THE ALASKA MINER MAGAZINE: Our magazine is published quarterly and delivered to both the members of the Alaska Miners Association and to key decision-makers and leaders in Alaska and beyond. Our goal is to educate, advocate, and lead our industry as one of the strongest, oldest, and most productive corporate citizens in Alaska. AMA’s mission is to promote responsible mineral development in Alaska. We provide key communication between our members, the industry, and policymakers in and out of Alaska. Each issue includes news and information important to our industry and our constituents.
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January 2020 Volume 48, Number 1
2020: New Year, New Challenges
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INSIDE THIS ISSUE What to expect from Juneau Faces of Mining: Tisha Kuhns Next generation of Alaska miners The future of mining education?
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the state’s mining industry. Key issues in this document include secure miner- al tenure and needed amendments to the statues and ]PR`WL_TZY^_Z]P^ZWaPWZ^^ZQNWLTX^O`P_ZLʯOLaT_^ ZQWLMZ]\`LWTʭNL_TZY^]P\`T]PXPY_^LYOLMLYOZY - ment procedures; a permitting system that continues to protect Alaska’s environment while providing for PʯNTPYNdLYONP]_LTY_d&PY^`]TYR^[PNTLWOP^TRYL_TZY^ of Alaska’s waters are done only by the Legislature and that managing said waters is not delegated to out- side agencies or private parties; and providing for an equitable local taxation regime. We’ve heard Alaska’s miners loud and clear: these issues are imperative to ^PN`]P_SP^TRYTʭNLY_LXZ`Y_ZQTYaP^_XPY__SL_XTY - ing projects require. To increase our connections with the Legislators, we’ll again talk in person at the reception we jointly sponsor with the Associated General Contractors and Alaska Trucking Association. This event, held Feb. 11 at 5 p.m. at the Baranof Hotel, draws a large crowd of lawmakers who appreciate the organizations’ team- bZ]V4_T^Z[PY_ZLWWXPXMP]^^ZTQdZ`ʭYOdZ`]^PWQ in Juneau that day, please do join us. Outside Juneau, and Alaska for that matter, we’ve got another top priority in putting together the Alaska Night Reception at the Association of Mineral Explo- ration – British Columbia Roundup. We hosted Alaska Night on Jan. 22 at the Vancouver Convention Center. This year we had a special guest as Gov. Mike Dunleavy and key members of his team joined us, to show the rest of the mining industry that Alaska is indeed open for business and welcoming new mining projects. This was our opportunity to market Alaska’s mineral poten- tial to global investors and parties interested in eval- uating our state. A huge thank you to the many AMA members who sponsored this event, and to our Gover- nor for taking the time to put Alaska on display. It was LYPcNT_TYRLYOSTRSWdMPYPʭNTLW_]T[QZ],WL^VL It’s a new year, and time for many of you to re- new your annual membership. If you haven’t already, please do so as soon as possible, certainly by Jan. 31 to be included in the 2020 Alaska Miners Handbook and Service Directory. A huge and heartfelt THANK YOU for your support: you make it possible to carry out AMA’s mission all year. We have many challenges and many opportuni- ties in the weeks and months ahead, but we’ve got an amazing group of Alaska’s miners eager to rise up, meet, and seize it all. Thank you for your support, and your engagement, in promoting responsible mineral development in Alaska.
AMA Members and Friends,
Happy New Year! I hope yours was a joyful holiday season, and I am sure we all agree it went by entirely too quickly. We are in store for a great year, in which we see big things happening in our industry. But we also have a lot to do. So what do we “see” (ha-ha, I’m sorry, terrible pun) for 2020? There’s been important progress on several of the key new projects being developed and permitted in the state, with the potential to add hundreds if not thou- sands of important and well-paying jobs in Alaska. You’ll notice much of our focus in this issue of the Alaska Miner is on young people in mining, from teen- age underground miner Nikola Maccabee, to powerful words on the importance of mining from our 2019 Toni Goodrich scholarship winners. You’ll also learn more LMZ`__SPʭYLYNTLWNSLYRP^QLNTYR_SP^_L_Pɪ^`YTaP]^T_d system and the critical MAPTS training program, which is so important for training new miners. In preparation for the 31st Legislature that gaveled in Jan. 21, our State Oversight Committee has rolled up _SPT]^WPPaP^LYO^TRYTʭNLY_Wd]PaT^POZ`]LYY`LW4^^`P^ of Concern document, which you’ll see featured in this magazine. We use this document each year to commu- nicate our major issues and positions to the Legislature LYO,OXTYT^_]L_TZYZʯNTLW^BPɪaPMPR`Y_ZOT^_]TM`_P it as the Legislators make their way to Juneau, to ensure they know what issue can make or break the growth of
Deantha Crockett AMA Executive Director ctor
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The Alaska Miner is dedicated to those who work in and support the mining industry in Alaska, its commitment to the people, and resources of our state. Our magazine is published quarterly and delivered to both the members of the Alaska Miners Association and to key decision makers and leaders in Alaska and beyond. Our goal is to educate, advocate and lead our industry as one of the strongest, oldest and most productive corporate citizens in Alaska. AMA’s mission is to promote responsible mineral development in Alaska.
