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
Fall 2021 Volume 49, Number 10
Fifty Years of ANCSA: Celebrating the Strength and Future of Alaska
INSIDE THIS ISSUE n Usibelli celebrates reclamation milestone n Riding Federal regulatory roller coaster n Optimism for future of new projects n Faces of Mining: Chris Kennedy
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TABLE OF CONTENTS
4 Letter from
Our President
6 Executive
Director’s Report 10 Mining and ANCSA 14 Donlin Project Progress 16 Faces of Mining: Chris Kennedy 20 Usibelli Makes Reclamation History 26 Profile: PDC Engineers 33 Gil Mine Groundbreaking 36 Central District Picnic 2021 46 Mining Business and Service Directory
The official magazine of the Alaska Miners Association and the mining industry in Alaska
ON THE COVER: Arnold Phillips is a core cutter for Donlin Gold. He’s from the community of Kwigillingok and he’s also a gold medalist in Native Youth
Olympics for the high kick. Photo courtesy Donlin Gold
COVER INSET: Willie Hensley is the recognized face of the group of young Alaskans who helped shape the Alaska Native Claims Settlement Act in 1971, setting a new course for Alaska. Photo courtesy Alaska State Library
THIS PAGE: Tess Snyder is a Mine Engineer in Projects at Red Dog Mine. Photo courtesy Red Dog 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
Winter 2022 Legislative and Season Preview Spring 2022 Project Updates Summer 2022 People in Mining Fall 2022 Annual Anchorage Convention
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 Jen Wieland 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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Fall 2021
The Alaska Miner
President’s Message From Bill Jeffress
Vigilance is key moving forward in pandemic
“Political and regulatory uncertainty remain major obstacles to Alaska’s economic viability, but the resurgence of COVID-19 cases is our biggest threat.” W aiting for the “dust to settle” regarding policies and mandates from the Biden administration and lack of progress from
people, once thought to be immune, are now becoming infected and dying is even more alarming. The optimism of in person meetings and trade association gathering has faded and was replaced by the anguish and frustration of unsuccessfully trying to figure out how AMA could safely hold the annual convention. The health and safety of our members was paramount in the final decision to cancel the event. Several of us grew up during the 1950s when polio was rampant, and people rushed to get Dr. Jonas Salk’s break through vaccine. Growing up in the 1950’s and 60’s if you wanted to attend school several vaccines were required (e.g., Smallpox, Polio, Diphtheria, Tetanus, Pertussis, Measles, Rubella, Mumps). There was minimal resistance to receiving these vaccines and as a result some diseases have been totally eradicated in the U.S. Missing from the picture that allowed control and containment of these diseases were the politics, biased news media, and misinformation from nonexistent social networks at the time. AMA and my family have experienced COVID-19 and the loss of members, friends, and loved ones. I have two family members who are helicopter medevac pilots who are quick to vent their frustration as 100% of the patients medevaced with COVID are not vaccinated and usually at the perilous stage necessary to be flown for advance medical care ... they die. To add to medical personnel being stretched thin, is the fact that other patients with serious medical conditions are being bumped in leu of taking care of COVID patients (who choose not to receive the vaccine). Plus, how many other people were exposed and may became infected with COVID because of contacting these unvaccinated
the Alaska Legislature may be a long time coming. The uncertainty associated with both entities continues, but Alaskans are coping with the frustration and gleaning the positives to keep the ball rolling. One bright light is the Federal Infrastructure Bill that may provide some great benefits to Alaska. How it is finally enacted will make that determination. Our mineral exploration season started off with some uncertainty due to lack of drills, crews to man them, and logistic support. For most operations, these hurdles were overcome, and it has been a successful season. What may cast a shadow on the optimism of mineral exploration in Southeast Alaska is the move to restore the “Roadless Rule” on the Tongass National Forest. This would dampen mineral exploration opportunities and other resource development projects like hydroelectric dam projects and upgrades to power transmission lines. Political and regulatory uncertainty remain major obstacles to Alaska’s economic viability, but the resurgence of COVID-19 cases is our biggest threat. Initially with the rollout of vaccinations and the fact that Alaska was leading the nation in numbers getting vaccinated, and the downward trend of positive cases, this provided us with a false sense that the pandemic was under control. The Delta variant and resistance to receiving the vaccine has triggered a giant unwarranted step backwards. The vaccines have proven to be effective to prevent initial infection or minimize the effects of COVID-19 if infected. The fact that younger
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The Alaska Miner
Fall 2021
individuals. COVID-19 is no joke and denying its existence and seriousness is baffling to those of us concerned for the health and safety of all Alaskans. We are all looking forward to the time when we can get together again to see familiar faces, visit and share information. Hopefully the COVID infection rates will decline to allow us to meet in person in 2022. Sign up and share the Alaska Miner The Alaska Miner is mailed statewide to Alaska business, government and Native leaders. Subscriptions are complimentary — to sign up just email address and contact information to admin@FireweedStrategies.com. And if you’re already receiving the Miner, sign up your team members and clients who also need to be reading the latest good news about Alaska mining!
