o business ever wants to have its telephone system stop working—especially at the beginning of a workday. But that’s what happened to Business Insurance Associates a few months ago. Thankfully, James Parks of James Parks Consulting was able to quickly resolve the situation. Business Insurance Associates doesn’t have any internal IT professionals, so it relies on Parks to manage its routers, servers, and other technology-related hardware. “He keeps us online and takes care of everything, so we don’t have to spend the time and resources to figure it out,” says President Christopher Pobieglo.

Business Insurance Associates, with a total of eight employees in Alaska and Idaho, is an independent commercial insurance broker that depends heavily on outsourced IT services. The Anchorage company uses The Agency Manager (TAM) Online from Applied Systems for various tasks, including client billing, maintaining policy records, and issuing certificates and auto insurance cards. The cloud-based system, which the company has used for about eight years, gives employees the flexibility to log in anywhere and work remotely. “It manages the entire operation,” Pobieglo says. “It’s super critical to what we do… They provide things on a level that we couldn’t [provide] internally.”

RWC Group is a leading truck supplier with two locations in Alaska in Fairbanks and Anchorage in addition to locations in Arizona (including the company’s headquarters), California, and Washington State. The full-service center stocks a variety of brands such as International, Isuzu, and Hino. Recognizing the financial investment required to purchase a new truck, RWC has a number of used trucks for sale as well as leasing options. It also offers in-house financing options.

But according to RWC Group’s General Manager of Alaska Operations Mike Lash, the company’s group of dedicated full-time mechanics is one of the most vital aspects of the business. “Our parts and service departments are made up of industry professionals who really know their stuff. I think they play a big role in supporting the trucking industry up here,” says Lash.

According to 2017 numbers, nearly 65 percent of UKMP’s direct hires are NANA shareholders. Nearly 50 percent are from the Upper Kobuk region.

In December 2012 Donlin Gold and its partners assembled a team of field scientists to conduct feasibility studies to include in the initial Section 404 permit applications and Environmental Impact Statement (EIS). Enforced by the US Army Corps of Engineers and overseen by the Environmental Protection Agency (EPA), Section 404 of the Clean Water Act regulates the discharge of dredged or fill material into waters of the United States, including wetlands. The program largely affects water resource projects like constructing dams and levees as well as certain infrastructure developments and mining projects.

The EPA suggests that, for most material discharge that will only have minimal adverse effects, a general Section 404 permit is sufficient, allowing eligible projects to proceed with little delay. In Donlin Gold’s case, acquiring the required 404 permit was more difficult than anyone initially anticipated.

Teck Resources and partner NANA Regional Corporation announced year-end 2017 and first-half 2018 results from Red Dog mine. For 2017 the mine produced 541,900 tonnes of zinc in concentrate at a mine grade of 15.5% with mill recoveries steady at 82.1%. The mine also produced 111,300 tonnes of lead in concentrate for 2017 at an average grade of 5% with mill recoveries of 52.3%. Year on year, zinc production was 13% higher in 2017 while lead production was 29% lower. Gross operating profit for the year was $874 million, compared with $668 million in 2016. Mill throughput for 2017 was up slightly at 4,270,000 tonnes. During 2017 the mine paid royalties of $412 million versus royalties of $282 million in the year-previous period. In the latter part of 2017 the company began a $110 million mill upgrade designed to increase average mill throughput by about 15% over the remaining mine life, helping to offset lower grades and harder ore in the Aqqaluk pit. For the first half of 2018 the mine produced 275,100 tonnes of zinc in concentrate at an average grade of 16.2% with mill recoveries at 83.9%. The mine also produced 45,400 tonnes of lead in concentrate at a grade of 4.6% with mill recoveries of 48.9%. The mine posted a $342 million operating profit for the first half of 2018, up significantly from the $245 million profit in the year previous period. Royalty costs for the first half of 2018 quarter were $96 million versus $70 million in 2017. The expected 2018 production of contained metal is now estimated at 525,000 to 545,000 tonnes of zinc contained in concentrate and 95,000 to 100,000 tonnes of lead contained in concentrate.

ne of the highlights of a visit to the Fort Knox gold mine is posing at the end of the tour with a gold bar produced at the mine. The value of the bar, which weighs 257.1 troy ounces, has fluctuated over the years with the price of gold: $98,000 in September 2003; $484,170 in September 2011; $307,372 in September 2018.

Holding an object in your hand that’s worth more than your house leaves an indelible impression. But a couple of years ago it was looking like the gold bar, the mine, and the millions of dollars it brings to the Fairbanks economy were coming to an end. Fort Knox was running out of gold.

