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.
The official magazine of the Alaska Miners Association and the mining industry in Alaska
AlaskaMiners.org
April 2019 Volume 47, Number 4
MAKING HISTORY: John Sturgeon wins Supreme
Court case for Alaska
INSIDE THIS ISSUE u Fish, mines succeed together u Faces of Mining: Click Bishop u Budget impacts on mining u Mining is good for our health
EXPECTATIONS. LIFTS WHAT OTHERS CAN’T.
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Clayton Dunn Sales and PSSR Fairbanks Branch
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Ǎ Executive Director’s Report
August 4: AMA’s Birthday So, our birthday is a Sunday. But please stay tuned on how we plan to celebrate AMA’s birthday in a new and fun way. Alaska Miners Association Annual Convention and Trade Show – November 3-9 Of course, we’ll take the opportunity to cele- M]L_PZ`]LYYTaP]^L]dbT_SLR]LYOʭYLWPL__SP Annual Convention, our AMA family reunion. The AMA Convention Committee has begun to meet on planning the week’s events, but expect our theme, special publications and features, history events, and the Banquet to be centered around 80 years of Alaska Miner excellence. Celebrating all year long! We’ve been having a lot of fun with creative ways to spotlight AMA on social media throughout the year. Part of this is calendaring out the oppor- tunities of feel-good exposure, such as: May 7: Alaska Drive Your Tractor to Work Day. While this was originally proposed to honor Alas- ka’s agriculture industry, we too drive tractors to work. Please, send us photos of your tractor and mining equipment so we can feature you on our so- cial media feeds that day. Please email photos and descriptions to laci@alaskaminers.org September 16: National Collect Rocks Day. Yes, this is a thing and no, we didn’t know either. But we have a LOT of rock collectors here at AMA. ;WPL^P^PYO`^dZ`][SZ_Z^Q]ZXTY_SPʭPWO_ST^ summer, again to Laci, so we can have a good col- lection of collectors. September 28: National Hunting Day. Oh boy! The most impressive hunting photo we get from our members will get a prize, so send us your hunt- ing photos! October 26: 9L_TZYLW8LVPL/TʬP]PYNP/Ld Please keep this in mind as all of you, individually or through your companies, are involved in philan- _S]Z[TNPaPY_^_SL_XLVPLOTʬP]PYNPTYZ`]NZX - munities and state. I want to see photos from your team’s Heart Walk, your City Cleanup, your hockey _PLXbSL_PaP]T_T^dZ`OZ_ZXLVPLOTʬP]PYNP Stay tuned as we keep coming up with ideas that will no doubt give me warm and fuzzies and provide much deserved recognition of our Associa- tion on its 80th birthday. Thank you!
H appy Anniversary … to us! Dear Members,
Incorporated August 4, 1939, thisyear
AMA celebrates its 80th Anniversary! The traditional and symbolic “gift” that honors 80 years is oak. While we aren’t a forest products association, there are some analogies to be had. AMA, like the members it represents, is a strong, hardy (and hearty!) association that has withstood the test of time and gotten better with age, just like the impressive oak tree. We will celebrate 80 years of unity with some big events, all year long: ,WL^VL8TYTYR/Ld#_S,YYTaP]^L]d6TNVZʬ;L] - ty: May 10, 2019 – Matanuska Brewing Company May 10 marks our sixth annual Alaska Mining Day, which was established by legislation sponsored by Senator Cathy Giessel “to recognize and honor the intrepid individuals and industry that played an enor- mous role in settling and developing the territory and the state and that continue to contribute to the econo- my of the state” in 2013. This May 10 is a Friday, so we decided to have some fun. Join us at the Matanuska Brewing Company, where we’re holding the Alaska Mining Day 80th An- YTaP]^L]d6TNVZʬ;L]_d ?SPPaPY_bTWWQPL_`]P,WL^VL Miner namesake beers, a Dragline Draft and a Hard Rock IPA, a specialty Gold Fever cocktail, remarks from dignitaries, live music, a highlight reel, and giveaways. Tickets are just $25 and available on AMA’s website: www.alaskaminers.org. Please join us! Mining Day at Alaska Fairs: July – August 2019 We’ll continue to partner with the Council of Alaska Producers to have an impressive presence at fairs over the summer. This year, we’ve added the Southeast Alaska State Fair in Haines. Please mark your calendars for the days below and plan to join us for showcasing our industry around the state. July 28: Southeast Alaska State Fair, Haines August 2: Tanana Valley State Fair, Fairbanks August 31: Alaska State Fair, Palmer
Deantha Crockett
The Alaska Miner
April 2019
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TABLE OF CONTENTS
2 Executive Director’s Report 4 Letter from President Mike Satre 8 Update from Alaska Legislative Session 12 Relief for small miners 16 Faces in Mining: Senator and miner Click Bishop 18 Pebble EIS moves on 22 Pete Kaiser claims Iditarod title 34 Success in restoring ǻWLIVMIW 44 Mining Business and Service Directory 58 2019 Issues of Concern 60 Coming Events
8LISǽGMEPQEKE^MRISJXLI Alaska Miners Association and the mining industry in Alaska
ON THE COVER: Alaskan John Sturgeon won a unanimous 9-0 verdict from the U.S. Supreme Court, forging not just that John can travel the Nation River via his hovercraft, but that it is the State of Alaska and not Federal authorities that have control of Alaska navigable waterways. It’s a decision XLEXGSRǻVQW&PEWOEƶWYRMUYIWXERHMRK MRVIWSYVGIQEREKIQIRXERHWSPMHMǻIW mandates set out in ANILCA. See more of Sturgeon’s 11-year battle to win the case inside. Photo courtesy John Sturgeon
THIS PAGE: Jessie Pasma, Operator Truck Driver, with one of the larger trucks at the Kinross Fort Knox Mine. Photo Kinross
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
July 2019 AMA 80th Anniversary October 2019 Anchorage Convention 2019 January 2020 Legislative and Season Preview April 2020 Project Updates
Executive Director
Deantha Crockett Jennifer Luiten Darlene Strickland
Membership and Fundraising Director
Bookkeeping and Membership
Projects Manager
Laci Michaud
EXECUTIVE BOARD
BRANCH CHAIRMEN
Mike Satre President, Hecla Greens Creek Mining Co., Juneau 'MPP/IǺVIWW First Vice President, SRK Consulting, Anchorage Bartly Kleven Second Vice President, Kinross–Fort Knox, Fairbanks Kim Aasand Treasurer, Aasand & Glore LLC., Anchorage
/MQ)YǽIPH Kenai Blake Bogart Nome Andrew Spokely Ketchikan/
Ted Hawley Anchorage Roger Speer Denali Anna Atchison Fairbanks James Sage Haines Frank Bergstrom Juneau
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.