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Fall 2021
The Alaska Miner
Executive Director’s Report
workload has certain- ly increased monu- mentally. We are so grateful to have your support as we work with our partners at the national level, our Delegation, and the State of Alaska. This is a good time to express our most heartfelt thanks to the State of Alaska for pushing back on the unreasonable con- versation. From the
Dear Members and Friends:
By now, you have all heard that the worsening conditions of the COVID-19 pandemic in Alaska forced us to cancel the 2021 Annual Convention and Trade Show. It is so disheartening to be here again, and I know we all share the disappointment in not being able to see each other in person very soon. First, we want to say that we were completely overwhelmed by your responses to the cancellation. It was not an easy decision — more like gut-wrenching — and we feel like we made it alongside all 1,300 of our members. Your compassionate, understanding and com- plimentary comments helped to affirm that we made the right decision for our industry, members and communities. I want to share a handful of responses in hopes that it makes your heart feel as good as it did mine: I know this is a very hard decision. Big hugs guys!! It is the RIGHT thing to do, definitely.
Department of Law asserting defense of lands and federalism, to our regulatory agencies coordinat- ing responses on the responsible record of Alaska’s resource development industries, we are so lucky to have Governor Dunleavy and his team advocating for us. On that note, I am going to give AMAPAC Trea- surer Lorali Simon a little column space to remind us all how much elections matter. Even though this is not an election year, we can still donate to help the candidates that support us start building their treasury. Please consider helping support those who support us by donating to AMAPAC this year. You can do so online on our website: www.alaskaminers.org/take-action AND! We are working on an in-person fund- raiser this fall in a well-ventilated area. Stay tuned. Finally, as fall turns into winter and we are all facing the end of the year, I want to say how much I miss seeing your faces and how much I appreciate how we have all adapted to the alternative ways of communication. It is not the same, and it never will be, and I pray it is only a substitute for not very much lon- ger. At the same time, I am proud to be a part of an organization that time and time again puts its resilience on display. Thank you, miners!
Thanks for making the tough decision.
I know you guys have been working hard to make it happen. Sucks for the organization, but it’s definitely in the best interest of all involved.
Thank you for being the calm voice of reason.
I just want you to know you are supported.
We feel so very supported right now. Alongside the notes of understanding came offers of converting previously committed sponsorships to donations to help AMA further its mission, with encouragement like “we need AMA more than ever!” This generosity has helped us with our launch of the Durability Project, a foundational campaign to fund- raise with Alaska’s miners to keep up our mission year-round at a time when we are busier than ever pushing for reasonable mining policy. It is baffling that we have to “push” to have a reasonable mining conversation. We have a federal Administration proposing lofty goals in regard to zero carbon emissions and higher electric vehicle usage. We have heard them acknowledge that we need more mineral production to make that a reality. And here we are, addressing countless proposals to put land off limits, unat - tainable water regulations, decreasing flexibility on mitigation options, and so much more. Our federal
Deantha Skibinski AMA Executive Director
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The Alaska Miner
Fall 2021
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
Lincoln takes reins at NANA
The NANA Board of Directors has named John Aġnaqłuk Lincoln as pres - ident and chief executive officer (CEO) of the company. Reporting directly to
“We’re so excited John has taken the helm at NANA,” Alaska Miner As- sociation Executive Director Deantha Skibinski said.” We have really ap-
This is an exciting time for NANA, and we are blessed with amazing potential to achieve great things for our region and shareholders,” said Lincoln. “We will succeed and deliver on this potential through thoughtful, ethical, and value-driven leadership.” Lincoln has served 18 years working for NANA and the Maniilaq Association, the two largest employers of sharehold- ers in the NANA region. He joined NANA in 2016, and most recently served as vice president for external affairs where he worked to ensure the protection of cor- porate, regional and shareholder inter- ests. He also served as an Alaska State Representative from 2018-21, where he was an original member of the House Special Committee on Tribal Affairs. A native of Kotzebue, Lincoln grad- uated from Kotzebue High School as the valedictorian of his class. He went on to earn his bachelor’s degree, con- centrating in management science and public policy, from Stanford Universi- ty. In 2021, Lincoln was named a “Top Forty Under 40” leader by the Alaska Journal of Commerce.
