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 2021 Volume 49, Number 4
Mining Season 2021! Growth, optimism tempered with regulatory concerns
INSIDE THIS ISSUE n UCore models next generation n New projects plan robust season n Dunleavy claims Alaska rivers n Mining Economic Report 2021
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Executive Director’s Report
new focus on green energy and electric-powered vehicles is perfect timing for projects including UCore and Graph- ite One that can provide the lithium, graphite and other minerals that electric vehicles need, but which are current- ly produced only outside the United States, in addition to adding to critical supplies of copper, silver, gold and more. What is particularly impressive is these projects are not only focused on new minerals but are planning a new and innovative approach to go to market that bodes well in coming years. Sadly, we lost a dear friend and a personal hero this month. Gail Phillips with her husband, Walt, was a mem- ber of AMA for more than 55 years. In this issue, we look back at Gail’s life and legacy. She was one of the great Alaskans who saw Alaska from statehood to today and took an active role in shaping what it is today. She served in the Legislature with dis- tinction including as speaker of the house from 1995-98, at a time when doing the right thing for Alaska was more important than partisan politics. She provided sage advice, gentle encouragement and a quick smile to a generation of us, and her impact on Alaska will live on and be carried on by them for generations to come. And, we will miss her. It has been a long, hard year for your association, too. We at AMA and with our incredible team of leaders are working extremely hard to provide the key benefits that you expect from your AMA membership. Our weekly Zoom branch meetings have consistently drawn 100 or more attendees. This has been one of the few big wins from this social distanced year. But it is not the same as gathering as a big extended family each fall. And our convention committee is work- ing very hard toward a full good-old-fashioned in-person convention this November in Anchorage. If we can make it happen, we will! I also need to take a moment to again thank the hun- dreds of companies and individuals — friends all — who have stepped up this year as sustaining members to pro- vide critical support to keep our association not just viable but lean, mean and more dedicated than ever to represent you! This has been a year of belt tightening, refocusing and resetting priorities for us all. For your association, when our biggest fundraisers including the annual convention were impossible due to safety concerns, we never missed a beat. We have stayed the course and have not stopped doing anything that you or we expect — to keep Alaska mining successful and thriving. Thanks for continuing to make our association a priority. We will never forget that.
Dear Alaska Miners:
Welcome to another field season! As you are reading this, we are waiting only for this stubborn winter to relinquish its hold so we can get into the field and begin another year of exploration drilling and mining in Alaska. And like winter, we are cautiously hope- ful COVID-19 is also losing its grip on our people and our economy. It is about time! On the cover, you will see a glimpse of the incredible aurora displays that have lit up our winter nights, and are a reminder that, challenges aside, we live and work in the most beautiful and inspiring place on earth. In this issue of your Alaska Miner, we look at the good news of new projects, big wins at existing mines and suc- cess despite new regulatory challenges here and coming. Our country and leaders have begun to realize that Alaska is rich and ready to deliver the key critical minerals that will be key to any evolution in our power needs. The
Respectfully,
Deantha Skibinski AMA Executive Director
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TABLE OF CONTENTS
2 Executive
Director’s Report 4 Letter from Our President 8 Legislature 2021: Same Song 16 Faces of Mining: Rich Sivils 20 Remembering Gail Phillips 22 UCore Setting New Model for Mines 32 2021 Mining Economic Impact 36 Donlin Plans Busy Season 42 Events Back for 2021 44 Mining Business and Service Directory
The official magazine of the Alaska Miners Association and the mining industry in Alaska
ON THE COVER: Spring 2021 has been blessed with incredible aurora displays statewide. Kenneth Spann, Warehouse Tech at Pogo Mine, captured this stunning aurora display near the mine’s airstrip recently. THIS PAGE: Courtney Talerico is a third-generation coal miner. Courtney has worked for Usibelli Coal Mine for eight years and currently is a Tipple Operator. Courtney’s father, Mike, and her brothers, Andrew and Jonathan, also work at the mine. Photo courtesy Usibelli Coal Mine
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 2021 People in Mining October 2021 Annual Anchorage Convention January 2022 Legislative and Season Preview April 2022 Project Updates
Executive Director
Deantha Skibinski Jennifer Luiten Darlene Strickland
Membership and Fundraising Director
Bookkeeping and Membership
EXECUTIVE BOARD
BRANCH CHAIRMEN
Bill Jeffress President, SRK Consulting, Anchorage Bartly Kleven First Vice President, Kinross–Fort Knox, Fairbanks Lorali Simon Second Vice President, Usibelli Coal Mine, Healy Kim Aasand Treasurer, Aasand & Glore LLC., Anchorage
Ted Hawley Anchorage Lorali Simon Denali Mark Huffington Fairbanks Liz Cornejo Haines Jim Clark Juneau
Houston Morris Kenai Blake Bogart Nome Andrew Spokely 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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President’s Message From Bill Jeffress
