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.
New Year, New Challenges What’s Ahead for Alaska Mining in 2023?
The official magazine of the Alaska Miners Association and the mining industry in Alaska
AlaskaMiners.org
Winter 2023 Volume 51, Number 1
INSIDE THIS ISSUE
n Alaska Mining Tops $4.5 Billion n 2022 AMA Award Winners n Biden Closes Tongass (Again) n EPA Preemptively Vetoes Pebble Project
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Photo by Lee Leschper Alaskan families are the heart of Alaska mining, like AMA vice president Blake Bogart and his family, here at the 2022 annual convention in Anchorage. What is so often lost in the debate about Alaska mining is that good-paying mining jobs, as as well all the important industries that support mining, provide a great quality of life for tens of thousands of Alaska families.
Executive Director’s Report
Dear Alaska Miners,
Our days are getting longer, and I don’t just mean the daylight. The 33rd Alaska Legislature is off to a busy and energetic start, and we’ve had the pleasure of intro- ducing our industry to dozens of new faces. We had a glimpse of this during the election sea- son, when we joined with the Council of Alaska Pro- ducers to conduct statewide briefings to all interest - ed candidates running for office. We met with over 50 candidates in Anchorage, Fairbanks, Mat-Su, and a statewide virtual session. In these briefings, we learned of broad, bipartisan interest and support for how Alaska can supply the nation with the miner- als it needs, and benefit Alaskans and communities across the state, all while operating safely and with the highest environmental standards. The 2022 election resulted in 23 new Legislators serving us in Juneau. Some have served before, but many are brand new faces and there is big interest in Alaska’s mines and projects. In early March, we will again join with CAP to brief the House and Senate Resources Committees on the current state of the industry, environmental performance, tremendous economic and community benefits, our workforce, and so much more. We’ll get the opportunity to take that even fur- ther with our first-ever full-day Juneau Mining Fo - rum on March 7. I’m thrilled with how this event is coming together, with Legislators helping to moder- ate panels on critical minerals, transboundary min- ing, local hire, environmental regulations, economic benefits, and other important issues. And speaking of important issues, I point to both the column by our AMA Statewide Chair, Bartly Kleven, and the full document featured elsewhere in this issue to display our 2023 AMA State Issues of Concern document. Each year, our 60-plus members of the AMA State Oversight Committee meet sever - al times to develop a list of the priorities to ensure a successful mining industry in Alaska. It is public and is provided to the Legislature, Administration, and other policymakers to communicate the policies critical to AMA. The committee is comprised of AMA members across all types of mining, and the result is a robust, diverse list of mining issues for all of our interested elected officials to evaluate what actions are necessary to move forward. I’ll save my federal gripes for another day. But looking within the state, I truly believe our future in Alaska is bright. We are seeing a deep appreciation for the
contributions from the existing mining operations and curiosity about the potential opportunities the proposed projects can bring. We have a terrific story to tell, and getting Alaskans to ask the questions and be willing to listen is a victory in itself. Thank you for continuing to provide me with the components of our story. The data you recently supplied to the McKin- ley Group for our annual economic and communi- ty benefits report, your Faces of Mining features, your photos, and your highlights paint the picture of what an Alaska Miner looks like and what our values are. AMA Executive Director Deantha Skibinski received this sticker from her fellow Big Lake Representative Kevin McCabe and staff this past month in Juneau.
Deantha Skibinski AMA Executive Director
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The official magazine of the Alaska Miners Association and the mining industry in Alaska
ON THE COVER: While much is uncertain in today’s world, the power of Alaska mining and majesty of Alaska’s resources has never been more evident. Here the northern lights dance over Lions Head at Kensington Mine in southeast Alaska on a winter night. Photo by Ernie Mendoza, Safety Superintendent for the Coeur Alaska Kensington Mine. Photo courtesy Kensington Mine THIS PAGE: The MAPTS program continues to train new miners to fill the critical need for the next generation of workers in Alaska’s mining industry. Pictured is a recent graduating class from the MAPTS underground mining school. Photo courtesy MAPTS
18 Mine Production Tops $4.5B 26 2023 Mining Issues of Concern 28 Honoring the Best and Brightest 44 Mining Business and Service Directory
TABLE OF CONTENTS
2 Executive Director’s Report 4 Letter From President Bartly Kleven 10 EPA Slams Pebble With Veto
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
Spring 2023 Project Updates Summer 2023 People in Mining Fall 2023 Annual Anchorage Convention Winter 2024 Legislative and Season Preview
Deantha Skibinski Executive Director Jennifer Luiten Membership and Fundraising Director Darlene Strickland Bookkeeping and Membership
EXECUTIVE BOARD
BRANCH CHAIRMEN
Bartly Kleven President, Kinross Alaska, Fairbanks Lorali Simon First Vice President, Usibelli Coal Mine, Healy Blake Bogart Second Vice President, Graphite One Inc., Nome Kim Aasand Treasurer, Aasand & Glore LLC., Anchorage
Ted Hawley Anchorage Richard Sivils Denali Ken Hall Fairbanks
Houston Morris Kenai Ken Hughes Nome Robert Fithian Ketchikan/ Prince of Wales
Liz Cornejo Haines Jim Clark Juneau
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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Winter 2023
The Alaska Miner
President’s Message From Bartly Kleven
Thank you for making Alaska mining great
"The current administration in Washington, D.C. is pushing for a new green energy economy that is impossible without exactly the key minerals we have underground. That is why a robust and active AMA is more critical than ever." H appy New Year!
