Roads to riches: there is a lot of wealth to be gained from mines around the state, but developers need the infrastructure to get minerals to market.

• Author: Harrington, Susan

Building roads in Alaska encourages mining development by making exploration, development and production more financially feasible. Although Alaska has worldclass mineral deposits, the road systems to these resources rival the Third World. In many areas of Alaska rich with resources, roads either do not exist or are unconnected fragments of relic roads.

INFRASTRUCTURE

To quote a line from the movie "Field of Dreams," "build it and they will come," Alaska's vast undeveloped resources are a huge field of dreams.

"The biggest impact of road development is creating infrastructure," said Steve Borell, Alaska Miners Association executive director. "Lack of infrastructure is the biggest deterrent facing developers."

Mike McKinnon, senior planner for the Department of Transportation and Public Facilities Statewide Planning Division, said, "Developing infrastructure does two things: lowers costs and improves efficiency. And that has a way of accelerating development because the opportunity to use an open road network to port sets in motion central development, then satellite development."

Mining operations are dependent on fuel and freight costs, and when the only transportation to the mine site is by air, costs can be prohibitive.

HIGH COSTS

"Many exploration companies prefer to work only within 20 miles of existing transportation because of the costs involved in remote site operations," said Dick Swainbank, mining and minerals development specialist for the Alaska Division of Community and Business Development. "If all materials, such as rods or balls for grinding mills, have to be flown in, the costs can skyrocket."

Neil MacKinnon of the Hyak Mining Co. in Juneau can attest to that. When he was developing the Jualin Mine, which was five miles from tidewater on the backside of a mountain, it was a helicopter operation for the first two years. He described this setup as expensive and limiting, until his company built a road to the mine site.

"Building the road totally changed the operation," MacKinnon said. "It was a trade-off-build the road or give the money to the helicopter company. The road created flexibility, in and out. We could use larger equipment. Instead of a helicopter operation, it became a road operation, and we still have the road instead of a box of receipts."

The company was able to use bigger equipment and expanded operations as a result of the road.

"Mining roads serve to get heavy equipment and supplies in and material out, a vitally important two-way street," MacKinnon said. "With roads, it is possible to move personnel and freight fast, cheap and spontaneously."

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