Strengthening Local Economies and Communities Mining companies strengthen Alaska’s local economies by employing residents from more than 90 communities. The industry also purchases about $880 million in supplies and services from about 600 Alaska businesses. Mining companies are also a significant source of stable revenue for local governments, as well as significant state government revenue. In 2020, Alaska’s mining industry paid:
Partnering with Alaska Native Corporations All Alaska Native corporations benefited from mining industry activity – in 7(i) and 7(j) royalty sharing payments, in jobs for shareholders, or through business partnerships. † In 2020, NANA received $173.5 million in net proceeds from Red Dog Mine and distributed $104.1 million to other Alaska Native corporations, Kikiktagruk Iñupiat Corporation, and at-large shareholders via the 7(i) and 7(j) provisions of the Alaska Native Claims Settlement Act (ANCSA). † Between 1982 and 2020, NANA received $2.3 billion in net proceeds from Red Dog and paid more than $1.5 billion to other regional and village corporations, KIC, and at-large shareholders via 7(i) and 7(j) provisions of ANCSA. † 54% of the year-round Teck Alaska jobs at Red Dog are filled by NANA shareholders. † Calista Corporation has received millions of dollars in royalties and other revenue from mineral agreements, including lode exploration, placer gold production, and construction material sales. † 33% of all employees at the Upper Kobuk Minerals Projects, including contractor hires, were NANA shareholders in 2020.
An estimated $116.5 million to state government in royalties, rents, fees, and taxes, and other government- related revenues, including: † $62.1 million in mining license tax, rents, and royalties. † $9.7 million in state material sales, large mine permit coordination program receipts, miscellaneous fees, and other taxes. † $15.2 million to the Alaska Railroad Corporation for moving coal, sand, and gravel. † $28.4 million to Alaska Industrial Development and Export Authority for the use of state-owned facilities (DeLong Mountain Regional Transportation System and Skagway Ore Terminal). † $1.1 million to the Alaska Mental Health Trust for mining claim and lease rent and royalty payments, and construction material sales.
An estimated total of $48.7 million to local governments, including : † $26.2 million in payment in lieu of taxes by Red Dog to the Northwest Arctic Borough, plus $8.0 million paid to the Village Improvement Fund. † $11.1 million in property taxes paid by Fort Knox to the Fairbanks North Star Borough. † $1.9 million in property taxes paid by Greens Creek to the City and Borough of Juneau. † $1.4 million in property taxes paid by Kensington to the City and Borough of Juneau. † Tax payments to other local governments, including Denali Borough, City of Nome, and others † Mining industry employees also pay local property and sales taxes.
Special thanks to Coeur Alaska, Usibelli Coal Mine, and Graphite One for the use of their photographs in this publication. Sources used in this report include: State of Alaska Departments of Commerce, Community, and Economic Development, Labor and Workforce Development, Natural Resources, and Revenue, Alaska Railroad Corporation, Alaska Industrial Development & Export Authority, various local and borough governments, Avalon Development Corporation, and mining companies. Prepared in consultation with McKinley Research Group (formerly McDowell Group, Inc.).
Alaska Miners Association, Inc. 121 W. Fireweed Lane, Suite 120, Anchorage AK 99503 TEL: 907.563.9229 www . alaskaminers.org
@alaskaminers
Alaska Miners Association
Made with FlippingBook - professional solution for displaying marketing and sales documents online