agement of our state lands and minerals. These include everything from continuing to map and identify the riches under Alaska land, to the commitment to provide access to those resources. We need to be persistent in pushing back against Federal overreach in its many and insidious forms. We need to grow and maintain a skilled Alaska workforce to support mining, while mining provides life-changing well-paid careers for Alaskans and their families. We also need to, through super organizations like Alaska Resource Education, that all Alaskans grow up with an appreciation of the history, the potential and the need for resource development. It's quite a list! The challenges are real. I said this a year ago and it’s still true. We continue to see Federal challenges to our ability to develop Alaska resources and turn the resources we’ve found into pro- ducing mines. While the current adminis- tration in Washington, D.C. is pushing for a new green energy economy that is impos- sible without exactly the key minerals we
As we move forward into a new year of mining in Alaska, as your association we are focused on the challeng- es ahead. Inside this magazine you’ll see our 2023 State Issues of Concern for the Alaska Min - ing Industry. Our leadership devoted hun- dreds of hours to developing these import- ant issues that can determine the future of us all. Read them in detail but let me emphasize a few. Nothing happens without permitting here and we are the gold standard for mining worldwide, because we defend our strict permitting standards. Water is at the heart of everything we do, and we must defend our state’s right to control our waters, whether through Tier 3 designations or 404 primacy. We expect and deserve a state that is as fiscally stable as we have to be in our own businesses, and that includes both equitable taxation and protection from onerous ballot initiatives. We need equitable and mining wise man-
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have underground. That is why a robust and active AMA is more critical than ever. And the real strength of our associa- tion and our Alaska industry is the ded- icated men and women who go to work every day to mine safely and responsi- bly. And who work overtime to advocate and educate and defend on behalf of us all. In this magazine we’re retelling the stories of 13 amazing Alaskans and Alaska companies that were honored at our fall convention, for their contribu- tions and dedication. Because were not able to meet in 2020 or 2021, we have a baker’s dozen of honorees! You’ll recognize them and I bet also be surprised by some of their stories. They are the best of us! So, as we look ahead to another busy season in Alaska mining, thanks for what all of you do every day to make Alaska great.
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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The Alaska Miner
Alaska Mining Forum In Juneau
Make your plans now! Please Join Us for a Alaskan Mining Forum In Juneau n March 7, 2023 n Baranof Hotel Treadwell Room Sponsored by the Alaska
Miners Association and the Council of Alaska Producers, this one- day forum will feature mining-related sessions geared toward the public, policymakers, and members of Alaska's mining industry. Plus an evening reception sponsored by Alaska Miners Association, Associated General Contractors of Alaska, and Alaska Trucking Association at the Hangar Ballroom
Sessions include: n Economic and
Community Benefits of Mining in Alaska
n Local Hire Panel n Transboundary Mining n Alaska’s Operating Mines n Critical Minerals and ESG n Environmental Regulations Watch AlaskaMiners.org for more information and registration.
