Glitter in the economy.

• Author: Woodring, Jeannie
• Position: The mining industry - Industry Overview

On the surface, Alaska's mineral industry glitters like gold on a mountain peak: 1990 statistics top a decade of slow, steady growth, and abundant natural resources, from coal to gold, brighten future prospects.

But the economic impact of mining to Alaska stands on a delicate balance. "Worldwide, the mineral industry is very volatile right now," says Dick Swainbank, a development specialist with the Alaska Department of Commerce and Economic Development. "No one really has a hint of the way things are going."

This volatility doesn't readily appear in Alaska's 1990 mining statistics. Mineral production value for 1990 reached almost $534 million, almost double 1989's figure of $277 million. Development spending dropped more than 90 percent, while exploration expenditures rose 19 percent. The total value of the industry, which employed 3,870 workers, increased 31 percent -- to $602 million.

"We've seen nice, steady growth in the 1980s," says Steve Borell, executive director of the Alaska Miners Association. "A lot of major companies are looking at mineral deposits in the state right now."

Companies producing Alaska's mineral wealth include 200 to 300 small placer mines and 5 larger mines, each with more than 100 employees.

The largest mine, Red Dog, operated by Cominco Alaska in the northwest part of the state, employs 340 people. During 1990 it shipped 320,000 tons of zinc concentrates, about half of the projected full-scale annual production.

Greens Creek Mining Co. on Admiralty Island, the largest silver mine in the United States and the largest lode gold mine in Alaska, employs 320 people. In 1990, this company produced 385,000 tons of sulfide ore, 7.6 million ounces of silver, 38,000 ounces of gold, 37,000 tons of zinc and 16,500 tons of lead concentrates. "A few large mines like Red Dog and Greens Creek have shown the world it's possible to mine in Alaska," says Borell.

Cambior Alaska, preparing for full-scale production of placer deposits near Cantwell, employed 170 workers by late 1990. Usibelli Coal Mine in the state's Interior produced a record 1.6 million short tons of coal, valued at $44 million. The company employed 130 workers. The fifth largest mine, Alaska Gold Co. near Nome, employs 120 in its gold placer operation.

Despite the rosy statistics, however, the growth of Alaska's mining industry is threatened. Low world metal prices, for instance, make it tough for the state's largest mines to operate profitably. The Greens Creek...