April 2019
The Alaska Miner
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Alaska’s miners set examples to follow
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BY MIKE SATRE
set at our existing operations will allow us to permit and develop more mines in Alaska, and other jurisdictions as well. This is a responsibility and a mission that we all must take seriously. This responsibility begins when the first exploration geologists are working in an area and continues throughout the life of a mine until reclamation and closure. At each phase of the mine life, it is more important than ever that we are transparent with our stakeholders and that we perform to the highest safety and environmental standards. We must also be mindful to always fulfill our commitments, both real and implied, and that we do not allow our stakeholders to have unrealistic expectations for our timelines and community impacts. Because every time that we fail in this mission, we allow those that oppose our industry to drive one more nail in our coffin. Thankfully, Alaska’s miners understand this and take this seriously. Does this mean that our collective record is spotless? No. But Alaska’s miners are proud of their ability to admit when we have failed to fulfill our mission and we strive to learn from our mistakes.
Who cares about Alaska? The members of the Alaska Miners Association, that’s who! Our members are fiercely proud and protective of our state, its environment, its people and its resources. We understand that mining in Alaska poses unique challenges and we have been driven to develop innovative solutions to be successful. As a result, there is no question that we lead the world in balancing mineral extraction with protecting our environment. Alaska’s miners — both large and small — know their actions are constantly under a microscope. In today’s connected world, it only takes a moment for any lapse in judgement, no matter how inadvertent, to be spread across various mediums in an effort to discredit our industry. We know that each shift that we safely complete not only gives us the ability to go home and see our families, but also allows us the social license to come back tomorrow, and the next day, and the next, in order to do it all over again. Our miners understand that the example we
The Alaska Miner
April 2019
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Anytime we have lapsed in our mission, the members of the Alaska Miners Association have gone to great pains to analyze why that occurred in order to place controls in place so that it won’t happen again. Continuous improvement isn’t just a corporate buzzword in our industry, it is how we do business each and every day. We do this because it is the right thing to do. We do this because we care about Alaska. Alaska is poised to develop and deliver the minerals that are needed to fill our country’s needs. As we move as a country toward “green” technologies, Alaska’s mineral resources will be critical in powering this transition. We have a new governor that has committed to the mining industry that “Alaska is open for business” and new investment dollars are starting to come our way. But our resources will stay in the ground if we do not maintain our continued vigilance in holding ourselves to the highest of standards each and every shift. Miners in Alaska are an incredibly diverse group of people. We mine in different environments, looking for different metals and
minerals using very different technologies and methods. We may disagree at times, but what holds us together is pride in our industry and pride in our state. This is our home and we take our responsibility to protect it, and our industry, very seriously. The Alaska Miners Association cares about Alaska!
Mike Satre AMA President
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April 2019
The Alaska Miner
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Pebble deserves fair review
Editor’s Note: AMA is sharing a letter from several resource development industry and business trade associations, including AMA, that recently was sent to our Congressional Delegation. The letter requests that they ensure the Pebble ;]ZUPN_ MP LʬZ]OPO L ]PaTPb NZY^T^_PY_ bT_S _SP NEPA reviews applied to other projects in Alaska. Following the public campaigning for a nearly 300-day extended comment timeline, a letter from some House members criticizing the process, and statements by our Delegation implying the com- XPY_[P]TZOT^TYLOP\`L_PZ`]R]Z`[^ʭYOT_XZ]P critical than ever that the the U.S. Army Corps of Engineers’ actions to ensure an objective, transpar- PY_LYOPʯNTPY_MPOPQPYOPOLYO`[SPWO Key factors of this letter include: >[PNTʭN^ZQ;PMMWP/]LQ_04>% [LRP^LYO 80-page Executive Summary, with a comment pe- riod on the document double what is the norm for this stage of review. Comparable project timelines: other major development projects in Alaska and their associated timelines, and document size. Importance of upholding clear NEPA process for all projects, regardless of popularity, as it applies
to Alaska’s reputation as a business jurisdiction.
The letter is authored by these organizations: Alaska Chamber Alaska Miners Association Alaska Oil and Gas Association Alaska Support Industry Alliance Associated General Contractors of Alaska Council of Alaska Producers Resource Development Council for Alaska, Inc. The letter was also shared with the Army Corps ZQ0YRTYPP]^_SP2ZaP]YZ]ɪ^ZʯNPLYO/9=LYOLWW members of the Legislature. We’re sharing this let- ter with the membership to bring light to the issue LYO^SZb,8,ɪ^PʬZ]_^M`_LW^Z_ZL^VdZ`NZY^TOP] sharing your appreciation with these organizations, [L]_TN`WL]Wd _SZ^P YZ_ ^[PNTʭNLWWd ]P[]P^PY_TYR _SP mining industry. They’ve taken a big step to sup- port a fair process for Pebble, and acknowledgement from you and your companies is greatly appreciated.
