully regulated to minimize possible adverse effects to wild stocks. Policies are in place to restrict transportation of salmon stock, protect wild stocks, and maintain genetic diversity by requiring large populations to be used as broodstock without consideration for size or other physical traits.

Ebb and Flow of Hatchery Work During the last weeks of August and first weeks of September, hatcheries are busy collecting eggs. It’s called the egg cakes cycle. Eggs are placed in incubators—boxes with water flowing through them. When they reach what’s called the “eye stage,” the point at which it’s possible to see the fish embryos’ eyes inside the eggs, the eggs are taken out and sorted through a machine to separate live eggs from dead ones. Live eggs go back into the incubator boxes, and the dead are tossed out. “If the dead eggs aren’t eliminated,” says Joyce, “they can grow fungus, which results in dead areas.” The sorting takes place in October or November, and then the slow period begins. For the next several months the fish at hatcheries are simply monitored and maintained. The live eggs continue to incubate until March or April, at which point the fish have hatched and are ready to leave the incubators. When they’ve reached this point, they are placed in net pens for short-term rearing before they’re released into the wild. “This is a very busy time for hatchery staff,” says Joyce. There are fish to feed and incubators to clean. Everything needs to be disinfected. Shortly after the young fish are released, the adults from previous years begin returning to the site. Just like fish born in the wild, hatchery fish imprint on the stream where they were released, so they return after a

number of years (the specific timeline is determined by species). “The fish are on their own from fry until they return as adults,” says Joyce. “They eat the same things the wild fish eat and face the same challenges.” They’re essentially wild salmon that happened to have a coddled upbringing. Hatcheries excel at improving the survival rate of salmon eggs to the juvenile stage. According to the “Alaska Fisheries Enhancement Annual Report 2016,” at a hatchery the egg-to-fry survival rate is generally 90 percent or higher. In the wild, depending on the species, the survival rate averages about 10 percent or less. Inside a hatchery, eggs and fry are protected from predators and a variety of weather-related hazards that prevent eggs from reaching the juvenile stage.

A Self-Sustaining Economic Engine Overall, the economic contribution hatcheries make is huge. “We’re creating new dollars for the economy,” says Ian Fisk, general manager for Armstrong-Keta, a private, nonprofit company that operates the Port Armstrong Hatchery, which is located fifty air miles south of Sitka and enhances wild Chinook, chum, pink, and coho salmon stocks. Those new dollars add up quickly. Salmon hatcheries create hundreds of millions of dollars annually for the state, according to Fisk. The financial benefits are felt across the seafood industry, from direct contracts with the hatcheries to independent fishermen having access to healthy fish populations. For example, when the hatcheries need to recover costs, they enter into contracts with companies such as Alaska Glacier Seafoods. “They harvest fish at the hatchery site and then buy it from us. We get paid for the fish we need to harvest, and the seafood companies process those fish and put them into the supply chain,” Fisk says. This increases the wholesale marketing of Alaska salmon and acts as a cost recovery mechanism for the hatcheries, allowing them to be completely self-funded. “We’re allowed to harvest a portion of the salmon that returns to our hatchery in order to cover operating costs,” says Fisk.

Alaska Business | November 2017 www.akbizmag.com

Enhancing Wild Runs There may be a misconception that hatcheries are designed to replace natural salmon production, but that is certainly not true in Alaska. Much of the misunderstanding comes from environmental groups in the Lower 48 that oppose hatcheries for a variety of reasons. For one thing, the history of major rivers that

were dammed, like the Columbia River, had hatcheries involved, so they’re seen as enabling dams to happen. This isn’t the case in Alaska. “We’re not here to replace salmon habitat,” Fisk says. “We support the management of prioritizing non-enhanced salmon streams and protecting salmon.” Alaska’s hatchery systems operate and are regulated differently than hatcheries in Oregon and Washington. For those concerned that hatchery fish will co-mingle with wild Alaska salmon in the ocean, rest assured that they absolutely will, as that’s the intent since they are not “farmed” salmon. Some may believe that if salmon spend any amount of time in a net pen they’re farmed fish, but traditional fish farming isn’t even legal in the state of Alaska. Fish from hatcheries are released as juveniles right around the time they’d normally migrate to a stream. And then they contend with all the same challenges every other in the sea fish faces. “We call it ocean ranching,” says Fisk. “When we release the fish, we have no idea how many are going to come back. They’re subject to the same whims of nature that all salmon have to deal with.” In other words, these fish are absolutely not farmed. “Hatcheries are enhancing the natural salmon and creating fish for the public of Alaska,” Fisk says. “We improve the survival of salmon eggs by incubating them in the hatchery instead of leaving them out in the wild where they’re subject to a variety of threats from winter weather and predators,” he says. The Department of Fish and Game has regulatory oversight of hatchery operations state-

wide, so “we can’t just produce as many fish as we want,” Fisk notes. “There are limits. Genetic limits, too. The idea is to use local stocks of fish to be the parent stock.” All the salmon are native species; none are introduced.

A Self-Funded, Sustainable Economic Engine The hatchery program in Alaska is unique and arguably under-appreciated in terms of the huge impact it makes in tangible and intangible ways. “It generates a lot of revenue for the coastal parts of the state in particular,” Fisk says, “and in some cases the effects get into the Interior.” Private hatcheries in the state are monitored by the Department of Fish and Game but operate without state funding and are required by law to be nonprofit organizations. “We don’t exist for our own sake or to make money,” Fisk says. “We exist to benefit the public.” In light of Alaska’s current economic conditions, hatcheries stands out even more as part of a vital industry that is building economic opportunities without needing state fiscal contributions or cutting back operations due to changing levels of state funding. “Because we’re creating a public resource that generates a lot of revenue, the state has a vested interest in insuring the program continues,” says Fisk. “As long as we’re left to go about our business, the hatchery program can continue to create wealth for the state in perpetuity.” R Jessica Rohloff is a freelance writer and aspiring Alaskan.

Be a part of getting wild, healthy, and sustainable seafood from Alaska harvesters to consumers worldwide. Find jobs in Alaska’s seafood industry at jobs.alaska.gov/seafood/

Alaska’s seafood industry is the largest private sector employer in the state employing thousands of Alaskans. We are always looking to increase Alaska hire.

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November 2017 | Alaska Business

RESOURCE DEVELOPMENT SPECIAL SECTION | SALMON HATCHERIES

But hatcheries don’t exist to produce fish for processors, he points out. “We produce fish for fishermen and the public to use,” Fisk says. “Once the fish are released they become common property. They belong to the people of Alaska, just like any other natural resource.” It’s important to understand that hatcheries don’t just benefit commercial fisherman, says Fisk. All types of salmon fishers benefit, whether they’re fishing for subsistence or sport. Charter fishermen can catch hatchery fish, which contributes to their bottom line. “Most hatcheries have some kind of program designed for private anglers to catch king salmon locally,” says Fisk. “Up on the Copper River a lot of the sockeye salmon that get harvested by dip netters—thousands of fish per year—came from hatcheries.” These fish benefit people in a variety of ways, particularly in terms of the economy. “If not for the hatcheries, there would be a lot fewer people working in the seafood industry here in Alaska. Probably tens of thousands of people have economic opportunity and job opportunities because of the role hatcheries play in producing fish,” says Alaska Glacier Seafoods’ Erickson.

Alaskaâ&#x20AC;&#x2122;s State-Managed Hatcheries Image courtesy of the Alaska Department of Fish and Game, Sport Fish Division

SPECIAL SECTION

Resource Development

The William Jack Hernandez Sport Fish Hatchery is located in Alaska and raises fish to stock Southcentral Alaska water bodies in support of sport fishing activities.

Supporting and sustaining sport fishing in Southcentral and the Interior By Tasha Anderson

f the twenty-eight hatcheries operating in Alaska, two are operated by the Alaska Department of Fish and Game: the Ruth Burnett Sport Fish Hatchery

Several species of fish are raised at the hatchery, including salmon, trout, and char. Images courtesy of the Alaska Department of Fish and Game, Sport Fish Division

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Alaska Business | November 2017 www.akbizmag.com

Image courtesy of the Alaska Department of Fish and Game, Sport Fish Division

in Fairbanks and the William Jack Hernandez Sport Fish Hatchery in Anchorage. In Anchorage, the William Jack Hernandez Sport Fish Hatchery opened in June of 2011. The hatchery uses a fully enclosed, recirculating aquaculture system for the production of Chinook and coho salmon, rainbow trout, and Arctic char. The William Jack Hernandez Sport Fish Hatchery is approximately 600 feet by 200 feet and has almost 3 acres of covered office, shop, and rearing space. It has more than 100 rearing tanks providing space for the production of more than 6 million sport fish each year, which are released throughout Southcentral Alaska. According to the Alaska Department of Fish and Game, “Sport fishing activity supported through these fish releases accounts for over $20 million a year in economic impact on local communities.” The fish reared at the hatchery are commonly pumped from one tank to another to avoid putting undo stress on the fish or risking injury to hatchery staff. At approximately the same time that Alaska’s tourism season is in full swing (mid-May to early October), tanker trucks are loaded with fish that are transported to release sites throughout Southcentral Alaska. Called “stocking runs,” this process can take more than twenty-four hours to complete. The Ruth Burnett Sport Fish Hatchery in Fairbanks utilizes recirculating systems to raise rainbow trout, coho and Chinook salmon, and Arctic char. The Arctic char and rainbow trout are captive broodstock, meaning that they are not harvested from the wild. Fish from this hatchery provide or supplement fishing opportunities in 137 landlocked lakes within the Fairbanks, Nenana, Delta, and Glennallen areas. The different species are brought into the hatchery and released into the wild at different times throughout the year, as appropriate for each fish. For example, Arctic char eggs are taken in November, reared for eighteen months, and then released at a catchable size, while coho eggs are taken in October and released nine months later as fingerlings. The majority of Alaska’s hatcheries release www.akbizmag.com

Image courtesy of the Alaska Department of Fish and Game, Sport Fish Division

Megan Davis stocks Deception Creek in the Matanuska-Susitna Valley with chinook salmon smolt.

young salmon to comingle with slightlymore-wild Alaska salmon in the Pacific Ocean; however, the state-managed hatcheries provide fish stock more specifically for sport fishing opportunities. The two hatcheries work together, with the Ruth Burnett Sport Fish Hatchery providing fish primarily for Interior Alaska and the William Jack Hernandez Sport Fish Hatchery providing fish primarily for Southcentral in addition to providing Arctic char and rainbow trout eggs for the Ruth Burnett Sport Fish Hatchery. To this end, the state publishes a Statewide Stocking Plan for Sport Fish, a five-year plan most recently updated in January. It states, “In general, stocking sites have been selected to maximize the benefits to sport anglers. Resident species are usually stocked in landlocked lakes near population centers. Anad-

romous species are usually stocked in sites with accessible terminal beach, marine, and stream appropriate for sport fishing. Specific stocking sites are intended to (1) increase the numbers of fish caught by anglers beyond historic levels or (2) establish a new fishery.” For those interested in state-managed hatchery operations, the visitor corridor of the William Jack Hernandez Sport Fish Hatchery in Anchorage is open to the public daily from 8 a.m. to 4 p.m., and tours can be arranged for large groups. Information about the hatcheries and state stocking program are available online (adfg.alaska.gov). R

Tasha Anderson is the Associate Editor for Alaska Business. November 2017 | Alaska Business

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David Starzynski stocks Long Lake, which is near Chickaloon, with fish.

SPECIAL SECTION

Resource Development

©Dan Lamont/courtesy of Genuine Alaska Pollock Producers

The deck crew on the C/P Pacific Glacier waits as the cod end full of Alaska pollock is brought onboard.

At-Sea Processing Catching, preparing, and selling fish at sea By Heidi Bohi

laskans can see every day evidence of the hard work performed by Alaska’s fishing industry at McDonalds, featured in the franchise’s Filet-O-Fish sandwich; look inside the small cardboard box and there is a small piece of Alaska’s $1 billion Pollock fishery—half of which is processed at sea—that stokes one of the largest economic engines in the state.

Alaska Pollock Processed At-Sea Alaska Pollock are a white-fleshed fish that congregate in huge schools along the continental shelf of the Bering Sea. Half the Bering Sea Pollock is caught and processed by catcher-processors, or catcher vessels delivering at sea to processing-only vessels. The other half is caught by trawl catcher vessels that more conventionally deliver their hauls to shore-side or land-based plants. Pollock is the number one species landed in the United States annually by tonnage and it accounts for about 30 percent of all fish landed every year. American fishermen typically haul in 102

more than 3 billion pounds of Alaska Pollock annually, almost all of it from the Eastern Bering Sea. About 75 percent of the total Pollock catch is exported to Europe, Japan, Korea, and (increasingly) China, and it tops the list for German consumers, with more than 20 percent of their national average annual fish consumption. At-sea processors in the Alaska Pollock fishery work like this: Each vessel, the largest of which is 387 feet in length, is a full-blown processing plant or floating factory ship. A single haul by a catcher-processor may bring 100 tons of fish onboard where six processing lines can each filet 150 fish per minute. Filets are laid onto large, metal trays, flash frozen into block form, then boxed and stored onboard in cold storage. About every ten days, the vessel returns to Dutch Harbor where the boxes are transferred to a cargo ship headed to Asia, Europe, or the Lower 48. The fish are delivered to various plants around the globe for battering, breading, and boxing to be used in products such as filets, frozen fish sticks and dinners, ready-made school lunch meals, fish roe, and imitation crab meat known as “surimi,” which is made from minced Pollock. The non-flesh parts are processed into fish meal, used as fertilizer, and fed to farmed fish, pigs, and poultry. Fish oil

is used to make dietary supplements and is burned in boilers onboard ships to provide a clean alternative energy source. Every pound of this fish undergoes primary processing at sea or onshore in Alaska. While some consumers may believe they would never eat fish that is used in massproduced food, Pollock is one of the five most consumed species of fish in the United States. The truth is that even fish-particular Alaskans likely eat fresh-frozen Pollock in products all the time without ever knowing it. “‘I want fresh fish, I want fresh fish,’ is a common mantra of seafood lovers. What they really want, though, is fish that is frozen and preserved right after it is caught,” says Jim Gilmore, At-Sea Processors Association public affairs director. This requires the harvesting, processing, and flash freezing to happen at the fishing grounds on-board a 300-plus-foot catcher-processor vessel that is a floating city, where not much of the boat is dedicated to actually catching fish. Handled well and frozen immediately, the freshness is literally frozen into the fish and nutritionally nothing is lost.