preciated working with him as Lands and Re- sources Manager at NANA, and in his role in the Alaska House of Representatives Legis- lator for District 40 - Northwest Alaska. John is thoughtful and de- liberate, and passionate about bettering his re- gion and Alaska. He’ll be an amazing CEO.” Lincoln will remain based in Kotzebue. He assumes leadership of NANA as the orga-
the NANA board, Lin- coln will lead corporate initiatives to improve the quality of life for NANA shareholders by maximizing econom- ic growth, protecting and enhancing regional lands, and promoting healthy communities. “It is with a great excitement that we an- nounce John as the new president and CEO of NANA,” said Linda Lee, NANA board chair. “Our
JOHN AĠNAQŁUK LINCOLN
selection process focused on finding a leader capable of managing the com- plex, multi-faceted organization that NANA has become, while also possess- ing a deep appreciation of our mission and our Iñupiat Iļitqusiat. “John is absolutely that leader.”
nization approaches its 50th year in business, having been established as an Alaska Native Corporation in 1972 after the passage of the Alaska Native Claims Settlement Act (ANCSA). “I am humbled by the opportunity to lead our Alaska Native Corporation.
“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
Fall 2021
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January 2021
The Alaska Miner
Mines have played key role in success of ANCSA
BY ELWOOD BREHMER Alaska Native corporations across the state face a “fiscal cliff” of their own that is still years off, but there are currently few options to avoid it. For decades, the 12 Alaska Native regional corporations and nearly 200 village corporations statewide have shared revenue generated from re- source projects amongst themselves to the tune of roughly $3 billion since 1982, according to figures from a 2018 report on the revenue sharing pro- gram by the McDowell Group com- bined with more recent data. Generally known as the “Section 7(i)” program for its place in the Alas- ka Native Claims Settlement Act, the provision in the landmark legislation directs Alaska Native corporations to distribute 70% of the revenue origi-
nating from resource projects on their land to the other Native corporations statewide. The land or resource owner company keeps the remaining 30%. ANCSA Regional Association Exec- utive Director Kim Reitmeier said the 7(i) program is a critical component of ANCSA “that truly reflects the Alaska Native values of unity and collabora- tion.” Revenue from the 7(i) program has been a significant source of funds for benefits each of the regional corpora - tions have offered their shareholders, according to Reitmeier. The money is often used for cultural education, lan- guage revitalization, and scholarships, or is paid directly in shareholder divi- dends, but the individual corporations ultimately determine how it is spent. “There’s been trials and tribula- tions for the regional corporations and
7(i) revenue, and assistance from the other regional corporations has been paramount in the success of all of them,” she said. Revenue shared in the program — greatly influenced by commodity prices and production — totaled $246 million in fiscal year 2019 and $158.4 million last year, according to Reit- meier. She also noted it’s a model that flies in the face of the country’s tradi - tional business principles. “It’s really something that baffles the mind. Ask Lowe’s and Home Depot and all those entities to share profits with each other. You take those con- cepts to Western business cultures, and it blows people’s minds,” Reit- meier said. From 2015 to 2017 Bristol Bay Na- tive Corp. collected between $5.6 million and $9.6 million per year in 7(i) revenue, net of what the compa- ny also turned around and distributed to village corporations in its region through the closely linked 7(j) pro- gram, according to BBNC’s 2017 an- nual report. Section 7(j) of ANCSA subsequently directs the 12 regional corporations to distribute half of the shared revenue they receive to the area’s village cor- porations. The 12 regional corporations are all involved in numerous industries and business sectors, from government contracting to oil field services to re - mote fishing lodges, typically through subsidiaries and partnerships. And while many village corporations are often more focused on a single in- dustry, whether drilling oil wells or managing parking garages, Alaska Native Village Corporation Association Executive Director Hallie Bissett said that the 7(j) income accounts for all or nearly all of the revenue collected by approximately two-thirds of the 177 village corporations that are ANVCA members. Similar to Reitmeier, Bissett said
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The Alaska Miner
Fall 2021
