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Weekly UpdatesWith world-class mineral deposits, Alaska's major mines exhibit showcase examples of modern mining.
Alaska's mining industry has grown to become a billion-dollar business and remained so for the last 10 years.
What does the future hold in mining in Alaska? A worldwide shortage of experienced miners may affect growth in the future along with the higher fuel costs, but the current prediction is higher metal prices may spur more mining.
ECONOMICS
Metal prices are high. This is a unique time in history, says Steven Borell, who, since 1989, has been executive director of the Alaska Miners Association. Gold and silver are high; base metals-lead, zinc, copper and nickel--are high; coal is also up. Overall high mineral prices have been this way for more than a year, a first in Alaska's history. Zinc has continued to be the most valuable product.
In May of 2006, the state Division of Geological & Geophysical Surveys announced that the value of the mineral industry in 2005 reached $1.8 billion with exploration at $100 million, development at $347 million, and the $gross value of minerals produced at 1.4 billion.
Exploration is up. Many companies, large and small, are now exploring for minerals in Alaska. They see Alaska as essentially unexplored and a jurisdiction with a stable tax and regulatory environment.
THE BIG ONES
Usibelli Coal Mine, now 63 years old, the only coal mine in Alaska, remains one of Alaska's largest operating mines. The other largest mines are Greens Creek near Juneau, which opened in 1989; Red Dog near Kotzebue, which produces zinc and lead; Fort Knox near Fairbanks, which produces gold; and Pogo near Delta Junction, which also produces gold. Pogo is the newest large mine; the first gold pour occurred Feb. 12 of 2006.
The Kensington gold mine near Juneau and the Rock Creek gold mines are in construction currently and Nixon Fork, primarily gold with some copper, will restart later this year.
Types of metal mining include placer or alluvial mining and lode or hardrock mining.
HISTORY OF MINING IN ALASKA
The Alaska mining industry can be divided into three major periods--the first from the late 1800s until World War II, the second from World War II until 1989, and the third from 1989 to the present.
In the first period, mining was the largest industry in Alaska and provided the most jobs.
By 1886, the Treadwell mines in Juneau were the largest underground gold mines in the world. That was 10 years before the 1896 Klondike gold rush began in the Yukon Territory.
The second period began a presidential order that closed all precious metal mines in the U.S. so the miners and their equipment could be used for the war effort. "But after the war, some placer mining resumed, but there was effectively no hardrock mining until 1989," says Borell.
However, in 1989, Greens Creek and Red Dog both began operations, proving to the world that a major mine could be permitted in Alaska.
Borell keeps busy full-time with the many different activities of the organization.
Right now, his focus is on AMA's November annual convention.
GOALS AND MEMBERSHIP
The goals of the Alaska Miners Association are to encourage and support responsible mineral production in Alaska; to promote the mining industry in Alaska; to provide services to the membership, which will assist them in their mining activities; to monitor the political process to help keep lands available for mineral exploration and development; to ensure that the restrictions on land and water use are based on sound science; to provide a balance between environmental protection and resource utilization; and to increase public awareness of the mineral industry and its economics benefits to the state and nation.
Founded in 1939, Alaska Miners Association's present membership of more than 1,000 includes individual prospectors, geologists, engineers, agency representatives, small independent miners, junior miners, and large exploration international operators. There are 32 directors and more than 10 standing committees.
AMA prints a service directory every year with featured articles. The feature article for 2005 was the Alaska mine permitting process and for 2006, how to use the Internet to do land status and geologic research.
This year's convention and trade show, Nov. 6 to 11 in Anchorage, will focus on the exploration findings of the year, and energy challenges in remote areas.
Two projects often in the news--Donlin Creek and Pebble--will require large amounts of power. Red Dog is drilling for gas to reduce the amount of diesel fuel that is consumed.
Miners look forward with excitement to the results of the season. The ultimate challenge is finding new discoveries--a process that can be expensive and difficult, but rewarding.
AMA's REACH ACROSS ALASKA
AMA has two full-time and two part-time employees in Anchorage, the statewide office.
A nonprofit 501(c)(6) organization, AMA's three largest branches are located in Anchorage, Fairbanks and Juneau; with smaller branches in Nome, Kenai and Healy.
Alaska Miners Association's Web site, www.alaskaminers.org, provides links to company Web sites that list job opportunities in Alaska, abstracts from the convention, references materials and other links.
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