‘Follow the Fish’ The At-Sea Processors Association represents six companies that own and operate sixteen US flag-bearing, catcher-processor vessels—

Alaska Business | November 2017 www.akbizmag.com

©Mark Meyers/courtesy of Genuine Alaska Pollock Producers

also known as at-sea processors—that participate in the healthy and abundant groundfish harvests of the Bering Sea and Aleutian Islands management areas and in the West Coast Pacific Whiting fishery. It focuses on the mid-water Pollock fishery, the largest in the country, working with fishery managers, scientists, environmentalists, and members of the fishing industry to ensure the continued health and sustainability of this and other marine resources. “Follow the fish,” is the thinking behind at-sea processing, Gilmore says. More than 100 tons of Pollock can be processed and frozen in just a few hours. Because the catch does not have to be delivered to the processing plants, there are fewer quality issues. Sensors placed on the trawl nets and pulled through the water behind the boat alert the captain when the net is full, minimizing tow time and preserving fish quality. Aside from the quality benefits, increased economic efficiency results from reduced fuel and other operating costs, larger world market share, and higher profitability. At the same time, the method by which both at-sea processors and vessels delivering onshore operate advances conservation and use of marine sources. Eligible catcherprocessor companies operating vessels in the Bering Sea Pollock fishery divide the overall quota of Pollock available to harvest. This eliminates the derby-style race to get the biggest share of the catch. In the past, the race to catch fish resulted in wasteful fishing and processing practices, including measurably more bycatch (in which non-targeted species are unintentionally harvested). Ending the race for fish also mitigates overcapitalization of the resource because there is www.akbizmag.com

no economic incentive to build fishing capacity beyond what is needed to catch the available quota in the most efficient manner. If stocks decline in any given year, so does the amount of fish allowed to be harvested the following year; this helps keep the resource sustainable as part of the world food supply and the Bering Sea ecosystem. Halibut, salmon, endangered Steller sea lions, fur seals, and humpback whales all eat Pollock and rely on healthy populations to sustain themselves.

Fishery Economics in Alaska When Alaskans think of the fishing industry, the first thing that usually comes to mind is salmon—and justifiably so. More Alaskans are employed in harvesting and processing salmon than in any other commercial fishery, according to the Alaska Department of Fish and Game. But the Bering Sea fisheries, which are some of the world’s largest in both value and volume of groundfish landings, are very different than Alaska’s salmon harvests, which typically come out of coastal communities in the Southeast, Central, Arctic-Yukon-Kuskokwim, and Southwest Regions, with Bristol Bay being home to the largest sockeye salmon fishery in the world and the most valuable single salmon fishery in Alaska. The 330,000 tonne, non-Pollock trawl catcher-processor harvest in the Bering Sea, Aleutian Islands, and Gulf of Alaska is valued at $321 million, according to the “North Pacific Fishery Management Council Stock Assessment and Fishery Evaluation 2016 Report.” Considering only the value of the resource harvested by at-sea processors glosses over the actual contributions of at-sea processors, according to Chris Woodley, execu-

tive director of the Groundfish Forum. The Seattle-based trade association, founded in 1996, represents the interests of five member companies that own and operate nineteen trawler catcher-processor boats that sustainably harvest non-Pollock flatfish such as rock sole, yellowfin sole, flathead sole, Atka mackerel, Pacific Ocean perch, and Pacific cod in the Bering Sea, Aleutian Islands, and Gulf of Alaska. Because of where the fishing grounds are located, and to ensure the highest quality standards are met, these fish are harvested and processed at sea. From the at-sea processors, the product is delivered to Alaska ports where it is then shipped primarily to Asia for secondary processing. A finished product is shipped back to the United States (or to Canada and Europe) as food service products such as sole filet portions and frozen packaged products. Economic development and educating Alaskans on how at-sea processors benefit the state is also a big part of the Groundfish Forum’s focus. Because the fleet is Seattlebased, historically and today, an ongoing misconception is that Washington reaps more than its share of the economic benefits from Alaska’s resources. In fact, Woodley says, despite the fact that at-sea processors are based in Seattle, there are many direct and indirect benefits for Alaska that amount to millions of dollars and thousands of jobs. Shore-side infrastructure, maritime support businesses, cold storage facilities, and ship maintenance and repair businesses are maintained by Alaskans. The non-Pollock trawl catcher-processors make 550 port calls in Alaska communities, including the main ports of Dutch Harbor, Kodiak, Sand Point, and Adak, where product is offloaded into November 2017 | Alaska Business

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The C/P Starbound catches Alaska pollock and processes it at-sea. The boat was recently renovated to add sixty feet to its length. This allowed for the addition of a fishmeal plant and more surimi processing equipment, which helps the boat utilize even more of the fish it catches.

RESOURCE DEVELOPMENT SPECIAL SECTION | AT-SEA PROCESSING

The C/P Pacific Glacier returns to Dutch Harbor to offload the Alaska pollock it caught and processed in the Bering Sea. ©Dan Lamont/courtesy of Genuine Alaska Pollock Producers

break bulk trampers, container ships, or cold storage facilities, generating additional economic activity, Woodley says. At-sea processors also purchase about $40 million in fuel in Alaska, spend $2 million in crew provisions, and pay more than $3 million in fishery taxes annually. Collectively, he says, atsea processors support 2,900 jobs in the state. Vessel crew turn over every sixty to ninety days, spending money on lodging, incidentals, and statewide air travel. The Community Development Quota (CDQ) program, which makes resources from the Bering Sea fishery available to rural communities in Western Alaska, is another example of economic development that also benefits from at-sea processing. The program allocates a set quota for participating communities, requiring them to use fish-related earnings to advance community economic development through infrastructure development, education, employment, training, and financial assistance. The initial sixty-five communities were organized into six community CDQ groups and then partnered with corporations to participate in the Bering Sea fishery. Benefits include direct revenues from the fishery, employment, and increased opportunities for developing fishing infrastructure. The CDQ program began with an allocation of Pollock between shore-based and at-sea operations. Halibut, sablefish, crab, Pacific cod, and sev104

eral other species have since been added to the program. The Norton Sound Economic Development Corporation is one of the CDQ groups and represents fifteen communities and 8,700 people in the Bering Strait Region of Northwestern Alaska, partnering with Glacier Fish Company to harvest many of its allocations. Each CDQ group has its own model for managing the for-profit side of the business. Siu (pronounced see-you) Alaska Corporation is the for-profit arm of the Norton Sound Economic Development Corporation and makes distributions back to this CDQ. Cora Campbell, Siu CEO, says the program continues to allow communities to invest in fisheries off of their shores—the core purpose of the program—and activities from the atsea processors continue to provide employment opportunities and revenue. In 2016, Siu generated $5.7 million in profits while also contributing to the development of new skill sets for men and women in the Norton Sound Region. “We are happy with the progress made and are always working to develop training programs to help make sure residents have the skills needed to succeed in all aspects of industry,” Campbell says. Campbell goes on to say at-sea processing vessels are sophisticated, highly mechanized operations, and technology plays an important role in the entire industry, including

harvesting, communication, food processing, and food traceability. This, combined with the sustainability of the harvests and Alaska’s universal appeal, gives Norton Sound Economic Development Corporation and other CDQ groups an advantage in the global market, advancing coastal fishermen from harvesters to major competitors in the Alaska Pollock and seafood markets. “We feel like we are in a positive place and are looking forward to acquiring additional assets to generate revenue and strengthen communities,” Campbell says. “Fisheries are always challenged with regulations, climate changes, and global economic uncertainty, but our view is optimistic.”

The Challenges Fisheries Face As is the case with all of Alaska’s natural resources, there is no shortage of politics or challenges surrounding the management and improvement of the at-sea sector of the fishing industry. The At-Sea Processors Association, the Groundfish Forum, and other organizations such as the Freezer Longline Coalition invest in research that focuses on reducing discards and incidental catches (now less than five percent of the catch) and protecting habitat by reducing the impact of gear so the fisheries remain environmentally and economically sustainable—all the while facing international competition in countries that do not have the same labor, safety, and

Alaska Business | November 2017 www.akbizmag.com

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for higher utilization of the fish harvested by the fleet. At the same time, See says, Alaska cod has serious competition from other white fish species, as well as cod that is harvested from foreign fisheries in countries such as Iceland and Russia. Russia can provide product to buyers at lower prices, a reflection of lower operational costs partly due to less stringent regulations. Participants in foreign fisheries can also build vessels for less than US fishery operators because they are not subject to domestic Jones Act regulations governing the construction of vessels in US fisheries. Although the at-sea processing sector comprises political complexities and other challenges associated with supporting a business from wild fisheries, when it comes down

to it, See says, it is an amazing industry. It is one of the world’s oldest professions, a relatively low-tech job in a high-tech world, all carried out under adverse weather conditions and seas that are unpredictable and untamable. “It’s not just a job,” See says. “The men, women, multi-generational families, and companies who operate in this industry continue to provide an enormous amount of food to dinner plates in countries all around the globe—that’s fascinating.” R

Heidi Bohi is a freelance writer who has written stories about Alaska since 1988.

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RESOURCE DEVELOPMENT SPECIAL SECTION | AT-SEA PROCESSING

environmental standards, allowing them to charge less for their end-user product. Dramatically reducing bycatch has been one of the biggest successes of all catcherprocessors. Less than 1 percent of the total catch includes bringing incidental species onboard. In recent years, halibut bycatch in groundfish species harvests has been reduced to its lowest level in more than fifty years in the Bering Sea. Currently, a key focus of Groundfish Forum member companies is on recapitalization efforts. Since 2013, more than $275 million has been spent building new vessels or converting existing vessels to replace an aging fleet. Each new vessel is built to the highest safety and environmental protection standards. With a service life of thirty to forty years, each new at-sea processor is more than an investment in the vessel itself, Woodley points out. “It is an investment in the maritime communities we operate out of—we are also committing to these communities for another thirty to forty years.” Dating back to 1865, the Pacific cod fishery is one of the oldest in Alaska. Today, at-sea processing of this center-of-plate protein, also known as Alaska cod, is an economic driver for communities across Alaska. Members of the Freezer Longline Coalition, an association representing the thirty-vessel freezer longline fleet in the Alaska cod fishery, operate out of Unalaska-Dutch Harbor year-round and include CDQ groups and Alaska companies that generate millions of dollars in revenue for the state each year. Chad See, executive director of the Freezer Longline Coalition, says that Alaska cod is some of the highest quality in the world. The Alaska cod freezer longline fishery was the first cod fishery in the world to be certified by the Marine Stewardship Council and has earned the Seafood Watch “Best Choice” eco-certified rating. Its superior quality and health benefits are the result of its wild habitat in the Arctic waters off Alaska and of the harvest and processing techniques used by the fleet to preserve the quality of the fish. Freezer longliners, which set and haul longlines that can be more than 10 miles long and have 60,000 hooks, produce a clean, highquality product resulting from a slower catch rate. Each fish is handled and processed one at a time before being immediately frozen into blocks onboard the vessels. The cod is cut to specifications and often sold directly from the vessel to buyers around the world, including retailers and restaurants. “It is this simple gear used by the freezer longliners that contributes to the fishery having one of the smallest environmental footprints of all commercial fisheries,” See says. The Alaska cod freezer longline fishery faces many of the same hurdles as the at-sea Pollock trawl fisheries, See says, including efforts to manage bycatch and modernize its fleet of vessels, the oldest of which dates back to World War II. Modernization, which is already underway, includes christening new vessels that are improving the efficiency of the fishery by facilitating value-added products such as fish meal and fish oil, allowing

SPECIAL SECTION

Resource Development

Boatyard Operations

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Alaska Business | November 2017 www.akbizmag.com

By Tracy Barbour

oatyards and shipyards deal with a plethora of requirements to sustain their operations, which are critical to the communities they serve. Their operational processes and costs include maintaining equipment, supplies, labor, customer service, and workers compensation and other insurance. Facilities including the Ketchikan Shipyard, Wrangell Boatshop, and Seaview Boatyard cater to a variety of customers ranging

from the government to commercial fishermen and pleasure craft owners.

Filling a Vital Role in the Community The Ketchikan Shipyard is the largest shipyard maintenance and manufacturing facility in Alaska. It’s also a critical economic development project in an area rocked by the disappearance of the timber industry. Through a unique partnership, the Ketchikan Shipyard is operated by a private company—Vigor—and owned by AIDEA (Alaska Industrial Development and Export Authority). The full-service shipyard is a mid-sized, depot-level maintenance facility with wide-ranging capabilities.

The Alaska Marine Highway System’s new ferry M/V Tazlina emerging from the ship assembly hall (left) and the ocean class ferry Tustumena in Dry Dock #1 (right) at the Ketchikan Shipyard. The Tustumena, which is fifty-three years old, is scheduled to be replaced in the next year. Image courtesy of Vigor

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Success through managing requirements and maintenance processes

RESOURCE DEVELOPMENT SPECIAL SECTION | BOAT & SHIPYARDS

The Emily Jane, Sabrina, and Spirit, hauled out for work at the Seaview Boatyard. Images courtesy of Seaview Boatyard

The Ketchikan Shipyard is an advanced facility that provides an ideal year-round location for new builds, repair, and refit to support almost any vessel working Alaska’s waters. It features a new 70,000-square-foot assembly hall with an adjacent indoor fabrication shop that shields workers from Ketchikan’s rainy weather. “Our yard is one of the newest, more modern shipyards in the nation,” says Director of Shipyard Development Doug Ward. “It’s also the only shipyard in the nation that has a totem pole out front.” Vigor also operates a second facility in Alaska: Seward Ship’s Drydock. The 11-acre shipyard is strategically located to provide services to Alaska customers in the fishing, marine transportation, and oil and gas industries. Initially conceived as a ferry maintenance facility, the Ketchikan Shipyard began building ships in 2001, starting with the municipal ferry connecting Ketchikan to its airport on 108

Gravina Island. In 2012, the shipyard built the Arctic Prowler for Prowler Fisheries. The 136-foot freezer longliner was the first large commercial fishing vessel ever built in Alaska. Currently, the Ketchikan shipyard is building two ferries for the Alaska Marine Highway System: the Tazlina and Tustumena. The vessels—the first ferries to be built in Alaska—are each 280 feet long. Unlike some yards that specialize in either shipbuilding or ship repair, the Ketchikan Shipyard does both. It can build ships up to 300 feet long and repair ships up to 450 feet. The shipyard is also a conversion yard, and it’s currently working to secure funding to build a $45 million conversion hall to further enhance its operations. The Ketchikan Shipyard is also planning to explore non-ship manufacturing opportunities around the state to diversify its markets. At Wrangell Boatshop, the focus is strictly on providing maintenance and repair. The

shop services about one hundred vessels annually, 60 percent of which are commercial fishing boats. This time of year, Wrangell Boatshop is conducting a lot of “triage,” often helping commercial fishermen address urgent repairs. “Most of them are fishing multiple fisheries, and they don’t have a lot of time,” says Owner Patrick Ellis. “We have to know how to do a lot of different things.” Services at the shop range from fixing fiberglass, replacing rotting wood, and repairing steel to wiring, yacht-quality paint jobs, and basic spring maintenance. “We cover just about everything, except for engine repair or refrigeration,” Ellis says. Wrangell Boatshop is a unique type of “boatyard.” It doesn’t maintain any acreage on which to park boats—but it can take boats out of the water. The shop is what Ellis categorizes as an intertidal railway. It has railway tracks that lead down into the water and uses winches and cradles to haul vessels out

