Mining on native lands: balancing resource development with ancient ways.

• Author: Stricker, Julie
• Position: SPECIAL SECTION: Alaska Native Corporation Review

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For thousands of years, the Inupiat people of northwest Alaska have thrived in the cold, remote region by coming up with innovative ways to answer challenges. In the past few decades, they faced another challenge, one that was brought by the discovery of world-class deposits of zinc, copper and lead, as well as gold and silver on their lands. Would it be possible to balance an ancient way of life with modern mining techniques?

That's a question NANA Regional Corp. leaders wrestled with 30 years ago. Jobs were scarce and costs high, but mining companies were very interested in the enormous mineral wealth on NANA's lands, which include one of the richest zinc deposits in the world at Red Dog Creek.

In the end, NANA leaders decided Red Dog was an integral part of their future and that it could be developed in a way that would create sustainable communities and economic opportunity while protecting shareholders' subsistence way of life.

NANA signed an agreement with Teck Alaska and Red Dog Mine went online in 1989. In the past 23 years, it has become the basis for the region's economy. It is a balancing act that requires both partners to work closely together to achieve their goals while keeping their values intact.

Red Dog Today

Today, Red Dog is to the NANA region what Prudhoe Bay is to Alaska, according to Dr. Lance Miller, vice president of natural resources for NANA Regional Corp.

"Mining is part of the culture, balanced with subsistence," Miller said.

Red Dog provides significant local jobs. It is the sole "taxpayer" for the Northwest Arctic Borough, providing $8.9 million payment in lieu of taxes in 2011, Miller said. The State of Alaska receives mining taxes and the Alaska Industrial Development and Economic Development Association collects fees for the road that connects Red Dog with the coast.

The state's regional and village corporations also benefit under the Alaska Native Claims Settlement Act's 7(i) revenue-sharing clause. About 65 percent of NANA's net revenue from Red Dog is distributed to the other corporations, which came to $82 million in fiscal year 2011. NANA itself received $169.9 million in net proceeds from Red Dog. Shareholders benefit from dividends, scholarships and training programs, social and cultural programs and projects to boost energy efficiency in the region.

The goal of resource development is to provide jobs and opportunities for residents of northwest Alaska so that they can remain in the region and help...