EDITORIAL CALENDAR
ALASKA MINERS ASSOCIATION STAFF
&TVMP Fairbanks Convention
Executive Director
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/YP] People in Mining 4GXSFIV Anchorage Convention 2020 /ERYEV] Legislative and Season Preview
Membership and Fundraising Director
Projects Manager
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Bookkeeping and Membership
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EXECUTIVE BOARD
BRANCH CHAIRMEN
'MPP/IǺVIWW President, SRK Consulting, Anchorage 'EVXP]0PIZIR First Vice President, Kinross–Fort Knox, Fairbanks 1SVEPMMQSR Second Vice President, Usibelli, Anchorage 0MQ&EWERH Treasurer, Aasand & Glore LLC., Anchorage
-SYWXSR2SVVMW Kenai
8IH-E[PI] Anchorage 1SVEPMMQSR Denali 2EVO-YǽRKXSR Fairbanks 1M^(SVRINS Haines /MQ(PEVO Juneau
'PEOI'SKEVX Nome &RHVI[TSOIP] Ketchikan/
Prince of Wales
The Alaska Miner is published in partnership with the Alaska Miners Association by Fireweed Strategies LLC, 4849 Potter Crest Circle, Anchorage, AK 99516. We actively seek contributions from our members and the mining industry. For advertising information or news tips, call or email publisher Lee Leschper at 907-957-6025 or Lee.Leschper@FireweedStrategies.com.
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Make 2020 the best year yet for AMA
ŮʱƋƵĜĬĬĵ±ĩåeaeåƴåĹĵŅųååýåÏƋĜƴåĜĹ the coming year and decade is more of our members participating in the AMA committees to share expertise, experiences and insight to better our organization and the mining industry.”
H appy New Year!
Natural Resource Waters (ONRW), the Roadless Rule in the Tongass National Forest, and the dishonest and deceitful characterization of social impacts from mining are a few of the challenges we face. Some of these issues have continued to menace the resource development industries through a couple of administrations and are hopefully coming to the point of final resolution with this legislative session. Mineral tenure and IFRs have languished in the bureaucracy and political limbo for years even with continuous pressure from AMA. Recent dialogue with the Alaska Departments of Natural Resources and Fish and Game have provided some glimmer of optimism regarding meaningful progress toward resolution of the mineral tenure and the IFR issues that continue to cause uncertainty for claim owners and disincentives for investment. Unfortunately, we have been assured in the past the issues would be resolved, so we will remain cautiously optimistic until we see words put into actions. Legislation is required to ultimately fix the mineral tenure and the Tier 3 ONRW designations. AMA remains committed to working with the legislature, administration, and other stakeholders to address and
Here we are at the start of 2020 and heading toward year 81 for
the Alaska Miners Association (AMA). 2019 was a notable year for AMA highlighting how effective volunteer organization can be considering the numerous issues the mining and resource industries have dealt with on the national and state level. The activities of the AMA Director, staff, and committees are only possible through the generosity and dedication of its members, sponsors, and vendors, as again demonstrated at the record-breaking 2019 AMA Annual Conference in November. The participation in the technical sessions and at the trade show was phenomenal. I am truly thankful and proud to be a part of such an outstanding group representing the mining industry in Alaska. Looking back at 2019 regarding the issues that continue to plague the mining industry and make the slogan “Alaska is open for business” a little less certain and hazy, AMA has steadfastly worked with State of Alaska resource agencies, federal land managers, the legislature, and the executive branch to do what is right for Alaska and our industry. Conflicts with mineral tenure, instream flow reservations (IFR), Tier 3: Outstanding
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resolve the issues with sensible legislation and regulations. The “Roadless Rule” may finally be resolved with the ongoing NEPA review and amendment to the Tongass Forest Land Management Plan that would give a total exemption for the Tongass National Forest and allow logging, research, access for mineral exploration and development. AMA’s past President, Mike Satre set the stage in his November 2019 AMA Mining Journal rebuttal to the outlandish report “The Social Costs of Mining on Rural Communities” published by opponents of the Constantine’s Palmer Project located near Haines, Alaska. Mike’s rebuttal has galvanized the mining industry to push back on the outright fabrications and “lies” in the report. Modern mining in Alaska and its benefits to communities are a tremendous success story. Every miner and our support industries need to
communicate that to everyone who will listen. The mining industry, vendors, and AMA are the best advocates to tell our story about the benefits of a career in the industry (including some the highest-paying jobs and beset benefits in the state) and the social benefits to communities, the State of Alaska and the Nation. AMA is a volunteer organization that has based its success on the dedication and diverse experience of our member companies, individual members and extraordinary staff. What will make AMA even more effective in the coming year and decade is more of our members participating in the AMA committees to share expertise, experiences and insight to better our organization and the mining industry.