But even while the mine’s operators were publicly planning to shut down mill operations in 2017 and ready the heap leach facility to accept its final loads of ore in 2020, they continued to look at additional prospects in the area, including drilling 205 holes at Gilmore, adjacent to the western edge of the existing pit. Those efforts, which started in 2014, paid off.

National entities such as the Mine Safety and Health Administration, the Environmental Protection Agency, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Office of Surface Mining Reclamation and Enforcement all have a part in ensuring that explosives used above or below ground in the pursuit of any commodity are handled in a way that is safe for workers and the environment.

he landscape of Alaska’s home-grown airlines has changed significantly in just the last few years. One of the state’s major aviation success stories, Alaska Airlines, acquired Virgin America and, in January, received its single operating certificate from the FAA. Alaska Airlines continues to move forward, leveraging its new assets to provide a more comprehensive route map balanced with ever improving customer service.

In 2015, Ravn Alaska CEO Bob Hajdukovich secured financing to buy out his partners and recapitalize the airline. A majority share of Ravn was acquired by J.F. Lehman and Co., and the remaining shares were consolidated in the Hajdukovich family. President and CEO Dave Pflieger now helms a leadership team (completed in July) that combines Alaska know-how and Outside expertise and is building on the company’s long history of success. On October 5 the court overseeing PenAir’s bankruptcy proceedings approved J.F. Lehman and Co.’s bid for the airline’s assets—PenAir will now operate with a separate FAA certificate as a subsidiary of Ravn Air Group, creating further connectivity among Alaska’s air carriers.

In 2017, salmon was the most valuable fish group. Harvest of all five salmon species totaled more than $781 million in ex-vessel value, the amount paid to fishermen for their catch. However, Evridge notes that 2018 has been a disappointing year for many salmon fisheries, a statewide concern.

“Salmon across the state have come in weaker than forecast, particularly in the North Gulf of Alaska,” says Bert Lewis, the Central Region supervisor of the Division of Commercial Fisheries for the Alaska Department of Fish and Game (ADFG). “In the region I work, we saw some of the lowest returns of sockeye salmon in recent history with the exception of Bristol Bay, where we had the biggest run on record.”

The sockeye salmon harvest is estimated to be 37 percent of the recent ten-year average, making it the smallest since 1975—all other smaller harvests date back to the 1800s.

President Harding designated an Indiana-sized chunk of Alaska as Naval Petroleum Reserve 4 (NPR 4) in 1923. The times saw the US Navy converting from coal-fired ships to oil burners. Securing land for an emergency wartime fuel source made sense. At that time, the states of Texas and Oklahoma rolled in oil money from their booming oil fields, keeping the isolated Alaska North Slope off the oil man’s radar. Through the 1920s there’d been geologic and topographical surveys north of the Arctic Circle, but of the oil potential there, little was known.

Under the pressure of a mechanized war run on limited oil resources, the US Navy sent an exploratory group to check NPR 4 for oil in 1944. Lieutenant William T. Foran USNR led the party. As a member of one of the 1920s geological survey teams, Foran believed the North Slope held large amounts of oil. Flown from Fairbanks by the famous Bush pilot Sig Wien and led by Simon Paneak of Chandalar Lake, the naval explorers found oil seep evidence throughout NPR 4. Interestingly enough, the horrible North Slope weather gave a fortuitous break. Foran wrote: “Impossible flying conditions forced considerable waiting in Barrow, but much was accomplished, and waiting periods provided time for gathering invaluable information from old-time resident trader Charles Brower and from the parties’ veteran pilot Sig Wien.”

orking in Alaska’s North Slope can be challenging enough, but a few companies are taking that challenge a step further, drilling from manmade islands into promising basins miles off the coast. Going offshore adds a measure of remoteness and additional hazards to the workplace, such as floating ice, frigid water, and transportation by boat, hovercraft, or helicopter—or tracked vehicle after freezup.

It’s still Alaska’s North Slope, so it’s dark for months at a time. Blizzards bring high winds, stinging snow, and wind chills that in 2014 dropped to 97 degrees below zero. Polar and grizzly bears roam the region. In the summer, mosquitoes descend in hordes, backed up by swarms of biting flies.

ong before clinical depression or suicidal tendencies take hold of a person, the mental health of an employee can impact a business, large or small.

“For-profit organizations that have wellness programs make more money—straight up,” says Rick Benjamin, the director of organizational and spiritual wellness at the secular, nonprofit organization Hope Community Resources. “That makes the point that this whole wellness thing isn’t just a nice thing or a feel-good thing, it’s very practical. If people are better, they do better work—and the for-profit business makes more money. So businesses that have wellness programs aren’t just nice, they are actually smart.”

