Mining: an important force in Alaska economy.

• Author: Satre, Mike
• Position: SPECIAL SECTION: Mining

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Alaska is steeped in mining tradition; however, it is only recently that the industry has shown its true potential. There are now seven large mines which produced $3.8 billion in gross mineral value in 2011. In addition, at least 30 projects spent more than $1 million in an effort to find and develop the next large mine in the state.

The impact on the Alaskan economy has been significant as these mines and projects employed more than 4,500 people at an average annual wage of $100,000. In addition, more than $500 million in goods and services were purchased from Alaskan businesses in support of mining activities. As operations continue to fund exploration and expansions, the future of Alaskan mining certainly looks very bright indeed.

Producing Mines

At the Teck Red Dog mine in the northwest, a significant milestone was attained this year when the last ore from the Main Pit was extracted and operations are now solely in the Aqqaluk Pit. In partnership with NANA Regional Corporation Inc., Red Dog remains one of the largest zinc mines in the world and exploration continues to ensure mining will benefit the region for generations to come.

At the Kinross Fort Knox gold mine outside of Fairbanks, production continues to increase from the heap leach facility and nine additional trucks, each with a payload of 250 tons, have been purchased to achieve targeted production.

In July, the Sumitomo Pogo Mine near Delta Junction hit a milestone of 2 mil lion ounces of gold produced since opening in 2006. Recent exploration success has added at least another million ounces to Sumitomo's Pogo Mine plan.

Closer to McGrath, the Nixon Fork gold mine, re-started in 2011, continues to optimize its facilities in order to achieve full production. In the Railbelt, the Usibelli Coal Mine continues to build on its record breaking performance in 2011 when they exported more than 1 million tons. Usibelli is now preparing plans to mine the Jumbo Deposit, which will allow operations for decades to come.

In Southeast, the Coeur Alaska Kensington Gold Mine spent the first half of 2012 finishing several infrastructure projects, including commissioning of the underground paste plant, allowing them to attain full production. Nearby, the Hecla Greens Creek Mine, the second largest silver mine in North America, focused on the Environmental Impact Statement process for expansion of the tailings facility, which allows at least 30 years of production if they...