Alaska Business | November 2017 www.akbizmag.com

for maintenance. The facility, part of which was constructed in the 1920s, can handle vessels up to 100 tons and 50 feet tall. “As far as I know, this is the only privately-owned, covered marine railway in commercial operation in Alaska,” Ellis says. Seaview Boatyard operates several fullservice boatyards in Washington State’s Puget Sound area. With state-of-the-art facilities in Bellingham and Seattle, Seaview focuses on providing recreational boaters, commercial fisherman, and the yachting community with cost-effective, efficient, and environmentallysustainable boat repair and maintenance services. Seaview also has a Fairhaven facility that primarily functions as an outdoor storage yard. Seaview, which has a fair amount of Alaska customers, serves a mixture of recreational vessels (about 70 percent) and commercial boats (about 30 percent), according to Vice President of Operations Tiel Riise. It does everything from haulouts up to 165 tons with a www.akbizmag.com

26-foot beam to long-term outdoor and heated indoor storage. The boatyard’s primary services are general maintenance, bottom coatings, top side painting, and fiberglass repair. In Bellingham, Seaview specializes in running gear repair and alignments and does a substantial amount of woodworking. The journeyman staff at Seaview perform most marine services in house. But specialized areas of repair such as canvas work, upholstery, internal engine repair, and fuel polishing are completed through a vendor. For these services, Seaview Boatyard can act as a general contractor and project manager to coordinate the work on customers’ behalf. In addition, Seaview can provide free estimates to help clients determine the budget for their project and work with surveyors/adjustors on insurance work and damage repairs. Seaview Boatyard tailors its yard policies to accommodate the varied needs of its customers. For example, commercial boat owners are

Operating Expenses Ongoing costs are a key factor of maintaining a boatyard and shipyard. Ketchikan Shipyard spends hundreds of thousands of dollars each year on facility maintenance. The shipyard maintains two dry docks, an assembly hall, machine shop, and other specialty shops, as well as a whole fleet of cranes. Painting equipment, welding machines, personal protective gear, and insurance are also significant expenses for the yard. Shipbuilding and repair inventory is another major area of expense for the Ketchikan Shipyard. From electrical supplies to paint to steel plate, the yard has to ensure ample supplies are on hand to help vessels make needed repairs. “The trick is to not to keep too much inventory, but keep enough on hand,” Ward says. “So far, that hasn’t been a problem. We have three barges a week that come from Puget Sound.” Having supplies on hand is especially important when emergency repairs are needed. “Because we’re so far north, we often get vessels in distress,” Ward says. “If there weren’t a shipyard in Ketchikan, they would have to be towed to Puget Sound. One of the benefits of our being here is the increased safety of life at sea.” Like the Ketchikan shipyard, Seaview Boatyard employs a variety of equipment to November 2017 | Alaska Business

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welcome to haul out and rent space at the yard so their crews can do their own maintenance and repairs. But there are a few exclusions: Do-it-yourselfers can’t complete bottom prep work, sandblasting, or spray painting, as these tasks must be done by Seaview personnel for environmental and/or safety considerations. Seaview also has a fully-stocked store with a variety of marine products at each location so customers have easy access to the parts they need for their projects. Riise says most of Seaview’s commercial customers haul out in the spring time, right before they head north. But if they haul out in the fall and winter, they could get in and out quicker and avoid being placed on a waiting list. “It’s a smart move to come out in the fall or winter time because that’s when you can get specials or winter rates,” he says. “On vessels maintenance, you want to stay on top of it; haul out annually to prevent expensive surprises.”

RESOURCE DEVELOPMENT SPECIAL SECTION | BOAT & SHIPYARDS

The Wrangell Boatshop focuses on providing maintenance and repair. Images courtesy of Wrangell Boatshop

maintain its operations. For instance, the yard relies heavily on having its boat lift, hydraulic trailers, and other boat-moving equipment running properly. It also employs various tools to make maintenance as efficient as possible. Maintaining a tidy work space is also essential to Seaview’s processes. “It’s important to make sure things get put back where they belong and work areas are cleaned up at the end of the job,” Riise says. “That allows you to come back at the end of the day and hit the ground running.” Supply chain management is also a key aspect of operating Seaview Boatyard. Effective planning keeps people from having to wait on equipment, parts, and other materials. “In our Seattle operation, it’s easier because everything is at your fingertips,” Riise says. “In Bellingham, it requires more forethought and planning.” Labor costs are another significant part of running a boatyard. The key issue for the Ketchikan Shipyard, for instance, is having a knowledgeable and skilled workforce. It’s difficult to get workers to relocate to an isolated, challenging environment like Ketchikan. So the Ketchikan Shipyard focuses on hiring locals and training them for shipbuilding and repair skills. “In order to ensure year-round work for people, we teach them multiple skills and multiple certifications,” Ward says. “That is really the trick up here because, unlike with most shipyards in the Lower 48, we have a 110

stranded workforce. You can’t commute to Ketchikan. A multi-skilled workforce assures our people will have year-round employment.” Sierra Callis is a prime example of a multifaceted employee. As a journey level welder/fitter and workforce development specialist, she wears multiple hats at the Ketchikan shipyard. Callis runs the skills-building program for about 200 employees at the Ketchikan Shipyard. Recently, the yard started a registered apprenticeship program that aligns what apprentices learn from textbooks with what they do on the shop floor to make learning more relevant. “When you’re able to put hands on what you are reading in a book, you have a higher retention rate,” she says. “We have the utmost

optimism for this apprenticeship program.” The program, which has fifteen journey workers and fifteen apprentices, is scheduled to last three years for entry-level individuals. But participants can accelerate the process by testing out of the curriculum and taking quarterly performance evaluations. “Our workforce initiative is accelerating entrylevel individuals while maintaining quality,” Callis says. The Ketchikan Shipyard also uses a preapprenticeship program to reach out to the community. It holds a maritime construction career day for area high school students, providing hands-on, educational stations on areas including welding, crane operation,

Alaska Business | November 2017 www.akbizmag.com

—Sierra Callis Workforce Development Specialist at Vigor

machinist, and electrical. “We use interactive activities to show them that there are options out there,” Callis says. “We’ve actually hired quite a few employees who came for the career day event. It’s neat to see that it’s working.” At Wrangell Boatshop, it’s also a challenge to attract skilled workers. Labor costs are fairly high for the shop’s four employees, who Ellis is committed to paying and treating well. “You can’t just burn through employees. We live on an island, so where are you going to find them? They can’t just commute.” Boat repair is an indispensable industry in Wrangell, but it’s difficult to attract workers to a place with a population of less than 2,000, no Wal-Mart, and a movie theater with limited showings on the weekend. “I spend the money and time to nurture the people locally and teach them the way I want things done,” Ellis says. “I’ve been pretty successful at having long-lasting employees.” By necessity, Wrangell Boatshop’s workers need to have a broad set of skills. Ellis expects employees to be able to pitch in and do different aspects of the work that needs to get done at the shop. Technical expertise is important, he says, but practical experience in Southeast Alaska is more critical. Ellis says: “I’ve got guys who have been with me for ten years. They know how we do business and how the fleets around here expect things to be done. My employees have all fished and have been out on the water, so they understand how things should be put together and maintained.” Attracting and retaining good employees is also vital for Seaview Boatyard, which has a staff of fifty. The company pays its employees a “family wage” and offers a good benefits package, Riise says. And Seaview listens to employees about their approach to work and values their input. “I think we treat our employees very well,” he says.

Other Crucial Issues Keeping customers happy is one of the requirements for maintaining a successful boatyard or shipyard. At least, that’s Riise’s perspective. In fact, satisfying customers by offering flexible services is a key focus at Seaview Boatyard. “We’re one of the few boatyards that allow do-it-your-selfers to come in, as long as they work under our guidelines for www.akbizmag.com

Image courtesy of Vigor

safety and environmental standards,” he says. Likewise, customer relations is paramount for Wrangell Boatshop. Ellis and his wife/ business partner, Kelly, have deep ties to the area. Both were born and raised in nearby Petersburg. Her family fished; his dad operated a boat repair shop. “To us, it’s very important that we’re here to help the fleet,” Ellis says. “We listen to what they ask. We try to keep our costs within the budget they have. I always keep in mind they have a limited amount of time to get things done, so we communicate that to our crew. We make sure they can get back on the [fishing] grounds and can get back to their business. For yachts, we’re also conscious of the time involved because they want to be able to take advantage of the limited time they have to enjoy the water.” Wrangell Boatshop also prioritizes customer satisfaction. Customers can bring their work to the boat shop and know the company will stand by it, Ellis says. “If somebody has a problem with a job we did—if the paint flakes or if something leaks—they can bring it back to us, and we will fix it,” he says. Following environmentally-friendly processes is also essential to operations at boatyards and shipyards. At Wrangell Boatshop, for instance, no one dumps products in the water or sandblasts without some sort of containment. “We do the best we possibly can. We make sure we’ve got tarps and covers up around our building to make sure we’re not sending volumes and clouds of dust out into the environment when we are painting or sandblasting,” Ellis says. “If we do sandblasting in huge volumes, we stick it in a container van and ship it out when we’re done. Or we get it tested, and if it’s tested as inert, we can dispose of it locally.” At Seaview Boatyard, the goal is to offer environmentally-sustainable boat repair and maintenance services. As part of this, all Seaview locations are inspected and certified as clean boatyards by the Clean Boating Foundation. Seaview also participates in the Northwestern Marine Trade Association, which addresses various issues relating to boatyards. With a membership exceeding 700, the Northwest Marine Trade Association is the country’s largest regional marine association. Like Seaview Boatyard and Wrangell Boatshop, the Ketchikan shipyard also employs environmentally-friendly practices at its operations. In Alaska and elsewhere, there are ongoing efforts to protect harbors, marinas, and waterways from harmful environmental practices. The Alaska Clean Harbors program, for example, is working throughout the state to help harbormasters, communities, and boaters prevent pollution and reduce waste in harbors and waterways. “It’s about managing every aspect of waste from fish cleaning tables to cleaning products to abandoned/derelict vessels,” says Bryan Hawkins, who serves on the voluntary advisory committee of Alaska Clean Harbors. Alaska Clean Harbors’ voluntary, non-regulatory program encourages communities to take a pledge to operate a clean harbor. The city of Homer, which helped develop the program, took the pledge and received its clean harbor certification in 2010. Other communities are

following suit. “I think there are about a half a dozen harbors within communities that have taken the pledge and are working on taking the certification,” says Hawkins, who also is the director of the Homer Port and Harbor and vice present of the Alaska Association of Harbormasters & Port Administrators. Currently, Homer, Seward, Haines, and Sitka have certified clean harbors. Juneau, Whittier, Dillingham, Kodiak, Bethel, and Valdez pledged to support the Alaska Clean Harbors program. To become a certified Alaska Clean Harbor, facilities must, in part, implement best management practices that help prevent pollution and reduce waste. These practices can involve all types of activities that happen in most harbors and boatyards, including hull maintenance, engine maintenance and repair, painting, and winterization. Hawkins says most harbors in Alaska are already using many of the practices advocated by Alaska Clean Harbors. But all entities—whether they’re privately-owned boat/ shipyards, boat shops, or boat owners—are encouraged to follow best practices whenever they use Alaska’s waterways and harbors. Harbors are the gateway to the ocean, Hawkins says. “That’s the concentration point; it’s where all the vessels come and go,” he says. “So that’s the place where we can do our best work educating boaters on how we should react with our environment and our oceans.” R Tracy Barbour is a former Alaskan.

November 2017 | Alaska Business

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RESOURCE DEVELOPMENT SPECIAL SECTION | BOAT & SHIPYARDS

“When you’re able to put hands on what you are reading in a book, you have a higher retention rate. We have the utmost optimism for this apprenticeship program.”

TOURISM

International Travelers Market it and they will come By Tom Anderson

Image courtesy of Aurora Borealis Lodge

The lights that draw thousands upon thousands of viewers each year.

ourism has become a leading industry in Alaska, and a burgeoning segment of that industry is the international traveler. That’s a sentiment expressed by Scott McMurren, who publishes “Alaska Travelgram,” and he’s not alone in his opinion. McMurren has been a travel consultant and tourism expert in Alaska for more than thirty years, counseling Alaskans about airlines, accommodations, and mode-of-travel efficiencies while wooing tourists with the sparkle of Alaska culture and activities. “Across the playing field, our Alaskan visitor and destination marketing organizations [DMOs] are rock stars when it comes to attracting foreigners to the state,” says McMurren. “The larger communities have the big guns like Visit Anchorage, Explore Fairbanks, and Travel Juneau. Fortunately—from the Southeast to the Arctic—cities, travel-centric businesses, and large statewide nonprofits like the Alaska Travel Industry Association [ATIA] are partnering to make sure tourists find affinity with the state, visit here, enjoy it, and return.” McMurren says that combining DMOs into groups, who in solidarity visit the largest trade shows abroad and spin their tales to other travel wholesalers in foreign countries, ultimately targets a coalition of marketing efforts to generate travelers to Alaska. He adds there are some signature international travel events that are critical for Alaska tourism businesses and their advocates. “It’s a must-show for Alaskan tourism leaders to represent us at the annual March ITB travel conference in Berlin. There’s also the US Travel Association’s International PowWow (IPW) scheduled for Denver in May 2018, which is a valuable venue,” says McMurren. 112

IPW’s website details the economic importance of its event, stating in 2018 it will host “more than 1,000 US travel organizations from every region of the US (representing all industry category components), and more than 1,300 international and domestic buyers from more than 70 countries that conduct business negotiations resulting in the generation of more than $4.7 billion in future travel to the US.” McMurren says popular international tourism B2B events also include World Travel Market in London, the Icelandair Mid- Atlantic Tradeshow in Reykjavik, Iceland, and local shows including Alaska’s Adventure Travel World Summit hosted in Anchorage. Within each tourism sector there are subsets that businesses have found useful. Sometimes a travel broker or foreign tourism agency will latch onto one or two particular companies that resonate with their efforts, whether from Europe, Asia, or South America. McMurren notes there are numerous niche markets that entice foreigners to visit the state, from sightseeing to wilderness exploration and activities. “If you can market Alaska-centric activities like fishing, camping, hiking, traversing the road system in a motorhome, or just relaxing in a bed-and-breakfast in a majestic town like Homer or Petersburg or Talkeetna, international travel agents will hone in on the opportunity and partner with our professionals in Alaska to market the service,” says McMurren. “That’s what makes Alaska special and unique as a global destination.”

