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Economic impacts of mining in Alaska include wages, taxes and career training, report says

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Economic impacts of mining in Alaska include wages, taxes and career training, report says


By Yereth Rosen, Alaska Beacon

Updated: 1 hour ago Published: 1 hour ago

Alaska’s mining industry supported 11,800 jobs and $1.1 billion in total wages in 2023, according to a report commissioned by the Alaska Miners Association and Alaska Metals Mines.

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The four-page report, by the McKinley Research Group, uses data from 2023 and earlier years to calculate the economic impacts of one of the state’s largest industrial sectors.

The 2023 employment totals show growth from 2021 figures detailed in a more extensive report released in 2022 by the McKinley Research Group. That earlier report listed 10,800 jobs and $985 million in wages, a total that included 5,400 direct mining jobs and additional indirect and induced employment created by what’s known as a “multiplier effect.” That multiplier calculated jobs and wages created by mining companies’ and mining employees’ spending.

There are economic impacts beyond employment, the new report said. Those include revenues for state and local governments, job training and skill development for Alaskans building their careers, shared revenue among Alaska Native corporations and contributions to nonprofits, it said.

Mining companies provide the largest share of the local property tax revenues in the Northwest Arctic Borough, the Fairbanks North Star Borough and the City and Borough of Juneau, the report said. Local tax payments from mining companies totaled $50 million in 2023, it said.

For the state government, the industry provided $136 million in revenues in 2023, the report said.

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State revenues include royalties, which are charged at 3% on revenues from minerals production on state land. There is, additionally, a royalty charged on coal produced on new state leases.

The 3% royalty rate for minerals compares with the 12.5% rate normally charged on oil produced from state lands.

There are seven major producing mines in the state, six of which are metals mines in locations ranging from Southeast Alaska to Arctic Northwest Alaska: Red Dog, Greens Creek, Fort Knox, Pogo, Kensington and Manh Cho. The seventh major producing mine is the Usibelli Coal Mine. There are also eight large projects nearing development or in advanced stages of exploration. Among those considered to be near development is the controversial Pebble mine, which faces an uncertain future because the Environmental Protection Agency in 2023 invoked a special rule to bar permitting of that project. Also listed as near development is the Donlin Gold project in Western Alaska.

[In Northwest Alaska, an economic engine runs low on ore]

Red Dog is one of the world’s largest zinc producers, and it produces lead as well. The Greens Creek mine is one of the world’s largest silver producers. Kensington, Fort Knox, Pogo and Manh Cho are gold producers.

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Among the state’s seven largest producing mines, Alaska residents make up 72% of the workforce, according to the McKinley report. The 28% share of nonresident workers compares to a statewide average, among all industries, of 15.3% as of 2019, according to a 2021 report from the Alaska Department of Labor and Workforce Development.

According to the more extensive 2022 McKinley Research Group report, zinc accounted for 51% of the value of Alaska’s statewide minerals production. Gold ranked second in value at 37%. That was followed by silver at 7%, lead at 3%, coal at 2% and rock, sand and gravel at 0.2%.

Originally published by the Alaska Beacon, an independent, nonpartisan news organization that covers Alaska state government.





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Elim resident dies, child injured in snowmachine collision

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Elim resident dies, child injured in snowmachine collision


A 55-year-old Elim resident died in a snowmachine collision Friday night, Alaska State Troopers said.

The accident, which occurred in the Norton Sound village of fewer than 400 residents, was reported to the agency just before 11 p.m. Friday, troopers said in an online statement. The report indicated that Anna Aukon “was riding in a sled down a road when she was struck by a snowmachine also traveling on the road,” troopers said. Life-saving measures were administered but were unsuccessful, according to troopers.

A young child also sustained injuries in the collision and was medevaced from Elim, troopers said.

Aukon’s next of kin was at the scene, according to troopers, and her body was being taken to the State Medical Examiner Office.

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Nome troopers responded to Elim on Saturday to investigate the collision, the agency said.





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Opinion: Alaska must speak with one voice about the future of a natural gas pipeline

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Opinion: Alaska must speak with one voice about the future of a natural gas pipeline


The setting sun casts a warm glow on the Chugach Mountains beyond the Anchorage skyline and Cook Inlet. (Bill Roth / ADN)

“North to the Future” wasn’t just a motto in my family. It was a lived experience.