Bill Jeffress AMA President
BUILDING ALASKA ONE OUNCE AT A TIME
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January 2020
The Alaska Miner
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Next generation: The future Contributed Photos 8LITVMRK'MIRRMEP&PEWOE2MRIVW(SRJIVIRGIMR+EMVFEROWSǺIVWǻIPHXVMTWXSPSGEPQMRIWXIGLRMGEPWIWWMSRWZEVMSYW IHYGEXMSREPTVSKVEQWERHEXVEHIWLS[
Register now to attend and showcase your successes The future of Alaska mining, and the next gen- eration of miners who will lead the industry, are the focus for the Spring Biennial Alaska Miners Convention in Fairbanks. The spring event, March 30-April 4, is hosted by the AMA Fairbanks chapter and gives Interior miners and mines a chance to showcase their suc- cess stories. Make plans now to attend! Registration is avail- able now at AlaskaMiners.org. The conference centers around technical ses- ^TZY^ ʭPWO _]T[^ _Z WZNLW XTYP^ aL]TZ`^ PO`NL -
tional programs and a trade show. This confer- ence will allow you to meet professionals from all aspects of the mining industry while enjoying spring in Interior Alaska. Conference week includes many networking events, a mining trade show, representatives from operating mines and potential mining develop- ment projects in Alaska, educational short cours- es and technical sessions. This year’s agenda will include a look at many of the forces shaping the coming decades — potential new projects, more +EMVFEROW XL'MIRRMEP(SRJIVIRGI (EVPWSR(IRXIVƳ+EMVFEROW 2EVGL&TVMP
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The Alaska Miner
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6\YÅL_PIPSP[`HUKKLKPJH[PVUOH]LLUHISLK\Z[V ILJVTLH[VWWYV]PKLYMVY[OLOLH]`JP]PSJVUZ[Y\J[PVUHUK YLZV\YJLKL]LSVWTLU[PUK\Z[YPLZ MOVING THE EARTH
access to resources, the chal- lenges of training and recruit- ment more miners and the role of new technology. The Fairbanks conference is also a great time for local min- ers who might not make the fall convention to learn and connect with the industry. Registration is or will soon be open at AlaskaMiners.org, as well as new updates on programs and speakers. 1LT]MLYV^LW^ZZʬP]^L__PYOPP^ the unique opportunity to vis- it several area mines with both above and below ground tours. Space is limited for these tours, which always sell out, so reserve your spot as soon as possible. Tours will be March 30 and April 4, and reservations can be made at AlaskaMiners.org. Most conference events are at the Carlson Center in Fairbanks. It’s the support of our indus- try, both as sponsors and as ven- dors displaying at our trade show, that make these events possible. It’s not too late to sign up ei- ther as a sponsor or to reserve your booth at the Trade Show or Core Shack. Call or email Jenni- fer Luiten for more information at 907-563-9225 or Jennifer@ AlaskaMiners.org. We have secured special con- ference hotel rates from both the Westmark and Clarion Hotels. Go online at AlaskaMiners.org for discount codes and to make res- ervations. ,WL^VL,T]WTYP^T^LRLTYZʬP] - ing a 7% discount on airfare to the conference. Travel dates are March 27-April 7 and you’ll need the conference discount code ECFM58 to earn the discount bSPYMZZVʮTRS_^ Register today and watch AlaskaMiners.org and our Alaska Miners Facebook page for daily updates!
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January 2020
The Alaska Miner
2020 Alaska Mining Outlook g ‘Massive opportunities’ for minerals industries
Permitting, budgeting will remain in the spotlight
BY TIM BRADNER
For The Alaska Miner Alaska has moved up several notches in the Fraser Institute’s last annual minerals industry survey, so Alaskans must be doing something right. The state is the second-best place for min- ing investment in the United States in the latest 1]L^P] ]P[Z]_ BZ]WObTOP ,WL^VL T^ ʭQ_SMP^_ In Fraser’s previous report, the state was No. 10 in the worldwide measure, which is still notable amid 91 jurisdictions in the survey. “Every year, the Fraser Institute solicits data over several months from 2,600 individuals and companies involved in various facets of the min- ing industry,” said Brent Goodrum, Alaska Dep- uty DNR Commissioner. It’s always been known that Alaska has one of the world’s best endowments of mineral re- sources, but a lot of the recent gain in Fraser’s ranking has to do with an improved regulatory environment. For the 2018 report, 291 responses were re- ceived with data on 91 jurisdictions. Goodrum indicated an increase in respondents that saw favorability in Alaska’s permitting sys- tem. Goodrum used Fraser’s rankings to promote Alaska investment at the American Exploration and Mining Association’s annual meeting Dec. 5 in Reno, Nevada. For the most part, Alaska has been politically friendly for miners since the Gold Rush. However, the remoteness of many prospects, lack of infrastructure, a strict regulatory envi- ronment and active opposition groups have giv- en the state a reputation as a tough place to do business.
Pro-mining governor changes state’s image That may now be changing. There’s a pro-min- ing governor in Juneau and a development-friend- ly federal administration in Washington, D.C. Exploration is up and the governor and state leg- islators are giving state agencies the funding they need to issue permits when they are needed, and to do the reviews thoroughly so permits can with- stand lawsuits. Credit is due the Legislature and governor be- NL`^P_SP^PL]P_Z`RSdPL]^QZ],WL^VLʭYLYNTLWWd Photo courtesy Usibelli Coal Mine )IWTMXIMXWHIǻGMXWXLIWXEXISJ&PEWOEMWMRGVIEWMRKMXWS[R MRZIWXQIRXMRWYTTSVXSJQMRMRK
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The state’s leaders are dealing bT_S WL]RP M`ORP_ OPʭNT_^ LYO are cutting spending, which is unpopular. But for the agen- cies that issue permits for de- velopment activity like mining, particularly in the departments of natural resources and envi- ronmental conservation, and _SP^_L_Pʭ^SLYORLXPOP[L]_ - ment’s habitat division, agencies have maintained the funding they need to regulate Alaska’s resource industries. Natural Resources Commis- ^TZYP] .Z]]T 1PTRP bL^ ^TRYTʭ - cantly engaged throughout the process of developing DNR’s bud- get this year. As a new admin- T^_]L_TZY NZXTYR TY_Z ZʯNP _SL_ wasn’t the case last year. “I’m upbeat about where this is headed, Goodrum said. “We have massive opportunities par- ticularly in critical and strategic minerals, and we want to be out telling our story to attract ad- ditional investors and increase exploration and development.” /P^[T_P T_^ OPʭNT_^ _SP ^_L_P is increasing its own invest- ment in support of mining. Money was added to budgets for the Division of Mining, Land LYO BL_P] _SP :ʯNP ZQ ;]ZU - ect Management and Permitting and the Division of Geological and Geophysical Surveys, even though the Department of Natu- ral Resources overall had to take a modest cut, as did many other state agencies. Budgets up in agencies that support mining The governor’s planned bud- get for Fiscal 2021, which be- gins next July, has an increase of $595,000 in general funds to in- crease the DNR agencies’ capaci- ty to review environmental stud- ies and permit applications for projects like the Ambler access
industrial road and large proj- ects that are planned, including Donlin Gold and Pebble, and the Bureau of Land Management’s pending Central Yukon land plan. The budget also proposes $500,000 in state funds to par- ticipate in a $2 million critical mineral mapping initiative in partnership with the U.S. Geo- logical Survey (USGS), the Earth Mapping Resource Initiative, or Earth MRI.
