Major mining companies in Alaska plan for success: mine operators are gearing up for another banner year.

Steve Borell, executive director for the Alaska Miners Association, stated in the November 2006 issue of Alaska Business Monthly that, "Alaska mines already in operation, advanced exploration projects, and grassroots exploration are all benefiting from the current strong demand for minerals."

Indeed, that is the case that has been proven true for 2006 and is beefing up the economy for 2007. Borell was correct in his assertion when he stated in November that "2006 is shaping up to be a banner year for minerals in Alaska." A March 2007 press release from Alaska's Department of Natural Resources states, "Alaska's minerals industry produced a record high $3.26 billion worth of mineral products, and investment in exploration and development, thanks in large part to high prices in zinc." Indeed, the report verifies with numbers what Borell said in the November article. The summary reports, "$2.753 billion value of minerals produced in 2006 exceeded the previous year's total by $1.35 billion, even though the volume of production decreased slightly, reflecting the impact of high prices."

This increase has improved the employment sector, too, by opening up more jobs in the mining industry. The report states, "Total minerals industry employment in 2006 is estimated to be 3,014 full-time equivalent jobs, an increase of 193 jobs from the 2005 employment total, with most of the increase coming from exploration and development. These totals are likely to increase significantly in the final report, as more information from sand, gravel and gold-mining operations, especially the Pogo gold mine, is compiled."

The complete report will be published later this year and contains the above statistics and other important information on the banner year that Alaska experienced in 2006 in the mining sector. According to the release, "Details on the mining industry's record-breaking year are contained in the Information Circular 54, 'Alaska's Mineral Industry 2006: A Summary,' a preliminary report of industry activity, prepared by the Division of Geological and Geophysical Surveys in the Department of Natural Resources and the Office of Economic Development in the Department of Commerce, Community and Regional Development."

Who are the major mining players who've boosted Alaska's economy? Here are seven of the top players in Alaska:

* Teck Cominco Alaska Inc., which owns Red Dog

* Fairbanks Gold Mining Inc., which owns Fort Knox and True North

* Teck Pogo Corp., which owns Pogo

* Kennecott Greens Creek Mining Co., which owns Greens Creek Mine

* Barrick Gold, which owns Donlin Creek

* Northern Dynasty Minerals, which operates the Pebble Project

* Usibelli Coal Mine (A detailed story featuring Usibelli and other coal operations in the state will appear in the July 2007 issue.)

These seven players are not all operational mines. Some of these mines are at the top because of their mineral ore, while the others are in the exploration or development phase. While many spokespeople from these top companies share their mines' stories, not all were available for comment.

TECK COMINCO ALASKA, FAIRBANKS GOLD MINING COMPANY, AND TECK POGO

"Continuing high zinc prices played a key role in the record-breaking tally for the industry," says ADNR's press release. "The Red Dog Mine, north of Kotzebue, is the world's largest zinc mine, producing 614,538 tons of concentrate in 2006. With prices that once dipped as low as 35 cents a pound in 2003 and rising to nearly $2 per pound in 2006, Red Dog's 2006 production was worth $1.54 billion, representing 47 percent of the value of Alaska's mining industry."

The Red Dog Mine is owned by Teck Cominco Alaska. Teck Cominco is located in Anchorage, and headquartered in Vancouver, Canada. According to its Web site, www. teckcominco.com, "The company is a world leader in the production of zinc and metallurgical coal and is a significant producer of copper, gold and specialty metals."

Fairbanks Gold Mining Inc. makes its home base in Fairbanks, and the owners are Kinross Gold Corp. in Toronto, Ontario. Its Web site is www. kinross.com, and its main mine in Alaska is Fort Knox, which produces about 350,000 ounces of gold per year. Kinross bought the Fort Knox open-pit mine in 1998, and by 2006, it poured its third millionth ounce of gold. Kinross' Web site says, "Mining is carried out in a year-round basis, seven days a week, and the mine production rate varies between 110,000 to 145,000 tonnes per day of total material."

True North Mine is the second mine that Kinross Gold Corp. owns. Currently, True North is in reclamation.

Teck Pogo Corp. is also owned by Teck Cominco Alaska. They poured their first gold in February 2006. Its Web site explains that in June 1997, Teck Cominco "entered into an agreement with Sumitomo Metal Mining America Inc. and SC Minerals America Inc. to earn a 40 percent joint-venture interest in the Pogo gold deposit located in Alaska, 40 air miles from Delta Junction. The Pogo property is approximately 16,700 hectares in size. The mine area is the subject of a mining lease, which requires annual rental payments. The balance of the property is comprised of 1,281 State mining claims, each requiring a specified nominal amount of annual assessment work."