My grandfather came to Alaska in 1948 as a Local 302 heavy equipment operator. He helped build roads and airports across this state and ultimately worked on the trans-Alaska pipeline. He came north because Alaska was rising.

Back then, the spirit of this state was dynamic and confident. When opportunity appeared, we seized it. We were growing. Our infrastructure expanded and our young people stayed. Alaska believed in its future.

Today, Washington, D.C., and Wall Street are watching us again. They’re not just studying engineering plans for the Alaska LNG project. They’re listening for something deeper: Does Alaska still believe in itself? Does Alaska truly want this project?

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If our message is confused, if we hedge, undercut or politicize this moment, the answer they will hear is “no.” And once that perception hardens, capital and federal focus will move elsewhere.

Energy security is not optional. Southcentral utilities have made it clear that we lack sufficient long-term, firm gas commitments beyond the near horizon. Without a durable solution, Alaska, sitting atop one of the largest untapped gas resources in North America, could soon be importing natural gas to heat homes and power businesses.

Importing energy in a resource-rich state is not resilience. It is vulnerability. Renewables absolutely have a role in Alaska’s future. So does hydro. So does coal. Alaska should be all-in on energy. We are one of the most resource-endowed places on Earth. There is no reason to think small.

Exporting North Slope gas does not displace our need to develop in-state hydro, responsible coal, wind, solar and emerging technologies. It complements them.

Let’s export the gas the world needs and reserve the gas Alaskans require for reliability.

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And let’s continue diversifying our in-state portfolio to power industry and strengthen resilience. Energy abundance is not a contradiction. It is a strategy.

AKLNG is not simply an export project. It is an energy security project for Alaska and a strategic energy project for America. The economic upside is significant. The Alaska Gasline Development Corp. projects that AKLNG could generate roughly $600 million per year in total state revenues once operational — royalties, production taxes and related activity. That is a baseline estimate. If Alaska participates as a co-investor, long-term revenue potential increases substantially.

Talk about a revenue generator. At a time when policymakers debate new taxes on industry and even on individual Alaskans just to balance the books, we are staring at a project capable of producing hundreds of millions annually while strengthening energy security. That should be a no-brainer.

Meanwhile, our oil and gas industry is doing extraordinary work revitalizing North Slope production. Projects like Willow and Pikka are restoring throughput and revenue. The private sector is demonstrating confidence in Alaska’s future. The question is whether we will match that confidence.

For too long, we have allowed doubt and policy paralysis to define the conversation. We debate. We delay. We send mixed signals. Investors can model engineering risk and regulatory timelines. What they cannot model is political incoherence.

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From the perspective of Washington and Wall Street, confusing or contradictory signals from Alaska’s elected leadership are more destabilizing than permitting hurdles. No financier commits billions into a jurisdiction that sounds ambivalent. No federal partner prioritizes a state that publicly undercuts itself.

We built the trans-Alaska pipeline because we believed in Alaska’s future more than we feared obstacles. That generation understood something simple: When opportunity arrives, you seize it. AKLNG is such a moment. The gas is here. The markets are real. Federal alignment is strong. Our broader energy portfolio is vast. Our workforce is capable.

Alaska has always been a powerhouse of people and resources. If we want energy security, we must say so clearly. If we want diversified energy, we must pursue it boldly. If we want growth, we must demonstrate confidence. Washington is listening. Wall Street is listening. The next generation is listening.

Let’s show them that Alaska still knows how to seize the moment — and rise.

Rep. Chuck Kopp currently serves as the Majority Leader in the Alaska House of Representatives and represents District 10.

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Editorial: Decision time in Juneau: Discipline or make it rain?

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Editorial: Decision time in Juneau: Discipline or make it rain?


The trans-Alaska pipeline and pump station north of Fairbanks. (AP Photo / File)

Alaska has seen this movie before: oil prices spike, politicians celebrate and Juneau starts figuring out how fast it can spend the money.

The U.S. attack on Iran has pushed global oil prices higher, rattling energy markets and sending crude prices upward as supply fears ripple through the global economy. Energy markets surged as tanker disruptions and facility shutdowns across the Middle East threatened supply — a reminder that geopolitical shocks can move oil prices overnight.