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the looming dilemma. “Some (village corporation leaders) don’t even know where the money comes from.” She said Native corporation lead- ers attempted to get a 3 percent roy- alty from possible oil production from the Arctic National Wildlife Refuge but that was unsuccessful. Leaders of the Donlin gold proj- ect in the upper Kuskokwim region of Western Alaska tout their world- scale prospect — with the poten- tial to produce upwards of 33 million ounces over a nearly 30-year planned mine life — as a possible solution to the 7(i) and 7(j) revenue outlook. The Donlin prospect is on land owned by The Kuskokwim Corp., a consolidated village corporation and, as is the case across the state, the subsurface rights and royalties are controlled by the re- gional corporation — in Donlin’s case, Calista Corp. A Donlin spokeswoman referred questions about royalties to Calista officials. Calista spokesman Thom Leonard noted via email that Donlin isn’t the only resource development opportu- nity on Alaska Native-owned lands, but it is the next major opportunity
after Red Dog to contribute to the 7(i) program. “Like we can’t predict how many fish we will catch, we can’t speculate on the amount of 7(i)/7(j) revenue (from Donlin). It will depend on the price of gold and other factors. That said, if the Red Dog mine is any guide, we expect to be a significant contrib - utor to 7(i)/7(j) distributions to all Alaska Native corporations,” Leonard wrote, also noting that Red Dog ac- counted for 70 percent of all 7(i) reve- nue between 2015 and 2018. Bissett concurred that Donlin could be a major source of shared revenue, but also added that it is several years from the start of a lengthy construc- tion process, if the mine is ultimately built at all. She suggested it could be 20 years before significant 7(i) reve - nue is collected from Donlin. “As my chairman said, (shared revenue) is the difference between be - ing in business and not in business” for many village corporations, Bissett said. This story first appeared in the Alaska Journal of Commerce and is reprinted with permission
ANCSA, CONTINUED from PAGE 10
the emphasis on spreading the ben- efits of natural resources across the state is one of the first socially respon - sible business models. “People often forget the Alaska Na- tive piece of ANCs and just focus on the corporation,” Bissett said. “It’s very similar to the way we would share subsistence food,” she added. The problem lies in the fact that resource revenue from Alaska Native corporation-owned lands is generally declining, and the fall is likely to ac- celerate in the coming years. As is the case with oil production across the North Slope, production from lands owned by Arctic Slope Re- gional Corp. or state leases to which ASRC holds an overriding royalty in- terest has been on a downward trend, with no outlook for an abrupt recovery. Shared revenue from the Red Dog mine in northwest Alaska — one of the world’s largest zinc producers — also has an expiration date, and it’s the one Bissett is most concerned with. “There’s a huge cliff coming for 7(j),” she said in an interview. Opened in 1989, the Red Dog mine is on NANA lands north of Kotzebue. However, the metal deposit Red Dog operator Teck Resources Ltd. has been mining from is projected to be ex- hausted by 2032, according to Teck, with a likely ramp-down of produc- tion in the years preceding closure. Teck leaders in 2018 announced a second major discovery in 2018 that company representatives character- ized as another world-scale zinc pros- pect, but it is on nearby state land. A spokeswoman for NANA did not respond to questions about royalty and 7(i) revenue from Red Dog in time for this story. According to the Alaska Industrial Development and Export Authority, which owns the industrial toll road used to access the mine, royalty pay- ments to NANA average greater than $130 million annually. Through 2016, Red Dog had generated more than $1.3 billion in royalties for NANA, of which $860 million was subsequently dis- tributed to Alaska Native corporations through the 7(i) and 7(j) programs, according to figures in a 2017 AIDEA asset review report. “Awareness is the first big piece,” Bissett said in regard to addressing
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The Alaska Miner
Donlin Gold progresses with future development
Prospects continue to favor devel- opment of the Donlin Gold project, based on summer drilling work as well as progress on permitting. NovaGold Resources Inc. has re- leased its 2021 third quarter financial results and an update on its Tier One Donlin Gold project (“Donlin Gold” or the “project”), which NOVAGOLD owns equally with Barrick Gold Cor- poration (“Barrick”). Third-Quarter and Subsequent Period Highlights n Donlin Gold LLC Board ap- proved an additional $3 million in 2021 to advance studies and increase staffing in preparation for the new feasibility study. n Expanded 2021 Donlin Gold drill program, consisting of 79 holes to- taling approximately 24,200 meters, is nearing completion. The owners