According to its Web site, the mine and other facilities on the site were completed at the end of 2005, but underground development is still in the works. Its Web site states, "The project consists of an underground mine and 2,500 tonnes per day mill expected to produce 350,000 to 500,000 ounces of gold per year over a 10-year mine life."

KENNECOTT GREENS MINING CO.

Clayton Walker, general manager of Kennecott Greens Mining Co., says, "If it can't be grown, it has to be mined. Much of the lifestyle we enjoy today is dependent upon mining, and Greens Creek is a significant contributor in that regard."

And the amount of lead, zinc, silver and gold mined there proves that Green's Creek is a significant player in Alaska mining. Greens Creek's home base is in Juneau, and they've hired 295 people with an additional 45 contractors to get the jobs done at Greens Creek. They mainly mine 41 million pounds of lead, 118 million pounds of zinc, 8.8 million ounces of silver, and 64,000 ounces of gold per year.

Walker states that, "In addition to being an underground polymetallic mine and surface concentrator, Greens Creek is one of the largest silver producers in North America; is one of the largest private-sector employers in Southeast Alaska; is ISO-14001 certified; is located in a national forest on a national monument; and is one of the largest property tax payers in Southeast Alaska."

Indeed, Greens Creek is located on the Tongass National Forest, which is 500 miles long and runs along the coast of Southeastern Alaska. And, Greens Creek takes care of the land that it mines on. Its Web site states, "Greens Creek Mine works hand-in-hand with local, state, and federal government agencies to ensure that the wilderness of Tongass is preserved for future generations."

Kennecott Minerals of Salt Lake City, Utah; and Hecla Mining Co. of Coeur d'Alene, Idaho; co-own Greens Creek Mine in a joint venture. The Greens Creek Mine's Web site states, "The ore body was discovered in 1975. Exploration drilling began in 1978, initial mine development in 1987, and full production in 1989. The mine was closed in 1993 due to low metal prices, and has been reopened since 1996 after completion of mine development work."

According to Walker, the life of the current mine will last until 2017, "thanks in large part to the past and continuing success of our exploration program. The originally estimated mine life of approximately 10 years has been extended several times in the past for this reason." And, he maintains that Greens Creek will continue to mine ore, as it has been since 1989, and process its concentrate in a "socially, environmentally and economically responsible manner."

BARRICK GOLD CORP.

Stan Foo, project manager of Donlin Creek mine, which is run by Barrick Gold, Anchorage, says, "With 27 operating mines on four continents, Barrick is the largest gold producer in the world. Donlin Creek has the potential to become the largest producing gold mine in Alaska. Our vision is to become the best gold-mining company in the world and in Alaska. Donlin Creek will be operated in a safe, profitable, and environmentally sound manner." They operate on Alaska Native-owned lands.

Foo explains that subsurface mineral rights are owned by the Calista Corp., and the surface estate is owned by the Kuskokwim Corp., both Alaska Native corporations, and both have home bases in Anchorage. Foo states, "The Donlin Creek joint-venture leases the mineral rights and surface rights from these companies, respectively."

Right now, Barrick Gold, www. barick.com, focuses on Donlin Creek. Foo says, "Donlin Creek is in the advanced exploration and feasibility stages at this time, and is not an operating mine. The company's involvement at Donlin Creek began in 1995, when Placer Dome began exploring the area. Barrick acquired Placer Dome in 2006, becoming the manager and operator at Donlin in a joint venture with NovaGold. Barrick's estimate of measured indicated and inferred resource is 21.3 million ounces of gold. In 2006, our work force at Donlin included about 220 Calista shareholders or descendents."

It's important to Barrick Gold at Donlin Creek to hire and train Calista shareholders. Right now, Foo explains that they have enough employees to fill their work needs. But that will change with construction, which will require 1,000 employees or more for three years. And during operation, there will be 400 job openings or possibly more for 20 years of work. Foo says, "The number of jobs available is expected to rise dramatically. Our ongoing priority will be to provide jobs and training to Calista shareholders. However, we expect that we will have to look at other regions of Alaska and probably outside, as well, to fulfill our needs if the project moves forward."

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