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Senators Murkowski, Sullivan: Tongass not a political football
Alaska U.S. Senators Lisa Mur - kowski and Dan Sullivan have object - ed strongly to the recent USDA Forest Service repeal of the Tongass Nation - al Forest’s exemption from the 2001 Roadless Rule. That decision reinstates the 2001 rule, ignoring requests from the State of Alaska and data and analysis from the last administration that supported the 2020 exemption. “The Roadless Rule should never have applied to the Tongass, and the Biden administration’s decision to reinstate it is federal paternalism at its worst. Roughly 80 percent of the Tongass is already protected through existing law, land use designations, and the forest planning process, and there is no threat of large-scale de- velopment from timber harvesting or any other activity,” Murkowski said. “With this decision, the Biden ad - ministration is turning the Tongass into a political football, where access changes with each new President and creates whiplash for those who might want to invest or build in Southeast Alaska. We should see this for what it is: a regulation in spite of reality that will only serve to make it take longer, cost more, or outright impossible to develop the limited infrastructure — including renewable energy — neces- sary for a sustainable regional econ- omy.” Sullivan, a former Alaska Attorney General and Commissioner of Natural Resources, concurred. “The Biden Administration has now unleashed 42 executive orders or actions targeting Alaska and the economic well-being of our citizens. No other state in the Union is getting such targeted and unwanted attention from the Biden administration. I have repeatedly called on President Biden for a ceasefire in his war on Alaska’s working families, but to no avail,” said Senator Sullivan. “Alaskans in Southeast — like any Americans — have a right to con- nect their communities, sustain local economies, build renewable energy projects, and responsibly harvest re-
Photo Courtesy Shutterstock
sources. But the Forest Service’s re - turn to the overly-burdensome 2001 Roadless Rule totally undermines all of those. My message to hard-work- ing Alaskans who are being crushed and utterly disregarded by this Ad- ministration: I will fight this and oth - er Biden Administration anti-Alaska actions with everything in my pow- er.” The Tongass National Forest spans nearly 16.7 million acres, covering nearly all of Southeast Alaska, and is home to 32 islanded communities. For decades, successive layers of federal law and regulation, including the Roadless Rule, have continually restricted access needed for timber, mining, tourism, recreation, and the development of renewable resources such as hydropower. Separate and apart from the Road - less Rule, the Tongass is well protect - ed under existing law. Some 80 per - cent of the forest is already conserved in Congressionally-designated Wil-
derness, National Parks and National Monuments, or other natural setting land-use designations — meaning only ten percent of the Tongass is available for any kind of development. In 2018, the Forest Service an - nounced it would develop a state-spe- cific Roadless Rule focused on the Tongass. The Alaska-specific rule, finalized in October 2020, exempted the Ton- gass from the one-size-fits-all Road - less Rule, which established sweeping prohibitions on road construction, road reconstruction, and timber har- vest on inventoried roadless areas on National Forest System lands begin - ning in 2001. The 2020 rule came in response to a petition from the State of Alas - ka requesting a full exemption for the Tongass, and helped restore balanced management and reasonable eco- nomic prospects within the Tongass.
KINY contributed to this story
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January 2021
The Alaska Miner
Photo Courtesy Pebble Limited Partnership
EPA signals it will proceed with veto of Pebble project
to sue to stop an action that would, in effect, condemn a huge area of state- owned lands. On Dec. 1 EPA’s Region 10 Regional Administrator Casey Sixkiller trans - mitted to EPA’s Office of Water As - sistant Administrator Radhika Fox, a Clean Water Act Section 404(c) Rec - ommended Determination to prohibit and restrict the use of certain waters
in the Bristol Bay watershed as dis - posal sites for discharges of dredged or fill material associated with devel - oping the Pebble Deposit. EPA Region 10 determined that these discharges would be likely to result in unacceptable adverse effects on salmon fishery areas in the South Fork Koktuli River, North Fork Kok - tuli River, and Upper Talarik Creek
Governor vows to sue to stop condemnation of state lands The EPA has signaled its intent to foreclose the Bristol Bay region of Southwest Alaska from a large-scale mine, and Gov. Mike Dunleay vowed
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watersheds of Bristol Bay. “EPA Region 10’s action rep - resents the third step in EPA’s four- step Clean Water Act Section 404(c) review process,” Sixkiller said. If af - firmed by EPA’s Office of Water, the action would prohibit certain waters in the South Fork Koktuli River and North Fork Koktuli River watersheds as disposal sites for the discharge of dredged or fill material for the con - struction and routine operation of a large mine EPA’s Office of Water is review - ing the Recommended Determina - tion and the administrative record supporting Region 10’s decision, as well as information provided by the United States Army Corps of Engi - neers. EPA’s regulations do not re- quire public notice of Recommended Determinations and EPA is not seek- ing additional public comment, the agency said. Dunleavy said the action sets a dangerous precedent. “It vetoes a permit that has not been issued and imposes a blanket prohibition on development over 309 square miles of Alaska-owned land. Alarmingly, it lays the foundation to