Thank you, Deantha Crockett Executive Director Alaska Miners Association
The Alaska Miner
April 2019
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Letter to Alaska’s Congressional Delegation
March 11, 2019 The Honorable Lisa Murkowski The Honorable Dan Sullivan The Honorable Don Young Alaska’s Congressional Delegation
Dear Senators Murkowski and Sullivan, and Congressman Young: The undersigned coalition of organizations, representing many of Alaska’s industry sectors write to share our collective view that the National Environmental Policy Act (NEPA) and Clean Water Act (CWA) must be applied to the Pebble Project in a manner consistent with other resource projects in Alaska. The U.S. Army Corps of Engineers (USACE) recently pub- lished the Draft Environmental Impact Statement (DEIS) for the Pebble Project. From the time it received the project ap- plication, the USACE has committed to conducting the re- aTPbL^PʯNTPY_WdLYO_]LY^[L]PY_WdL^[Z^^TMWPTYQ`WWNZX - pliance with NEPA and other applicable federal laws. This formal process began in December 2017 when the USACE re- ceived a CWA Section 404 permit application from the proj- PN_?SP@>,.0T^^`POL_TXPWTYPQZ]LʭYLW[P]XT_OPNT^TZY by 2020 and set interim timelines for the DEIS, a Final EIS, and a Record of Decision (ROD). Recently, some have called upon the USACE to extend the public comment period for the DEIS from 90 to 270 days, and we urge you to take this opportunity to defend and uphold the NEPA process.
Courtesy Photo
agency’s process would be inconsistent with these initia- tives, and would set a dangerous precedent for future re- source development project reviews in Alaska. Our organizations represent members that have long struggled with Alaska’s reputation as a state challenged by regulatory instability. Deviations from the permitting pro- cess, like the lengthy comment window extension requested for the Pebble Project, only serve to further that reputation. BP`]RPdZ`_ZSZWOʭ]XZY]PL^ZYLMWP]PR`WL_Z]dLN_TZY^ to help demonstrate that Alaska truly is open for business.
The Pebble Project is controversial, howev- er, controversy does not justify extraordinary treatment. The USACE’s mandate to facilitate LYZMUPN_TaP_]LY^[L]PY_LYOPʯNTPY_[]ZNP^^ despite the controversy is what Congress in- tended NEPA to facilitate. The establishment of a project schedule with clear timelines and responsibilities for all stakeholders at the start of the process should be applauded, not ques- tioned or criticized. Despite allegations that the DEIS would not be comprehensive enough, the USACE published a DEIS that is approximately 1,400 pages, excluding appendices, with an 80- page Executive Summary. The USACE recently noted that a 45-day comment window would be the norm for reviewing this amount of data when compared to other complex projects in Alaska, as seen in Table 1 (below). Because the agency recognized they would receive requests for additional time for public review and com- ment, it established a 90-day public comment window, double what is required. You have long championed for permitting and NEPA reviews that are objective and fol- low science and process. You’ve also advocated for permitting reform, citing the need to “im- prove the quality and timeliness of decisions,” speaking out against delay tactics that abuse NEPA, and encouraging regulators to improve [P]XT__TYRPʯNTPYNd?ST^T^PcLN_Wd_SPPʬZ]_ that is being undertaken by USACE in the Peb- ble Project permitting process and it should MP OPQPYOPO ,Yd PʬZ]_ _Z ^WZb OZbY _SP
CONGRATULATIONS, PETE!
Donlin Gold has been a proud sponsor of Iditarod winner Pete Kaiser over the past decade, and we look forward to supporting his future accomplishments on and off the trail.
www.donlingold.com
April 2019
The Alaska Miner
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Regulatory agencies won’t face further budget cuts Contributed Photo Mining and mining-related departments seem to be avoiding further cuts that Governor Mike Dunleavy is implementing to reduce the state’s budget shortfall.
education and health care sectors, where the gov- ernor has made deep cuts. For miners and others in the resource devel- opment the road is a little smoother. Dunleavy is a believer in economic development and his pro- posed Fiscal 2020 budget has so far shielded the key agencies that issue permits. But no one is getting a free ride this year. Many in the mining industry are worried about _SP[]Z[Z^PONWZ^`]P^ZQ^_L_P]PNZ]OTYRZʯNP^TY
=PNZ]OTYRZʯNP^NZ`WOMP LʬPN_POTY`[NZXTYRdPL]
BY TIM BRADNER
For The Alaska Miner It has been a bumpy road in Juneau. Gov. Mike Dunleavy’s aggressive moves to “right size” the state budget has caused an uproar, at least in the
The Alaska Miner
April 2019
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Fairbanks and Palmer, where small miners typi- NLWWdʭWPNWLTX^LYO]PNZ]OZ_SP]OZN`XPY_^ Also, the Departments of Natural Resources (DNR) and Environmental Conservation (DEC), which are important to miners, will face restric- tions on travel as will all state agencies. There are bZ]]TP^ _SL_ _SP^P NZ`WO SLX[P] LRPYNd ^_Lʬ TY OZTYR ʭPWO bZ]V LYO OZTYR ]P\`T]PO TY^[PN_TZY^ at remote sites. 3ZbPaP]_SP^PPʬPN_^L]PXTYZ]NZX[L]PObT_S what other parts of state government will experi- ence. Even within DNR a whole division, Agricul- ture, would be eliminated in the governor’s plan. The state’s overall budget situation is grim, but Dunleavy feels that growth in natural resources and its employment, along with other private sec- _Z]TYO`^_]TP^bTWWZʬ^P_WZ^^ZQ^_L_PRZaP]YXPY_ jobs in the long term. It’s a cold bath, but Alaska will emerge the stronger for it. ?SPNWZ^`]PZQ_SP]PNZ]OTYRZʯNP^OZP^NZY - cern people, however. “I’m going to do some strong pushback on this,” said state Sen. Click Bishop, a Republican who represents a big swath of Interior Alaska. 4_ bTWW [L]_TN`WL]Wd LʬPN_ ^XLWW [WLNP] XTYP]^ bSZ ʭYT^S _SPT] ^PL^ZYLW Z[P]L_TZY^ TY _SP QLWW