Focusing on facts must be a priority
Although we do not have all the answers related to COVID-19, society is more or less set on a new “normal.” What still vexes our nation and Alaska is our obvious dysfunctional federal and local governments. H ere we are in 2021 with the pandemic seeming to be under control and a new lifestyle of masking, social distancing
It is difficult, but not impossible, to interject biases and prejudice into hard scientific data that is further supported by certified quality assurance/ quality control programs. Many of the hard-physical scientific study results can be and are reproducible by third-party analytical and peer reviews. These studies are the “reality” of resource development projects. The conflicting side of hard-science is “soft” science e.g., the socioeconomics evaluation of projects and health impact assessments. These types of studies are predisposed to interject biases, prejudices and misconceptions of reality into the evaluation of projects. Some of the conclusions generated from the soft science reviews of projects further demonstrate how truth has been distorted to blur the lines between reality and fantasy. It is hard to understand, whether we are discussing urban or rural projects, how some of these conclusions can pass the “red face” test anywhere in the world. Projects in Alaska have been demonized as potentially causing the onset of latent adult diabetes because the paycheck provided by the project would allow employees to buy candy bars, soda pop and other “junk food.” It seems that the project evaluation team feels it is incumbent on them to determine how and on what employees spend their money. Another Alaska proposed project was criticized for providing employment for only 20 years (the proposed life of the project) and this would be worse than no job to begin with (WHAT?). All I can think about are all the projects that
and clean hands. Although we do not have all the answers related to COVID-19, society is more or less set on a new “normal.” What still vexes our nation and Alaska is our obvious dysfunctional federal and local governments. During the first quarter of 2021 we have watched what can only be called a poorly scripted sitcom from the impeachment trial of the former president at the national level and disarray of organizing the Alaska State House. Time, talent and money that could have focused on issues that really matter to the people. The “issues” are what are most perplexing and oblique since our biggest challenge is distinguishing what is the truth from propaganda. Everyone has their predispositions to what the truth is, but more and more there is a real struggle to differentiate reality from fantasy. In most cases, mining and other resource development industries are based on the physical sciences and most go through rigorous permitting processes based on the scientific data collected for specific projects. Environmental baseline studies such as jurisdictional wetlands delineations, surface, and groundwater quality, hydrology/hydrogeologic studies, geochemical characterizations, flora and fauna, air quality, etc. are thoroughly evaluated by federal and state regulators based on scientific standards.
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have been associated with making Alaska and the nation what they are today. The construction of the Trans Alaska Pipeline (three years and two months) and the 700,000 workers it benefitted. Still in operation almost 44 years and providing employment for approximately 1,300 employees. Prudhoe Bay was expected to have a 30-year lifespan and today has lasted more than 40 years with potential for another 40 years. The Fort Knox Mine original life of the mine was set at 10-12 years — it is still in operation over 24 years and employs close to 700 workers. Red Dog Mine, Greens Creek, Pogo Gold Mine and Kensington Gold Mine are just part of the list of projects that have prospered beyond their estimated life span. I personally have celebrated 20- and 30-year work anniversaries for colleagues in Alaska and their many contributions to the mining industry and Alaska. There is nothing wrong with receiving a paycheck for 20 years — view it as a steppingstone to the next 20.
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AMA making plans for an in-person 2021 Convention Photos by Lee Leschper AMA’s 2019 Convention and Trade Show was a highlight of the year, featuring exceptional attendance at in-person events including short courses, technical sessions and a news conference with numerous media outlets present. AMA is currently planning for its 2021 Convention and Trade Show to again be an in-person event in Anchorage.
AMA has started plan- ning for an in-person 2021 Annual Convention and Trade Show. This year’s event will be Nov. 1-5, 2021, in downtown Anchorage. Events will take place at the downtown Marri- ott Hotel and the Dena’ina Center. We are following state and city mandates and taking extra safety precautions as we plan the Convention. The week will begin with short courses, followed by a single-track of techni- cal sessions, a trade show and social events. The core
shack, prospectors tent, claim post and poster ses- sion are also being planned. After receiving such pos- itive feedback, and world- wide attendance, from the 2020 virtual event, AMA plans to incorporate a hy- brid portion of the Con- vention so attendees can participate virtually in re- al-time. Sponsor and vendor op- portunities will be available soon. Please check our website for up-to-date information: www.alaskaminers.org.