stop any development project, min- ing or nonmining, in any area of Alaska with wetlands and fish-bear - ing streams. “The State of Alaska has the duty, under our constitution, to develop its resources to the maximum in order to provide for itself and its people, so it’s important that any and all op- portunities be explored in further- ance of this idea,” Dunleavy said. “This is an incredible power for a federal agency — staffed by unelect - ed officials, unaccountable to Alas - kans — to have,” said Jason Brune, Commissioner of the Alaska Depart- ment of Environmental Conserva- tion. The governor noted several flaws in the veto’s supporting documents. One is the veto’s prematurity: proj- ect plans are still working through the established permitting process, which the Army Corps of Engineers oversee. At this juncture, Alaska’s State agencies—the Alaska Depart - ment of Fish and Game, the Alaska Department of Environmental Con- servation, and the Alaska Depart- ment of Natural Resources—have not yet weighed in; through the
State permitting process, the State’s 401 certification process, or through State input as a landowner. “The veto disregards the Alas- ka Statehood Act, violates the Clean Water Act, and departs from basic scientific methodology. Of particular concern is EPA’s failure to demon- strate why the Army Corps of Engi- neers was wrong when it reviewed the same scientific data but arrived at the opposite conclusion — that the proposed mine plan “would not be expected to have a measurable effect on fish numbers or result in long- term changes to the health of the commercial fisheries in Bristol Bay,” Dunleavy said. Additionally, united by a desire for greater predictability in the 404 permitting process, the Western States Water Council, representing 18 states and accountable to the West- ern Governors’ Association, passed a resolution urging EPA to adhere to established procedure, meaningfully consult with affected States, and ade - quately document its rationale before exercising the 404(c) veto power.
— Tim Bradner
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A Message from Rick Nolan Here's a look ahead from the National Mining Association
I f the past is any indication of what’s to come, 2023 could mark a minerals mining re- naissance. Minerals took the spotlight in 2022 after a series of global events revealed the fragile nature of supply chains. Un- like ever before, industry experts, busi- ness leaders, government officials and members of Congress from both sides of the aisle agreed that the U.S. needs to secure a stable supply of minerals. Amid economic and geopolitical turmoil, the U.S. came face to face with the need for a strong domes- tic mining industry and the harsh reality of what can happen when the bedrock of our supply chains — minerals — are controlled by China, Russia and other foreign adver -
as usual when it comes to minerals. Demand for minerals is only going to accelerate in the future and, in 2022, the Biden administration raised further awareness of the issue by using the Defense Production Act to begin supporting domestic minerals mining. It’s a good start, but much more must be done. As we begin the new year, we must use this momen- tum to give America’s miners the support they need to succeed. We saw reports from Benchmark Minerals Intelligence, S&P Global and Bank of America calling for more mineral exploration, production and processing to keep up with demand. Mineral processing capacity will need to increase 10-fold for our energy goals alone. To meet this need with domestic resources, we need mineral supply chains in place by 2035. As it stands today, it takes on average 10 years to permit a mine in America. It doesn’t take a mathematician to real- ize now is the time to act. Here are ways we can secure our mineral supply in 2023: n Pass commonsense permitting reform policies that speed up the time it takes to approve a mine n Advance mining projects that have been plagued by permitting delays n Build mineral processing capa - bilities within the U.S. to support EV battery manufacturing n Minimize our mineral imports, which accounted for $90 billion of our country’s budget in 2021 The importance of our industry has never been so widely acknowledged as it is today. The mining industry’s message remains clear: With the right policies in place, U.S. miners are ready to support the world’s mineral needs. To meet our energy goals and set ourselves up for a sustainable future, it’s paramount we pass permitting reform that incentivizes domestic mining. If we do that, we can make 2023 the year we all need it to be.
RICK NOLAN
saries. For the average consumer, it took shortages for everything from baby formula to computer chips to fi - nally make one thing abundantly clear: our country cannot continue business
Rick Nolan is President and CEO of the National Mining Association
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n 2022 was a year of positive momentum for the minerals mining industry and set the stage for what could be a mining renaissance in 2023. n Global climate goals catalyzed demand for minerals needed to deploy advanced energy technology. n Russia’s attack on Ukraine exemplified the dangers of monopolized mineral markets, leading policymakers to call for increased domestic mineral production and reduced U.S. reliance on
imported metals.
strong domestic minerals supply chain is the only path forward.
n Unlike ever before,
the public and private sectors agreed that a
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Winter 2023
The Alaska Miner
Governor selects Boyle, Crum to fill cabinet spots
Gov. Mike Dunleavy is making new cabinet picks. John Boyle, former government affairs manager for BP and most recently Santos, Ltd., will be state resources commissioner be- ginning in January. He replaces Akis Gialopsos, who was acting in the job.