and come to Fairbanks, but also to Palmer, to do ʭWTYR^ ZY XTYTYR NWLTX^ LYO Z_SP] OZN`XPY_^ Bishop said at a Senate Finance Committee meet- ing in Juneau. “These guys come out of the creeks and head to town to take care of the paperwork. They stop by DNR to make their lease payments and then step L]Z`YO _SP NZ]YP] _Z _SP ]PNZ]OTYR ZʯNP _Z ʭWP claims,” Bishop said. “Then they walk down the street to the BLM ZʯNPɮ_ZOZXZ]PM`^TYP^^SP^LTO It’s convenient near one-stop-shopping and aP]dPʯNTPY_QZ]^XLWWXTYPZ[P]L_Z]^XLYdbSZ are of an older generation not as tech-savvy and NZXQZ]_LMWPbT_SZYWTYPʭWTYRL^dZ`YRP][PZ[WP DNR representatives at the Finance Committee meeting said they are concerned about this and are looking at possible solutions including a min- TXLWWd^_LʬPO_PX[Z]L]dZʯNPLVTYOZQɭ[Z[ up shop,” that could be open from September through October, the period typically of peak use by miners. Another idea under discussion is to license out- side vendors, most likely title companies in this NL^P _Z ]PNPTaP OZN`XPY_^ LYO XLVP ZYWTYP ʭW - ings for the public. A fee would be charged, however.
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April 2019
The Alaska Miner
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Contributed Photos Alaska DEC Commissioner Jason Brune talks with AMA members at a recent breakfast in Anchorage about the department’s continued funding of programs supporting mining.
al parks and wildlife refuges. The ongoing federal actions and interpretations of ANILCA by federal agencies can be contrary to Alaska’s interests and must be closely monitored by the state. There are no big impacts in the DEC budget, ei- ther. Many of DEC’s permit functions, at least for resource industries like mining, are supported by fees. Reductions in general fund appropriations have less of an impact. Through DEC the state has “primacy” to man- age several major federal regulatory programs, such as for air quality permits under the federal Clean Air Act and for part of the Clean Water Act for wastewater discharges. There is no plan to change any of the responsi- bility for primacy, since having the state manage _SP^PXLUZ]QPOP]LW[P]XT_^LWWZb^LʮPcTMTWT_d_Z adapt to Alaskan conditions that is less possible under federal management by the U.S. Environ- mental Protection Agency. One change in DEC that some in the resource industry community may not be happy about is _SP PWTXTYL_TZY ZQ L ^_Lʬ PNZYZXT^_ _Z OZ TYOP - pendent economic analyses of proposed new state regulations. ?SP[Z^T_TZYbL^LN_`LWWdYZ_^_LʬPOWL^_dPL] in the prior administration, but the new adminis- tration proposes to eliminate it, arguing that new regulations are already subject to public review
The state does this now in “out-sourcing” cer- tain vehicle registration activities and other func- tions for the Division of Motor Vehicles. The plan now is to close the permanent record- TYR ZʯNP^ TY 1LT]MLYV^ ;LWXP] 6PYLT LYO 5` - YPL`LYO_ZNZY^ZWTOL_P]PNZ]O^LYO^_LʬTY_SP ,YNSZ]LRPZʯNP Overall, it’s pretty much status quo in the DNR and DEC, the agencies most important to miners. “Our priority is to preserve and protect programs that provide support for core industries like min- ing,” said Dan Saddler, spokesperson for the DNR who is also a former state legislator. “There are no declines in the budget in pro- grams that support mining. Where there are im- pacts, “we can do the work with no loss in service. We will be doing what we’ve always done,” Sad- dler said. Commissioner Jason Brune at the DEC echoed this: “The FY20 budget does not impact DEC’s ability to issue timely, well-written, legally de- fensible permits,” he said. Meanwhile, one function that has been retained TY/9=T^_SP,947.,NZZ]OTYL_Z]L^_Lʬ[Z^T_TZY for a person monitoring federal agencies who are implementing terms of the federal Alaska National Interest Lands and Conservation Act, or ANILCA. This federal law, passed in 1980, established large federal land conservation units like nation-
The Alaska Miner
April 2019
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and comment. However, many in industry have supported an indepen- dent analysis of regulatory changes. While the governor has taken steps to protect agencies important to economic growth, like mining, other insti- _`_TZY^ TY _SP ^_L_P bTWW QPPW _SP PʬPN_^ ZQ WL]RP M`ORP_ cuts. Large reductions in funding for schools, the univer- sity and health and social services are proposed in the governor’s budget but there was major pushback in the Legislature with many of these. The mining industry will TYOT]PN_Wd QPPW _SP PʬPN_^ ZQ _SP^P SZbPaP] LWZYR bT_S other industries and businesses. University programs that train young Alaskans as pro- fessionals and scientists, including geologists and mining PYRTYPP]^bTWWLʬPN_TYO`^_]dɪ^LMTWT_d_ZPX[WZd\`LWTʭPO Alaskans. It won’t be easy but Dunleavy’s overall objective is to get the state budget in overall alignment with reve- Y`P^?SL_RZLWL^T_bL^ʭ]^_[]Z[Z^PObZ`WO]P\`T]PL $1.6 billion cut, or about a third of the spending of state dollars. That will be painful in the short run. However, there is a longer-term gain, the governor argues.