Statewide Advocacy ATIA is the state’s tourism trade association. The organization represents more than 700 businesses in Alaska and implements the state’s tourism marketing programs.

Vice President Jillian Simpson has worked in the tourism industry since 2000 and has been with ATIA since 2004. She says thanks to aggressive branding—and collective outreach in Europe and Asia by ATIA members and staff—the 9 percent of travelers to Alaska coming from international locations each summer figure is holding steady. However, there has been much growth in the winter season due to the allure of the aurora. “Despite cuts at the state budgetary level because of reduced oil prices, policymakers and community leaders are working with ATIA in recognition of the importance of international trade and tourism,” says Simpson. “We’re seeing a growing Chinese sector in visitation, particularly in the winter months, as well as the mainstay of Europeans and Australians that hold an affinity to the outdoors.” Marketing and promotion are part and parcel to ATIA’s advocacy and member representation. “Alaska is steadily building its tourism infrastructure, from new and renovated airports to docks and cruise ship port modernization,” says Simpson. In conjunction with new and expanding hotels, restaurants, bars, and tourist-centric services, the state is wide open for both visitors and tourism-related investment. Simpson adds that another positive facet of the international Alaska tourism market are the flights from Europe and Asia. Condor Airlines continues to send four flights a week seasonally from Europe, and Iceland Air had multiple weekly flights in the summer. Charter flights play an important role in bringing visitors from Asia to Alaska, and ATIA and its partners hope to attract more airlines from China and other markets.

Alaska Business | November 2017 www.akbizmag.com

Aurora Extraordinaire North of Anchorage, Alaska’s second largest population center is enjoying a higher percentage of international traveler traffic than other areas of the state. Explore Fairbanks is the Interior city’s visitor bureau, and its full-time equivalent year-round staff is about nineteen, with that number growing to about twenty-two during the summer months. Deb Hickok is the president and CEO of the organization. “Our draw for international travelers is driven by aurora tourism,” says Hickok. She adds that according to the Alaska’ Visitor Statistics Program for Summer 2016, 9 percent of visitors in Alaska were international (excluding Canada). However, in Fairbanks international travelers accounted for 16 percent, the highest in the state. “Aurora tourism begins on August 21 and runs through April 21, spanning summer, fall, spring, and winter months,” Hickok notes. Amy Geiger is the director of communications for Explore Alaska. Geiger says there are innumerable attractions that inspire the attention of international visitors. “During aurora season you can see the northern lights as clear and vivid as from any location on Earth.” Geiger has been in the tourism industry since the 1980s in Alaska; she says the primary attention-grabbers for international travelers during winter months have consistently been activities such as dog mushing and ice carvings with year-round interest in art, nature, and wilderness, as well as the therapeutic regeneration found at Chena Hot Springs.

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The midnight sun season is a powerful lure for international travelers April 22 through August 20 when Fairbanks is inundated with light. In fact, in Fairbanks the sky never gets dark for seventy straight days circa May 17 through July 27. As for international demographics, Hickok and Geiger explain that travelers from Japan, Korea, Taiwan, and mainland China remain the majority of Fairbanks guests from foreign countries. The second largest international origination is from German-speaking nations in Europe including Germany, Switzerland, and Austria. Explore Fairbanks has a German travel professional who facilitates familiarization tours and other marketing programs from Europe. Additionally, the representative works with German travel agencies to plan comprehensive travel itineraries for Alaska-bound travelers. Explore Alaska and the Fairbanks International Airport (FAI) have a two-decade-long working relationship, which also boosts foreign interest. “There are numerous examples of where our organization and FAI have increased air service into Fairbanks, which opens many doors for tourism opportunities,” says Hickok. She cites examples such as Condor Airlines (with a hub in Frankfurt, Germany) operating summer service since 2001 and Japan Airlines, which has operated flights to Alaska without interruption since 2004. Korean Air, All Nippon Airways, and Uzbekistan Airways also offer charter service

from Japan to Fairbanks, coinciding with the popular aurora season. China Air entered the Fairbanks market in 2015 to provide charter service from Taipei, Taiwan, to Fairbanks and has two charters occurring in September of this year, with the aurora being the primary draw. Another selling point for Explore Fairbanks is the reach of its jurisdiction. International travelers seek adventure and new experiences, often more so than urban environments. Explore Fairbanks’ purview is expansive in the Last Frontier. “Our organization’s coverage of Denali, the Interior, and Arctic Alaska extend to places like Copper Center and along the Dalton Highway beyond the Arctic Circle and Brooks Range all the way to Deadhorse and Prudhoe Bay, which parallels the trans-Alaska pipeline. We’re overseeing a vast territory of rich tourism opportunities for international travelers,” says Geiger. Hickock says the world is networked for online information and research, so an aesthetically pleasing website and creative marketing are just as important as brick-andmortar services. Given this, a particularly compelling dimension to Explore Fairbanks is its online presence and social media engagement. Hickok says the organization is continually updating and ensuring its digital branding is modern, comprehensive, and fresh. In addition to information about traveling in Fairbanks and other parts of Alaska, the Explore Fairbanks website

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Motorhome rentals in Alaska are a popular option for international tourists. Image courtesy of Great Alaskan Holidays/Charlie Sears

features pages translated into five key foreign languages.

Self-touring in Motorhomes and RVs Great Alaskan Holidays has been renting motorhomes and recreational vehicles to foreign travelers for more than thirty years. Headquartered in Anchorage and located near the Ted Stevens Anchorage International Airport for client convenience, the company strategically targets foreign travelers because they are reliable, consistent (in return visits and annual commitments), and tend to rent for longer durations because of the distance they must travel to get to Alaska. Bob Johnson, Great Alaskan Holidays director of marketing, says a successful international marketing paradigm deploys a variety of modern, state-of-the-art marketing techniques to keep in-step with innovative methods of reaching a global audience. “As technologies change, we change and remain fluid and adaptive in our messaging approach, with the primary objective being that of listening and responding to our customers,” says Johnson. He adds that a userfriendly, comprehensive website and online presentation; responding quickly and fully to inquiries; attending trade shows and partnering with travel professionals; and participating in business-based advocacies and civic relationships are all instrumental to a successful tourism business, both domestic and international. Great Alaskan Holidays draws customers from all fifty states, nearly all Canadian provinces and territories, and more the twentyfive nations from Europe to Asia. Johnson says approximately 20 percent of his RV customer rental clientele originate from outside the United States and Canada. “We are seeing a large and growing number of travelers from China, Japan, Germany, and Scandinavian countries,” notes Johnson. “Our company also sees, on a frequent basis, customers from Spain, Argentina, Brazil, Italy, Austria, France, the Philippines, United Kingdom, Luxembourg, India, United Arab Emirates, New Zealand, and Australia.” 114

“The spectrum of occupations, ages, and family-units also varies, but renting an RV to explore the state at one’s leisure is definitely a focal point and niche-market for international tourists,” adds Johnson. Johnson says foreign travelers enjoy driving their rented motorhomes north to MatSu and Talkeetna, Denali National Park, and Fairbanks, as well as Valdez, for the longer route. For dense and close-proximity RV recreation and fishing, going south to the Kenai Peninsula’s Seward, Soldotna, Kenai, and Homer communities is also a popular itinerary. He says restaurants, grocery and liquor stores, gift shops, gas stations, parks and campgrounds, and museums are some of the beneficiaries of foreign travelers renting RVs and touring the state. “The key for us is professional delivery of services to tourists, and then an impact that’s indelible enough to invoke their praise and messaging to friends, family, and neighbors when they return home so more foreign travelers decide to come and see our wonderful state,” says Johnson. “Tourism is one of the largest revenue-generating sectors in Alaska, as part of the hospitality industry, second only to natural resource development. The stronger our economic foundation and the more support from communities and government we generate, the longer we’ll succeed as a premier international destination. It’s a partnership.”

‘Winter Starts Here’ Nestled along Resurrection Bay on the Kenai Peninsula, Seward has a population of more than 3,500 residents that welcome a steady flow of in-state, Lower 48, and international tourists. As a primary port of call for cruise ships—and accessible by rail, highway, and airport—the city has continuous tourism traffic. The Seward Chamber of Commerce is one of the first stops for most tourists. The Chamber office is located in the center of the community and boasts brochures, information, and engaging staff and volunteers who provide directions and activity ideas. Of the

chamber’s 402 active members, 75 percent are affiliated with or directly engaged in the tourism industry. “We’re finding a growing international tourist population particularly from Asia, and specifically Japan, during our winter months,” says Kris Harris, membership agent for the Seward Chamber. Harris oversees memberships and events and is involved daily with meeting and greeting visitors. Harris says there are numerous attractions in Seward, from Mount Marathon and Exit Glacier to the Alaska SeaLife Center and large harbor. “Northern lights, glacier viewing, and wilderness exploration are some popular attractions for our foreign visitors over the winter months,” says Harris. “Our ‘Winter Starts Here’ campaign and print and online materials seem to be effective attracting tourists from abroad, as do the numerous wildlife and rookeries,” she adds. The Seward Chamber has a modern and detailed website, says Harris, and that translates to fast and comprehensive information. “We recognize budgets are tight, and travel is problematic with flights and timing, so we market summer and also winter and ensure that our social media, mailers, emails, and website presence really hit home the diversity and spectacular hospitality the city offers… Creative, attention-grabbing materials and photos really do matter to tourists, especially foreigners.” Harris says the international clientele traveler segment is as much a niche and targeted market as Alaskans and US citizens; compared to their presence in much of Asia and Europe, moose, bald eagles, and bears, not to mention sea lion and bird rookeries, are a unique sight that heightens the incentive for European and Asian guests to visit Alaska.

Alaska’s Largest City Entices International Tourists Anchorage remains the tourism center for Alaska because of its population, commercial density, and transportation hubs. Visit Anchorage is the convention and visitor bureau for the Municipality of Anchorage. With a staff of nearly forty and one hundred volunteers, the organization focuses on maintaining and boosting leisure- and meetings-travel to Anchorage, which geographically encompasses everything from Eklutna to the north to Girdwood and Portage Glacier to the south. Jack Bonney is the content development manager for Visit Anchorage. He’s been working in the tourism industry for seven years and in communications and marketing for twelve years. In terms of the strategic methods for generating steady foreign travel to Alaska, “It’s a broad mix of sales and marketing techniques with the goal of getting travelers to choose Anchorage over anywhere else in the world that they could travel,” he says. “Getting those who’ve already decided on Anchorage to extend their visit and do more is also our goal, while ensuring the visitor experience is phenomenal.” Bonney cites word-of-mouth recommendations from friends and relatives as one of the most effective means through which

Alaska Business | November 2017 www.akbizmag.com

travel can be promoted. He believes a good recommendation, stemming from an enjoyable trip to Alaska, is the most trusted and frequently used source of travel planning information. Visit Anchorage encourages international travelers to engage in many destinations and experiences, with special emphasis on natural spaces such as wildlife viewing and glaciers. Bonney adds that Alaska gets about 2 million visitors a year overall. “The bulk of our visitors come from the western part of the United States, with 38 percent of all visitors to Alaska coming from Washington, Oregon, and California. We expect that trend to continue as people increasingly recognize Alaska is only a three- or fourhour flight from the West Coast,” says Bonney. As for international tourism, in roughly descending order of market volume, Australia, the United Kingdom, the German-speaking nations, New Zealand, India, and Japan are currently the largest sources of international visitation to Anchorage. “It’s worth keeping the scale in mind; no single nation among these makes up more than 2 percent of overall visitation. All other countries after these six are currently responsible for less than 3,000 annual visitors each,” he adds. Where in Alaska is most popular for international visitors? Bonney responds that it’s hard to answer generally for international visitors, given the different habits observed for each country and culture. “One example of many is that Australians are generally

more likely to visit Southeast Alaskan communities,” he notes. “About 90 percent of our Australian visitors take an Alaska cruise. On the other hand, German-speaking Europeans are typically more likely to visit Anchorage and other Southcentral communities, rent an RV, and travel independently.” He says more broadly by activity, international visitors have a higher-than-average propensity to participate in certain activities, including wildlife viewing, day cruises, train travel, and flightseeing, when compared to all travelers. As for marketing protocols, Bonney says Visit Anchorage’s approach, and that of other tourism organizations and businesses, really varies by market. “We have a number of overseas efforts and campaigns tailored to the travel preferences and interests in individual markets. In the case of Australia, there’s a huge reliance on travel agents. In fact, 71 percent of Australians who visit Alaska used a travel agent last year, so sales efforts in Australia tend to focus on travel agent education and training and development of expanded Alaska product offerings. That’s not true for other markets, where direct-to-consumer communications or some other approach might gain more traction— just one small example of how we adapt the approach to the market we’re pursuing.”

On the Horizon Is there hope for even larger growth and tourism opportunities for Alaska businesses and DMOs?

“Without a doubt,” says McMurren confidently. “Our state is on the cutting edge of technology, from Internet marketing to smartphone apps and Wi-Fi access,” he says. “We’re open for business and we’re innovative, yet inextricably linked to a robust Alaska Native and historical mining, forestry, and commercial fishing and seafaring tradition that captivate foreigners hungry for new experiences and exploration.” McMurren says there are no longer any local travel agents—in the traditional sense— active in international marketing. He says tour companies such as All Alaska Tours, Alaska Tour & Travel, and Premier Alaska Tours have developed programs and itineraries for travelers, but a fair amount of their business is selling to other retail travel agencies. “The future looks bright for the Alaskan tourism markets, both domestic and international,” McMurren says excitedly. “Don’t forget India and China. Those two countries are huge sources of tourism for Alaska and we’ll see their interest in the state blossom in coming years. Alaskan entrepreneurs need to get their businesses in order and have products and services ready to pitch and sell so foreigners keep visiting our beautiful state.” R Tom Anderson is a lifelong Alaskan freelance writer for local and national publications and owns a public relations firm.