Boyle was also previously an attorney with the North Slope Borough. Boyle’s appointment has raised some eye- brows over a dispute between Santos and ConocoPhillips over access to in- dustrial roads. “Commissioner Boyle will serve
both the department and Alaskans with distinction,” said the Gover- nor. “His legal training, knowledge of Alaska’s resource industries and commitment to developing our re- sources make him an excellent choice to lead the department during my second term.” Boyle moved to Alaska in 2010 af - ter graduating law school to serve a judicial clerkship in Fairbanks. Fol - lowing the conclusion of the clerk- ship, he moved to Utqiagvik to work as an Assistant Borough Attorney and later Chief Advisor to the Mayor and Director of the North Slope Borough’s Government and External Affairs de - partment. In 2016, he moved to BP as the com - pany’s Director of Government Affairs before joining Oil Search (now Santos) as Government Affairs Manager. Boyle earned a Juris Doctorate from J. Ruben Clark Law School at Brigham Young University and a Bachelor of Science in Management and Finance at Brigham Young University. Another cabinet change is the gov- ernor’s naming of Adam Crum, former state health commissioner, as new Commissioner of Revenue to replace Lucinda Mahoney, who retired. Crum has a strong management background particularly in health care, where he managed the recent split of the agen- cy into two new departments, with the social services and federal Medicaid program management spun off into a department of family and childrens services and core health care programs into the new Department of Health. Crum is also given credit for man- aging the health department through the COVID-19 crisis, and in recruiting the top-notch state chief medical of- ficer, Dr. Anne Zink, to help with that. Crum was born and raised in Alaska and has a master’s degree in health science from John Hopkins Universi- ty. He also has experience in indus- trial workforce training from helping manage the family-owned Northern Industrial Training, of Palmer.
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Colles named to permanent director role
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Congressional delegation nets funding for Alaska projects
Sen. Lisa Murkowski, a senior member of the Senate Appropriations Committee, steered $500 million to Alaska in special funding for 130 proj- ects in the year-end 2022 federal om- nibus spending bill. The special appropriations for Alaska were heavy on construction for ports and harbors and basic infra- structure like water and wastewater projects. The bill also approved 12 feder- al agency appropriation bills overall, including for the Department of De- fense, which is important for Alaska. The defense bill itself included a 4.6 percent pay raise for military person- nel; improvements to veterans’ ben- efits and additional Alaska programs developed in the National Defense Authorization Act, or NDAA. Alaska Sen. Dan Sullivan, the state’s other U.S. Senator, played a key role in the NDAA as a member of the Senate Armed Services Commit - tee. Mary Peltola, Alaska’s new con- gresswoman, is also important in this as she must get what the Senate pass - es through the U.S. House. Among defense items, Anchorage will receive $63 million to build an aircraft maintenance hangar and $5.2 million to remove PFAS contaminated soil at Joint Base Elmendorf-Richard - son. Fairbanks will get $99 million to build a physical fitness center annex at Fort Wainwright. Basic infrastructure projects in - cluded $25.6 million to expand the harbor at Unalaska, an important fisheries port in the Aleutians, and $7 million for a new bridge across Gastineau Channel in Juneau, provid- ing a second crossing of the channel to Douglas, a residential area. There was also $5 million funded to support additional work at the Port of Alaska in Anchorage, where a major recon- struction is underway. In Homer, on the Kenai Peninsula, $300,000 went to the U.S. Army Corps of Engineers to conduct the feasibili- ty study for the proposed large vessel harbor expansion in the community’s harbor. On St. George, in the Pribilof Islands in the Bering Sea $2.5 million
Photo Courtesy Port of Alaska
The Port of Alaska in Anchorage is among a host of Alaska key infrastructure components that received a part of $500 million in Federal grants.
went to the U.S. Army Corps of En - gineers for the federal share for Pre- liminary Engineering and Design and Construction of the St. George Harbor. In water and wastewater, Anchor- age received $13 million to expand its wastewater system and another $4.5 million was approved for water and waste systems in the Eagle River/ Chugiak area of north Anchorage. In the Mat-Su region, Murkowski’s des - ignated appropriations included $6.9 million for the city of Palmer’s waste- water treatment plant, which will al- low the city to complete the project. In Wasilla, the state’s fastest growing community, three water/ wastewater projects will increase dai- ly capacity to meet growing demands. Elsewhere, Valdez received $5 mil - lion for its water and waste system; Kenai received $2.9 million; Chi- gnik received $5.3 million for water/ wastewater; Yakutat $5.1 million; St. George, in the Pribilofs, $3 million; Seward $2 million; Ketchikan $1.7 million; Nome $1.6 million, and the
North Slope Borough $1.2 million for water and wastewater systems in sev- eral of its communities. The city of Dillingham received $5 million for shoreline protection for the City’s sewage facility. In Chignik, $5.3 million went to the Alaska Na- tive Tribal Health Consortium for safe drinking water. Designated funds also includ- ed $1.5 million to the Alaska Village Electric Cooperative to study the fea- sibility of deploying marine energy in rural Alaska. In Ambler: $650,000 to the City of Ambler to expand the vil- lage’s current fuel storage capacity to be able to store enough fuel supply without having to rely on costly air deliveries in winter months. Four million dollars also went to the Alaska Gasline Development Corp., the state corporation working on a proposed North Slope natural gas project, for continued development work on the big gas project and a pos- sible ammonia and hydrogen export project.
