From the Editor
ining is relatively simple. Dig into the ground, extract a valuable resource, refine it, sell it. This is why there are historic examples around the world of individuals or small groups making a fortune on a commodity with a few shovels, the determination to keep digging, and a rich deposit.
But that sort of rags to riches through a pickaxe story happens less and less: many of the “easy” deposits have been found and exhausted, and what used to be a wildly unregulated industry is now highly regulated. Even into the 20th century, mines were depleted and then literally abandoned, with owners and operators leaving equipment, infrastructure, and garbage behind. Federal regulation now requires mine owners to have a plan that explains how the project will be constructed, operated, and reclaimed. For example, the January 2023 Manh Choh Project Reclamation and Closure Plan Revision 1 is 86 pages and details the plan for reclaiming Alaska’s newest gold mine, including an estimated reclamation cost of approximately $63.5 million.
Alaska mines permitted and operated under modern regulations thus far have a stellar track record: Usibelli Coal Mine has engaged in reclamation activities contemporaneously with its mining activities, which means early dig sites have already been returned to a natural state even as new areas are mined. Kinross, which operates Manh Choh Mine, successfully reclaimed the True North Mine, which operated from 2001 through 2004. In 2009, Kinross started the reclamation process, which included grading and recontouring 149 acres, seeding and fertilizing 270 acres, planting vegetation on 52 acres, and removing all mining buildings; the majority of that work was completed in 2014. Kinross then monitored the site, ensuring the long-term stability of the landscape, until it returned the land to state control in 2020. Four years of mining—eleven years of reclamation.
Expecting mines to operate in a way that is safe for people, the environment, and the future is good, but it does complicate the “dig, refine, sell” process. As that process becomes more complicated, the question of whether the resource is worth the work gets more complicated, as well.
Add on top of that global commodities markets fluctuating in response to warfare or political conflicts; changing demand for advanced technologies and energy solutions; and the fact that regulations can change, or administrations can change how to read and enforce those regulations, and it becomes clear how a mine project today can take decades to research, permit, and—maybe, just maybe—invest in.
Regulations are necessary, global markets are out of any one entity’s control, and technology takes unpredictable jumps all the time. But! For those who value and support Alaska’s mining industry, there is one place where you can make a difference: who is administering and enforcing those regulations.
It’s November. There are important decisions to be made about who will be making decisions for all of us. Please research the individuals and issues that you will be asked to vote for or against. Your voice matters, and so does your vote.
Managing Editor, Alaska Business