ɭ:YPZQ_SPʭ]^_^_P[^bL^_Z evaluate where Alaska has ‘ac- ceptable quality’ modern air- borne geophysical surveys,” Go- odrum said. @YOP] 0L]_S 8=4 _SP ʭ]^_ Alaska magnetic and radiomet- ]TN^`]aPdbTWWMPʮZbYTY^`X - mer 2020 in the eastern Interior, in the Tanana River uplands east of Delta.
CONTINUED on PAGE 10
Most people would be intimidated by a job description that said: “plant 27,000 trees - by hand.” But for the land reclamation crew at Usibelli Coal Mine, it’s all in a days work. This past summer, they planted trees on over 200 acres of coal mining lands. Usibelli Coal Mine restores every acre of disturbed land back to natural habitat. We started doing this in 1970, years before the law required it. Our goal is to leave Alaska as we found it — wild and beautiful. ALASKA’S GREEN MAKEOVER
Visit us at: USIBELLI.COM Vi US
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State land selections, pipeline corridor In its initiatives currently underway, Good- rum said the Division of Mining, Land and Wa- _P]T^NZY_TY`TYR_ZbZ]VbT_S_SP-78ZYʭYLW - izing the state’s remaining 5.3 million acres of land selection entitlement under the 1959 Alaska Statehood Act. As part of this the Department is also working with BLM on the pending Central Yukon land plan, which will govern management of federal lands in the northern central and northeast Interior. A draft Environmental Impact Statement (DEIS) for the Central Yukon plan is due this summer, BLM has said. 2ZZO]`X^LTOLQZN`^QZ]_SP^_L_PT^LYPʬZ]_ to get the BLM to lift its Public Land Order (PLO) 5150, a 1977 land order closing federal lands with- in the north-south Trans Alaska Pipeline System corridor. BLM could do this as part of its new Cen- tral Yukon plan and the state is watching for the DEIS to see if this will happen. The state is particularly interested in the part of the corridor from the North Slope to Interior
?SP@>2>SL^TOPY_TʭPO N]T_TNLWXTYP]LW^aT_LW_Z high-tech and defense industries where the U.S. is 100% dependent on imports and another 17 min- erals where the nation is 50% or more dependent on imports. Alaska has potential for development of many of those minerals, and the federal government has recognized that by making Alaska its own region within the Earth MRI, Goodrum said. “Alaska represents 16% of the area covered in the national inventory but we are getting 25% of the funding,” a recognition of the importance put on the state’s potential, Goodrum said. “Alaska currently produces germanium and indium, and SL^ ST^_Z]TNLWWd []ZO`NPO _TY ʮ`Z]^[L] [WL_T - num-group elements, antimony, tungsten, and barite.” In another budget item, the governor has pro- posed a capital budget addition for state Geolog- ic Material Center, or GMC for multi-spectrum scanning technology to allow improved access to data from mineral core stored at the GMC, which is in Anchorage.
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Dear Alaskans, Pebble has a clear path forward. This is an exciting time for us — and for all Alaskans. The Environmental Protection Agency (EPA) has revoked the pre-emptive veto against Pebble. This signals a fair, equitable, and reliable permitting process. The U.S. Army Corps of Engineers (USACE) released the Draft Environmental Impact Statement (DEIS) — a thorough and objective evaluation which shows clearly that Pebble FDQFRH[LVWZLWKWKHƓVKHULHV :HDUHFRPPLWWHGWRDSURMHFWWKDWEHQHƓWV all Alaskans. It is time to move forward. Tom Collier, CEO Pebble Partnership
A CLEAR PATH FORWARD
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Contributed Photo 8LIFYHKIXEPWSTVSTSWIWMRWXEXIJYRHWXSTEVXMGMTEXIMREQMPPMSRGVMXMGEPQMRIVEPQETTMRKMRMXMEXMZIMR TEVXRIVWLMT[MXLXLI9,ISPSKMGEPYVZI] 9,XLI*EVXL2ETTMRK7IWSYVGI.RMXMEXMZISV*EVXL27.