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Alaska mining production has grown dramatically in the past two years, to exceed $4.5 billion in 2022.
Mine production tops $4.5B
ity Summaries 2023 report. The rise in Alaska mine production value is largely due to increased zinc and gold production, along with strong zinc prices during 2022. According to early estimates by the Alaska Division of Geological & Geophysical Surveys, Alaska mines produced roughly 1.33 billion pounds of zinc, 215 million pound of lead, 690,000 ounces of gold, and 15.8 million oz silver during 2022. This is about a 6 percent increase for zinc, a 15 percent drop for lead, a 10 percent rise for gold, and a 4 percent increase for silver when compared to 2021. The single largest boost to Alas- ka mine production values for 2022,
however, came from the approxi- mately $1.57/pound average selling price for the zinc being shipped from Teck Resources Ltd.'s Red Dog Mine in Northwest Alaska and Hecla Mining Company's Greens Creek Mine on the state's Southeast Panhandle. As a result, zinc accounted for roughly $2.1 billion of Alaska's min- eral production value last year. Gold accounted for another $1.2 billion, and silver $343 million. The balance of Alaska's 2022 nonfuel mineral value came from lead byproducts at Red Dog and Greens Creek, as well as sand and gravel products. Because the USGS only tracks non - fuel minerals, the nearly 1 million
Critical minerals could add a boost moving forward BY SHANE LASLEY, NORTH OF 60 MINING NEWS Alaska mines produced approxi- mately $4.51 billion worth of nonfuel minerals last year, a 16 percent in- crease over the $3.89 billion in 2021, and an impressive 42.7 percent jump over the $3.16 billion of mined prod- ucts during 2020, according to the U.S. Geological Survey's Mineral Commod -
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metric tons of coal produced each year at Usibelli Coal Mine Inc.'s operations near Healy and shipped to Interior Alaska heat and power plants last year was not calculated into the 2022 Alas- ka mine production totals. With gold production expected to rise at both Kinross Gold Corp.'s Fort Knox and Northern Star Resources Ltd.'s Pogo mines in Interior Alas- ka, coupled with expected strong zinc prices due to global inventories held in London Metals Exchange and Chi- nese warehouses at historic lows, the production value from Alaska mines is expected to continue to climb in 2023. Increased supply, demand The value of the nonfuel miner- als extracted from Alaska mines rep- resents nearly 4.6 percent of the $98.2 billion in nonfuel mineral commodi- ties in the United States during 2022. The top 10 producing states last year were Arizona ($10.1 billion), Nevada ($8.93 billion), Texas ($8.03 billion), California ($5.61 billion), Minnesota ($4.78 billion), Alaska ($4.51 billion), Florida (more than $3.6 billion, exact value withheld due to proprietary crit-
ical minerals production values in the state), Utah ($3.6 billion), Michigan ($3.36 billion), and Missouri ($3.15 billion). Because these mined commodi - ties feed into virtually every industrial supply chain, their production sup- ports a significant portion of the U.S. economy. "Industries that use nonfuel min- eral materials created an estimated $3.64 trillion in value-added products in 2022, which represents a 9 percent increase from 2021," said Steven Fort - ier, director of the USGS National Min - erals Information Center. The increased domestic consump- tion of mineral commodities compared with 2021 is attributed to the continued recovery of markets from the impacts of COVID-19. Global supply chains and mineral commodity markets were significantly disrupted by the global coronavirus pandemic, especially in the first half of 2020. USGS, however, reports that mineral consumption in the U.S. began picking up toward the end of 2020 and through 2021. This upward trend in both minerals de- mand and prices continued into 2022,
with consumption of many mineral commodities now near or exceeding pre-pandemic levels. It is expected that U.S. mine pro - duction will continue to climb in the coming years due to the increased fo- cus on domestic production of miner- als critical to electric vehicles, green energy, high-tech devices, household goods, aerospace, and numerous other consumer and industrial goods. More critical minerals One of the mainstays of the annual USGS Mineral Commodity Summaries is keeping tabs on America's heavy de- pendence on imports for most of the minerals, metals, and groups of ele- ments critical to the nation's economy and security. During 2022, the U.S. was depen - dent on imports for more than half its supply of 50 out of the 64 nonfuel mineral commodities tracked by USGS and was 100 percent import-reliant for 15 of those. The list of mined commodities that the U.S. is fully dependent on foreign nations for its supply includes arsenic, CONTINUED on PAGE 20
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Winter 2023
The Alaska Miner