reported initial assay results from 29 holes (18 complete, 11 partial) encom- passing approximately 7,500 meters of length drilled. The program has been enormously rewarding, yielding significant new high-grade intercepts in ACMA and an area between the ACMA and Lewis deposits (“Divide”) that point toward the potential feeder zones of this large system. Additional assay results will be released to the market as they become available. n With all key Federal and most key State permits in hand, Donlin Gold continued to advance additional State permits, including receipt of fi - nal 12 water rights permits. The Alas- ka Department of Natural Resources Commissioner’s Office completed its review of a reconsideration request and upheld the natural gas pipeline State right-of-way agreement and
lease authorization. n NOVAGOLD received $75 mil- lion from Newmont Corporation, fur- ther strengthening its already robust treasury. NOVAGOLD’s third quar- ter cash and term deposits totaled $173.3 million. An additional pay- ment of $25 million from Newmont comes due in 2023. In August, Donlin Gold enhanced its Community and Workforce Pro- tection Plan to ensure the safety and well-being of its workforce, employ- ees’ families, and local communities for the remainder of the 2021 field season. Employees and contractors are subject to mandatory COVID-19 testing prior to traveling to camp as well as upon arrival. Donlin Gold employed a local workforce from 20 Yukon-Kuskok- wim (Y-K) communities for the 2021
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The Alaska Miner
Fall 2021
season – approximately 70 percent of Donlin Gold direct hires for this year’s drill program were Alaska Na- tives. Donlin Gold, together with its Native Corporation partners Calis- ta Corporation (“Calista”) and The Kuskokwim Corporation (TKC), car- ried out a wide range of community engagement and support initiatives during the quarter: n In August 2021, Donlin Gold partnered with the Delta Backhaul Company, Association of Village Council Presidents (AVCP), and other regional partners on the fourth “In It For The Long Haul” backhaul project to collect, remove, and safely dispose of approximately 180,000 pounds of household hazardous and electron- ic waste from 26 Y-K villages, and finalized a Shared Value Statement with Upper Kalskag for a total of eight Shared Value Statements in the Y-K region. n All 12 water rights permits were finalized and issued by ADNR’s Division of Mining Land and Water on June 29, 2021. In July, the water rights permit issuance was admin- istratively appealed by an Environ- mental Non-Governmental Organi- zation (ENGO) representing five tribal groups in the Y-K region. A decision on the appeal is anticipated in 2022. n In April 2020, the ADNR’s Di- vision of Oil and Gas agreed to recon- sider its decision on the State ROW for the buried natural gas pipeline. On July 19, 2021, the ADNR Commis- sioner completed the reconsideration and upheld the State ROW. In Sep- tember, two appeals of the State ROW were filed in Alaska Superior Court, one by an ENGO representing several tribal groups and one by an outdoor recreational business owner in the pipeline area. n In June 2021, the Clean Water Act (CWA) Section 401 certification (the “401 Certification”) of the CWA Section 404 permit was appealed in Alaska Superior Court by an ENGO representing Orutsararmiut Native Council (ONC). Details of the financial results for the quarter ended Aug. 31 are pre- sented in the consolidated financial statements and quarterly report filed Sept. 29 on Form 10-Q with the SEC that is available on the Company’s website at www.novagold.com, on EDGAR at www.sec.gov, and on SE- DAR at www.sedar.com.
Photo courtesy Donlin Gold
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.
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The Alaska Miner
In each issue of The Alaska Miner, we profile an active member of AMA who’s made and is making a significant contribution to the mining industry in Alaska. This issue our Faces of Mining profile is Chris Kennedy, formerly general manager of the Pogo mine and now the new project manager of the Lucky Shot Mine. Faces of Mining
Chris Kennedy Project Manager, Lucky Shot Mine
Who was your mentor in this industry and what did they teach you that remains true today? This is a difficult question because in my 45 years I have had quite a few mentors that have helped guide me and have been around to fall back on for advice when needed. I would also say that these mentors were not all in the form of supervisors but everyday people that I had the pleasure of working with. What lessons have you learned that you want to share with new miners? Nothing is easy! You have to want to make the difference but be willing to be flexible at times to have this realized and to under - stand that when it comes to being an influence to those around you, you have to be respectful and don’t have the attitude that “I know it all!” What would you do differently? In Mining: in regards to taking my career in a different route, I would not change a thing. Long explanation here, in short; I would probably not be the mining individual that I am today. Personally: Most people would look back and say; if only! At this time in my life there is only one thing I could go back and change but because it would be impossible to do so, I would leave my life history the same.