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November 2017 | Alaska Business

115

A GIFT TO ALL

EAT 

Compiled by Tasha Anderson

SHOP

PLAY

STAY

Holiday Catering

f there’s one thing everyone loves about the holidays, it’s the food. Well, eating the food. Preparing, perhaps; transporting and cleaning up after the food isn’t quite as alluring as the dining part of the equation. Luckily for businesses large and small, as well as nonprofits and individuals putting on an event, there are fantastic caterers throughout Alaska ready to provide any tasty treat needed, be it appetizers, entrées, desserts, or all of the above. Alaska Coastal Catering (alaskacoastalcatering.com) provides “upscale and unique corporate catering within your office, home, or private venue” in Southcentral Alaska. Susie Von Willer Linford is the corporate chef and managing member for Alaska Coastal Catering; she says, “We pride ourselves on creating specialty menus designed with the clients’ dietary requirements in mind. Gluten free and vegetarian menus are two areas where we excel. We also offer our clients full menu options that include Alaskan grown produce, fresh Alaskan seafood, poultry and meats.” The company can provide catering services for up to 500 guests with its staff of more than twenty-five culinary artists. Alaska Coastal Catering is conscious of food waste and sustainability and the company’s policy is to not throw out usable food products after an event; rather, clients are invited to take home leftovers from the event that Alaska Coastal Catering will even wrap up for their personal use. Whatever food is left over after that is donated to Anchorage Gospel Rescue Mission, which in turn helps to feed Anchorage’s homeless population. Dianne’s Wild Fork Catering (cateringanchoragealaska.com) provides “feel good food” for both corporate and private events. According to the company, “Dianne’s is the corporate catering specialist for the Anchorage business community. Our menus are designed to complement your needs and satisfy your guests. We have made it convenient to order from us. We provide a complete solution with timely service and delicious food. Our specialties are breakfast and lunch meetings, business after hours, open houses, grand openings, employee celebrations or achievements, and holiday gatherings.” The company’s online menus offer options for breakfast and lunch buffets, box lunches, appetizer platters and buffets, and dinner buffets. Dianne’s Wild Fork Catering can accommodate groups varying in size from 10 to 500 or more and uses sustainable, earth-friendly disposable products. The company states, “Our team of professionals have been serving our wonderful food to clients at business meetings, open houses, and life celebrations in and around Anchorage for many years. The experience we have gained allows us to conﬁdently and efﬁciently manage your event or function. Wild Fork Catering in Anchorage welcomes the opportunity to partner with you to create a memorable experience for your guests.” Twigs Catering (twigscatering.com) offers a full range of catering services including lunch delivery, hot lunch buffets, breakfast gatherings, dinner buffets, and appetizer receptions. Twigs Catering menus are available online and the company will work with clients on additional menu options. The company has staff available as onsite servers, carvers, bartenders, or chefs depending on the client’s needs. Twigs Catering customers can rent china, stemware, linens, and tables that Twigs Catering will deliver and set up for the event. The company states: “We offer professional consultation, highquality products and services. We guarantee everything we do. We are happy to help you create the exact menu and experience for your special event.” Sal’s New York Grill and Catering (salsnewyorkgrill.com) provides catering within Anchorage and will deliver to Eagle River, Chugiak, Wasilla, Girdwood, and other areas for an additional fee. In addition to their online menus, Sal’s 116

New York Grill and Catering offers an option to customize menu items to suit the client’s need or meet a specific theme. Some menu themes available include gluten-free, Oktoberfest, “An Evening of Elegance,” Texas barbeque, Angel’s menu, southern comfort, and fiesta feast. For most caterings Sal’s New York Grill and Catering provides buffet-style dining, but can provide buffet table, seated table, or hand-passed butler service. The company says, “Chef Sal has catered multi-day conferences, large conventions, corporate luncheons, and both large and small weddings. Sal’s professionalism and passion for cooking is reflected in every event he prepares whether it is for 25 people or 1,000 people. We hope you enjoy the event that you book with Sal’s New York Catering, and we look forward to meeting you.” Top Shelf Catering (topshelfcateringllc.com) states, “Our company is based on the belief that our customers’ needs are of the utmost importance. Our entire team is committed to meeting those needs. As a result, a high percentage of our business is from repeat customers and referrals. We would welcome the opportunity to earn your trust and deliver you the best service in the industry.” Top Shelf Catering provides catering services in Anchorage, Eagle River, Girdwood, the Mat-Su Valley, and the remainder of Alaska. The company has experience with private celebrations, weddings, graduations, fundraisers, corporate events, and buffets and provides boxed lunches as “your innovative catering company.” Alaskan Events and Catering (cateralaska.com) provides a full spectrum of catering services and event planning “from Anchorage to the Mat-Su Valley and beyond.” The company focuses on providing clients with as much locallysourced products as possible through their tasty creations. The company says, “Alaska Sausage & Seafood of Anchorage supplies us with the savory Alaska reindeer sausage or freshly smoked Alaskan salmon lox. New Sagaya Wholesale of Anchorage provides us with all of our Alaskan seafood in-

Alaska Business | November 2017 www.akbizmag.com

order to ensure your event is a success. We specialize in custom menus offering quality food, prepared using the freshest ingredients.” Jackie of all Trades’ butler service provides professional servers to keep clients’ buffets looking nice, their drinks full, and any trash picked up so the hosts can enjoy their guests. “We will even make sure that your kitchen is cleaned up at the end of the night.” To complement their catering and butler services, the company also rents a range of items including plates, glasses, tables, and more. Sample menu ideas are available online.

Impressions Catering (impressionsalaska.com) assists clients with a variety of occassions including corporate events or luncheons, holiday or private parties, weddings, fundraisers, or grand openings. The company notes, “If you can imagine it, we can help you make it a reality.” Impressions Catering has online menus and pricing for breakfast items, box lunches and salads, lunch menus, party trays, and dinner buffets. The company’s Executive Chef is Paul Spadora, who’s been working in the industry since 1993 and has “traveled extensively throughout the United States, Europe, Africa, and Thailand, all of which has enriched his own personal culinary style.” The company says, “When selecting a caterer for your next corporate or private event you want to be sure the food is the very best, the presentation is creative, and your guests will be suitably impressed. At Impressions Catering we understand consistent excellence in creativity and customer satisfaction is the true key to our success.”

Kenai Catering (kenaicatering.com) “is a full service caterer providing fresh flavorful cuisine and professional service,” says the company, which is located in downtown Kenai. In addition to catering services throughout Kenai and Soldotna, Kenai Catering has a banquet room that can accommodate up to 100 guests. The company is owned and operated by Steve and Bobbi England, who have thirty-five years of hospitality experience, which ensures that “every aspect of your catered event will be handled professionally and efficiently. Our staff shares our enthusiasm for quality food and superior customer service.” When catering, the company can provide services for 500 guests or more, and their menus range from drop-off lunches to hors d’oeuvres for parties to full banquets.

Two Fat Guys Catering (twofatguyscatering.com) “has an extensive culinary background with Alaskan cuisine; if you can think of it we can make it.” The company has a sampling of their regular catering menus online, including fit entrees, contemporary classics, platters, desserts, and a dinner menu. Two Fat Guys Catering is run by Lee and Big Roy, who both have a passion for food. The catering company got started offering chocolate dipped cheesecake and dipped strawberries at the Saturday Market on Third Street in downtown Anchorage. The company states, “Two Fat Guys Catering strives every day to give their guests culinary delights they grew up with, crave-able food that creates memories that would satisfy even a fat guy: Never trust a skinny cook.”

Abby’s Kitchen Catering & Bakery (abbyskitchencatering.com) has been operating since 2007 in Juneau, offering catering and event planning services. “With our innovative designs and wide range of available styles, we can help you plan the event of your dreams and offer you a memorable experience,” the company states. Abby’s Kitchen specializes in creative, custom catering menus and offers wait and bar services as an additional option. It caters large or small events and can provide a menu for a casual party or formal banquet. “We provide the highest level of service, freshly made cuisine, and delicious cakes and desserts. You tell us what you want and we’ll make it happen for you and your guests. No menu is too small or too big.” To get the creative juices flowing, the company offers sample dinner, lunch, and breakfast menus online. R

Masters Catering (masterscateringak.com) has menu options online and will customize a menu to fit the needs of their clients. The company says, “Here at Masters Catering, our goal is to work with our customers to create customized menus for each event. We understand that every event is unique, therefore we are dedicated to creating the perfect menu to fit your occasion.” In addition to providing delicious food for any occasion, Masters Catering also provides cake cutting services and linen and china rentals. Masters Catering will deliver to locations throughout Southcentral for a fee. The company is owned and operated by Wes Masters, an Anchorage resident who graduated from UAA and traveled to Calabria, Italy, studying under top chefs in the region. Peppercini’s Deli & Catering (alaskadeli.com) provides catering services to groups of eight or more. The company offers many catering conveniences, including delivery and set-up, simple re-orders for return customers, menu coordination, same day orders, and supplying all of the necessary silverware, plates, bowls, napkins, serving utensils, and more. “Brothers Jeremy Kimmel and Jason Kimmel have lived in Alaska since 1981. They each have a long history in the restaurant and hospitality industries, and share a passion for food and food service. It is that passion that spawned Peppercini’s Deli & Catering. Our fun and energetic staff is courteous and professional. We pride ourselves on customer service and your satisfaction is our goal,” the company says.

• Qiviut is eight times warmer than wool • Does not itch even the most sensitive skin • Neutral color compliments any complexion

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Main Event Catering (maineventcateringak.com) provides catering in Anchorage and Wasilla. The company customizes menus to each client and event as well as options to provide plated catering, buffet-style catering, or familystyle catering. Main Event Catering also has a food truck that can be reserved for an event, which allows guests to make selections from the menu and is a unique way to spice up any party. The company notes, “Check out the many unique types and styles of catering that we offer. We are sure to find a style that you’re going to love for every event.” Jackie of All Trades (caterfairbanks.com) is a catering and butler service. The company says, “From corporate events to intimate parties and everything inbetween, Jackie of All Trades offers you the services and flexibility you need in www.akbizmag.com

• The perfect Alaskan gift for that person that has everything

• Hats, Scarves, Smokerings and more

OOMINGMAK

Downtown Location • Corner of 6th & H Little brown house with musk ox mural 604 H Street, Dept. ABM • Anchorage, AK 99501 Toll Free 1-888-360-9665 • (907) 272-9225 • www.qiviut.com

November 2017 | Alaska Business

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A GIFT TO ALL

cluding our famous Copper River red salmon, Southeastern Alaska fresh caught King Salmon, Bering Sea King Crab, and many other items including clams, scallops, and other fresh seafood all caught in the icy waters off the coast of Alaska. Here in the great Matanuska-Susitna Valley, Bushes and Bunches of Palmer provides us with those tasty carrots and assorted potatoes, including the famous Yukon golds. Finally, Alaska itself is abundant with our great edible flower, the Chamerion angustifolium, commonly known as fireweed, which we in turn use to create fireweed jelly that may be used at your next catered event.”

‘TIS THE SEASON

EAT

SHOP

PLAY

STAY 

Holiday Bazaars N

ovember and December are chilly, snowladen months in Alaska, and they are also the perfect time to get out and do some quality shopping. While Alaskan artists provide exceptional wares throughout the year, they gather at various bazaars and shopping events in the weeks preceding the holiday season, creating a fun and unique shopping experience for all of Alaska’s residents. No matter who or what one may be shopping for, the gift-seeking opportunities below are sure to offer up the ideal gift, whether that’s fresh peanut brittle, hand-forged tools, or mittens made from recycled sweaters, Alaska’s bazaars offer something for everyone. Put on a hat, snag what’s left of the PFD, and get out to support local Alaskan vendors and score some fantastic items.

November The Bad Girls of the North Holiday Unique Boutiques take place this year on November 3 from 4 p.m. to 9 p.m. and November 4 from 10 a.m. to 5 p.m. at the Lakefront Anchorage. Don’t miss the amazing collection of artists at this unique craft show. Shop for art, a variety of jewelry, handcrafted soaps, silk scarves, handmade clothing, pottery, leather purses, metal art, gourmet foods, home décor, and one-ofa-kind artwork. badgirlsofthenorth.com

The Coffman Cove Holiday Bazaar at the Howard Valentine School runs from 10 a.m. to 4 p.m. on Saturday, November 4. The Bazaar features crafts, food, and fun and is sponsored by the “By The Sea” Arts & Seafood Festival Committee. Santa will be available for photos from 1 p.m. to 3 p.m. and door prize giveaways will take place from Noon to 1 p.m. and 3 p.m. to 4 p.m. Attendees can bring food items for donation to the Food Bank. ccalaska.com/ events/holiday-bazaar/ In Wasilla at the Curtis Menard Sports Center, the Mat-Su Holiday Marketplace takes place November 4 and 5, 2017. This bazaar is a one-stop holiday shopping extravaganza for the Valley, presenting an opportunity to shop for unique, one-of-a-kind gifts from more than one hundred vendors, including jewelry, furs, original art, fleece, pottery, etched glassware, and more. Parking is free; admission is $4 for adults, and children age twelve and under are free. fairbanksevents.com/mat-su-holiday-marketplace/ The 2017 Holiday Food and Gift Festival takes place November 4 and 5 from 10 a.m. to 6 p.m. on Saturday, and 11 a.m. to 5 p.m. on Sunday at the Dena’ina Center in Anchorage. This fun familyoriented event features strictly-Alaskan handmade

Compiled by Tasha Anderson items including clothing, jewelry, bath products, home decor, gourmet food, and more. More than 15,000 people attend the Dena’ina Center over the two-day festival. anchoragemarkets.com The Fairbanks Holiday Marketplace is held at the Carlson Center in Fairbanks and in 2017 runs from November 10-12. This is a convenient, local shopping bazaar that features everything from hand-made soaps to beaded jewelry to imported wool sweaters. More than 175 vendors participated in the Fairbanks Holiday Marketplace in 2016. Adult admission is $5 and children 12 and younger are admitted free. fairbanksevents.com The Alaskan Christmas Bazaar takes place this year on Saturday, November 11. With more than 110 vendors from all over the state selling handmade, unique items, this bazaar is the perfect place to begin holiday season shopping. Be sure to stop by the silent auction tables filled with hundreds of hardto-find deals while at the event at Anchorage City Church. alaskanchristmas.com Christmas Arts & Crafts Emporium will run November 18-19 this year at the Dena’ina Center. This holiday bazaar features strictly-Alaskan products. This year the emporium is sponsoring Habitat for Humanity’s Gingerbread Showcase, which brings together professional and amateur bakers from Anchorage to highlight their creativity and support Habitat for Humanity Anchorage. While the em-

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Juneau Public Market is held at Centennial Hall and the Juneau Arts & Culture Center, this year on November 24, 25, and 26. The market has taken place every Thanksgiving weekend since 1983 and includes arts, crafts, imports, photography, and wearable art, as well as food and a visit from Santa. Three-day admission to Centennial Hall is $7 (admission for children age 11 and younger is free) and there is free admission to the Public Market Annex in the Juneau Arts & Culture Center. There are door prize drawings every hour at the Public Market Annex. juneaupublicmarket.com

cials, and more, including a Small Shop Scavenger Hunt. anchoragedowntown.org

December The Cordova Christmas Kick-off and Bidarki Bazaar take place December 1. After the tree lighting, the Bidarki Bazaar is located at Mt. Eccles Elementary School and features handcrafts and local vendors who have just the right item for any shopping list. cordovachamber.com On December 2 and 3 Homer locals can get out and check out the wares at the annual Nutcracker Faire, which showcases the Kenai Peninsula’s finest arts and crafts. Shoppers can enjoy live music and local food while browsing the ninety-plus vendor booths at Homer High School. homerart.org

The Winter Arts Faire in Ketchikan takes place on November 24, 25, and 26 at the Saxman Community Center. Guests can check off their entire gift list with new creations from more than eighty local artisans and kids can explore and learn at the Imagination Station while their parents shop. There’s sure to be everything from wreaths to pottery, jewelry to photography, and tie-dye to metalwork at this exciting, winter event. ketchikanarts.org

As part of Colony Christmas, the Palmer Borough Gym Craft Fair will be held on December 9 at the Borough gym from 10 a.m. to 6 p.m. and features a variety of arts and crafts from a range of vendors. Shoppers on the hunt for unusual and unique gifts have access to a wide variety of venues during Colony Christmas in Palmer. In addition to unique shops, Alaskan handcrafted items will be on display at multiple locations throughout Palmer during the holiday celebration. palmerchamber.org

On November 25 Downtown Anchorage is participating in Shop Small Business Saturday, a national event to promote shopping at local, small businesses. The Anchorage Downtown Partnership is gathering small businesses to offer deals, spe-

The historic Palmer Depot is the location of one of the premier showcases of Alaskan made items at the Craft Fair, Friday, December 9, at Noon. The Depot will be open until 6 p.m. on Friday evening and reopen at 10 a.m. on Saturday morning until 6 p.m.