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Poised to be one of the largest, highest-grade, most prospective open-pit gold deposits in the world, Donlin Gold will be developed responsibly – through a safe and healthy workplace, stewardship of the environment, and the preservation of traditional cultures.
novagold.com
Gov. Dunleavy exerts control over Alaska waters
Alaska Gov. Mike Dunleavy has challenged President Joe Biden by as- serting state management of the more than 800,000 miles of navigable riv- ers and 30 million acres of navigable lakes in Alaska. Dunleavy expressed his intent for the State to exercise its authority to manage them and the related sub- merged lands under state law in a let- ter to the president in March. “For too long, we have waited for federal land managers to fulfil their duty and acknowledge that the Alas- ka people, and not their bureaucra- cies, are the true owners of Alaska’s navigable waters and submerged lands,” said Governor Dunleavy. “De- spite clear legal evidence and com- mon sense, the federal government has failed to loosen its chokehold on these areas. With today’s action, we are asserting our rights and unlocking
Alaska.” Dunleavy has directed Department of Natural Resources (DNR) Commis- sioner Corri Feige to send letters to the Secretary of the Interior and Secretary of Agriculture telling them to cease management oversight of such lands within federal conservation units and refer all users to state authorities. “We at DNR have worked with our federal counterparts for many years to secure quiet title to Alaska’s submerged lands beneath navigable waters,” said Commissioner Cor- ri Feige. “Unfortunately, our good- faith efforts have been met with de - lay, denial, and resistance that have cost the state time and money, and further deprived many Alaskans of the opportunity to enjoy their state- hood birthright. The administra- tion’s initiative reflects the truth that these resources are Alaska’s, to
be enjoyed by Alaska without federal interference.” The Bureau of Land Management, National Park Service, and U.S. Fish and Wildlife Service and the U.S. For- est Service manage more than 200 million acres in Alaska including sub- merged lands within the boundaries of federal conservation system units (CSUs). The governor’s action comes on the second anniversary of the U.S. Supreme Court decision in Sturgeon v. Frost , in which it ruled unanimously that John Sturgeon had the right to cross navigable waters to access state hunting grounds, even if the waters passed through the Yukon-Charley National Preserve. The ruling made clear that Alas- kans have the right to use navigable waters in other ANILCA-created con- servation system units (CSUs) as well.
“We protect the environment because this is the land where we grew up.” – Evan Polty Jr. Lead Mechanic, Donlin Gold Born in Pilot Station and Resident of Russian Mission
Respectful development for all generations.
To learn more, visit us at donlingold.com
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The Alaska Miner
Photo by White House
President Joe Biden’s American Rescue Plan will have far-reaching impacts at the state and federal level.
Legislature facing critical issues before adjournment
BY TIM BRADNER Alaska legislators are working to finish critical state business before the required May 19 adjournment, like the budget for coming Fiscal Year 2022 that begins July 1 as well as Gov. Mike Dunleavy’s nominations to state boards and commissions. The 2021 session was relatively slow through February and March, which is not unusual for the first year of a two- year Legislature when there are new lawmakers just learn- ing the ropes. Things were also delayed this year by the 30 days it took the state House to get itself organized with the agreements needed for president officers and the chairs and members of committees. The House is almost evenly divided between Republicans and Democrats who are aligned with indepen- dents and a Republican, Rep. Louise Stutes, of Kodiak, who is also House Speaker. Many new legislators, most of them Republicans, also needed time to work on their own bills and priorities. Be- cause state finances are still lean, any bill that requires a program change that costs money will face extra scrutiny in the House and Senate Finance Committees. It is help- ful, however, that those committees are made up mostly by experienced legislators who know the limits of what can really be accomplished in legislation. For the most part legislators are following the gover- nor’s recommendations on state agency spending including departments that issue permits to natural resource devel- opers and need adequate staffing, like natural resources, environmental conservation and fish and game.
MIKE DUNLEAVY
PETER MICCICHE
The University of Alaska is looking at another $20 mil- lion cut in its budget in FY 2022, the third and final year in an agreement with Gov. Mike Dunleavy to reduce university spending by $70 million a year. The university cuts have been spread across the system and have affected programs important to industry like the Mining and Petroleum Training Service, or MAPTS, which is part of the University of Alaska Fairbanks. MAPTS has had tighten its belt considerably, which limits its ability to train Alaskans for industries that are doing well, like mining. Interestingly, lawmakers face an unusual dilemma this spring — as well as an opportunity — on what to
CONTINUED on PAGE 12
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SUPPORT FAIR PROCESSES FOR ALASKA PERMITTING
LEGISLATURE, CONTINUED from PAGE 10
do with $2 billion-plus in federal pan- demic relief aid pouring into the state from Washington, D.C. Most of the fed- eral aid money comes with few strings attached and only a timeline that ex- penditures must be made by the end of 2024. Some funds, like a $112 million allocation for capital, or construction, projects, have no timeline. $1 billion of this comes directly to the state, but its spending must be detailed in an appropriation bill passed by the Legislature and signed by the governor. Under terms set by Congress, the rest of the “American Rescue Plan” for Alaska goes directly to Alaska municipalities, school districts and other entities. Senate President Peter Micciche, R-Kenai, has recommended that the $1 billion to the state be appropriat- ed over two to three years, with per- haps $500 million approved for FY 2022. Some of this will likely go to re- place state revenues lost in 2020 when COVID-19 hit as well as to pay costs agencies incurred dealing with the pandemic and which were not com- pletely compensated for in two previ- ous packages of federal aid in 2020, including the CARES act. Municipal governments will likely so the same with money coming to them. However, the Legislature and local governments have a lot of latitude in what they can do with the money, and substantial investments in infrastructure like water and sewer, transportation fa- cilities and broadband are expected. A lot will also go to catching up on deferred maintenance. Since 2016, when oil prices plummeted, Alaska governors and legislators have conditioned them- selves to austere budgets that included hundreds of millions of dollars in cuts to annual spending, layoffs of hundreds of public employees, and a dearth of state capital spending that has allowed a dan- gerous $2.7 billion backlog of deferred maintenance to build up in schools, the university and public buildings. Alaska’s economy has suffered from the cuts in oil activity last spring and the collapse of the state’s summer tourism season a few months later, as well as a contraction of the state’s gen- eral economy — restaurants, recreation and retail — as municipal governments ordered lockdowns and put the clamps on socializing.
