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Ponzi Scheme-like Tactics Found at the Core of Canadian Mining Operations; Alaska-Canada Transboundary Watersheds at Stake – Alaska Native News

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Ponzi Scheme-like Tactics Found at the Core of Canadian Mining Operations; Alaska-Canada Transboundary Watersheds at Stake – Alaska Native News


Washington D.C. – A vital ecological area shared by British Columbia (B.C.) and Southeast Alaska faces escalating pressure from Canadian gold mining exploration companies propelled by the obscure, Ponzi scheme-like “Prospect Generator Model (PGM).” The latest investigation titled Bad Prospects, by the Environmental Investigation Agency (EIA) uncovers a web-like network of more than 450 Canadian companies currently linked through the PGM, focused on claims staking and mining exploration across a transboundary watershed region known to the mining industry as the “Golden Triangle.” These “prospect generators” are mining not gold as much as “mining” retail investors and uniquely Canadian tax benefits.

The EIA estimates that 20% of all B.C. mining claims in the province are located in this transboundary watershed region. Over 80% of these B.C. claims are within five kilometers of a river or stream, about 18% of claims are on top of glaciers, and over 100 B.C. mining projects are in some phase of exploration, proposal or operation in this region. These mining companies rely on a continuous stream of funds from smaller investors to pay handsome executive salaries, dig hundreds of kilometers of holes, build infrastructure such as roads, bridges, and camps along fragile ecosystems like retreating glaciers and wild salmon habitat, and establish joint ventures and option agreements with other companies. Mining-friendly laws like the colonial B.C. Mineral Tenure Act and incentivizing tax policies in Canada and B.C., like Flow-through Shares and the Mineral Exploration Tax Credit, have yielded C$500 million in forgone taxes annually and make this salmon-rich region a particularly attractive place for mining executives and major investors to deploy this financial approach as part of a new speculative gold rush.

The hope of retail investors is that one of these prospects will one day become a highly profitable mine, meaning large financial returns. However, according to the Association for Mineral Exploration, only one in 10,000 claims becomes an operational mine, which means average investors, Canadian taxpayers, Indigenous peoples, rural residents, and U.S. communities and economies downstream are left shouldering the financial and environmental risks and costs of the Prospect Generator Model and B.C. gold mine exploration. Meanwhile, a small cohort of distant mine owners and major investors get rich while carrying almost no risk. Such imbalance distorts the risk-to-reward ratio and raises questions about the long-term financial sustainability for investors and the social responsibility of mining enterprises. For ten years, Alaska Tribes, municipalities, commercial fishermen, lawmakers, and tens of thousands of U.S. and Canadian citizens have expressed concern about Canada’s industrialization and pollution of shared wild salmon rivers. Two large-scale B.C. mines with tailings dams currently operate and one abandoned B.C. mine has been polluting for over 65 years in the region. Alaska Senator Lisa Murkowski recently wrote to President Biden urging the U.S. to not support any mine in Canada until the calls of Alaska Tribes and communities for international watershed protections are addressed.

“The prospect generator model in the transboundary region serves to move risk that should be private onto the public, and public taxpayer funds into private hands,” said CT Harry, EIA Senior Ocean Policy Analyst.

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Given the myriad adverse social and environmental impacts perpetuated by the PGM and the lack of benefits to all but a few, Canada’s incentivization of new gold exploration projects with big tax breaks for mine proponents in the Alaska-B.C. transboundary region signals a lack of international collaboration and action on major climate and environmental issues.

There is growing consensus that global gold stocks are more than adequate, with over 90% of newly mined gold used for jewelry or bullion, not renewable energy production. Moreover, irreversible impacts to Indigenous communities and this biodiversity hotspot are increasing and researchers predict thousands of kilometers of new wild salmon habitat will emerge here this century as glaciers melt — if they are not first dug up for mine exploration and development. In light of these challenges, it is imperative to revise or terminate British Columbia and Canadian policies that foster PGM-driven exploration and to enforce regulatory changes that prioritize Indigenous rights and environmental protection.

Read the full report and recommendations.

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U.S. Coast Guard announces homeporting of the first two Arctic Security Cutters in Alaska

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U.S. Coast Guard announces homeporting of the first two Arctic Security Cutters in Alaska


 

Artists rendering of the future Arctic Security Cutter that the U.S. Coast Guard said would first be homeported in Alaska. The first of the icebreaking cutters are scheduled for delivery in 2028. (Davie Defense, Inc.)

WASHINGTON — The U.S. Coast Guard announced Thursday that the first two Arctic Security Cutters will be homeported in the State of Alaska. Anticipating delivery of the first Arctic Security Cutters by the end of 2028, the Coast Guard has begun planning to ensure necessary infrastructure and support are in place to receive two icebreakers. Ensuring these vessels are supported by trained and ready crews, and ready homeport facilities including housing, will be essential to delivering full, enduring operational capability required to meet emerging Arctic security challenges.