pick one and it had to do with my mining history and expe- rience: it would be the winter nights during the Pogo mine construction period where I had to drive from Fairbanks to Pogo daily due to no rooms at the camp. On the clear crisp Winter nights when the northern lights were out and dancing a crossed the sky, I would
pull over and put on my winter gear, jump into the back truck bed and sit and watch and hear the lights crackle as though they were speaking directly to me!! Besides this experience, there are so many more that I would need sev- eral pages to tell the stories. Especially the 26 years I have spent in the industry here in Alaska. What do you love most about this business? Mining has been good to me — the travel, the different type of mines and the experience gained but most of all it would be the people I have had the pleasure to work beside. Because of these different places and people, I have learned that I can never stop learning and be appreciative where I have been and where I am today!
What was one experience you will never forget? There are so many that I will never forget but if I had to
Where do you see mining in Alaska in 50 years? Good Question!
I hope to see that Alaska is appreciated by our country of the vast amount of mineral opportunity Alaska has and that like today, it is mined responsibly.
What do you see as our biggest challenges? And opportunities?
Challenges: Mining in general has several challenges from those who feel mining is bad, to those who are ok with mining but not in their back yard. And let’s not forget the pressure placed on mining from our government and environmental antimining activists. Please don’t get me wrong, if we cannot mine responsibly then we shouldn’t be mining. But if you look at the mines in Alaska and in general, mining in harmony with the environment is and can be done, especially show that it can be done here in Alaska. Opportunities: Because of how rich Alaska in in min- erals, including critical minerals, the opportunities are endless. However, access and available infrastructure con- tinue to be a large hurdle. But as some mining companies have proven, these can be overcome … it all depends on the mineral find. What keeps you awake at night? Not much keeps me awake at night with exception of
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The Alaska Miner
Fall 2021
Photos Courtesy Chris Kennedy
Chris has worked in mines all over America, here he is in the very early days of start up at the Pogo Mine.
maybe this new job — just kidding! When it comes to mining, I worry about the regulations that don’t make sense. I am and have al- ways been a believer that if it doesn’t make sense, that’s what will be done!
most everyone who knows me, knows I love to golf. I am not much good at it but I have fun!
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Anything else you want to
share?
The mining industry has been good to me. It has tak- en me on a lot of adventures not only in Colorado, Ne- vada, Oregon, Arizona and Alaska but also in Chile, Peru, Canada and the North- west Territories! So many experiences good and bad, but lessons were learned in both. And I learned import- ant lessons like: You must treat people like you would like to be treated; Respect is earned and not given; Respect a person’s po- sition but don’t hold back your view if it is the right thing to do; Family comes first! People were given two eyes, two ears and one mouth. Use them accord- ingly!
What does AMA mean to
you?
Alaska, Mining Altogeth- er! I believe the AMA di- rector and staff are doing a great job. I also believe it is not easy to lead people and have others understand that we are all in this industry, together! What do you do for fun? I love to spend time with family although it wasn’t so easy in 2020! I have 14 grandkids and I love them all. I love to fly fish, well, truth be known, most any kind of fishing and I some - times catch when I am fishing! I have a 1953 Wil - lys station wagon that I am almost finished restoring. I like to ride motorcycles and
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Fall 2021
The Alaska Miner
Red Dog zinc production strong despite pandemic
Alaska’s producing mines continue to do well despite ongoing problems caused by the pandemic. The Red Dog zinc/lead mine north of Kotzebue, the world’s largest pro- ducer of zinc concentrate, saw stron- ger production of zinc in the second quarter and it now seems likely to exceed expectations for the year for its owner, Teck. The land and royalty owner at Red Dog is NANA Regional Corp. In its second quarter financial re - port Teck said stronger production is expected to continue through the rest of the year with the improvement due to higher throughput at Red Dog’s mill as well as higher grades of ore mined. Lead production at Red Dog was also up by 33 percent, the company said. Zinc production at Red Dog in- creased to 140,300 tonnes in the sec-
ond quarter compared with 83,900 tonnes a year ago (a tonne, as a unit of measurement, is 2,200 pounds com-
pared with a “ton,” which is 2,000 pounds). The increase is credited to higher mill throughput, higher grades and metal recovery from ore. Mining operations performed well, also. Red Dog is also seeing the benefits of pro - cess control improvements in the mill through its RACE21 program. “Our profitability in the second quarter improved significantly from a year ago as a result of increases in the prices for all of our principal prod- ucts,” Teck told investors. Zinc pric- es are up significantly due to stron - ger industrial activity in key markets, increasing 48 percent from second quarter 2020. Zinc represents 91 per- cent of the value of Red Dog’s pro- duction with the rest being lead and smaller amounts of silver and other metals. Costs are going up, however. Min- ing equipment, fuel, tires and explo- sive costs are rising, driven largely by price increases in underlying com- modities like steel, oil and natural gas, the company said. Red Dog’s gains benefits NANA Regional Corp., the land and royalty owner, as well as other Alaska Na- tive regional and village corpora- tions. NANA receives 35 percent of the mine’s net profits, and 70 percent of that is shared with other Alaska Na- tive regional and village corporations under terms of the 1971 Alaska Native Claims Settlement Act.