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Tim Bradner is editor and publisher of the Alaska Legislative Digest
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April 2021
The Alaska Miner
Message from Joe Usibelli Jr. We need innovation, reliable energy for future of Alaska Editor’s Note: This opinion was first published in the Anchorage Daily News A nchorage IBEW business manag- er Dave Reaves recently declared that because of climate change, Biden’s job-killing policies becomes real for working families everywhere. Reaves zeroed in on the Fairbanks region, arguing that it must “move away” from coal, diesel and wood, and instead use liquefied natural gas and renewables. The oft-re- peated narrative that coal will be replaced by renewables or natural gas is seldom
Alaska needs to move away from using many traditional energy resources that it has relied on for decades. Interestingly, Reaves said little about the economic devastation this would cause in Alaska and throughout the nation. President Joe Biden’s decision to cancel the Keystone XL pipeline has snuffed out thousands of jobs in the Lower 48, many of them good-paying union jobs. Meanwhile, Biden’s decision to shut
questioned. But how realistic is that? Fairbanks and the surrounding commu- nities rely on coal for roughly 30% of their energy needs, and there is no readily available alternative. Natural gas is not available on such a large scale, and if it were, it would be ex- orbitantly more expensive than coal. Coal is Interior Alaska’s lowest-cost source of energy and switching to other fuels would increase regional energy costs by at least
down further oil and gas leasing on fed- eral lands is estimated to wipe out around 3,500 jobs in Alaska, also including many union jobs. The IBEW endorsed Biden for president. Reaves seems to be practicing damage control as the pain of Mr.
JOE USIBELLI JR.
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power plant on campus, they exam- ined every conceivable alternative: natural gas, oil, even nuclear power. The university’s analysis concluded that coal would meet their heating and power needs at a small fraction of the cost of other fuel sources. As a result, UAF is now operating the newest coal power plant in the U.S. It’s also one of the most environ- mentally advanced coal plants yet built, achieving enormous reductions in emissions. Of greatest offense is Reaves’ false assertion that coal is respon- sible for Fairbanks failing to meet air quality standards, and that this “threatens military bases in the area.” Numerous air quality mon- itoring studies have disproved that claim. The coal power plants in Fairbanks do not have a significant impact on the particulate matter levels that undermine air quality. Coal has provided energy security to Eielson Air Force Base and Fort Wainwright Army post for decades. Switching to alternative fuels would burden the military with massive cost increases — the same price hikes that UAF foresaw and success- fully avoided by sticking with coal. Military spending supports about one-third of the Fairbanks econo- my. Any large increases in energy costs could potentially risk the sus- tainability of the military’s current presence in Interior Alaska and threaten the Fairbanks economy. There is widespread agreement among environmental regulators that the best way to improve air quality in Fairbanks is for home- owners relying on wood for heating to burn dry firewood instead of wet firewood. The Usibelli family re - cently made a major investment, through Aurora Energy Solutions, to secure the first wood-drying kiln in the Fairbanks area. This will greatly reduce the emissions from firewood burning. This is an example of how technological innovation can help us utilize an affordable, tradition - al fuel source in a way that greatly reduces emissions, while avoiding the massive expense of switching to alternative energies that are not economically viable. With every coal plant that closes because of government interven- tion, the risk to human health and welfare increases as the capacity of utilities to provide affordable energy is crippled. Those who are most hurt
by rising energy costs are low-in- come families that can least afford it. What we need is investment in technological innovation to help reduce emissions from fossil fuels. Advanced coal generation technol- ogies have a significant role to play in meeting our national security, economic, energy and environmen- tal objectives. These technologies include carbon capture, utilization and storage, high efficiency-low emissions technologies, and trans- formational technologies with po-
tential to achieve near-zero carbon emissions. It is not necessary to radically abandon our existing energy sector in order to meet an unrealistic, un- sustainable, fantastical goal of zero emissions by 2035. Joe Usibelli Jr. is the current president and CEO of Usibelli Coal Mine Inc. in Healy. Joe Jr. is a member of the third generation of the Usibelli family to run the mine, which is still family-owned and operated.