Senator Click Bishop, himself a miner, has been a VWURQJSURSRQHQWWRNHHSVWDWHUHFRUGLQJRIÀFHVRSHQ throughout Alaska.
Tim Bradner is copublisher of the Alaska Economic Report and the Legislative Digest.
April 2019
The Alaska Miner
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Small Miners Relief Act a big victory for our state A laska’s miners have something to celebrate in S. 47, the John D. Dingell Conservation, Management, and Recreation Act, which bundles together more than 120 public lands and age also includes a provision to allow Alaska Natives who served during the Vietnam War to receive the land allotments the federal government promised to them OPNLOP^ LRZ 4_ []ZaTOP^ ]Z`_TYR ʮPcTMTWT_d QZ] _SP
water bills and was recently signed into law by President Trump. Included in the new law is my Small Miners Re- lief Act, which will reinstate the mine claims of a number of Alaskans.
proposed natural gas pipeline. It ensures sportsmen and women retain access to appropriate federal lands for hunting, ʭ^STYRLYO]PN]PL_TZYLW^SZZ_TYR,YOT_ creates economic opportunities for com- munities like Kake and Utqiagvik. We built this package over the course of years of regular order process, fol- lowed by months of intensive negotia- tions among committee leadership. I’m proud that every provision added to it — particularly those related to conservation in the Lower 48 — had very strong sup- port at the state and local levels.
This is legislation I have worked on for ʭaPdPL]^bSTNSbTWW]TRS_LWZYR^_LYO - ing wrong and provide relief for placer miners who had their claims wrongfully taken more than a decade ago. Resolving _ST^TYP\`T_d_ZZVdPL]^ZQPʬZ]_M`_T_ is the right thing to do and speaks to a larger issue — Congress’ responsibility to step in when federal land manage- ment policies fail to recognize the needs of people and communities. Our next step will be to seek to address this issue more broadly by improving the small miner waiv- er process to ensure that due process is never again denied. We still need a more workable national pro- cess for miners with small operations to renew their claims, rather than facing termination of their mining rights without warning. The mine claim reinstatements are just one provi- ^TZYTY> "_SL_bTWWMPYPʭ_,WL^VL?SPWLYO^[LNV -
LISA MURKOWSKI
The result is a bill that drew 92 votes in the Sen- ate, 363 votes in the U.S. House, and the President’s signature. It is a real victory for Alaska and the placer miners who will have their claims reinstated. Lisa Murkowski is Alaska’s senior United States Senator and chairman of the Senate Energy and Natural Resourc- es Committee. Sen. Murkowski also serves on the Senate Appropriations Committee, where she is the Chairman of the Interior and Environment Subcommittee.
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&PPMWWYIWSJ8LI&PEWOE2MRIV2EKE^MRIERH8LI Alaska Miner Journal are online at the Alaska Miners Association website: AlaskaMiners.org/publication.
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The Alaska Miner
April 2019
12
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Resource development is good for our health
I t seems as though we are con- stantly beating back the regres- sive ideas that development of our abundant resources is bad, busi- nesses are bad, people who work for businesses are bad, and on and on. Generally, our response to these views has something to do with rev- enue to the State of Alaska, jobs, and the state’s gross domestic product. While true, these cold, dry facts draw little interest. To my surprise, an arti-
[LYTP^Q]P\`PY_Wd^_]`RRWP_ZʭYO\`LW - TʭPOO]TaP]^L__SPT]]PXZ_P[WLY_^ That stopped me. I had to ask, what caused this dramatic increase, larger than most of the rest of the US? The re- searchers’ discussion was interesting. Socioeconomic and race/ethnicity, be- havioral and metabolic risk factors, and healthcare factors combined to explain 82 percent of the contributing factors to change in life expectancy. This begged the question: What was
CATHY GIESSEL
cle published last May in the Journal of the American Medical Association caught my eye and put new and brighter light on what resource development means for Alaskans. It drew me in. I thumbed through the pages and came to Figure 2, Change in Life Expectancy at Birth by County, 1980 to 2014. It was a map of the US, Alaska, and Hawaii showing that the average life ex- pectancy of Alaskans had increased in every area of the state during those years. But the most dramatic increase could be seen in the North Slope Borough, North West Arctic Borough, Aleutians-East Borough, Kodiak, and Southeast Coast of Alaska; these areas saw an 8 year to 13 year increase in life expectancy, at birth, between 1980-2014. Nearly 80 percent of the state saw an increase of more than six years over that 35-year time period. Like seafood processing, hospitality, and the oil industry, trucking has traditionally been an Alaska industry that depends heavily on out-of-state work- ers. According to the Alaska Department of Labor and Workforce Development’s most recent report on nonresident workers, out-of-state drivers repre- sented 18.5 percent of the workforce of 3,602 heavy and tractor-trailer drivers in 2016. That category of driver made an average quarterly wage of almost $14,000 that year. The nonresident count includes both seasonal workers and those who live elsewhere LYO]PR`WL]WdʮdTYQZ]]Z_L_TZY^ Crum says that since 2016, oil and gas companies SLaPʮZbYTYQPbP]NZXXP]NTLW_]`NVO]TaP]^Q]ZX out of state. But he says the practice remains com- mon in the seafood processing industry where com-