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State agencies assist mining The state has several agencies involved in land XLYLRPXPY_XZ^_bSTNSLʬPN_XTYTYRZYPbLd or another. The Division of Mining, Land and Wa- ter is responsible for management of Alaska’s state owned land and water, aiming toward maximum use consistent with the public interest. The agen- cy is responsible for managing 105 million acres of State land and 65 million acres of tide, shore, and submerged lands, including 34,000 miles of coastline, as well as all State water resources. The division authorizes land and water uses, including those of the mineral industry. Alaska Division of Geological & Geophysical Survey (DGGS) determines the potential of Alas- kan land for production of metals, minerals, fuels and geothermal resources, the locations and sup- plies of groundwater and construction material, and the potential geologic hazards to buildings, roads, bridges, and other installations and struc- tures. An important part of the DGGS mission is to determine the potential of Alaskan land for the
Alaska. The corridor is 12 to 15 miles wide along the trans-Alaska oil pipeline and was originally intended as a temporary measure to freeze land access along TAPS as it was being built in the 1970s. 3ZbPaP]T_^_TWW]PXLTY^TYPʬPN_LYOT^LYPc - ample, Goodrum said, of several existing federal PLOs that have long outlived their original pur- pose but which still close lands to multiple use activities to include mineral exploration. If PLO 5150 is lifted lands in the TAPS corri- dor will become available to the state for selection. This will not only open prospective lands to ex- ploration but will allow the state better manage- ment of the pipeline corridor for transportation, Goodrum said. An example of this is the proposed Ambler in- dustrial road which would start at the Dalton Highway within the federal TAPS corridor.
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The Alaska Miner
January 2020
production of metals and min- erals. Every summer the divi- sion conducts geophysical sur- veys, geologic mapping, and geochemical sampling. The as- sociated datasets and reports are made available to the public on the division’s web site (dggs. alaska.gov). This includes: Geophysical Surveys Mineral Occurrence Reports An Annual Mineral Industry Report is also published. :ʯNPZQ;]ZUPN_8LYLRPXPY_ & Permitting supports the state’s Large Mine Permitting Team. Numerous state, federal and local government approvals are necessary to develop and operate large hard-rock mines in Alas- ka. In response, the state has developed its Large Mine Per- mitting Team to coordinate the permitting for state agencies, and when appropriate, integrate bT_SPʬZ]_^MdQPOP]LWLYOWZNLW agencies. The goal is to provide a robust, coordinated permitting process that is predictable, consistent, and responsive to the needs of agencies, applicants, and the general public. Geologic Maps Geochemistry Elevation Data The State of Alaska’s Geolog- ic Materials Center is a world- class facility for permanently archiving, digitally indexing, and making geologic materials available to the public and in- dustry. Access to samples and data can be particularly valuable for explorers new to Alaska, en- abling preliminary investiga- tions of exploration concepts. The facility has more than 500,000 surface samples, 2,200 minerals-related drill cores, 3,096 oil and gas well cores, thin sections, seismic and well surveys, and more. The Geologic
Materials Center’s entire collec- tion also is searchable online. Although it is not a part of the Department of Natural Re- sources, the Alaska Industrial Export and Development Au- thority (AIDEA) is an indepen- OPY_ ^_L_P OPaPWZ[XPY_ ʭYLYNP corporation that plays an active role in developing infrastructure for mining. Minerals-related projects to OL_PTYNW`OPʭYLYNTYRZQ_SP=PO Dog mine road and port in the 1980s and the purchase and up- grading of the Skagway Ore Ter- minal in Skagway, in Southeast Alaska. The port provides a crit- ical transportation and shipping facility that supports operating mines in Yukon Territory. Currently, AIDEA is working on obtaining authorization to construct and operate a 211-mile industrial road to provide access to the Ambler Mining District.
For the proposed project, AIDEA bZ`WO[P]XT_ʭYLYNPLYOM`TWO the road, with mineral indus- try users repaying the cost with tolls, similar to the model used to build the Red Dog mine road and port site. The Ambler Mining District contains a more than 60-mile- long volcanogenic massive sul- ʭOP A8> MPW_ bSTNS TYNW`OP^ Trilogy Metals’ Arctic & Sun- shine deposits; Teck’s Smuck- er deposit; Valhalla Metals’ Sun deposit; and other VMS deposits and prospects; as well as Trilo- gy’s Bornite carbonate-hosted Cu-Co deposit. The U.S. Bureau of Land Management is antici- [L_PO _Z ]PWPL^P _SP ʭYLW 0YaT - ronmental Impact Statement on the Ambler road in early 2020.
Tim Bradner is copublisher of the Alaska Economic Report and Alaska Legislative Digest
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13
January 2020
The Alaska Miner
aåžž±ďåƐüŹŇķƐåĻũƐXĞž±ƐaƣŹīŇƾžīĞ ď ü
Accomplishments add up for Alaska during past year
A ^4]PʮPN_ZY_ST^[L^_dPL]L^.SLT]XLYZQ_SP Senate Energy and Natural Resources Com- mittee, I’m proud of the nation-
XLWPYP]RdPʯNTPYNdLYONdMP]^PN`]T_dLXZYRXLYd others. All told, the Energy and Natural Resources
Committee reported more than 50 en- ergy-related measures to the full Senate last year. Our focus now is on combining many of those measures into a broad- er package to modernize our nation’s energy policy. It has been 12 years since Congress updated federal energy law, so it is long overdue. We are also fortunate to have an
al policies we advanced, and the many bLd^_SZ^P[ZWTNTP^bTWWMPYPʭ_,WL^VL I’m also proud of the process we used to achieve success and the Alaskans who helped pave the way. I liken our committee to the “little engine that could.” In a Congress not often marked by cooperation, we have bucked the trend, gone to work and delivered real results. That takes com- mitment to negotiating across the aisle in good faith. It may not be the easiest ]Z`_P_Z_SPʭYT^SWTYPM`_T_SL^[]ZaPY time and again to be the best way to get there.