An information booth, gift wrapping station, and Colony Christmas souvenirs can also be found at the Depot location on Saturday. palmerchamber.org The Wonderfully Made Christmas Bazaar takes place in 2017 on December 9 at Cornerstone Church in Anchorage. This bazaar annually celebrates the unique nature of the local Alaskan artist community and features more than one hundred vendors showcasing handmade craft items. In addition to shopping, guests can enjoy food at the concession stand, gourmet coffee, and live music. Admission and parking are free. facebook.com/pg/WonderfullyMadeChristmasBazaar This year marks the 10th annual Christmas Village, which is a perfect opportunity to buy all of those last-minute gifts. Christmas Village, held at the Dena’ina Center in Anchorage, will be open from 10 a.m. to 6 p.m. and allows both Alaskan-made and imported items to be sold. Visit the Christmas Village on Saturday, December 16. anchoragemarkets.com Julebukking takes place every year the week of Christmas; the streets of downtown Petersburg fill with bundled customers looking for last minute gifts for friends and family. According to Norwegian tradition, local merchants offer customers amazing seafood delights, familiar Norwegian pastries, and warming spirits in appreciation of their business during the past year. No one remembers when this tradition started it just has always been part of the charm of the season. petersburg.org R

Barrow

Kotzebue Fairbanks

Nome

Delta Junction

Mat-Su Anchorage Valdez Soldotna

Bethel Dillingham

Juneau Sitka

Kodiak Ketchikan Unalaska/Dutch Harbor

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‘TIS THE SEASON

porium takes place, the gingerbread creation that gets the most public votes will receive the People’s Choice award; votes are submitted via voluntary donation, and 100 percent of the proceeds support the nonprofit. anchoragemarkets.com

EVENTS CALENDAR NOVEMBER 2017

EAT

SHOP

PLAY 

tree lighting, all at Town Square. The concert begins at 5:15 p.m. anchoragedowntown.org

Anchorage

Chugiak NOV-DEC

Christmas Towne

Recurring weekly on Friday, Saturday, and Sunday, Christmas Towne brings together the sights, sounds, and smells of Christmas, including lit walking trails, a library and book nook, pictures with Santa, and an opportunity to reserve time with Santa and Mrs. Clause to make printed ornaments or bake cookies from scratch. Christmas Towne is located at 23001 Camp Gorsuch Road. christmastownealaska.com

24-24

NOV

Great Alaska Shootout

Alaska Community gets its hoops fix—host University of 21-25 The Alaska Anchorage takes on top foes in one of the longestrunning tournaments in college basketball at the Alaska Airlines Center. goseawolves.com

Anchorage NOV

Skinny Raven Turkey Trot

23 The annual Turkey Trot brought to you by Skinny Raven is back and warmer than ever. Staging will be outside the Dena’ina Center: the 5K starts at 11 a.m. and the 3K starts at 11:10 a.m. skinnyraven.com NOV-DEC

Zoo Lights

over to the Alaska Zoo 24-31 Head to visit the lighted parade of animals that take over the zoo each

Holiday Tree Lighting Ceremony

Hosted by the Anchorage Downtown Partnership, the lighting ceremony features free cookies, hot chocolate, holiday music, and an opportunity to meet Santa and his reindeer, and of course the

Haines NOV

Wild & Scenic Film Festival

The doors open at 6 p.m. and the films start rolling at 7 p.m. There will be a dessert auction to accompany the film festival taking place at Harriett Hall at the Southeast Alaska State Fairgrounds. visithaines.com/events

Fairbanks

winter. From front to back, the zoo is decorated with lighted animal displays— colorful, whimsical, and even animated. Walk under canopies of light and check out the animals, both electronic and native to the Arctic. alaskazoo.org NOV

STAY

Compiled by Tasha Anderson

NOV

Winter Short

The UAF Student Drama Association presents student-directed, one act plays. Shows are at 7:30 November 10, 11, 17, and 18 and 2 p.m. on November 19. uaf.edu/theatrefilm/current-season/

NOV

Thanksgiving for the Birds

Visitors can make bird feeders and learn about winter birds and how to feed them at Creamer’s Field Farmhouse Visitors Center from Noon to 4 p.m. creamersfield.org

NOV-JAN

Christmas in Ice

Christmas in Ice, the six-week winter ice park located next to Santa Claus House in North Pole, features Christmas-themed ice art competition pieces, ice slides and a maze, twirlers, indoor kids’ crafts, and educational ice sculpture demonstrations, adding color and light to the Interior Alaska winter. christmasinice.org

25-9

Book Your

HOLIDAY Parties with Us C O N N E C T W I T H O U R E V E N T S S P E C I A L I S T. . .

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NOV

Christmas Comes to Kenai

24 The kick off of the holiday season begins with Santa, an electric lights parade, and fireworks at the Kenai Visitor and Cultural Center. Santa Haines

arrives at 11 a.m., the parade begins at 6 p.m., and fireworks start at 7 p.m. kenaichamber.org

appetizers, and live music, all while dressed up and enjoying an exclusive shopping experience. ketchikanarts.org

Ketchikan

Petersburg

Winter Arts Faire Gala Reception

NOV

24 The Winter Arts Faire Gala Reception is part of the annual Winter Arts Faire, which takes place every year the weekend after Thanksgiving. The Gala Reception is on Friday from 5 p.m. to 8 p.m. and features refreshments,

NOV

Festival of Lights and Community Tree Lighting

The lighting of the seventy-foot Community Christmas Tree is celebrated with hundreds of people walking down Nordic Drive, with Santa, carrying lightstix or candles.

Wasilla

Complimentary hot cider is available. Each year the tree is provided by the Public Works crew and the lighting of the tree and the decoration of the downtown power poles is performed by the Petersburg Power and Light crew. petersburg.org

Talkeetna NOV

Talkeetna Town Tree Lighting

26 Town Tree decorating begins at 1 p.m. in the Village Park Pavilion. The tree lighting marks the official kickoff of Talkeetna Winterfest, a month-long celebration in December. talkeetnachamber.org Wasilla NOV-DEC

NOV

Jake’s adaptation of 24-17 John Charles Dickens’ A Christmas

Alaska Bald Eagle Festival

6-11 Many festival activities are located at the American Bald Eagle Foundation museum, including wildlife workshops, tours, and presentations. There are also visits to the Alaska Bald Eagle Preserve to witness the “Gathering of the Eagles.” Usually more than three thousand eagles can be found there during this time of year. baldeagles.org/festival

www.akbizmag.com

A Christmas Carol

NOV

Dare to Dream

Dare to Dream is a benefit concert presented by the MatanuskaSusitna Orchestra and features a mother-daughter duo joining the orchestra for Bach’s Double Violin Concerto in D minor, Dvorak’s Serenade for Strings, and other musical treats. The concert will also feature a silent auction in support of the Mat-Su Food Bank. glennmassaytheater.com

Carol stays true to this traditional holiday classic as written by Dickens while adding a unique feature. Charles Dickens is introduced as narrator, stage hand, and actor, moving seamlessly through the action on stage. This feature adds a welcome quality to the production and reproduces an element of Dickens’ productions that he incorporated while he was giving a reading—these readings were actually performances and he often went beyond narration when presenting his work. valleyperformingarts.org R

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EVENTS CALENDAR NOVEMBER 2017

Kenai

RIGHT MOVES Anchorage Coalition to End Homelessness

Kristi Duff has been named Executive Director of the Anchorage Coalition to End Homelessness. She officially stepped into her new role on August 21. Duff earned her bachelor’s degree in political science from Colorado State University and her MPA from the University of Alaska Anchorage. Her Duff professional background is in regulatory compliance and community engagement. Before accepting the Executive Director position she served as the coordinated entry system program manager for the Anchorage Coalition to End Homelessness.

Tlingit & Haida

The Central Council of Tlingit and Haida Indian Tribes of Alaska promoted Grace Hawkins to Employment and Training Manager. Hawkins has more than eighteen years of work experience with Tlingit & Haida, a majority of those years were spent with the program compliance department where she Hawkins served as coordinator and assisted in the oversight of the Tribe’s enrollment, client database management system, tribal government elections, and client complaint and appeal processes. Hawkins also previously worked in the office of the president and held interim manager positions for both the TANF and employment and training departments.

Anchorage Police Department

APD Chief Justin Doll announced the promotion of Captain Ken McCoy to Deputy Chief of Operations. Additionally, Lieutenants Julie Shank and Kevin Vandegriff have been promoted to Captains of the Patrol and Crime Suppression Divisions. McCoy has been with APD for more than twentytwo years. He served throughout the department and held command assignments in patrol, detectives, and internal affairs. He has a bachelor’s degree in justice from the University of Alaska Anchorage and a criminal justice graduate certificate from the University of Virginia. McCoy is also a graduate of the FBI National Academy. Shank joined APD in 2003, with more than ten years of law enforcement experience. She became a Lieutenant in 2016, assuming command of the Special Victims Units, Crimes Against Children Unit, and Cyber Crime Unit. Her

units coordinated with federal, state, and local agencies. She is also currently the co-commander of the Alaska Internet Crimes against Children Task Force. Vandegriff is a retired military officer who joined APD in 1997. He has an advanced certificate from the Alaska Police Standards Council, a master’s degree in organizational management, and has completed the police executive leadership graduate program with the University of Louisville. During his twenty years with APD he has worked in a variety of assignments and served as a Lieutenant of Internal Affairs, Detective Commander, and most recently as the Commander of Special Operations. muni.org

AECOM

AECOM hired Matt Narus to support its Alaska operations as a Senior Project Manager. In this role, Narus will manage projects as well as work with the AECOM team to support business activities for its Alaska operations. Narus holds a BS in chemistry from the University of Alaska Fairbanks, a Narus MS in environmental engineering from the University of Wisconsin Madison, and an EMBA from the University of Washington. He comes to AECOM after most recently working at the Alaska Industrial Development and Export Authority as a project manager.

Stantec

Adam Leggett joined Stantec in its Anchorage office as the Alaska Native Program Manager, focusing on developing business relationships with Alaska Native corporations and organizations. Leggett has ten years of experience working for a variety of Alaska businesses, including oil and Leggett gas companies and Alaska Native businesses. Prior to joining Stantec, Leggett spent seven years working in the business side of Alaska’s oil and gas industry. He holds a MBA from Alaska Pacific University and a BS in business management from Florida State University.

PND

PND Engineers announced the following new hires in its Anchorage office. Bill Jamison, PE, first joined PND in 2003 and is now rejoining the team with his expertise in marine design, structural bridge design, and construction inspection.

He graduated from University of Alaska Anchorage in 2003 with a BS in civil engineering and is an Alaska-registered professional engineer. Jamison brings project administration background including contract development, bid phase support, construction Jamison inspection, and cost estimating to his position. Rachael McKinney has been brought on as the firm’s marketing coordinator. McKinney holds a MS in journalism from West Virginia University. In addition to her background in writing and editing, she has experience in graphic design, comMcKinney puter programming, and strategic communication. Before joining PND, McKinney spent one year as an AmeriCorps VISTA for a local nonprofit in Anchorage. She will assist the team in proposal development and procurement efforts.

Department of Natural Resources

Natural Resources Commissioner Andy Mack announced that Heidi Hansen joined DNR as a deputy commissioner. Hansen, an attorney, has extensive experience in energy and natural resources policy and law. She most recently worked for the US Senate Energy & Natural Resources Committee as counsel, focusing on issues including mining, energy, mitigation, land use, and Alaska Native issues. Hansen earned her JD from American University’s Washington College of Law and a BA from the University of Washington.

RurAL CAP

The Rural Alaska Community Action Program announced three new additions to its leadership team. Cynthia Tisher is the new CFO. Tisher has fifteen years’ experience in accounting for nonprofit and Native organizations, including Bristol Bay Native Corporation and the Alaska Conservation Foundation. She holds degrees from the University of Alaska Anchorage. Kristin Ramstad has been promoted to Child Development Division Director, overseeing multiple programs including Head Start, Early Head Start, Parents as Teachers, and the Anchorage Child Development Center. She most recently served as the Head Start director before her promotion to the Division Director Position. Ramstad holds degrees from the University of Alaska Anchorage and the University of the Pacific.

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Compiled by Tasha Anderson Val Clark began working for RurAL CAP in mid-June 2017 in the newly-combined position of Communications and Development Director. Clark has worked for Anchorage nonprofits since 1996, most recently as the director of programs for YWCA Alaska, where she developed the Cultural Connections intercultural sensitivity program. She earned her degrees at the University of Alaska Anchorage and Old Dominion University.