happening in Alaska during the years 1980-2014? Well, that’s not hard to answer for those of us who were here in those years. The TransAlaska Pipeline MPRLYʮZbTYRZTWTY $""=PO/ZR8TYPMPRLY[]Z - duction in 1990. The Magnuson-Stevens Act pushed Z`_ _SP QZ]PTRY ʭ^STYR ʮPP_^ WPLOTYR _Z TX[Z]_LY_ OPaPWZ[XPY_ ZQ ,WL^VL ʭ^SP]TP^ ?SP^P ]P^Z`]NP developments, along with others around the state, changed Alaska from a struggling new state, to an economically thriving place. These resources became jobs and opportunity for work close to traditional homes, something pre- viously unavailable. And boroughs were formed in these areas, enabling the ability to levy taxes that funded community infrastructure. Health care, education, clean water, wastewater treatment, and good-paying local jobs transformed rural and urban Alaska. The Alaskan people ben- Pʭ_PO,Q_P]_SP $ "OT^NZaP]dZQZTWZY_SP6PYLT .ZYR]P^^ʭYLWWdOPNTOPOTY $ #_SL_,WL^VLSLOL chance of supporting herself on her rich resources. Alaskan voters, all 46,000 of them, voted six-to-one to become a state. As a territorial kid growing up in Fairbanks, I re- member those days. I had the delightful chance to frequently go to work with my dad, a Wien Airlines captain. That meant riding along on an F-27 as he made rounds to rural communities around our state. They were referred to as “villages” then and they were isolated, poor, and small. Then came resource development. As a nurse practitioner, I had the wonderful privilege of pro- viding healthcare services in those same rural ar-
The Alaska Miner
April 2019
14
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to our people, our families and our local businesses. As a healthcare professional, it still brings tears of pride to my eyes to contemplate the change in our state. We still have challenges. But we met challeng- es before and have demonstrated an ability to solve _SPX ?SP NL]TMZ` [ZWL] MPL]^ LYO ʭ^S LWW NZPcT^_ with our industries. The important thing is our lands are precious for the resources they contain, and our people can and will thrive by utilizing and steward- ing them. Alaska’s resource development continues to bring health and happiness to our people. >PYL_P;]P^TOPY_.L_Sd2TP^^PWL=P[`MWTNLY]P[]P^PY_^ District N, which covers parts of Anchorage and com- X`YT_TP^LWZYR?`]YLRLTY,]X>PY2TP^^PWT^_SPL` - thor of the legislation that created Alaska Mining Day.
eas, now thriving communities with schools, clinics, roads, and jobs. In one very remote community, I was on the same ʮTRS_bT_SLdZ`YRXLYRZTYR_ZST^UZML_;]`OSZP Bay. His wife and little son bid him good-bye at the airport. The airline agent told me that the young man was the pride of the community, bringing his pay- check back home, helping his parents and grandpar- ents out with fuel costs in the winter, and supporting his family. That is what resource development means for Alaska’s families. It’s all about our people. Yes, we love the state government revenue and services that pays for. We have all prospered during these years since oil and mining production. But the XZ^_ TX[Z]_LY_ MPYPʭ_ ZQ ]P^Z`]NP OPaPWZ[XPY_ T^
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April 2019
The Alaska Miner
15
,Q HDFK LVVXH RI 7KH $ODVND 0LQHU ZH SURÀOH DQ active miner and member of AMA. In this issue, Alaska State Sen. Click Bishop discusses the future of mining. DFK LVVXH RI 7KH $ODVND 0LQHU ZH SURÀOH DQ ü ď Ǖ8±ÏåžƐŇüƐaĞĻĞĻď
Click Bishop Alaska State Senator
BY LEE LESCHPER Tell us about your mining experience and your mine. I think mining is in my genetics, ha! My great- great uncle was a 49er who participated in the Cal- ifornia Gold Rush and my grandfather was a clay miner in Missouri. My folks have pictures of me on Xdʭ]^__]T[_Z_SP6WZYOTVPTYQ]ZY_ZQZYPZQ_SP old dredges when I was a toddler. Gold mining has always fascinated me since I was a child living at these remote construction camp sites around Alaska where my father worked for Green Construction building roads and airports. I read everything I could get my hands on related to mining in the Klondike and Alaska. My mother always said I was born 100 years too late, I missed the stampede to the Klondike and Alaska. Darlene and I have a small placer operation west of Fairbanks. She calls it my big sand box. It’s a one-man operation, but we enjoy the friends and family who come out and want to help and take part in the outdoors. It is something I want to pass on to my grand- children, the next generation of Alaskans. Alaska has been a wonderful place to experience _SPZ`_OZZ]^4_SL^^ZX`NS_ZZʬP]4PYUZd_]L[ - ping, when I have time, being a legislator has not allowed me to participate in this so much lately. My late father-in-law Bill Taylor, and brothers-in-law Greg and Ricky Taylor, own a sled dog kennel, so at one time I dabbled in dog mushing. What other outdoor experiences would you like to share? I was fortunate to win the Yukon 800 boat race a couple times which runs from Fairbanks to Galena and back on handmade wooden boats for a total of #XTWP^4ɪaPNZXXP]NTLWWdʭ^SPOZY_SP?LYLYL LYOD`VZY=TaP]^LYObL^Lʭ^SM`dP]QZ]-TWWLWZYR the rivers between Manley Hot Springs and the vil- lage of Rampart, the village where my late mother- in-law, Ann Taylor was born. Rampart was once a booming mining district and we have some claims in that area as well. I enjoyed hearing the stories of the old miners in that district from Ann and other elders who grew up in Rampart.
Who was your mentor in this industry and what did they teach you that remains true today? There have been many mentors Don DeLima, Jack Neubauer, Bill Carlo, Doug Colp, Dave Johnson, Stan- ley Dayo, Tony Lanning, Bill Lanning and more.