For Alaska, that means something very specific: more money. But before Gov. Dunleavy and the Alaska Legislature start eyeing a fresh pile of cash like kids staring at a cookie jar, let’s get something straight. This is not prosperity. This is a temporary windfall driven by war.

And if the past is any guide, Juneau has a good chance to screw it up.

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[Related news coverage: Spike in oil prices will boost Alaska revenue, but not enough to cover projected deficit]

Oil prices jumped sharply after the U.S. and Israel attacked Iran on Feb. 28, and analysts say prices could climb even higher if the conflict drags on. Some forecasts suggest oil could exceed $100 per barrel, which could mean roughly $1.5 billion more in revenue for Alaska in the coming year, according to reporting by the Juneau Empire.

That kind of money would erase much of the state’s budget deficit and could even fund a dividend north of $3,000.

Cue the political stampede.

In an election year especially, there will be lawmakers eager to promise giant Permanent Fund dividends fueled by this sudden surge in oil revenue. Expect campaign ads. Expect grandstanding. Expect speeches about “returning the wealth to the people.” And even before the attack on Iran, Gov. Dunleavy was already pushing an unsustainable full dividend for each Alaskan.

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It’s a stupid idea — not because Alaskans don’t deserve dividends but because temporary revenue should never be used to make permanent promises. War-driven oil money is the worst possible revenue on which to build promises.

Alaska should know better by now

Alaska’s finances remain wildly exposed to oil price swings. A single dollar change in oil prices can move the state budget by roughly $25 million to $35 million, according to Alaska Public Media.

That volatility is exactly why treating a war-driven price spike as stable revenue is fiscal stupidity.

Even lawmakers watching the markets closely say the state should not assume the spike will last. As legislative leaders told Alaska Public Media, Alaska cannot build its spending plans around overly optimistic oil prices. Yet history tells us that when oil money shows up unexpectedly, discipline in Juneau disappears faster than reindeer sausage at the Tanana Valley State Fair.

The last time a global conflict sent prices soaring was after Russia invaded Ukraine in 2022. Oil shot above $100 a barrel for months. What did Alaska do? The Legislature and governor approved a massive dividend and energy payments totaling more than $2 billion. The state spent the money almost as fast as it arrived — don’t we wish we had those billions today?

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Like any temporary high, it felt good at the time, and politically, it was wildly popular. It also did absolutely nothing to solve Alaska’s long-term fiscal problems.

The temptation is coming

The state’s spring revenue forecast arrives in about two weeks. If oil prices remain elevated, the numbers will suddenly look far healthier than they did a month ago.

That’s when it gets tempting. Lawmakers will start talking about “surplus revenue.” Candidates for public office will promise bigger dividends. The governor’s allies will argue the state can suddenly afford everything. Don’t fall for it.

As longtime Alaska fiscal analyst Larry Persily recently wrote in the Alaska Beacon, rising oil prices quickly create a long list of spending ideas in Juneau. But the real question isn’t how much money might arrive — it’s how long it will last. And nobody knows the answer to that. War-driven oil spikes can disappear just as quickly as they arrive.

If Alaska receives a revenue windfall from this conflict, the state should treat it for what it is: a one-time shot in the arm.

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That means save it, invest it and strengthen the state’s fiscal stability.

Deposits into reserves like the Constitutional Budget Reserve — or even better, the Permanent Fund — would help rebuild the savings Alaska burned through during the last decade of deficits. Strategic investments in infrastructure, education and economic development would strengthen the state long after oil prices fall again.

What Alaska should not do is hand the entire windfall to voters as a massive dividend. That’s not fiscal policy. That’s a sugar rush.

A simple message for Juneau

There is nothing wrong with Alaskans benefiting when oil prices rise. Oil built this state, and its revenues still help pay for essential services. But relying on war-driven price spikes to fund giant dividends is reckless.

This moment will test the discipline of Alaska’s leaders. The attack on Iran may deliver Alaska a sudden burst of revenue. But the state’s long-term problems — structural deficits, unstable revenue and growing needs — will still be there long after oil prices settle down.

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So here’s the message the governor and the Legislature need to hear: If this windfall arrives, don’t blow it the way you did last time.

Save it. Invest it. And for once, resist the urge to torch the cash in the middle of an election year.





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