Economic impacts of mining: Alaska realizing industry gains.

• Author: Bohi, Heidi
• Position: SPECIAL SECTION: MINING

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The numbers supporting the case for the economic impact of Alaska's mining industry are so big as to be almost mind-boggling: $160 million spent on exploration; $2 billion spent on exploration since 1981; $320 million spent on direct and indirect payroll expenses; 3,300 direct mining jobs in Alaska; 5,200 direct and indirect jobs attributed to Alaska's mining industry; $262 million spent on mine construction on at least six developing and existing mines; $2.4 billion in gross mineral production value from Red Dog, Greens Creek, Fort Knox, Pogo, Kensington, Usibelli Coal mines, placer mines, and rock, sand, and gravel operations; 54,000 ounces of gold produced by more than 175 placer mines; $750 million in mining exports (21 percent of Alaska's total exports); $12.3 million in local government revenues; $35 million in State government revenues; and $39.8 million in payments to Alaska Native corporations.

Ask those whose lives are better because of the industry and they'll sum all of the numbers up in two words that can be seen on bumper stickers statewide: Mining ROCKS!

RED DOG MINE

As former Senior Vice President of NANA Development Corp., one of John Shively's biggest accomplishments was his involvement in the development of the Red Dog Mine, one of the world's largest zinc deposits. Prior to it coming online in 1989, for almost two decades working for the Alaska Native corporation most everything he did pointed to figuring out ways to provide jobs for shareholders in the Northwest Arctic Region.

When the corporation did a regional assessment to try and determine what the possibilities were for improving quality of life in the 11 communities of the area, in fact, shareholders said they were opposed to the industry. But, Shively says, when they realized that there were not a lot of other opportunities for creating jobs, they decided to reconsider the possibility of mining in the region. Today there are 502 full-time mine employees, including major contractors, and 273 of those--54 percent--are NANA shareholders. There are also 125 temporary positions, of which 111--89 percent--are NANA shareholders.

But the numbers don't tell the story that Alaskans live every day, Shively says. About two years after the mine was up and running, he could see peoples' attitudes measurably changing. Shareholders who worked for Red Dog were content in their jobs because so many of their co-workers were friends and family. When children...