supply chain vulnerable to disruption. America's tenuous relations with China and Russia, coupled with the enormous new demand for minerals needed for EVs and renewable energy infrastructure, U.S. lawmakers and the Pentagon are pushing for more reliable supplies of critical minerals – either from domestic mining or importing from allied nations. As a result, various federal legisla- tive acts and appropriations allocated hundreds of billions of dollars in 2022 to ensure secure and reliable supplies of critical minerals. Given that intriguing quantities of 49 out of the 50 minerals deemed crit- ical in the U.S. are found in Alaska, the state's growing mining sector has the potential for a major boost from feder- al spending. A complete list of critical minerals found in Alaska, including a summary of their uses, can be read at 49 critical minerals in the 49th State published in the November 4, 2022 edition of North of 60 Mining News. Timely, comprehensive report When considering each of the 15 rare earth elements and six platinum group metals individually, the USGS Mineral Commodity Summaries 2022 includes detailed production, consumption, and
recycling information for more than 90 nonfuel mineral commodities. The U.S. was more than 50 percent import-reliant for 50 mined commod- ities tracked by USGS during 2022. This includes the most up-to-date information on industrial commod- ities such as cement, iron ore, and sand and gravel; precious metals such as gold and silver; rare earth elements such as praseodymium, neodymium, and dysprosium; and critical minerals such as cobalt, indium, and tellurium. The minerals included in the report are used in every facet of modern life; from construction to consumer elec- tronics, aerospace, renewable energy, and healthcare. And considering that the comprehensive mineral sum- maries are published about a month after the end of the year they cover, this data is relevant and vital to poli- cymakers and researchers. "Decision-makers and leaders in both the private and public sectors rely on the crucial, unbiased statis- tics and data provided by the USGS in the Mineral Commodity Summaries to make business decisions and deter- mine national policy," said Fortier. Shane Lasley is Publisher of North of 60 Mining News
MINING, CONTINUED from PAGE 19
used in semiconductors for high-tech devices and military hardware; gal- lium, a primary ingredient in semi- conductors used in next-generation smartphones and telecommunication networks; graphite, the primary an- ode ingredient in lithium-ion bat- teries in electric vehicles; and man- ganese, a largely overlooked metal in the cathode of EV batteries. The U.S. is also more than 95 per - cent import-dependent for rare earths, a group of 15 elements critical to a wide range of high-tech, military, and com- mercial goods; 83 percent import-de - pendent for antimony, a metalloid that the Pentagon is particularly concerned about securing a reliable supply; and 77 percent import-dependent for tin, a metal that Massachusetts Institute of Technology researchers ranked as most likely to be impacted by emerg- ing technologies. In February of 2022, the USGS fi - nalized an updated list of minerals critical to the U.S. This updated list in - cludes 50 nonfuel minerals and metals essential to the economic or national security of the U.S. and which has a
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The Alaska Miner
Winter 2023 9/29/21 2:37 PM
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Toni Logan Goodrich Education Scholarship
Alaska’s future in mining can aid green technology
BY CORAL MERCER
EDITOR'S NOTE: Coral Mercer, winner of the 2022 Toni Logan Goodrich Education Scholarship awarded by Oxford Assaying, wrote this compelling essay on the future of Alaska mining in the shift to new energy technologies. Minerals are an indispensable component in developing green technologies. As the world works toward its clean energy goals, the demand for raw materials and crit- ical minerals will only rise. Alaska has the potential to produce signif- icant quantities of critical minerals and materials that will help supply this demand. These minerals are copper, cobalt, zinc, graphite, rare earth minerals, and aluminum (Loeffler & Watson, 2022). Minerals are used in practi - cally every aspect of renewable ener- gy; from producing solar panels and lithium-ion batteries to the copper wires needed to expand the electric grid. The International Energy Agen- cy (IEA) has identified two potential scenarios for global mineral demand over the next 20 years. In the IEA’s Stated Policies Scenario, mineral demand from clean energies tech- nology will double by 2040, while in the Sustainable Development Sce - nario the total demand is expected to quadruple by 2040. Mineral demand in terms of weight will be led by copper, graph- ite, and nickel in 2040 (IEA, 2021). An explosive increase in demand for critical minerals, along with propor- tional growth in other aspects of the industry, would provide Alaska the opportunity to enter new markets and provide a domestic source for the United States’ mineral needs. The state of Alaska already has a substantial mining industry, but the industry still has room for signifi - cant growth. As of 2019, Alaska has six major production sites as well as
Photo by Lee Leschper Coral Mercer receives the 2022 Toni Logan Goodrich Education Scholarship from Gene Pool of Oxford Assaying and Beki Toussant of Alaska Resource Education.
