Alaska's mining industry: a major source for future job growth.

• Author: Miller, Amy
• Position: ALASKA TRENDS

Despite minor setbacks in recent years, Alaska's mining industry is expected to be a major source of Alaska's job growth in the coming decade and sets Alaska apart from other states based on the total value of its annual mineral production.

Alaska is among the top mineral-producing states in the nation thanks to large deposits of several valuable minerals. Alaska's total value of mineral production in 2014 was $3.51 billion, and it was ranked seventh (in terms of value) in the nation for nonfuel mineral production, trailing Arizona ($8.06 billion), Nevada ($7.49 billion), Minnesota ($4.71 billion), Texas ($4.24 billion), Utah ($4.28 billion), and California ($3.51 billion), according to "Mineral Commodity Summaries 2015" produced by the US Department of the Interior, US Geological Survey.

Alaska's mining output accounted for 4.52 percent of the US total in 2014, according to the same report. Although this figure is impressive, it represents a decline from levels achieved in 2013 and 2012, which were $3.95 billion and $4.11 billion, respectively, according to "Alaska's Mineral Industry 2013 Special Report 69" produced by the Alaska Department of Natural Resources Division of Geological & Geophysical Surveys in cooperation with the Department of Commerce, Community, and Economic Development Division of Economic Development.

The state's Department of Labor and Workforce Development projected that non-oil mining employment would be one of the top two drivers in a projected 10.8 percent increase in jobs between 2012 and 2022 because of "higher than average mineral commodity prices and the expansion of existing mines," according to an article in the department's October 2014 Alaska Economic Trends. The department projected a 24.8 percent job growth (683 jobs) in non-oil mining between 2012 and 2022, trailing only slightly behind the 25 percent rate for the healthcare and social assistance sector (11,247 jobs) in terms of anticipated job growth. Mining jobs pay an average annual wage of approximately $100,000 per year, which is more than twice the statewide average of all industries combined.

Some might be surprised to learn that one of Alaska's most valuable mined products is sand and gravel for use in construction. It trailed gold, zinc, and silver as Alaska's top mining resources in 2014, according to the US Geological Survey's Mineral Commodities Summary for the year. There are 120 active rock quarries and sand and gravel operations in the state, according to the Alaska Miners Association's 2014 report on the economic impact of the industry. Hauling sand and gravel is a major revenue source for the Alaska Railroad.

Alaska is the top producer of silver in the United...