PROTECTING OUR MOST PRECIOUS RESOURCE
Usibelli Coal Mine produces more than one million tons of coal every year, helping energize Interior Alaska. Yet our most precious resource isn’t coal—it’s the people who mine it. We’ve worked hard to keep our employees safe, and the results are gratifying.
Employees surpassed their all- time safety record in April 2019 and by the end of the year, worked more than 1,000 days without a lost time accident. Our employees are committed to excellence in mining, and in practicing everyday safety—at work, at home and at play.
WWW.USIBELLI.COM
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Each issue of the Alaska Miner we profile one member in our industry. This issue we are talking with Rich Sivils, Reclamation Engineer at Usibelli Coal Mine. Rich is also branch chairman of AMA’s Denali branch. He graduated from the University of Arizona in 2008 with a Mining En- gineer BS degree. Faces of Mining
Who was your mentor in this industry and what did they teach you that remains true today? Eben Robinson hired me in 2007 as a summer intern at Freeport McMoRan. Eben and I have been great friends ever since. I really admire the way he connects with people and his desire to work on new ideas. As an intern, I was humbled that Eben allowed me to work on high level proj- ects within the company and put me in front of manage- ment at numerous sites. One value Eben instilled in me is to always undercommit and overdeliver. We keep in close contact and I look up to Eben as a man of Christ. Eben lives back in Arizona and we try to get together when I am there visiting my family. What lessons have you learned that you want to share with new miners? My dad was a Marine and always told me to never give up: “In whatever you do, you only really fail if you don’t try again.” I grew up on a farm in Arizona and I honest- ly did not know there were still mines open! I have also learned how valuable it is to talk to friends and strangers about being a miner. Most everyone is fascinated, and they want to know more about mining. Rich Sivils Reclamation Engineer, Usibelli Coal Mine
What would you do differ -
ently?
I waited several years before taking the Funda- mentals of Engineering (FE) exam and I wished I had tak- en it while still in college. The worst part about waiting so long was that I had to then pass the Professional Engi- neering (PE) exam to make it worth anything! I know there are people that fail both ex-
ams multiple times. I will not say how many times I took them, but it was pretty humbling. I am glad to finally be done and have my PE license! What was one experience you will never forget? I will never forget driving up to Alaska and having my mom along for the ride. The truck was full of hunting, camp- ing, and fishing gear, and my Jeep being pulled on a trailer was full of stuffed deer and antelope heads. The US border guard that greeted us after crossing through Yukon and BC asked if I had any animal hides or horns. I laughed and said, “Look in the Jeep,” but fortunately taxidermy was not what they were looking for! My boss at Usibelli still gives me a hard time about how I showed up in Healy with my mom and a cat, and they did not know if I was going to fit in! I had called a friend who was a lifelong Alaskan what I could expect about moving to Alaska and he said, “You probably shouldn’t expect to find a wife in Healy.” Well, I proved him wrong too! I met my wife the next summer and she has told me that she had given up looking for her perfect guy, but then I showed up! What do you love most about this business? I enjoy seeing my projects through, from initial permit- ting to final construction. My first position after gradua - tion was at the Decker Coal Mine in Montana. The area we were working on was right along the state highway and I look forward one day to taking our kids or even grandkids there to show them where I got started in reclamation. To- day, I am the engineer in charge of permitting at Usibelli and I also create some of the designs that are ultimately built. I was recently in charge of a bridge demolition and culvert installation project at Usibelli and every time I drive over it, I smile because it actually turned out like it was supposed to! The reclamation at Usibelli illustrates how this company not only cares about our business, but also for the community and surrounding areas. We take great pride in obtaining more and more bond releases each year.
Where do you see mining in Alaska in 50 years? Demand for minerals will keep increasing and Alaska
Rich and wife, Darja, with their son Joshua, 4, and daughter Ruth, 2.
CONTINUED on PAGE 18
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Photos Courtesy Rich Sivils Rich and his family enjoy the excellent outdoor opportunities living in Alaska provides. “I am looking forward to when my kids are a little older so we can all go snowmachining and camping more often. I have a Stinson that stays on the ground way more than it should, but I take every chance to go flying.”