Hope provides services to individuals and families who experience intellectual and developmental disabilities, traumatic brain injury, and mental health challenges. But when it comes to supporting these individuals and their families, the process really starts with ensuring the mental wellness and quality of life of Hope’s employees.

Showing Off the Last Frontier

Sharing Alaska’s lands and cultures

By Vanessa Orr

n a state in which tourism is a major economic driver, it’s not surprising that Alaska Native corporations would establish and operate their own visitor attractions. What sets them apart—whether running lodges deep in Denali Park, operating the Kodiak Brown Bear Center in the Karluk Basin, or running a tram to the top of Mt. Roberts in downtown Juneau—is their emphasis on culture in every aspect of what they do.

“One of the biggest advantages of our tourism products is the element of being Alaska Native-owned and -operated; we represent more than just summer tourism in Alaska,” says Marie Monroe, general manager for Kantishna Roadhouse, owned by Doyon, Limited. “People staying with us want to learn more about our culture and to know that they are getting an authentic Alaska experience from an authentic Alaskan business.”

“Our heritage and history is at the forefront of everything that we do,” agrees Elliott Wimberly, president and CEO of Goldbelt, Inc. “It is clear to visitors, our employees, and everyone who does business with us that we are an Alaska Native corporation.”

here’s little worse than an under-utilized PFD check—if there’s any unused PFD money still rattling around in your account (or pocket), make sure to schedule time to visit one of Alaska’s many craft fairs in November, all of which highlight Alaska artisans, products, and services—just in time for the holiday season.

This is the 50th anniversary of the Annual University Women’s Association Holiday Bazaar, which features local arts and crafts at the Pioneer Park Civic Center in Fairbanks on November 3-4. www.uaf.edu/uwa

The Bad Girls of the North Bazaar takes place this year on November 2-3 at the Lakefront Anchorage and November 9-10 in Wasilla at the Mat-Su Resort, offering up jewelry, handcrafted soaps, silk scarves, handmade clothing, pottery, leather purses, metal art, gourmet foods, home décor, and one-of-a-kind artwork. badgirlsofthenorth.com

Visitors can make bird feeders and learn about winter birds and how to feed them at Creamer’s Field Farmhouse Visitors Center from Noon to 4 p.m. friendsofcreamersfield.org

The new Costco, located at 48 College Road, opens on Tuesday, November 20. Attendance is free and open to the public; shoppers must be a member to purchase merchandise. explorefairbanks.com

Many festival activities are located at the American Bald Eagle Foundation museum such as wildlife workshops, tours, and presentations. There are also visits to the Alaska Bald Eagle Preserve to witness the “Gathering of the Eagles,” where usually more than three thousand eagles can be found this time of year. baldeagles.org/festival

AAMC Conference

Hotel Captain Cook, Anchorage: The Alaska Association of Municipal Clerks is an organization that focuses on providing educational training and mentoring and professional growth opportunities. alaskaclerks.org

Alaska Municipal League Local Government Conference

Hotel Captain Cook, Anchorage: The Alaska Municipal League is a voluntary, nonprofit, nonpartisan, statewide organization of 162 cities, boroughs, and unified municipalities, representing more than 97 percent of Alaska’s residents. akml.org

RDC for Alaska Conference

RDC’s purpose is to link various industries together to encourage a strong, diversified private sector and grow Alaska through responsible resource development. akrdc.org

AO297—Extends the life of Alaska’s Mariculture Task Force, establishing it as an ongoing advisory panel to work with state, federal, tribal, industry, and other stakeholders to support the implementation of the Alaska Mariculture Development Plan released this year.

HB76—Expands the Mariculture Revolving Loan Fund to create new financing options for mariculture businesses.

HB354—Updates the protocol used by the Southeast Alaska Regional Dive Fisheries Association to charge an assessment to its members.

HB56—Updates the state loan fund to account for increasing costs for permits, vessels, and equipment.

HB240—Regulates pharmacy benefit managers, which serve as the middle-men between local pharmacies and insurance companies. gov.alaska.gov

ulie Saupe has been the president and CEO of Visit Anchorage since 2007; she has worked to develop visitor industry opportunities in Alaska for more than twenty years, including positions at Explore Fairbanks, Travel Alaska, and the Mat-Su Convention & Visitors Bureau.

Alaska Business: What is your favorite pastime?
Julie Saupe: Can I tell you what I like to say I do? [She laughs.] I like to think of myself as an avid hiker. I just don’t get out as often as I should to really apply that to myself, but when I do have spare time, I would like to be somewhere up in the mountains. My absolute favorite hike is Portage Pass Trail.