administration that shares our views on energy and natural resources, and rec- ognizes the contributions Alaskans can make. Both our Secretary of the Interi- or, David Bernhardt, and our Secretary of Energy, Dan Brouillette, have visited Alaska on numerous occasions. They un- derstand us and are eager to partner with us to address needs and build prosperity across our state. In July, I hosted Secretary of Agriculture Sonny Perdue on Prince of Wales Island, where he heard from many Alaskans about the burdens imposed by the Roadless Rule. I was pleased when the administration LR]PPO_Zb]T_PL^_L_P^[PNTʭN]`WPQZ],WL^VLLYO support the administration’s preferred alternative of a full exemption for the Tongass National Forest. I am also very proud of the work we accomplished bT_S_SPLOXTYT^_]L_TZY_ZSPW[]PʭWWZ`]?]LY^,WL^ - ka Pipeline. From new projects in the NPR-A to an oil and gas program for the 1002 Area, we have put Alaska back on the map. Thanks to the steps we are taking, the federal Energy Information Administration has increased its projection of Alaska oil production from 2031 to 2050 by 90%. IHS Markit, one of the nation’s leading energy consultancies, has restored the North Slope’s recognition as a “super basin” for future pro- duction. 2019 was a good year for Alaska on energy and nat- ural resources policy. With Alaskans at the helm, I look forward to continued success in 2020. Lisa Murkowski is Alaska’s senior United States Senator and chairman of the Senate Energy and Natural Resources Committee. Sen. Murkowski also serves on the Senate Appropriations Committee, where she is the Chairman of the Interior and Environment Subcommittee.
LISA MURKOWSKI
The passage of a sweeping lands package that I au- thored with many of my colleagues is a case in point. One key provision, originally sponsored by Sen. Dan Sullivan, allows Alaska Natives who served during the Vietnam War to receive land allotments the federal government promised decades ago. Another expands and enhances sportsmen’s opportunities for hunting, ʭ^STYRLYO]PN]PL_TZYLW^SZZ_TYRZY[`MWTNWLYO^ including a directive to federal agencies to keep those lands “open unless closed” for a valid reason. We also []ZaTOPOYPPOPO]Z`_TYRʮPcTMTWT_dQZ]_SP,WL^VLRL^ - line and new economic opportunities for communities such as Kake and Utquiagvik. Our bipartisan process propelled the lands package through Congress, but it is the people behind the policy _SL_`W_TXL_PWdXLVP_SPOTʬP]PYNP?SL_ɪ^bSdTYLWW of my work, I make sure to invite Alaskans to the table. Nelson Angapak, Sr., was a tireless force in helping us move the Alaska Native Vietnam veterans’ allotment provision forward. Ethan Schutt with the Alaska Native Tribal Health Consortium, Daniel Kirkwood with the Ju- neau Economic Development Council, and Mayor Harry Brower of the North Slope Borough are among the many Alaskans who have appeared before the committee to discuss our unique energy and lands issues. Whether through formal testimony or work behind the scenes, ,WL^VLY^SLaP[WLdPOL^TRYTʭNLY_]ZWPTY^SL[TYRYL - _TZYLW[ZWTNTP^_SL_bTWWM]TYRMPYPʭ_^_ZZ`]^_L_P Those policies include legislation I have written fo- cused on mineral security, advanced nuclear, geother-
14
The Alaska Miner
January 2020
Decision recognizes mining’s importance to infrastructure
facilitated by the FPISC, which Congress created in 2015 through Title 41 of the Fixing America’s Surface Transportation Act (FAST-41). “Covered projects” already eligible for the improved federal permitting process include renewable and conventional energy, surface transportation, ports and waterways, and manufacturing — all of which depend on minerals. In July, the Senate Energy and Natural Resources Committee reported S. 1317, Murkowski’s American Mineral Security Act, with language to codify min- ing as a sector covered by FAST-41. This admin- T^_]L_TaP LN_TZY ]PʮPN_^ _SP 1;4>.ɪ^ LMTWT_d _Z LOO vital sectors using its own discretionary authority. Last year, the United States imported at least 50% of 48 minerals, including 100% of 18 of them. China and Russia control the supply chain for many of these minerals. You can follow Energy Committee actions at energy.senate.gov.