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FACES, CONTINUED from PAGE 17 Faces of Mining
Our flexibility and dedication have enabled us to become a top provider for the heavy civil construction and resource development industries. MOVING THE EARTH
will continue to play a role in filling this need. I would be totally surprised if in 50 years there was not another half dozen or more large operating mines across the state. Permitting will definitely get hard - er, resistance to mining will continue, but in the end the need for the valuable com- modities that Alaska offers will triumph! Our biggest opportunity is to tell our story. We must showcase the great things that the mining industry has done for this state and our nation. I believe that if everyone had the chance to take people opposed to mining on a mine tour, they would walk away in awe and probably change their thinking on why mining is so important. Anti-mining activists need to understand that a modern society is built with the minerals, metals, and ele- ments that come from mining. What do you see as our biggest challeng- es? And opportunities? What keeps you awake at night? Our kids. Joshua is 4, Ruth is 2 and our newest daughter Eliana was born in March! Life at our house is far from boring! What does AMA mean to you? AMA is an extensive network of awe- some people that care for this state more than most! I know that the conferences will start back up soon and I am look- ing forward to continuing to get to know more folks in our industry. I have enjoyed participating in the oversight committees and plan to continue to hold a leadership role in our local Denali Branch. What do you do for fun? I enjoy all of the typical Alaskan ad- ventures that the Interior offers. Hunting is my top choice. I am looking forward to when my kids are a little older so we can all go snow machining and camping more often. I have a Stinson that stays on the ground way more than it should, but I take every chance to go flying. We have a cataraft that I really enjoy taking out for multi-day float trips, the seclu - sion and beauty our state has to offer is beyond compare. We also own several dry cabins in Healy. It was a lot of fun building them — from clearing the trees to putting on the final touches. I even had fun the several times I reworked the interiors because my version of “done” and my wife’s differ slightly.
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WE PROMISED ALASKANS WE WOULD TAKE CARE OF THE LAND. After mining was completed at True North mine near Fairbanks, Kinross spent six years remediating the 149-acre worksite. Then we monitored the area for several more years to ensure long-term stability. Today, where men and women once went to work, you can play with your family, walk, bike and hike, including five miles of pre-existing trails that have been re-established. At Kinross Fort Knox, we honor our commitments.
Committed to Alaska
Since 1996
19
April 2021
The Alaska Miner
Remembering Gail Phillips, an iconic Alaskan figure
Mentor. Friend. Wife. Mother. House Speaker. Miner.
No matter her title, Alaska lost one of its most passionate advocates and leaders with the death of Gail McIver Phillips at age 76. From her early years in Nome to her election as the second woman to serve as speaker of Alaska’s House of Representatives, Gail’s contributions to Alaska are countless. Although she listed “miner” as her occupation when she was elected to the Alaska House of Representa- tives in 1990, she was a staunch pro- ponent of Alaska — whether it was tourism, economic development, in- ternational trade or military and vet- erans’ affairs. Gail is survived by her beloved husband Walt, their daughters Robin and Kim, and an extended family that includes two grandchildren. A service will be held later this year to celebrate Gail’s incredible life. “I have known Gail my entire life and it wasn’t till I was an adult I re- ally knew all that she has done. This was because she was not stuffy, she didn’t expect praise, she was as real as it gets. She was the epitome of the feminine genius! She did what it took to get the job done without compro- mising herself, her family, and most especially her beloved Alaska,” Ca- mille Tousignant Rzeszut said. “She was the cream of the crop in a time where women in the Alaska government/politics were few and far between. If you were lucky enough to meet Gail you stood amongst giants, the pillars of what it meant to be an Alaskan woman! Rest in Peace Gail we will keep your legacy strong!” Phillips was elected to the Alaska House of Representatives in 1990 as a Republican representing the Kenai Peninsula. Re-elected in 1992, she was named the House majority leader. She became speaker of the House in her third term and was confirmed to the position again in her fourth term.
Photos Courtesy Phillips Family
Gail Phillips, with President George H. W. Bush.
After a fifth term, she did not seek re-election. She served in the Legisla- ture from 1991 to 2001, and previously served on the Homer City Council and Kenai Peninsula Borough Assembly. Initially a candidate for Governor in 2002, she switched to the lieu- tenant governor’s race after Frank Murkowski announced his campaign. She lost the Republican primary that year but stayed involved with politics in a variety of roles, including as a special assistant to Murkowski, pres- ident of a pro-Pebble mine group and an adviser to Mead Treadwell in his 2014 run for U.S. Senate. In addition to her political work, Phillips was known as a member of the “Old Iditarod Gang” that helped create the Iditarod Trail Sled Dog Race. To recognize her work, the Idi- tarod named her its honorary musher during the 2020 race. Born on May 15, 1944 in Juneau, Phillips was the first of seven daugh - ters born to Lois and Wallace McIv- er. She attended Nome High School, graduating in 1962, and the Univer- sity of Alaska Fairbanks, graduating in 1967. She married her husband, Walter Phillips Jr., on Aug. 14, 1965 in Nome during a double ceremony that
also included the marriage of Gail’s sister Barbara. In addition to her work in the Leg- islature and with the Iditarod, Phillips worked for a variety of aviation com- panies, a series of mines, the Alaska Aviation Museum and as executive director of the Exxon Valdez Oil Spill Trustee Council. Phillips lived almost exclusively in Alaska, the middle of five generations of her family. Only while Walt, her husband whom she met at the Uni- versity of Alaska in Fairbanks, was on temporary assignment with the trans-Alaska (Alyeska) pipeline de- sign team, did she live in Texas (1971- 73). After coming back to Alaska in 1973, the Phillips first lived in An - chorage, and then settled in Homer in 1978. They lived there until after she left the Legislature. Phillips was also a member of the Alaska Women’s Hall of Fame, which described her as someone to whom “leadership comes naturally.” “Gail is a champion promoter of Alaska and its history,” according to her HOF profile. “Phillips has always been outspoken for the rights and betterment of all people.”