First National Bank Alaska

Three First National Bank Alaska banking experts with nearly one hundred years of combined experience have been promoted to collectively supervise operations at Anchorage’s ten branches. Beverly Boyd is First National’s newest Assistant Vice President and Branch Administrator. She’s worked for the bank for more than thirty-seven years in a number of customer servicerelated capacities. V i ce P re si d e n t a n d B r a n c h Boyd Administrator Kim Frensley recently celebrated her thir t y-five-year employment anniversary at First National. She spent twenty-seven years as the branch manager of the Main Branch in downtown Anchorage and six in the same role at the Dimond Branch. V i ce P re si d e n t a n d B r a n c h Frensley Administrator Bill Kaltschnee has more than twenty-three years of banking experience, including six years at First National and the last three as branch manager at the South Center Branch. Boyd, Frensley, and Kaltschnee will work closely with their fellow bankers and manage customer relationship Kaltschnee development at the branch level.

UAF

Keith Champagne, a veteran student services administrator at Central Washington University, is the new Vice Chancellor for Student Affairs at the University of Alaska Fairbanks. Champagne was selected after a national search that brought three finalists to campus this summer. Champagne has a bachelor’s degree in communications public relations from Loyola University, a master’s degree in communications, training, and development from Clarion University of Pennsylvania, and a doctorate

in educational leadership and policy studies from the University of Washington. He begins his new position overseeing student services at UAF in early December.

Coffman Engineers

Coffman Engineers announced the addition of two new employees: Brian Gastrock, PE, joined the civil engineering department as a Senior Civil Engineer and Joshua Shafer joined as an Electrical Engineering Intern. Gastrock is a registered civil engineer in Alaska with nearly two decades of professional experience working on numerous pipeline condition assessments, design, and construction management projects throughout Alaska. Gastrock comGastrock pleted the Pipeline Assessment Certification Program, certified by the National Association of Sewer Service Companies, and is active in both the North American Society for Trenchless Technologies and American Society of Civil Engineers. Shafer received his BS in electrical engineering from the University of Alaska Anchorage and is an Alaskan Engineer in Training (EIT). Relevant course highlights from UAA include instrumentation and measurement, integrated circuit design, arctic engineering, and engineering data analysis. Shafer Shafer is also well-versed in AutoCAD. He joins more than fifty-eight Coffman employees raised in Alaska; forty of whom graduated from the University of Alaska system.

CRW Engineering Group

CRW recognizes five employees. Matthew Haymes, EIT, joined CRW in October 2016 as a Staff Civil Engineer. He graduated from the University of Melbourne with a bachelor’s degree in civil engineering. His experience working on highway and rail improvements has proved a valuable asset to his current Haymes work providing structural engineering, site inspections, report writing, and design services for a wide range of CRW projects. Civil Staff Engineer Ryan Kim, EIT, joined CRW in March 2017. He has a degree in civil engineering from UAA and is currently pursuing his MS in civil engineering. He brings transportation Kim

engineering expertise to CRW, where he currently works on road projects and site planning and conducts construction inspection. Rebecca Venot, PE, a Water Treatment Project Engineer, joined CRW in March 2017. She graduated with a BS in mechanical engineering from the University of Colorado at Boulder and has a master’s degree in civil and environmental engineering from Colorado State University in Fort Collins. She began Venot working on water treatment projects in Alaska while based in Seattle and eventually moved to Alaska full-time in 2014. Her project management and communication skills complement her water infrastructure expertise. Electrical Engineer Matthew Lund, PE, joined CRW in July 2017. After graduating from UAA with a degree in electrical engineering, he was a jack of all trades at RBA Engineers, designing lighting, power, and electrical services, as well as writing proposals and comLund missioning. Roz Kirkelie, a Graphic Designer, joined CRW in August 2017. She has worked around the country assisting nonprofits through AmeriCorps and served as staff writer and photographer in the Navy’s Public Affairs Office in Florida. She holds a BA from UAA in Kirkelie graphic design and photography.

Alaska Heart & Vascular Institute

The Alaska Heart & Vascular Institute welcomes Mark M. Levin, MD, MS. Levin is board-certified in general surgery and a graduate of the Georgetown University School of Medicine, where he earned a doctor of medicine as well as a MS in physiology and biophysics. Levin also holds a BA in neuroscience with a concentration in cellular and molecular neuroscience from the Johns Hopkins University.

Anchorage Bariatrics

Anchorage Bariatrics has expanded its team with the addition of partner Dr. Sean Lee. Lee joins Anchorage Bariatrics from the Center for Obesity and Metabolism at Augusta University in Georgia. Lee received his MD at Yale University School of Medicine, spending a fifth year performing research in bone marrow-derived stem cells. He completed his residency in general surgery at Duke University, focusing his clinical work on bariatric surgery. R

Gillnets. Crab pots. Catch of the Day. Whatever you need, we deliver. Connect with us / 800.727.2141 / www.nac.aero /

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Business Events NOVEMBER

NOV

Sitka WhaleFest

Sitka: Presented by the Sitka Sound Science Center, WhaleFest is a science festival that celebrates marine life. The core of the festival is a unique science symposium blending local knowledge and scientific inquiry concerning the rich marine environment of our northern oceans. sitkawhalefest.org

3-5

NOV

5-11

Alaska Miners Association Conference

Dena’ina Center, Anchorage: The fall convention includes technical sessions, short courses, a trade show, and networking opportunities. alaskaminers.org

NOV

AGC of Alaska Annual Conference

Hotel Captain Cook, Anchorage: The mission of AGC of Alaska is to advocate for their members and the Alaska construction industry; to provide educational opportunities for their members; and to make the public aware of their members’ skills, responsibilities, and integrity. agcak.org

8-11

NOV

AASB Annual Conference

NOV

AAMC Conference

Anchorage Hilton: The mission of the Association of Alaska School Boards is to advocate for children and youth by assisting school boards in providing quality public education, focused on student achievement, through effective local governance. aasb.org

9-12

Hotel Captain Cook, Anchorage: The Alaska Association of Municipal Clerks is an organization that focuses on providing educational training and mentoring and professional growth opportunities. Conference attendance earns 2 CMC experience points or 2 MMC professional/social points toward IIMC certification. alaskaclerks.org

13-14

NOV

13-17

AML Local Government Conference Hotel Captain Cook, Anchorage: The Alaska Municipal League is a voluntary,

Compiled by Tasha Anderson nonprofit, nonpartisan, statewide organization of 162 cities, boroughs, and unified municipalities, representing more than 97 percent of Alaska’s residents. This year’s conference theme is “Local Government–Closest to the People” with presentations and workshops focused on legislative priorities, leadership, and training and networking. akml.org

NOV

RDC for Alaska Conference

Dena’ina Center, Anchorage: RDC’s purpose is to link various industries together to encourage a strong, diversified private sector and grow Alaska through responsible resource development. akrdc.org

15-16

DECEMBER

DEC

ALASBO Annual Conference

3-6

Anchorage: Annual conference of the Alaska Association of School Business Officials. alasbo.org

DEC

2017 Alaska Young Fishermen’s Summit

6-8

Dena’ina Center, Anchorage: AYFS is designed to provide training, information and networking opportunities for commercial fishermen early in their careers. This year’s summit focuses on building leadership and networking capacity in the Alaska commercial fishing industry through three days of intensive training. seagrant.uaf.edu

DEC

ASGA Conference

Cape Fox Lodge, Ketchikan: The annual conference of the Alaska Shellfish Growers Association includes technology transfer sessions, shellfish gear demonstrations, a general membership meeting, regulator updates, and panel discussion. alaskashellfish.org

7-9

2018—JANUARY

JAN

16-18

35th Annual Health Summit

Hotel Captain Cook, Anchorage: The 2018 summit theme is “Finding Our

Way Forward” and the conference will focus on building public health system capacity, health promotion, health protection and security, public health research and evaluation, and emerging issues. alaskapublichealth.org

JAN

Alaska Marine Science Symposium

Hotel Captain Cook, Anchorage: Scientists, researchers, and students from Alaska, the Pacific Northwest, and beyond come together to communicate research activities in the marine regions of Alaska. amss.nprb.org

22-26 JAN

Junior Achievement of Alaska Awards Banquet

Dena’ina Center, Anchorage: Four new Alaskans will be inducted and recognized with this prestigious award. Attended by more than 400 business representations, the program consists of a networking reception, dinner, and awards ceremony. www.juniorachievement.org/web/ja-alaska

JAN

25-27

Anchorage AEYC Early Childhood Conference

Hilton Anchorage: The 2018 theme is “Big or Small, Success for ALL: Supporting the Leaders of Tomorrow.” Join other early childhood community members to learn new strategies, hear about the latest research, try out a few practical techniques, and discover new tools and resources to help face any challenge related to working with young children. anchorageaeyc.org

JAN

Alaska RTI Conference

Dena’ina Center, Anchorage: Invited presenters this year include Michael Horn and Heather Staker, authors of Blended; Dr. Doug Fisher and Anita Archer, who will focus on using explicit instruction and lessons from Visible Learning for Literacy; math and RTI experts Dr. Doug Clements and Dr. Karen Karp; and more. More than 1,000 educators from thirtyseven districts attended the conference last year. asdn.org/school-year-conferences-and-institutes R

27-28

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Inside

Alaska Business November 2017

OFFICE OF THE GOVERNOR

he State of Alaska filed a motion to intervene in a lawsuit regarding access to globally important oil and gas resources in the Beaufort and Chukchi Seas on the Arctic Outer-Continental Shelf (OCS). In April, the President signed an order reopening the Chukchi Sea OCS and portions of the Beaufort Sea for potential exploration. The prior administration withdrew the entire Chukchi OCS and the vast majority of the Beaufort OCS from the Department of Interior’s 2016 Five-Year Offshore Leasing Plan. The matter is now in court. The State’s motion seeks to intervene in support of the President’s April order. “In filing this motion, our objective is to make sure that the State of Alaska has future development opportunities in the Arctic OCS,” said Governor Bill Walker. “State agencies routinely balance environmental conservation and protection with responsible resource development, and the Arctic OCS is no different. This gives the state a unique stake in the outcome of this litigation,

and puts us in the best position to defend those interests.”gov.alaska.gov

YWCA ALASKA

he 2017 YWCA Alaska/BP Women of Achievement awardees have been selected. After carefully reviewing all nominations, an independent selection committee chose to recognize the following ten women who demonstrate qualities of leadership and excellence in their professional and personal endeavors, as well as for their contributions to the larger community. n Darci Ahlin-Stieren, Owner of HR Solutions n Michelle DeWitt, Executive Director of Bethel Community Services Foundation n Wanda Greene, Chair of Anchorage Equal Rights Commission n Amanda Metivier Hernandez, Youth Education Coordinator of Child Welfare Academy at University of Alaska Anchorage n Betty Huntington, CEO of Gana-A’Yoo n Nina Kemppel, President and CEO of Alaska Community Foundation n Nance Larsen, Owner of MCPR Strategies n Marie Monroe, General Manager of Doyon Tourism and Kantishna Roadhouse n Suzi Pearson, Executive Director of Abused Women’s Aid in Crisis n Joanne Phillips-Nutter, Director of Marketing and Development of Camp Fire Alaska ywcaak.org

of Alaskans for a variety of activities such as soccer, running, baseball, flag football, and fitness. The roof of The Dome collapsed January 21 under the weight of heavy snow, tearing the roof’s fabric and causing other damage. Since then, the facility’s board of directors has been working to find a solution to get it repaired and up and running. Anchorage developer and philanthropist John Rubini recently stepped in to help find a path forward, arranging funding through loans and donations to buy out The Dome’s bondholders. Rubini is CEO of JL Properties, based in Anchorage. The Anchorage Opportunity Fund, a public private partnership between a group of local investors and the Municipality of Anchorage’s 49th State Angel Fund, will invest in The Dome. Work on repairs is already underway. The Dome retained Davis Constructors as General Contractor for the project. thedome.us

FOREST SERVICE

Map courtesy of the US Forest Service, Tongass National Forest

ALASKA AIRLINES

laska Airlines announced that Singapore Airlines is its newest Global Partner. Members of Alaska Mileage Plan and Singapore Airlines KrisFlyer loyalty programs began earning miles on each other’s flights since September. In addition, the two carriers will enact a codeshare partnership, pending government approval, which allows guest booking through Singapore Airlines to travel on both airlines and enjoy seamless reservations and ticketing, one-stop check-in, baggage checked to final destination, and coordinated flight schedules. alaskaair.com

Compiled by Tasha Anderson

THE DOME

he Board of Directors of “The Dome” reached a definitive agreement to repair and reopen the facility, scheduled for this month. Over the past decade, the 200,000 square foot indoor sports facility has been used by thousands

he Tongass National Forest recently awarded the contract for replacing the Neva Lake Bridge over South Creek on the Juneau Ranger

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INSIDE ALASKA BUSINESS

Images courtesy of GCI

GCI

a number of upgrades and improvements in the region, including the introduction of the new “No Worries” Internet plans in three rural hub communities; the completion of the TERRA project’s heavy construction phase, bringing broadband to Western and Northwest Alaska; and the opening of a new storefront in Kotzebue, enhancing the customer service experience throughout the community. GCI announced a new stealth cell tower in Anchorage’s Rogers Park neighborhood that is providing greater capacity and coverage to GCI customers in Alaska’s largest city. The new tower fills a gap in coverage that GCI identified during network testing. Funding for the $750,000 project was approved in 2014, and, since then, GCI crews have worked to permit and build the new site. GCI’s three stealth cell towers, disguised as spruce trees, fit seamlessly into the landscapes of Rogers Park, Kincaid Park, and Birchwood. The Rogers Park tower project is part of a $30 million commitment by GCI this year to expand and upgrade wireless communication throughout the state. In late September GCI launched its 1Gig red Unlimited plan, the fastest unlimited Internet package in the state. The long-sought upgrade is a major step forward for Internet users in Alaska. Additionally, GCI upgraded its Simply Unbeatable wireless plans to also be unlimited. The new Unlimited Plan is available to customers who subscribe to GCI’s 1Gig red Internet plan and Simply Unbeatable wireless plans. GCI customers who already subscribe to these services will automatically be upgraded to the new Unlimited Plan. gci.com

T G

CI celebrated the completion of the heavy construction phase of the Terrestrial for Every Rural Region (TERRA) high-speed Internet project in September. TERRA is a massive Alaska infrastructure project that, when complete, will connect eighty-four rural communities to modern technology with high-speed terrestrial broadband. In recent months, GCI made

ANALYTICAL CONSULTING GROUP

he Analytical Consulting Group now offers a variety of in-class trainings on accounting, payroll, grant management, budgeting, Microsoft programs, and other system software. Many of these hands-on trainings are provided in a one-day course or can be completed within a few days. Information about the classes and the schedule are accessible on ACG’s new website, acgak. com/classes. Participants are also able to register for classes on the website. Upcoming classes

include Year-End Payroll, and Microsoft Excel, which includes three levels of development. The courses provide cost-effective training to give staff the additional skills and knowledge they need to be successful in the workplace. acgak.com

RIVR

new online radio station launched in Alaska providing 24 hours of daily streaming content. The RIVR (Rising Indigenous Voices Radio) is live at www.therivr.net and plays a curated selection of pop, hip-hop, alternative, and electronic dance music, as well as a regular rotation of contemporary indigenous music and nationally syndicated podcasts. Developed with Alaska Native youth in mind, the RIVR focuses on providing content that is both new and familiar to Alaskans, and the digital component allows listeners from all over the world to tune in. The station features nationally syndicated programs and podcasts and offers a platform for Native youth perspectives. RIVR streams in high-definition sound quality and is produced as a component of Koahnic Broadcast Corporation’s operations.