SPECIAL TO THE ALASKA MINER Alaska’s Sen. Lisa Murkowski has praised the Federal Permitting Improvement Steering Coun- cil (FPISC) recent decision to include mining as a sector covered by its authority. “I welcome this announcement, which will en- ^`]P_SL_XTYTYR[]ZUPN_^MPYPʭ_Q]ZX_SP[P]XT_ - ting transparency and accountability that many other major projects already receive,” Murkowski said in a press release. “Minerals are essential to infrastructure, yet our country is deeply dependent on foreign sourc- es for everything from rare earths to cobalt. Rea- sonable steps like this one will help us change that and ultimately turn our mineral security from a weakness to a strength.” Murkowski has long called for mining to be eli- RTMWPQZ]_SP[P]XT__TYRNZZ]OTYL_TZYLYOPʯNTPYNd
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15
January 2020
The Alaska Miner
FĹ å±ÏĘ ĜŸŸƚå ŅüĘåeĬ±Ÿĩ± aĜĹåųØƵå ŞųŅĀĬå ±Ĺeae ĵåĵÆåųŅųeĬ±Ÿĩ±ĹƵĘŅűŸĵ±ĩĜĹč±ŸĜčĹĜĀϱĹƋÏŅĹƋųĜ - bution to the industry, our state and our association. This issue we’re talking with Tisha Kuhns, Vice President of Land and Natural Resources for Calista Corporation, one of Alaska’s Native Corporations. After more than a decade working directly on the Donlin Project, she now Ĭå±ÚŸ±ĬĜŸƋ±űŸåýŅųƋŸĜĹŸƚŞŞŅųƋŅüƋʱƋŞųŅģåÏƋţ ÏĘ ĜŸŸƚå Ņü Ęå eĬ±Ÿĩ± aĜĹåų Ƶå ŞųŅĀĬå ±Ĺ eae K Ʋ+EGIWSJ2MRMRK
Tisha Kuhns Calista Corporation
Who was your mentor in this industry and what did they teach you that remains true today? This one is a challenging question, as I had many excellent mentors, all of who have provided guid- ance, from core logging/geology, environmental baseline studies and database management (both ge- ology and water quality baseline management), and back to geology/exploration but this time in a private land owner position under an Alaska Native regional corporation, Calista Corporation. We have a 6.5-mil- lion-acre entitlement, with about 267,000 acres of private land for potential resource development (yes, we’re great landowners and partners!). With careful oversight as a private landowner, we are excited to see the next steps at the Donlin project. What lessons have you learned that you want to share with new miners? -PZ[PYXTYOPOLYOʮPcTMWP8TYTYRT^Q`WWZQPc - [PN_L_TZY^LYOPʯNTPYNdbT_STYLM`ORP_ ,__TXP^ it isn’t easy, with long shifts away from family and long work hours, but it really makes you appreciate the ability to do some hard but meaningful work. Ad- ditionally, for miners new to Alaska take the time to attend short courses for continuing education credits through various conferences like the Alaska Miner’s Association, RoundUP, AEMA or PDAC. BSL_bZ`WOdZ`OZOTʬP]PY_Wd* Perhaps have taken the time to get a master’s de- gree. I intended to head back to university after a few years’ experience in exploration mining, but then a little thing called life happened: two kids and large career movement by expanding my skill set into the environmental baseline management. Currently, I’m testing the masters program at APU, so we’ll see what I decide. My journey has been exciting and reward- ing, and this newest chapter of working for Calista Corporation for the Land and Natural Resource de- partment blows me away every day. To be a part of this team to bring on responsible development of the Donlin Gold mine is such an exciting time! graduate Exchange at Southern Oregon University in 2000, I had chosen biology as my major. After being YZ_TʭPO_SL_4bL^Yɪ_LMWP_ZNSZZ^P_SL_XLUZ]O`P to the high demand of that degree for in-state stu- dents, I was provided a list of alternative degree op- tions. I QUICKLY circled geology as my new declared major, never imagining it would take me this far! What was one experience you will never forget? When I was accepted into the Western Under-
I am more than content with the quickest decision of my life. Even my father thought I was silly! Gold prices were down in 2000, and as a result there was a shortage of geology posi- tions in AK, so, naturally, he was worried about me. It turned out quite alright!
What do you love most about this business? 3LYO^OZbYʭPWObZ]V?SP]PT^YZ_STYRXZ]P priceless than travel, fresh air, good company with hiking, and the gorgeous Alaskan nature while working. The other aspect that I love with this busi- ness in mining, is that our industry prides itself on environmental stewardship. This industry has prov- en time and time again that responsible develop- ment is done with exceptional environmental over- sight. If you think about it, we have never heard any operator outright say that they want a disaster of any sort. Instead, we collaborate on ideas on how to meet and exceed the basic environmental require- XPY_^4_T^\`T_P^[PNTLW_Z^PPOTʬP]PY_Z[P]L_Z]^ come together for safety and environmental stew- ardship, and collectively applaud those operations who have achieved this status. Where do you see mining in Alaska in 50 years? What do you see as our biggest challenges? And opportunities? Though we have six large mines in Alaska, we’re seeing more movement in exploration, which is en- couraging. With the hope that Donlin goes live, and potential expansions of existing mines and bringing new mines online, this only strengthens our econ- omy. We have so much of our state that we don’t fully understand for resource potential, so I would say that Alaska is young in that aspect. We have ex- cellent and modern developments and ideas. We also L]P^`NNP^^Q`WTYbZ]VTYRbT_SOTʬP]PY_LRPYNTP^ which will just strengthen the working relationships for positive developments. What keeps you awake at night? We currently have 31,000+ Calista shareholders in our region. Gaining a self-grounding vision to serve all shareholders is extremely important to me and is
16
The Alaska Miner
January 2020
Photos courtesy Tisha Kuhns &'4:* 8LI0YLRWJEQMP]WTIRHWTPIRX]SJXMQIIRNS]MRKXLI&PEWOERPMJIWX]PIMRGPYHMRKQEOMRKVIKYPEVXVMTWXSǻWLGEQT '*14; 8MWLE0YLRWMRXLIǻIPHETPEGIWLIPSZIWXLIQSWXEFSYXQMRMRKMR&PEWOE
one of my top values in life. I knew at a fairly young age that I wanted to serve our region and I’m honored to be a part of the Calista team to assist in healthy dialogue and oversight to make natural resource de- velopment happen. What does AMA mean to you? Since my career started in geology in 2005, the Alaska Miners Association annual conferences were (and still are) a huge learning event for me. Not only were the short courses great, along with panels and OTʬP]PY__]LNV^T_bL^L[WLNP_ZNL_NS`[bT_SZ_SP] colleagues, who have moved on to work on another project in Alaska. AMA has been a stable source for our industry from updates in the political realm that could have impacts on the industry to setting a high standard for oper- ating in Alaska. These standards don’t just stay within the indus- _]dM`_SL^WL^_TYRLYO[Z^T_TaPPʬPN_^QZ]Z`]NT_TP^ boroughs, businesses and, naturally, becomes such an internal standard-value that we bring it home to our families. Thank you, AMA, for keeping our indus- try aligned! Anything else you want to share? Sometimes there is the notion that private land- owners (ANCSA corporation) aren’t seen as quality partners in resource development. We have seen rumors of this in Canada and in oth- P] [WLNP^ ZQ _SP bZ]WO M`_ ,WL^VL T^ _]`Wd OTʬP]PY_
and those messages shouldn’t apply here. There is so much opportunity in exploration and development on ANCSA land, and that is a message that isn’t well VYZbYZ`_^TOPZQ,WL^VLBPʭYO_SL_bSPYbPL_ - tend large conferences, we typically meet people and end up on the conversation of development of ANCSA lands. Most of our audiences are quite intrigued by this concept and are open for exploration and devel- opment. Pass that word on!