Probably the best advice I got was from Tony Lanning.. He said, shallow ground is what you want — safer, stay away from deep ground. The one I spent the most time with was the late Don DeLima and his family. I enjoyed the many visits I had with him — the stories, the lessons, the friendship. There is so much, but the most important advice I can give is to spend the time and money on the front end of prospecting the potential resource, by drilling. If the ground is shallow, trench with an excavator and test that. But, be honest with your- self with the test results, then do the math to see if it is economical. What lessons have your learned that you want to share with new miners? BSL_bZ`WOdZ`OZOTʬP]PY_Wd* I cannot think of anything I would have done OTʬP]PY_Wd4LXNZY_PY_L_bSP]P4LXL_PYUZdTYR the journey. Just wished my other responsibilities allowed me more time out there. What was one experience you will never forget? The best time is when all of the family is with me. One experience I will never forget was when we were able to make it possible for my dad to travel up from the Lower 48, while he was still physically able to. It was a great time for the whole family. What do you love the most about this business? I enjoy being in the outdoors. I enjoy operating heavy equipment. I enjoy the challenge of the busi- ness. I really enjoy the camaraderie with the other miners, they are generous with their knowledge, always willing to help one another out.
The Alaska Miner
April 2019
16
Click Bishop has mined and enjoyed Alaska’s great outdoors his entire life. He is a champion of the Alaskan way of life, focusing on what will of the state for generations to come. Contributed Photos EHEHQHÀFLDO to the future
Where do you see mining in Alaska in 50 years? I think Alaska has a very bright future in the mining industry. We are 50 years behind in know- ing what we have for resources. What do you see as our biggest challenges? And big- gest opportunities? Our biggest challenges in Alaska are not under- ground. They are above ground! We have to always be vigilant as to not regulate ourselves out of a job. As well, we have to maintain a balance with our en- vironment. Workforce development should always be a num- ber one priority; don’t lose focus on training Alas- VLY^LYORTaTYRZ`]]P^TOPY_^_SPʭ]^_Z[[Z]_`YT_d at those jobs. The state education K-12, University of Alaska and the industry have done a good job over the last 15 years in really bringing all assets to bear in this area. I encourage them to keep it up. What does Alaska Miners Association mean to you? The Alaska Miners Association is the glue that keeps the industry alive and well. The dedicated ef- QZ]_^ZQ_SP^_LʬL^bPWWL^_SPaZNL_TZYLWLYOTY - dustry partners make the organization what it is. Without them we would not have an industry that is key to Alaska and the country economic future going forward.
Any other advice you’d like to share? I would like to pass along to current and future operators is to be vigilant about work place safety. Never lose sight of that. Work every day to keep a neat and clean operation. If your operation is neat and squared away, you are 90 percent of the way there on passing regulatory inspections, and in my humble opinion, it helps improve your bottom line ZY[]Zʭ_ You made a point about keeping Alaska Department ZQ9L_`]LW=P^Z`]NP^]PRTZYLWXTYTYRZʯNP^Z[PYTY Alaska. Can you explain more why that’s important? I have received numerous phone calls from Inte- rior miners about the Governor’s budget cuts to the 1LT]MLYV^=PNZ]OP]^:ʯNP?ST^ZʯNPSL^LW]PLOd SLO^_Lʬ]PO`N_TZY^LYOUZM^_SL_bP]P]PWZNL_PO_Z Anchorage. Additionally, it was moved inside the /9=ZʯNPTY1LT]MLYV^ Miners can now pay their annual rent/leases and ʭWP_SPT],YY`LW7LMZ]=P[Z]_^TY_SP^LXPM`TWOTYR ?SP^_LʬTY1LT]MLYV^[]ZaTOP^LaLW`LMWP^P]aTNP_Z the mining industry and are very helpful, especial- ly to those who aren’t able to access the internet remotely. I can’t sit back and watch more jobs and services being moved out of Fairbanks to Anchorage I will be advocating to keep those services here in Fairbanks where they are needed.
April 2019
The Alaska Miner
17
Pebble EIS shows clear path forward
SPECIAL TO THE ALASKA MINER The Draft Environmental Impact Statement (DEIS) for the Pebble Project has been released by the U.S. Army Corps of Engineers (USACE) and is available for public review. The DEIS is an important step forward for the project. It provides an objective, transparent, LYO^NTPY_TʭN]PaTPbZQ_SP[]Z[Z^PO dPL]XTYP development plan for the Pebble deposit. The DEIS was prepared by USACE and had partici- pation from more than a dozen cooperating state and federal government agencies along with the Lake and Peninsula Borough and two tribal organizations. The next phase in the process is the 90-day public comment period, which began March 1, and will be open through May 30, 2019. The full DEIS, organized into six major sections, is available on the USACE website, PebbleProjectEIS. com, and at PebbleProject.com/DEIS. The Executive Summary provides a comprehensive overview of the /04>ʭYOTYR^ The Pebble team has long said the Pebble Project bZ`WOYZ_SL]X_SPʭ^SLYObL_P]]P^Z`]NP^ZQ_SP area and believes the DEIS validates this commit- ment. ,XZYR_SPVPdʭYOTYR^]PRL]OTYRʭ^SLYObL_P]% The DEIS says the project would not reduce returning adult salmon to the Kvichak and Nushagak river systems as a result of project operations. And it predicts no long-term change to the health of _SP-]T^_ZW-LdLYO.ZZV4YWP_ʭ^SP]TP^/04>0cPN Summary P.54) The USACE document states that a catastrophic failure of the tailings facility at Pebble is extremely unlikely (DEIS at 4.27.6.6) and that there would be