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The Alaska Miner
Fall 2021
Since Red Dog began production NANA has distributed over $1.5 billion in revenue-sharing payments to other Native regional and village corpora- tions. Red Dog is in Northwest Alaska 90 miles north of Kotzebue, ine DeLong Mountains. The mine operates and produces zinc and lead year-around, shipping concentrates by truck to a storage facility on the Chukchi Sea coast owned by the Alaska Industri- al Development and Export Authority, the state’s development finance cor - poration. The ore is shipped seasonal- ly during the summer/fall open water season in the Chukchi Sea, which is typically 115 days. The mine is a major employer in Northwest Alaska with 635 full-time employees, including 111 contrac- tor employees. Production at Red Dog started in 1989 but it had been discov- ered years earlier by prospectors with its lands were selected by NANA as part of its ANSCA selection rights. Had NANA not selected the lands they would have wound up in a na- tional park, wildlife refuge or national monument in the 1980 Alaska National Lands and Conservation Act.
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Fall 2021
The Alaska Miner
Usibelli Coal Mine Achieves Historic Reclamation Milestone
Photos Courtesy Usibelli Coal Mine
The after-effects of the reclamation (above) from the previous site (below).
Poker Flats Mine permit receives bond release
BY RICH SIVILS Usibelli Coal Mine has reached a historic milestone at the Healy mine. The mine’s Poker Flats Mine permit reached the milestone in its reclamation efforts. The application submitted the previous year was approved in August by the Division of Natu- ral Resources for Phase III Bond Release which covered a significant portion of the mining area. This bond release covers 367 acres of land leased from the State of Alaska on which over 20 million tons of coal were safely and
CONTINUED on PAGE 23
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The Alaska Miner
Fall 2021
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The Alaska Miner
Fall 2021
continue until the entire mine permit reaches final bond release. The first area mined at Poker was an extensive north-facing slope which predated the SMCRA laws put in place by the federal government in 1977. UCM was not technically obligated to reclaim this area to meet the new federal guidelines, but still chose to exceed the new standards in its efforts to fully reclaim the area disturbed be-
fore 1977. This falls into line with the successful reclamation completed in its birthplace, the Healy Valley several miles to the south of Poker. One of the easiest reclamation tricks is to move material one time to final placement which the drag - line does efficiently. Additional fill
USIBELLI, CONTINUED from PAGE 20
economically mined from the early 1970s to 2000. UCM began its concerted recla- mation program in the early 1970s and by 1973 had successfully seeded 1,600 acres of formerly mined land. By 1977 that number had grown to 2,300 acres. This effort also had the added bonus of providing valuable in- formation for then soon-to-be-built Trans Alaska Pipeline System which borrowed techniques used by UCM in reclaiming its own footprint. As operations shifted focus north to Poker, monitoring began on the new- ly reclaimed land and wildlife quickly found the area to be excellent habitat both for summer and winter browse, with large Dall sheep and caribou herds re-establishing in the area. Coal mined from Poker Flats has a long history of supplying the essen- tial energy utilized in Interior Alaska to fuel power plants for electricity and heat generation. It was also the source for export sales being an extreme- ly low sulfur coal, highly valuable to other countries. The 1970s were a time of exciting change for UCM, with the expansion of its operations into the Hoseanna Valley by acquiring permits and leases that would soon become the Poker Flats Mine. In 1976, the haul road and Poker Shop and office complex were built, followed by the construction of the iconic “Ace In the Hole” Bucyrus Erie 1300W Dragline, with a 33 cubic yard bucket capable of moving 35,000 cubic yards of overburden in a 24-hour day. The dragline arrived by rail and truck, took nearly two years to ful- ly assemble and immediately began overburden stripping. Poker Flats fed the soon-constructed tipple on the west side of the Nenana River which was completed in 1981. The Poker permit has been renewed every five years by DNR and several expansions continued mining operations until the nearby Two Bull Ridge permit was ap- proved in 1997 when mining was ini- tiated in 2000. Reclamation of the Poker Flats Permit began long before the first truck load of dirt was moved. Soil, water and vegetation studies were conducted to provide a baseline guide for what future reclamation ef- forts would achieve. Concurrent rec- lamation work began and continued after coal mining ceased, and will