17
January 2020
The Alaska Miner
Contributed Photo
Arnold Simon (Hooper Bay) stands in front of the 769D Haul Truck at the MAPTS center.
Concerns loom over MAPTS program funding
UAF evaluating potential cutbacks to program
ty. The business plan could include likely increase in fees for MAPTS training. About one-third of the budget for the service now comes from the uni- versity and if those are cut, fees for training would SLaP_ZP^NLWL_P_ZXLVP`[_SPOTʬP]PYNP Support from UAF to MAPTS now amounts to about $700,000 this year. According to reports, UAF is considering total elimination of support next year, in Fiscal Year 2022. The biggest expense for the service is in instructors in mining and Meet recent MAPTS graduate and new miner Nikola Maccabee on Page 28 to read his story and see how the program is making an impact on the future of mining in Alaska.
BY TIM BRADNER
For The Alaska Miner The University of Alaska Fairbanks’ venerable Mining and Petroleum Training Service could be headed for big changes. While a shutdown of the program, which trains entry-level workers in min- ing and oil and gas, isn’t on the immediate hori- zon, UAF Chancellor Dan White said the university will likely have to reshape MAPTS as it deals with sharp budget cuts. White has asked for a business plan that con- templates reductions in support from the universi-
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The Alaska Miner
January 2020
“The MAPTS Entry Level Mine Training Program is an integral ޱųƋŅüŅƚųåýŅųƋŸƋŅÚåƴåĬŅޱŸĩĜĬĬåÚĬŅϱĬƵŅųĩüŅųÏåţ åųåÏųƚĜƋŸŞåÏĜĀϱĬĬƼüŅųeĬ±Ÿĩ±ĹŸƵĘŅʱƴåĹŅĵĜĹĜĹč åƻŞåųĜåĹÏå±ĹÚĵ±ĩåƋĘåĵåĵŞĬŅƼĵåĹƋŅýåųŸÏŅĹƋĜĹčåĹƋ upon successfully completing the MAPTS course.”
— Mike Satre, Hecla Greens Creek Mining’s manager of government and community relations
petroleum operations as well as a mine safety in- structor. The program is vitally important for Alaska’s mining industry, said Mike Satre, Hecla Greens Creek Mining’s manager of government and com- munity relations. “The MAPTS Entry Level Mine Training Pro- R]LXT^LYTY_PR]LW[L]_ZQZ`]PʬZ]_^_ZOPaPWZ[L ^VTWWPOWZNLWbZ]VQZ]NPBP]PN]`T_^[PNTʭNLWWdQZ] Alaskans who have no mining experience and make _SPXPX[WZdXPY_ZʬP]^NZY_TYRPY_`[ZY^`NNP^^ - fully completing the MAPTS course,” Satre said. “While the students are not paid while attend- ing, they know they receive valuable skills and les- sons from this training program and a family sup- porting career awaits them at graduation,” he said. Greens Creek has hired 48 students in the past six years and 70% of those students continue to be employees at the mine, Satre said. White said he has received a lot of letters from TYO`^_]dTYOTNL_TYRSZbTX[Z]_LY_LYONZ^_PʬPN - tive the MAPTS training is, but he said the univer- sity is not allowed to compete with the private sec- tor. He said he is concerned about the rate structure because the service may be looked on as a subsidy by the university. White said “MAPTS is a training, not an aca- demic degree program,” so it is administered dif- ferently than, say, programs in UAF’s College of Mines and Engineering, some of which may also be on the chopping block. About half of UAF’s ac- ademic programs are now under review given the budget situation, White said, including programs in UAF’s College of Mines and Engineering. Recommendations on consolidation or termi- YL_TZYZQ[]ZR]LX^TYNW`OTYR8>;?>bTWWMPʭY - ished by mid-spring and forwarded to university president Jim Johnsen. UA’s Board of Regents will XLVP_SPʭYLWOPNT^TZY^BST_P^LTO The university faces some tough math on its budget. In a “compact” agreed last year between UA’s President Johnsen, the Board of Regents, and Gov. Mike Dunleavy, the governor agreed to
back away from a huge 42% cut in one year of state funds for the university in lieu of a phased $70 million cut over three years. The agreement, however, requires UA to accept a $20 million re- duction in Fiscal Year 2020 (the current budget year); $25 million in FY 2021, the next year, and $20 million in FY 2022, the year following. White said UAF’s share is about half of the FY Contributed Photo 4RISJXLITS[IVJYPIPIQIRXWSJXLI2&58TVSKVEQMWXLI LERHWI\TIVMIRGI]SYRK&PEWOERWEGUYMVIMRLIPTMRKXS TYVWYIXLIMVGEVIIV
CONTINUED on PAGE 20
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January 2020
The Alaska Miner
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