Alaska Trends

E

ven before the gold rushes that put Juneau, Skagway, Nome, and Fairbanks on the map, Alaskans have been pulling precious and useful materials out of the ground. Native cultures statewide unearthed deposits of soapstone and jade to carve and polish into dazzling artifacts. Copper nuggets were fashioned into fishhooks and blades or traded to Russian colonists. Nowadays we use copper in our electrical wiring, zinc in our pennies, coal in our power plants, and stone aggregate in our pavement, concrete, and masonry.

The mining sector in Alaska employs about 4,700 workers, according to the Alaska Miners Association (AMA), and those workers are responsible for some world class output. The silver from Greens Creek and the zinc and lead concentrate from Red Dog are the most of any mines in the US. Beyond those major production sites and the other giants at Fort Knox, Kensington, Pogo, and Usibelli, miners are busy at 120 gravel and sand pits and at 169 small placer claims. The industry converts the earth under our feet into gold in our banks, figuratively and literally.

This issue has a rich vein of content, scooping loads from mega mines in “Hunting Elephants in Alaska” (p. 52), introducing smaller players in “Modern Prospecting” (p. 64), and assaying the pros and cons of “Open Pits or Underground Ops” (p. 72). In this month’s installment of Alaska Trends, we take data from the AMA’s annual “Economic Benefits of Alaska’s Mining Industry” and compare 2019 to 2020. Where is the industry at risk of a cave-in and where is the real pay dirt? Let’s dig in.

SOURCE: Alaska Miners Association, “The Economic Benefits of Alaska’s Mining Industry”; February 2021
Alaska Miners Association, “The Economic Benefits of Alaska’s Mining Industry”; February 2022
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$4B Exploration
The mining industry spent $4 billion on exploration since 1981; $127 million was spent in 2020.
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$430M Development
The mining industry invested $430 million into construction & capital investments in 2020.
clipart of a scale with money on one side and gold on the other
$2B Total Value
In 2019, the total export value of the mining industry was $1.9 billion, or 38% of Alaska’s total exports.
$117M Impact Statewide
State government revenue through licenses, rents, royalties, fees, taxes, & other government-related payments totaled $117 million in 2020, a 5 million increase over the $112 million received in 2019.
Mining license tax, rents & royalties
$5M increase

State material sales, large mine permit program receipts, misc. fees, & other taxes
$2.5M increase

Alaska Railroad Corporation for moving coal, sand, & gravel
$2.M decrease

Alaska Industrial Development & Export Authority for the use of state-owned facilities
$5.6M increase

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State-Owned Facilities
In 2020, the mining industry paid $28.4 million to the Alaska Industrial Development & Export Authority for the use of state-owned facilities (DeLong Mountain Regional Transportation System & Skagway Ore Terminal), a $6M increase over the $22.8 million spent in 2019.
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map of communities in Alaska
90+ Communities
The mining industry provides year-round jobs for residents of 90+ communities throughout Alaska, half of which are found in rural Alaska. In 2019, they provided jobs in 70 communities.
2x State Average
The mining industry continues to provide some of Alaska’s highest paying jobs with an estimated average annual wage of $112,800, more than twice the state average ($55,140) for all sectors of the economy in 2019.
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Created New Jobs
In 2020, direct & indirect jobs attributed to Alaska mining industry totaled 9,600, an increase over the 9,400 total jobs in 2019.
Jobs by Mine
Potential Jobs by Mine
* -Includes contractors
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$150M Payroll Increase
The mining industry paid $890 million in total direct & indirect payroll (not including highly competitive benefit packages) in 2020, a $150 million increase over the $740 million paid in 2019.
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$11.3M More From Red Dog
The Northwest Arctic Borough received $14.9 million, and $8 million was paid to the Village Improvement Fund, in 2020. In 2021, Red Dog paid $26.2 million to the Northwest Arctic Borough plus $8 million to the Village Improvement Fund, an overall increase of $11.3 million.
$12M More in Local Impact
Local governments received $49 million in 2020, a $12 million increase over the $37 million received in 2019 in property taxes, direct payments and local spending.
Northwest Arctic Borough
from Red Dog
Fairbanks North Star Borough
from Fort Knox
City & Borough of Juneau
from Greens Creek
City & Borough of Juneau
from Kensington
Other
Northwest Arctic Borough from Red Dog

Fairbanks North Star Borough from Fort Knox

City & Borough of Juneau from Greens Creek

City & Borough of Juneau from Kensington

Other

2019 and 2020 comparison bar graph