Code red! Environmental challenges alarm mining industry.(SPECIAL SECTION: MINING ISSUE)

"I'm of the opinion that it always will be a challenging environment to receive permits, but if you do things right, you will persevere," Van Nieuwenhuyse said. "There are NGO (nongovernmental organizations) that want to see projects done right and there are others that do not want to see it done at all. You have to deal with all the stakeholders and forge relationships with the community around you."

Construction is nearing completion at Rock Creek, which is expected to produce 100,000 ounces of gold annually for NovaGold. About 140 people will be working at the mine year-round, for an expected mine life of four to five years, possibly more.

NATIVE RESPONSE TO CHALLENGES

The mine project has a definite impact on the regional and village Native corporations near Nome. A subsidiary of Bering Straits Regional Corp. has landed substantial contracting work and the corporation is negotiating to fill a trucking contract, according to Tim Towarak, president and CEO of Bering Straits. "We're working hand in glove with them," he said. "They're making a big impact on the local economy, with the number of people at work, the additional office space leased."

In addition, both the regional and the village corporations signed a mining lease with NovaGold for use of their lands in the project, with the future potential of mining and royalty payments, should exploration work identify economic mineralization extending onto the Native-owned lands.

"We've been stewards of the land for centuries and we think we know what's good for the land, provided there is protection to the subsistence resources. We wouldn't have an agreement without these provisions," said Towarak. "We're not discounting any lawsuits, but we want to ensure our shareholders that we're working very closely with regulatory agencies on the mining operation to make sure it is done in a safe, environmentally sound manner."

And for Natives living in remote areas, typically where large mineral deposits are found in Alaska, development of such natural resources can offer long-term jobs for locals facing slim pickings in employment opportunities.

"The economic impact of resource development is very profound to the economy of Alaska," said Helvi Sandvik, president and CEO of NANA Development Corp. "Resource development does change the character of the land. You have to have faith in the mining engineers and the geologists and those in charge of resource reclamation."

NANA leaders wrestled with the question of mine development more than 20 years ago in its initial talks with the corporation's mining partner, Cominco, regarding the Red Dog zinc and lead mine that was eventually built. Back then, the mine provided a means for the region to survive economically, Sandvik said.

"The only jobs were outside the region, so people were leaving and communities were starting to dry up and go away," she said. "As a region, we're a better place in terms of the choices available. This was not a choice available to me as a young person growing up."

Weighing the benefits of resource extraction with changes to the land is a decision for locals to make, she added. "Ultimately, you have to decide whether the resource can be developed in a fashion that does not jeopardize the environment. No one can answer that question for us," Sandvik said. "Others have to make that decision either for or against resource development."

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