All that glitters may not be gold: Zinc, lead and silver all add to Alaska's $1 billion mineral industry.

• Author: Orr, Vanessa
• Position: Statistical Data Included

To many people, the words "Alaska" and "gold" are synonymous. After all, the 49th state was home to the Gold Rush of 1898, and much of the state's early progress was built by the profits gleaned from prospectors and the businesses that served them.

Yet as the mining industry grew, other minerals, including zinc, lead and silver, became even more important to the state's economy-minerals that helped to create what is today a $1 billion industry, employing more than 3,200 Alaskans.

"A lot of people are surprised that gold is not the major mineral export from Alaska," said Rudy Tsukada, research section chief, Division of International Trade and Market Development for the state of Alaska. "The biggest international mineral export is zinc ore, followed by lead ore, and then precious metals. The majority of gold that is mined stays in the domestic market." In 2000, minerals were Alaska?s No. 3 export commodity, with exports totaling $293 million.

According to Tsukada, between January and November of 2001, zinc ore concentrates made up 82.2 percent of the international export market, with a value of $261 million. Lead ore made up 15.1 percent of the market with a value of $47.9 million, followed by precious metals at $8.7 million. Silver ore brought in $6.7 million, with another $2 million provided by various other minerals. The Usibelli Coal Mine, which exports half of its coal to Interior Alaska and half to Korea, earned $15 million from the Asian country.

"Oddly enough, the (minerals) export market grew in 2001-it's up about 12 percent, which is pretty amazing," said Tsukada. "Between January and November of 2001, Belgium was our No. 1 export market at $75.3 million. Korea followed with $68.6 million, Canada with $48.9 million and Japan with $37 million." Other export markets include the Netherlands at $26.2 million, Germany at $18.9 million, Finland with $16 million and Australia with $10.8 million.

"Unfortunately, even though our markets have grown, mineral prices have continued to plummet," Tsukada continued. "We're exporting more minerals to offset their value, but it's really squeezing the margins. A lot of companies are seeing their profits way down."

According to Dick Swainbank, development specialist, Mining and Minerals, Alaska Division of Community and Business Development, this drop in metal prices can be attributed to the worldwide recession. "The recession depresses demand, though the mines continue to crank out the same amount,"...