CONTINUED on PAGE 24
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Fall 2021
The Alaska Miner
USIBELLI, CONTINUED from PAGE 23
is placed by the Truck-Shovel crews and the dozer fleet finishes with final regrade of slopes and the establish - ment of drainages. Furrowing is a proven erosion control method that is the final step before seeding occurs. UCM has utilized aerial seeding methods for the bulk of the reclamation work, followed up with hydroseeding and hand seeding select areas as needed. After the na- tive grasses are established, summer reclamation crews follow up several years later with supplemental seedling transplants. White spruce, birch, alder and willow are the primary species hand -planted and all seed stock is locally sourced from the Healy area, so it is already accustomed to the climate and growing conditions. Summer recla- mation crews are primarily tasked with trans-planting an average 25,000 seedlings during the brief summers. UCM’s longstanding reclamation goal is to put the land back to better than what it was before mining oc- curred. The secondary benefit of completing timely rec - lamation is to reduce the bond liability a mining area has. As mining progressed across the Poker area, regrade was completed in contiguous areas and seeded with the goal of reducing erosion and establishing vegetation back on the landscape. The main south half of Poker was ap- proved for Phase I bond release in 2011, which occurs after grading has been completed. This same 430 acres was ap- proved for Phase II release in 2016, and plans were made for the required vegetation study to commence in 2018. A joint meeting with DNR/UCM and the consulting firm
ABR was held in January 2018 to review the final bond re - lease standards and permit language which would facili- tate the Phase III bond release. The only other Phase III Bond Release area in the state of Alaska is located at another coal mining permit UCM reclaimed at Gold Run Pass. This area was approved for Phase III release in 2011 and consists of 94 acres. Being the first true Phase III release in Alaska, this set the precedent for future work. ABR was selected as the consulting firm to conduct the field work necessary to submit an application for final bond release. The field work, statistical meth - ods and final report from the 94 acres at Gold Run proved
Y E A R S 1996 - 2021
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The Alaska Miner
Fall 2021
“The work done to reach this point was largely completed by UCM employees that will never receive proper recognition for their efforts. All of the 367 acres approved for Phase III release were reclaimed long before I accepted this job in 2013. I’m just the guy that sent the letter to tell DNR that our work has been completed.” — Rich Sivils, Reclamation Engineer at Usibelli Coal Mine
invaluable as the model for the Poker bond release procedure and process. A bond release package was sub- mitted in 2020 that contained the necessary vegetation cover and di- versity reports for the two year study conducted in 2018-2019. This bond release request was for the entire 430 acres previously ap- proved in 2016 for Phase II release. DNR conducted a joint inspection with the Office of Surface Mining (OSM) in June 2021. This consisted of walking the en- tire 430 acres, photographing the site,
collecting drone data for the entire area which was interpreted to show infor- mation on vegetation cover and density and noting any deficiencies that would require additional work before final bond release could be granted. UCM is pleased that out of the 430 acres submitted for consideration, 367 acres were approved by DNR for final bond release after decades of work has been put into reaching this milestone. Since the vegetation study greenlighted the entire 430 acres for Phase III re- lease, UCM will complete several small
projects and resubmit the remaining areas for the remaining 63 acres in the coming months, with the hopes of Phase III release on these areas in 2022. In terms of the outstanding bond amount for Poker Flats, UCM has sig- nificantly reduced its bond liability. The bond for Poker Flats has been re- duced from $2.5 million to the current amount of roughly $400,000. This is only made possible by the relentless work that UCM has successfully com- pleted, which can be seen today in the beautifully restored landscape.
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The Alaska Miner
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