Pogo productions starts: first gold pour excites developers who battled environmentalists and won.

• Author: Liles, Patricia

Alaska's mining industry took a significant leap forward in early 2006, as the Pogo gold mine located in a remote, previously undeveloped region of Interior Alaska near Delta Junction began producing gold in February.

The 1,000 ounces of gold produced in a bar for media cameras during a ceremonial "first gold pour" on Feb. 12 was a milestone celebratory event, according to Karl Hanneman, manager of public and environmental affairs and special projects for Teck-Pogo Inc., operator of the state's newest hard-rock gold mine.

"I had a big grin on my face all day (of the first gold pour)," Hanneman said. "It wasn't the gold--it was being finished with all that we've been through."

Hanneman, a long-time Alaska placer miner, joined the Teck-Pogo staff eight years ago to help to shepherd the Pogo project through its advanced exploration work and an exhaustive public and regulatory review to obtain construction and operational permits. That included working through a last-minute environmental legal challenge mounted after construction started on the project in late spring of 2004.

That additional debate cost the construction crews several weeks of work, but the successful and relatively rapid resolution of the environmental challenge sent a strong message to the mining industry, according to Steve Borell, executive director of the Alaska Miners Association.

"The real message from Pogo is, 'look how the community comes together when they see a project maligned and attacked improperly.' It was an extremely positive experience. At the time, it didn't feel good," he said. "Environmental groups have had a free ride for decades and have not been held accountable, but this time, they were."

Additionally, the first construction season at Pogo faced unforeseen obstacles, including huge wildlands fires raging around the mine, burning thousands of acres and at one point, requiring workers to leave the mine and mill site. A helicopter working on-site was also dispatched to rescue prospectors working nearby for another mining company.

Pogo now joins Alaska's roster of large-scale hard rock mines, such as the Red Dog zinc and lead mine, the Fort Knox gold mine and the Greens Creek silver, gold, zinc and lead mine. Pogo is estimated to produce about 400,000 ounces of gold per year, which will significantly bump up the state's total value of minerals produced, a total of $1.5 billion estimated for 2005.

'GOOD NEWS'

"Pogo has again proven that a major mine can be permitted in Alaska," Borell said. "It's good news for the industry. If they know what the rules are, they can look at the development and calculate what the costs are to comply with the rules."

The mine development also sends a positive message to other rural areas of Alaska, which may be hoping for a similar type of industrial development and the related economic impact, he added.

"They have seen the benefits to Delta Junction, the good quality jobs and the tax base established," Borell said. "It should be encouragement to everyone else that they might have an opportunity for local jobs in...