Welcome to Mining Month at Alaska Business.
Author | Mackenzie, Kathryn |
Position | FROM THE EDITOR |
Welcome to the Alaska Business special Mining Issue. As an Alaska-based, business-focused, community-minded publication (I love hyphens, what can I say?), we spend a lot of time talking about oil and gas. Many argue it is the foundation of Alaska's economy, but oil and gas are not the only natural resources that make significant contributions to the state's fiscal well-being.
Export activities for mining commodities account for about $1.5 billion, more than one-third of the state's total exports, according to "The Economic Benefits of Alaska's Mining Industry" published earlier this year in by the Alaska Miners Association. Not only are Alaska's six large operating mines, hundreds of small placer mines, and industry-related support services responsible for billions of dollars in exports, they account for thousands of jobs for Alaskans statewide. Last year the mining industry in Alaska provided 4,350 direct mining jobs and 8,600 total direct and indirect jobs. Since mining offers some of the highest paying jobs in the state at an annual average wage of $108,000 (more than twice the state average for all sectors of the economy), it only follows that the mining industry would be a major contributor to the state in the form of $23 million in local government revenue through property and other taxes; $81 million in state government-related revenue including rent, royalties, fees, and taxes; and $675 million in total direct and indirect payroll, according to the report, prepared by the McDowell Group at the behest of the Alaska Miners Association to research the economic impact of mining in Alaska.
Exports, job growth, and taxes are not the only contributions made by this sector of Alaska's vast and abundant natural resources. Exploration is key to growth potential for any natural resource, and in 2016...
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