ALASKA AIR CARGO

laska Air Cargo opened a new chapter in its business, introducing the first converted Boeing 737-700 cargo aircraft. The aircraft is the first of its kind in the world and was converted from an all-passenger to an all-freight aircraft. The aircraft entered commercial service in September, carrying goods from Seattle to Alaska. Alaska will take delivery of two more converted 737-700 freighters, allowing the new, all-cargo fleet to carry 15 percent more capacity overall. Alaska operated one 737-400 freighter and four 737-400 combi aircraft, which carry

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Photo courtesy of Alaska Air Cargo

District to Rock-N-Road Construction Inc. of Petersburg. The existing timber bridge was closed to all vehicle traffic in July 2016. The bridge was deemed unsafe because of main support beam failure. It will be replaced by a government provided prefabricated steel truss. The bridge is located on National Forest System Road 8552, Mile Post 1.5 at Excursion Inlet. The project will be paid for with a combination of Haines Borough ($270,000), Secure Rural Schools Act ($50,000), and the Forest Service Capital Improvement and Maintenance funding. The Forest Service anticipates transferring ownership of the bridge to the Haines Borough after the project is completed. www.fs.usda.gov/tongass/

Compiled by Tasha Anderson both passengers and cargo. Alaska retired its entire 737-400 combi fleet in October.

Map courtesy of Broadview Networks

BTYDENTAL

roadview Networks, a leading cloud services provider, has released a map naming btyDENTAL as the fastest-growing company in Alaska. Broadview created the map using data from the annual “Inc. 5000” report. btyDENTAL, an Anchorage-based services provider, placed 3,441st on the Inc. 5000 list overall—the designation follows a three-year stretch during which the company grew 91.1 percent. Annual revenue for btyDENTAL is $12.9 million. Last year, Alaska’s fastest-growing company was AirFrames Alaska; the manufacturing company had grown 182.6 percent to claim the 2,046th spot on the list. btydental.com

The new grant comes from the US Department of Energy through the Advanced Research Projects Agency-Energy. The project aims to integrate the entire seaweed farming process, including seed production, planting, growing, harvesting, and re-seeding, using methods from the commercial fishing industry. The Alaska project team also includes Hump Island Oyster Co., R&M Engineering, Efficient Coastal Resources, and Kodiak Island Sustainable Seaweeds. uaf.edu

ALYESKA TIRE

ocal tire company, Alyeska Tire, has been named the winner of Tire Review magazine’s prestigious Top Shop Award. The award recognizes tire dealers across North America who prioritize customer service and retention, outstanding products, employee satisfaction, business growth, and involvement in their communities. Established in 1978, Alyeska Tire began as a single used car dealership and auto parts store. Today, the company has eight locations from Homer to Fairbanks. Alyeska Tire is owned by Jerry and Carla Wortham and operated by son, Craig Wortham. alyeskatire.com

VIGOR

UAF

half-million-dollar federal grant is headed to the University of Alaska Fairbanks for seaweed farming research, a growing industry in Alaska. Michael Stekoll, a biochemist with a joint appointment at the College of Fisheries and Ocean Sciences and the University of Alaska Southeast, will be the lead researcher on the project. The goal is to improve methods of growing, harvesting, and transporting farmed sugar kelp, a common edible seaweed. With more than twenty-five years of experience in the field, Stekoll is considered one of the state’s experts in seaweed farming in Alaska. He is already working on a $418,000 project funded by the National Sea Grant College Program to develop cost-effective cultivation methods so Alaska producers can grow and harvest commercial quantities of sugar kelp, Saccharina latissima.

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Renderings courtesy of Vigor/BMT

n a highly competitive bid process, the US Army chose a Vigor design for its new generation of landing craft. The contract represents the larg-

est award in Vigor’s history with a total value of $979,390,000 over a ten year period and will provide sustained full time employment for roughly 200 skilled artisans. The Vigor MSV(L) design was developed in partnership with BMT following a detailed study of the Army’s unique needs and the available design options to fulfill those needs. It dramatically improves the capabilities of the current LCM-8 and provides the optimal combination of performance, operational flexibility, and life-cycle cost while maintaining the reliability and versatility of the Army’s current craft. Vigor’s team currently consists of a number of key partners including BMT, Gladding-Hearn, and Northrop Grumman. vigor.net

USCG

n behalf of the Commandant of the Coast Guard, Admiral Paul Zunkuft, Rear Admiral Michael McAllister, Seventeenth Coast Guard District commander, signed a Memorandum of Agreement with the University of Alaska Southeast (UAS) establishing the university as a member of the Coast Guard’s Minority-Serving Institution partnership program. The purpose of the program is for the Coast Guard to recruit, retain, and sustain a ready, diverse, and highly skilled workforce. Central to this partnership is the Coast Guard’s College Student Pre-Commissioning Initiative scholarship program, which is designed for motivated individuals who demonstrate high academic and leadership excellence and desire to serve their country in the United States Coast Guard. Students can apply if they are currently enrolled, accepted for enrollment, or pending enrollment in a full-time bachelor’s degree program at Minority-Serving Institutions and have the desire to receive a guaranteed commission as an officer in the United States Coast Guard. This newly-formed partnership also assists UAS by providing additional tuition-saving choices and academic options and future employment for UAS students. In addition, this agreement provides UAS and the Coast Guard the opportunity for greater collaboration in the areas of mariner training and marine science. gocoastguard.com R

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ALASKA TRENDS ANS Crude Oil Production 10/02/2017 05/01/2015

Advanced Exploration Projects Bokan Mountain

01/01/2014

Rare earth elements

09/01/2012

 Ongoing environmental baseline monitoring studies  Constructed pilot plant to advance feasibility of separating rare earth derived ore  190 potential production jobs

05/01/2011 01/01/2010 09/01/2008

Chuitna Coal

05/01/2007

Coal

01/01/2006

 Anticipate draft permit decisions in 2017-2018; public notices and review expected in early 2017  300-350 potential production jobs

ANS Production per barrel per day 524,370 Oct. 2, 2017

09/01/2004 05/01/2003 01/01/2002

Donlin Gold Gold

09/01/2000

0 400,000 800,000 1,200,000 SOURCE: Alaska Department of Revenue Tax Division

ANS West Coast Crude Oil Prices 09/29/2017

 Discovered in 1988; exploration since 1995  Permitting process began in 2012; final EIS in 2018  Up to 90% Calista shareholder hire on-site  Up to 1,200 potential production jobs, depending on the production timeline

Livengood Gold

09/01/2014

09/01/2010

 Placer mining began in 1914, lode exploration in 2003  Approximately $226 million invested to date  Completed new pre-feasibility study after 2016 project optimization work  330 potential production jobs

09/01/2008

Niblack

09/01/2012

Copper, gold, silver, and zinc

09/01/2006

ANS West Coast $ per barrel $57.31 Sept. 29, 2017

09/01/2004 09/01/2002 09/01/2000 $0

$20

$40

$60

$80 $100 $120 $140 $160

SOURCE: Alaska Department of Revenue Tax Division

Statewide Employment Figures 10/1976—7/2017 Seasonally Adjusted 08/01/2017 11/01/2012 01/01/2010 03/01/2007 05/01/2004 07/01/2001 09/01/1998

Labor Force 365,109 Aug. 2017 Employment 338,954 Aug. 2017 Unemployment 7.2% Aug. 2017

 Ongoing exploration for more than 35 years  $43 million invested since 2009  Focused on engineering, environmental, and other technical studies to support the prefeasibility study  160-200 potential production jobs

Palmer

Zinc, copper, gold, and silver

 Focused on resource evaluation and exploration drilling  $30 million invested since 2006  300 potential production jobs

Pebble

Copper, gold, and molybdenum

 Discovered in 1987 on State of Alaska land  Ongoing exploration, engineering, and environmental studies since 2002  Over $150 million spent on environmental baseline studies  Approximately 1,000 potential production jobs

Upper Kobuk Mineral Projects (Arctic & Bornite) Copper, zinc, gold, and silver

11/01/1995

 Significant exploration work conducted since 2011  Preliminary Economic Assessments completed for underground and open pit operation (Arctic)  Updated resource statement in 2014 (Bornite)  Completed drilling program and technical studies in 2015-2016 (Arctic)  Environmental baseline data collected (Arctic)

01/01/1993 03/01/1990 05/01/1987 07/01/1984 09/01/1981

Wishbone Hill

11/01/1978

Coal

01/01/1976 0 100,000 200,000 300,000 400,000 SOURCE: Alaska Department of Labor and Workforce Development, Research & Analysis Section; and US BLS

 First mined in 1916; project feasibility study in 2011  75-125 potential production jobs

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Alaska Business | November 2017 www.akbizmag.com

Compiled by Alaska Business Staff

Producing Mines Advanced Exploration

Economic Feasibility & Environmental Studies

Permitting

Financing

Fort Knox Gold

 Alaska’s largest producing gold mine; poured 7 millionth ounce in 2016  Celebrated 20th Anniversary of production in 2016  Largest single property taxpayer in the Fairbanks North Star Borough  660 employees in 2016

Greens Creek

Silver, zinc, gold, and lead

 Among the top 10 primary silver producers in the world  Discovered in 1975, producing from 1989 to 1993, and continuously since 1996  Largest property taxpayer in City & Borough of Juneau  Largest Southeast Alaska for-profit employer, in terms of payroll  420 employees in 2016

Kensington  Produced over 126,000 ounces of gold in 2015  Exploration underway to expand ore zones  Second largest Southeast Alaska for-profit employer, in terms of payroll – over $44 million in 2015  Second largest property taxpayer in City & Borough of Juneau  325 employees in 2015

Pogo Gold

 Discovered in 1994, producing since 2006  Celebrated 10th Anniversary of production in 2016  Paid $57 million in wages and benefits in 2016  317 employees in 2016

Red Dog

Zinc, lead, and silver

 The world’s largest zinc concentrate producer  Only taxpayer in the Northwest Arctic Borough  Discovered in 1968, producing since 1989  600 employees (including contractors) in 2016

Usibelli Coal Coal

 In continuous production since 1943  Fuels 29% of Interior Alaska’s electricity  110 employees in 2016

Map and data courtesy of Alaska Miners Association and the McDowell Group

Gold

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ADVERTISERS INDEX 49th State Brewing Company..........120 Advanced Dental Solutions Inc..........24 aeSolutions Alaska LLC...........................84 AECOM............................................................54 Alaska Aerial Media...................................93 Alaska Airlines............................................. 14 Alaska Dreams Inc.....................................45 Alaska Gasline Development Corp......95 Alaska Oil & Gas Assoc.............................11 Alaska Process Industry Careers Consortium............................................25 Alaska Railroad........................................... 78 Alaska Traffic Company.......................... 81 Alaska USA Federal Credit Union.......20 ALSCO..............................................................32 Alyeska Pipeline Service Co.................83 Alyeska Resort..............................................51 American Fast Freight.............................. 77 American Heart Assoc..................48, 97 American Marine / Penco......128, 129 Anchorage Sand & Gravel.....................36 Arctic Catering & Support Services.................................................... 67 Arctic Chiropractic................................ 119 Ashbreez Boatworks..............................111 AT&T................................................................. 13 Avis Rent-A-Car....................................... 121

Bureau Veritas.............................................50 Business Insurance Associates Inc...36 C & R Pipe and Steel Inc.........................85 Calista Corp..................................................54 Canadian National Railway................... 75 Carlile Transportation Systems..........23 CH2M...............................................................49 CIRI.................................................................124 Conam Construction Co.........................31 Conrad-Houston Insurance Agency...............................24 Construction Machinery Industrial (CMI)........................................ 2 Crowley Petroleum Distribution........ 41 Cruz Companies Alaska..........................72 Delta Leasing LLC......................................44 Dianne’s Wild Fork Catering.............. 118 Donlin Gold.................................................. 53 Dowland-Bach Corp................................50 Enviromental Contracting Solutions..................................................56 Equipment Source Inc.................................3 Explore Fairbanks................................... 115 Fairweather LLC..........................................89 First National Bank Alaska.........................5 Foss Maritime...............................................39 Fountainhead Hotels............................ 113

GCI.................................................................132 Global Diving & Salvage Inc.................87 Historic Anchorage Hotel................... 118 Holmes Weddle & Barcott.....................85 Insurance Brokers of Alaska an Acrisure Co.......................................29 Judy Patrick Photography.................130 Kinross Ft. Knox..........................................70 Landye Bennett Blumstein LLP........... 15 Lynden Inc......................................................71 Matheson Tri-Gas...................................... 53 Matson Inc....................................................79 Mechanical Contractors of Fairbanks............................................ 33 N C Machinery.............................................65 Nana Regional Corp................................. 55 New Horizons Telecom Inc..................68 Northern Air Cargo...................122, 123 Northrim Bank............................................. 10 Novagold Resources Inc........................ 73 Oomingmak Musk Ox Producers Coop.................................117 Orica Mining Services...........................131 Oxford Assaying & Refining Inc.........43 Pacific Pile & Marine.... 125, 126, 127 Pacific Seafood Processors Assoc....99 Parker Smith & Feek.................................. 19

PenAir..............................................................80 Quintillion Networks...............................88 Ravn Alaska...................................................... 9 Resource Development Council........ 57 Samson Tug & Barge................................26 Seatac Marine Services........................... 78 Shoreside Petroleum...............................46 Span Alaska Transportation LLC........ 74 Stellar Designs Inc................................. 119 Sumitomo Metal Mining Pogo LLC...52 T. Rowe Price............................................... 27 Tanana Chiefs Conference Inc............ 91 Teck Alaska Inc........................................... 47 TEX-R-US........................................................84 The Plans Room..........................................31 TOTE Maritime Alaska.............................35 Trilogy Metals..............................................42 Tutka LLC........................................................39 United Way of Anchorage..................... 16 University of Alaska Southeast...........59 Usibelli Coal Mine......................................58 Vigor Alaska...............................................105 Visit Anchorage..........................................59 Voice of the Arctic Inupiat.................... 21 Washington Crane & Hoist....................92 Westmark Hotels - HAP Alaska............17

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