20
The Alaska Miner
April 2021
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22
The Alaska Miner
April 2021
“She made sure we felt the same passion she did. She was a mentor and a leader. She was a force of nature. Through her, we experienced all aspects of life! Whether it was clam digging, gold mining or family gatherings; nothing was done small, everything was on a large scale with vigor.” — Robin Phillips
“Gail was one who was widely respected by her colleagues and constituents alike. (First Lady) Rose and I thank Gail for her commitment to Alaska over her multiple terms in office, and offer our condolences to the Phillips family in their time of grieving.” — Gov. Mike Dunleavy
CIRI invites you to explore our land!
Much of CIRI’s 1.6 million acres of mineral estate was selected for its resource development potential. Contact us if you’re interested in mineral, gravel, oil and gas, or timber opportunities.
(907) 263-5197 resources@ciri.com
23
April 2021
The Alaska Miner
Photo Courtesy Ucore Ucore Rare Metals Inc. is developing plans for a rare earth processing plant in Ketchikan, the Alaska Strategic Metals Complex.
24
The Alaska Miner
April 2021
Ucore could lead Alaska rare earth development
BY LEE LESCHPER A Southeast Alaska project and eventual mine may soon be in the lead of the current rush to develop rare earth metal production in this country. Ucore Rare Metals Inc. (Ucore) is de- veloping plans for a rare earth process- ing plant in Ketchikan, the Alaska Stra- tegic Metals Complex (SMC), initially processing feedstock from elsewhere, with later plans to supply the plant with feedstock from Ucore’s Bokan Mountain project near Ketchikan. This comes at a time when the United States’ dependence on foreign sources, especially China for rare earth minerals, has become critical. “The sense of urgency is finally hit - ting home,” Pat Ryan, CEO of Ucore said recently. “The alarm bells are ringing. People are waking up from the Depart- ment of Energy to the White House to the Senate, they are all beginning to re- alize what is going on.” Creating the first US facility to pro - cess rare earth minerals in Ketchikan could not be more timely he said. “There is no separation of rare earth oxides on US soil. Presidential orders by Trump started to move in that direc- tion, and Biden in his first 100 days has called for a review of critical minerals supply chain vulnerabilities.” China dominates the rare earth sup- ply chain and is building both an eco- nomic and a worldwide dominance on the key components for everything from electric vehicles to F35s to smart- phones and renewable energy. “There is one operating rare earth mine in the United States,” he said. “All concentrate from that mine is sent to China, where they process it and keep it for use in China!” The Chinese focus on rare earth minerals cannot be underestimated, Ryan said “China has said ‘Saudi Arabi has the oil, but we have rare earths.’” Ryan has extensive experience in the auto industry and says automakers are taking the lead, driven by the need for future electric vehicles. Auto companies now must look at
several tiers of the supply chain that will support electric vehicles and are moving fast to secure lithium, cobalt and nickel for batteries and rare earth metals for electric motors. “It’s a very different world for auto - makers,” Ryan said “Ultimately it will be very good for Mother Earth. There are also a million North American jobs at stake.” In response, American automakers are investing heavily in vehicle electri- fication and the critical metals needed to support this transformation. “GM has announced 30 new electric vehicles by 2025 and is investing $27 billion (on electric vehicles). Ford is in- vesting $11.5 billion in 45 electric and hybrid vehicles by 2022. In Europe, VW (which had so many issues with diesel) is investing $37 billion in electric ve- hicles with a goal of 1 million sold by 2023.” Ryan likened today’s auto market to a century ago. “In 1907 the streets of Manhattan were full of horse and buggies—three years later it was all Model Ts. In 4-5 years, we are going to have a lot more electric vehicles.” That transition will require more charging stations as well as vehicles, he added, and President Biden had com- mitted to increasing the number of US charging stations from 30,000 to 500,000 by 2030. Vehicles are just one component, however. “The big one also is national de- fense. Everything from missile guid- ance systems to F35 fighters, to sonar guidance, and laser weaponry is driven by rare earth components.” The prospect of key components of the national defense supply chain be- ing totally in the hands of an adversary should be terrifying. “Beyond defense, are climate and health issues. Millions of people a year die from bad air, at least in part because of internal combustion engines.” And the rising crescendo of de- mands for renewable energy sources like wind turbines often neglects that
