Industry outlook.

• Author: Borell, Steven
• Position: Mining industry - Industry Overview

The mining industry in Alaska has experienced steady growth during the past several years, and the outlook for the future is excellent. Steady growth is expected to continue in most parts of the industry. The exception is small-scale placer mining, which is likely to be maintained at current levels or to continue a decline begun 10 years ago.

Metals production almost doubled from 1989 to 1990, as the Greens Creek and Red Dog mines began to reach full production. Alaska coal production in 1990 was the highest ever. Many major mining companies have returned to the state and are again exploring here for minerals. The legal and regulatory uncertainties of the past are being clarified, and the attitude of the Hickel administration is one of fair and consistent treatment for the industry.

Several new mines are approaching development decisions. If these projects become producing mines, the economic and political effect on the state will be considerable.

In Southeast Alaska there are two projects for which federal Environmental Impact Statements (EIS) are nearly complete. The first is the reopening of the Alaska-Juneau Mine whose development would result in approximately 450 direct mine jobs and produce 369,000 ounces of gold per year. The Kensington Venture, located north of Juneau near Berners Bay, also is in the EIS stage. Its development would provide more than 250 jobs, while producing 200,000 ounces of gold per year.

In the middle Yukon-Kuskokwim area, two hard-rock gold projects are in the final stages of evaluation and/or financing. The Nixon Fork and Illinois Creek deposits have the potential of providing 85 and 40 jobs, respectively, to that area of Alaska. Decisions on these projects are expected this winter for possible production in 1992 or 1993.

In Southcentral Alaska, the Pebble Beach copper-gold porphyry deposit is in the initial stages of evaluation. This deposit has the potential to provide much needed jobs and cash flow for another region of the state.

Although probably farther off in the future, the Fort Knox deposit north of Fairbanks is exciting for many reasons. First, it is likely to provide more than 300 jobs for the Interior. The deposit has been shown to contain at least 5 million ounces of gold. This project is exciting because it would be the first major low-grade, hard-rock, open-pit mine in the state and would utilize methods and technology that have been in common usage in other states and parts of the world for...