YZ[Z[`WL_TZYTX[LN_^QZ]ʭ^SQ]ZX_SP_LTWTYR^]P - lease scenarios evaluated. (DEIS Exec Summary P.71) There will be no downstream impacts from the pit in post closure. (DEIS Exec Summary P.41) ?SP/04>YZ_P^YPRWTRTMWPTX[LN__ZʮZb^TY Upper Talarik Creek during operations and no im- [LN_^ _Z ʮZb^ TY _SP @?. LQ_P] NWZ^`]P /04> L_ 4.16.42) Pebble will use two water treatment plants to ensure water discharge meets Alaska’s criteria for water prior to discharge and will use a sophisticated water management plan that will strategically dis- NSL]RPbL_P]TYLWW_S]PPYPL]Md^_]PLX^_ZMPYPʭ_ ʭ^SSLMT_L_/04>L_ Currently, the communities located near the Peb- MWP/P[Z^T_TY>Z`_SbP^_,WL^VLQLNP^TRYTʭNLY_^Z - cioeconomic challenges. The DEIS documents that the overall local community economic and health MPYPʭ_^]PWL_PO_Z_SP[]Z[Z^PO[]ZUPN_bTWWMP^`M - stantial. The DEIS notes the project is likely to reduce the high cost of living, support schools via revenue generated through the Lake and Peninsula Borough and potentially reduce population declines that have MPPY^TRYTʭNLY__S]Z`RSZ`__SP[L^_OPNLOP The DEIS points out that Alaska has experience with co-existence between Alaska’s resource proj- PN_^ LYO ʭ^STYR LYO YZ_P^ _SL_ ;PMMWPɪ^ L[[]ZLNS will use best industry management practices. Alaska has an established environmental track record with mining via our existing operations at Red Dog, Ft. Knox, Pogo, Greens Creek and Kensington. All have responsible environmental track records and co-ex- T^_bT_S_SPʭ^SLYObTWOWTQP]P^Z`]NP^L]Z`YO_SPX In October 2017, the Pebble Partnership brought
forward a 20-year plan for developing a mine at the Pebble Deposit. It was characterized as being responsive to stakeholder issues of concern and fea- tured a smaller, more compact foot- print; no major mine facilities in the Upper Talarik/Kvichak drainage; no cy- anide for secondary gold recovery; and a tailings storage facility with envi- ]ZYXPY_LW^LQPR`L]O^TYNW`OTYRLʮZb through design to prevent the build up of water and added structural stabili- ty to the embankments. This plan was submitted to the USACE in late 2017 and the formal environmental review was initiated. The Pebble Deposit is located on state of Alaska land that came into state hands via a three-way land exchange called the Cook Inlet Land Exchange. This ensured that the minerals under the ground at Pebble would be available QZ]_SPMPYPʭ_ZQLWW,WL^VLY^,^^`NS Pebble is an asset for all of Alaska that could create thousands of jobs, provide hundreds of millions in tax revenue and economic activity. The Pebble Partner- ship estimates the project could create about 2000 construction jobs and about 850 direct jobs for operations. Stay engaged There are several ways to com- ment about the DEIS and positive impact it could have on Alaska while providing needed minerals for the world: Online at pebbleprojecteis. com and via email at drafteis@ comments.pebbleprojecteis.com By fax at 907-753-5567; write a letter expressing your views, questions and comments By mail: 645 G Street, Suite 100-921 Anchorage, AK 99501; please include your name, address LYOLʯWTL_TZYTQLYd Your input is important in en- suring this important opportunity will continue to advance through the permitting process.
Courtesy Photo
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April 2019
The Alaska Miner
19
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80 80 TH ANNIVERSARY 1939 - 2019
FOR THOSE WHO DIG BEER.... You Are Invited! A^einldb\d&h__:F:l1)maZggbo^klZkr with a celebration on Alaska Mining Day!
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Lynden employee Kaiser wins Iditarod
-PNZXP^ʭ]^_D`[ɪTVX`^SP] _ZbTY_SP7L^_2]PL_=LNP SPECIAL TO THE ALASKA MINER Bethel’s Pete Kaiser and his amazing team of canine athletes made history winning the 2019 4OT_L]ZO;P_PT^_SPʭ]^_D`[ɪTVX`^SP]_ZbTY the Last Great Race, and he did it with the quiet determination and hard work that’s made him a world-class competitor. Pete has many connections to AMA. He is an employee of Knik Construction, part of the Lynden family of companies, and counts Lynden among his team sponsors. He is also sponsored by Donlin Gold and proudly carried the Donlin MLYYP]Q]ZX^_L]__ZʭYT^S In a close race heading out of the White Mountain checkpoint, Pete skillfully guided ST^_PLX_SPʭYLW""XTWP^_Z_SPʭYT^SWTYP TY9ZXP3PʭYT^SPObT_SL_TXPZQ$OLd^ hours and 39 minutes. This is the 10th time Pete has competed in the Iditarod. “We are all very excited for Pete and enjoyed tracking his race this past week. Pete’s grit and determination show the world what it means to be a proud Alaskan,” said Jim Jansen, Lynden Chairman. “Pete is not only a great employee for our company, but his passion and dedication to his work shows in his mushing as well. We are ex- cited for his accomplishments and look forward to more races in the future,” said Dan Hall, President of Knik Construction. In addition to the Iditarod, Pete regularly competes in the Kuskokwim 300 dogsled race. He holds the record for most consecutive victo- ries in the Kuskokwim 300, winning four times between 2015 and 2018. He placed second in the 2019 race earlier this year. Kaiser, 30, was born, raised and graduated high school in Bethel, Alaska. His childhood was ^[PY_ʭ^STYRMZL_TYRS`Y_TYRLYO]`YYTYR a small team of family dogs on camping trips
Photos by John Wallace and courtesy Kaiser Racing
and in local races. In his senior year at Bethel High School, he won the Akiak Dash, a 65-mile race put on by the Kuskokwim 300 Race Com- mittee. While attending college, Pete decided what he really wanted to know was everything about dogs. That passion turned into dog mushing full-time. A love of the outdoors drew Pete to a life of running dogs in the winter and working on a tugboat in the summer. His Bethel roots extend back three generations to include a great-grandfather who came into the country as a gold miner and hired out with his dog team for extended trips from the Interior to Bristol Bay and a Yup’ik great-grandmother orphaned by an
The Alaska Miner
April 2019
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