those technologies are also dependent on rare earth components, he said. That is the stage into which Ucore is moving quickly. Mike Schrider is vice president and chief operating officer for Ucore. “The events and resources are com- ing together,” Schrider said, creating an optimal environment for the Ucore concept and project. “We will start with sourcing US-al- lied feedstock, to ramp up in Ket- chikan,” Schrider said. Schrider works out of an office in New Hampshire today, but has spent many years in Southeast Alaska and Ketchikan since the 1990s, working on marine-related projects. The leadership team for Ucore combines an apprecia- tion of the assets both in Ketchikan and Bokan Mountain, with an entrepre- neurial background far beyond mining. “My background is in ships, but I’ve got a lifetime of work spent in design, management and building of projects,” Schrider said. “Our chairman and CEO, Pat Ryan, is cut from the same mold, as the founder and operator of a North American tier-one automotive supply manufacturer. He knows the auto in- dustry and the nuances required to be a dependable element of their supply chain.” That is a trend being seen nation- wide, as auto manufacturers scramble to find or create sources for the batter - ies, electric motors, and other compo- nents that they will need to meet new aggressive goals for producing electric vehicles. The Ketchikan project combines this new demand, with new much more ef- ficient refining technology and the rich mineral resources in Southeast Alas- ka—with a healthy dose of Ketchikan entrepreneurism. In May of 2020, Ucore acquired Innovation Metals Corp. (IMC) and their proprietary separa- tion and purification technology, Rap - idSX™. The RapidSX™ platform is an ac- celerated solvent-extraction (SX) based
CONTINUED on PAGE 26
25
April 2021
The Alaska Miner
Photo Courtesy Ucore
A rendering of the Alaska Strategic Metals Complex that is planned for Southeast Alaska.
West, as well.” “On February 24th President Biden issued an executive order directing an immediate 100-day review across fed- eral agencies to address the United States’ supply chain vulnerabilities and specifically called out rare earths used in our electric motors and generators. You can’t have a green energy electri- fication revolution without getting the materials that you need from mines. “Front and center it is going to take mining. And you have to look at how you get a mine into production, so the permitting doesn’t take seven to nine years as it typically does now, instead perhaps two to three years, like in Can- ada or Australia. “We have no idea yet where Biden will land on this issue but we are hope- ful that the current vulnerability of a virtually single-point rare earth supply chain will be addressed and that there will be additional government support for Ucore and others in North Ameri- ca with solid plans to assist the US in achieving this independence.” Ucore’s initial focus is opening the Alaska SMC facility to process rare earth concentrates for the production of rare earth oxides, which has vastly different permitting issues from those for permitting to open a mine. “Based on initial discussions with the State of Alaska, we envision that this will be a very straightforward man- ufacturing type permitting process,” Schrider said. “But Bokan Mountain
is also in our plans. We are currently conducting engineering studies to in- corporate additional co-products into the Bokan flowsheet to see if we can lower the economic threshold for start- ing the development of the mine.” The Alaska SMC project could be a definite game-changer for Ketchikan, and a switch from its traditional focus on timber, ships, fishing, and tourism. “We selected Ketchikan for the plant location so that when ultimately we develop the mine, it provides separa- tion and processing for the mine. From a business perspective, it is the first component of the mine,” Schrider said. While Ucore is considering other rare earth deposits in Alaska for even- tual feedstock for the plant, the current timeline is based on getting the plant operational and beginning to produce rare earth oxides from feedstock from elsewhere, eventually incorporating mineral concentrate from the Bokan resource. The RapidSX™ technology that Ucore has acquired and plans to employ in Ketchikan is a fundamental leg of the plan, simplifying and speeding up the refining process. “RapidSX is the key component of our plan,” Schrider said. “One of the fundamental obstacles in the rare earth business is that of separating them from each other and other materials … this is the most difficult part of the rare
UCORE, CONTINUED from PAGE 25
separation technology, developed by IMC for the separation of critical and other metals. With early-stage support from the United States Department of Defense’s U.S. Army Research Labo- ratory (ARL) program, RapidSX™ was then successfully demonstrated by IMC at a pilot-scale for the separation of rare earth elements. The RapidSX™ technology combines the time-proven chemistry of SX with a proprietary column-based platform, which significantly reduces processing time through a substantial reduction in the numbers of processing steps re- quired and increased reaction rates. “With conventional SX technology the separation plant we’ve envisioned would be about the size of a football field,” Schrider said. “However, with RapidSX technology, we can reduce the size of the plant significantly, so things become much more economical.” “Thus, what we are trying to do is to make sure that the U.S. and North America can be independent of China regarding a rare earth supply chain. China has visions of an electric vehi- cle world centered around the manu- facturing of EVs in China. We need to ensure that there is an equitable distri- bution of rare earth resources, process- ing and downstream metals, alloys and components for manufacturing in the
CONTINUED on PAGE 28
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The Alaska Miner
April 2021
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