a couple of smaller scale operations with a total gross value of 2,626 mil- lion dollars per year. Calculated using USGS’s Data Series 140, zinc made up 49 per - cent of Alaska's gross total value in 2019, gold made up 22 percent of that value, silver 9 percent and lead 10 percent. These values represent about 10 percent of Alaska’s export base and contribute to 80 percent of the U.S. zinc production, 44 percent of U.S. gold production, and around half of the U.S. silver production. Through the funding of Power the Future, the Institute of Social and Economic Research (ISER) at the University of Anchorage Alas- ka produced a study analyzing the future of Alaska’s mining industry in an attempt to identify reasonable
projections for the economic value of Alaska’s mining industry over the next two decades and compiled three possible scenarios; unfavor- able, status-quo and favorable. The defining aspect for these scenarios is not a matter of Alaska’s resources, but rather the market, policy, and geologic conditions that will affect the industry. This analy - sis will focus on the favorable sce- nario, for demand of critical min- erals will rise regardless of Alaska’s potential policy restrictions. The conditions associated with the favorable scenario are increased infrastructure, sustained high mineral prices, a clear and trans- parent system for regulations, and no public opposition to operating mines. Under these circumstances,
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The Alaska Miner
Winter 2023
production of lead would increase from 121 kt to 215 kt in 2040, zinc production would increase from 603 kt to 710 kt, aluminum production would increase from 17 tons to 80 tons, and gold production would nearly double, increasing from 501 kt to 1,008 kt. Besides the expansion of these four metals, Alaska has the poten- tial to produce significant quantities of critical minerals used for green technologies and energy production. Mineral production could be ex- panded to produce 110 kt of copper per year (excluding the potential from Pebble Mine), rare earth el - ements could be produced at 1,828 tons per year, graphite at 55,350 tons per year, barite at 237 kt per year, and 1,570 tons per year of cobalt. According to these numbers, Alaska could produce 100 percent or more of current U.S production for cobalt, silver, and graphite. As well as 90 percent of the U.S.’s cur - rent production of zinc. Under the favorable scenario, Alaska’s mining industry would double and its ex- port base would grow to 5.6 billion dollars. While zinc and gold would
remain Alaska’s primary exports, multiple critical minerals would be added to Alaska’s exports (Loeffler & Watson, 2022). Expanding Alaska’s production to include several critical minerals will enhance Alaska’s capabilities as a crucial producer of domestic min- erals. Another vital component to consider is the U.S current depen - dency on foreign sources for pro- cessing of critical minerals. The U.S. Department of Energy’s Office of Fossil Fuel and Carbon Management acknowledges this in a report where they detail that cur- rent domestic production of many critical minerals necessary for clean energy technologies is practically nonexistent. The U.S is 100 per - cent import dependent for graph- ite and rare earth minerals and over 75 percent import dependent on cobalt and barite (2021). Alas - ka has the capabilities to produce all of these minerals in significant quantities. Domestic sourcing along with development of critical min- eral processing and manufacturing facilities are necessary for becoming independent of foreign supply. With its large capabilities to pro-
duce critical minerals, Alaska is well situated to become an integral part of a domestic critical minerals supply chain. Alaska is a state rich in miner- als that have yet to be fully utilized and the transition to clean ener- gy has massive implications for Alaska’s mining industry. Alaska has the unique capacity to produce significant quantities of six critical minerals necessary for clean energy technologies: copper, cobalt, zinc, graphite, rare earth minerals and aluminum. In the case of zinc and aluminum, existing production can drastically increase. Expanding pro- duction to cobalt, copper, graphite, and rare earth minerals will con- siderably increase the United States domestic production of these critical minerals. Copper, while not on the critical minerals list, will be in high demand and integral to the electrification ac - companying clean energies. Among all the projected scenarios, it can be guaranteed that demand for Alaskan minerals will rise. The determining factor will be ensuring the correct conditions for Alaska’s mining in- dustry to grow with this demand.
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