Homeporting these two Arctic Security Cutters in Alaska is a decisive step forward in securing America’s Arctic frontier,” said Secretary of Homeland Security Markwayne Mullin“I want to thank President Trump for his bold leadership and vision in directing this critical investment, as well as Senator Sullivan and the entire Alaskan Congressional delegation for championing the funding that made these icebreakers possible. These vessels will deliver the enduring operational presence our nation needs to protect sovereignty, deter foreign adversaries, and safeguard vital resources for the American people..

The homeporting of the first two Arctic Security Cutters in Alaska builds on the historic expansion of the Coast Guard’s icebreaker fleet and underscores an unprecedented investment in the Arctic. This announcement marks a national milestone in U.S. Arctic capability, following contract awards for up to 11 Arctic Security Cutters. Fueled by $3.5 billion in funding in the Fiscal Year 2025 Reconciliation Bill and facilitated by a groundbreaking Memorandum of Understanding (MOU) between the United States and Finland in October 2025, the acquisition of Arctic Security Cutters will fulfill President Trump’s directive to rapidly deliver America’s newest icebreaker fleet.

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“Homeporting Arctic Security Cutters in Alaska underscores the United States’ leadership as a maritime power in the Arctic,” said Adm. Kevin E. Lunday, commandant of the Coast Guard. “By strategically positioning these state-of-the-art icebreakers in Alaska, the Coast Guard will maximize our ability to defend our northern border and approaches, while reinforcing America’s maritime dominance in a crucial region of strategic importance.”

Through contract awards to Rauma Marine Constructions Oy of Rauma, Finland, Bollinger Shipyards Lockport, L.L.C., and Davie Defense, Inc. of Vienna, VA, the U.S. will immediately benefit from our Finnish partners’ icebreaker expertise while coordinating the onshoring of that expertise and shipbuilding to the United States. Under the MOU, Finland will construct up to four ASCs for the U.S Coast Guard. U.S. shipyards will build and deliver up to seven additional ASCs. Delivery of the first Arctic Security Cutters is expected by the end of 2028.

Arctic Security Cutters will form the backbone of a revitalized U.S. icebreaker fleet, strengthening American maritime dominance in the Arctic. Fielding specialized capabilities, these icebreakers will defend U.S. sovereignty, secure critical shipping lanes, protect energy and mineral resources, and counter foreign malign influence in the Arctic region. A robust icebreaker fleet will enable the Coast Guard to control, secure and defend U.S. Alaskan borders and Arctic maritime approaches, facilitate maritime commerce vital to economic prosperity and strategic mobility, and respond to crises and contingencies in the region.

Acquisition of Arctic Security Cutters supports the Coast Guard’s ongoing modernization, through which the Service is transforming into a more agile, capable and responsive fighting force.

Memorandum on ASC Homeporting

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‘We never forgot her’: Friends, family of longtime Alaska teacher gather for 100th birthday celebration

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‘We never forgot her’: Friends, family of longtime Alaska teacher gather for 100th birthday celebration


ANCHORAGE, Alaska (KTUU) – Phyllis Sullivan has certainly led a life worth celebrating.

Born in 1926, Sullivan moved to Alaska with her husband and three children in 1959 to teach, first in the village of Kwethluk in Western Alaska and later at Wendler and Mears Middle Schools in Anchorage.

All the while, she left strong impressions with countless students and acquaintances, some of whom gathered in the basement of Anchor Park United Methodist Church in Anchorage Saturday to celebrate Sullivan’s century of life.

“Education has been the primary thing in her entire life,” her son Dennis Sullivan said. “She’s always been a school teacher and she’s been one of the sweetest people in the entire world.”

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As a slideshow featuring vintage photos from her life and time in Alaska played, Phyllis, wheelchair-bound but high in spirit, stopped to chat with every new person who entered the room, some of whom she hadn’t seen in years.

“It’s impressive that this many people are here,” she said. “That’s very encouraging. Makes me think maybe I did something right along the way.”

Aside from family members, most visitors were there because of the impression Phyllis Sullivan left on them during her many years in the classroom.

“She gave us this one assignment: to memorize a poem,” former Mears student Tina Arend recalled. She said Phyllis Sullivan was her 8th grade English teacher.

“And when she gave us the assignment, she said, ‘I’ve had students come back many, many, many years later and recite the poem to me.’ And we actually still remember the poem,” Arend said of her and her husband, who was also in attendance. They both went on to become teachers at Mears as well.

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Matthew Nicolai, whom Phyllis Sullivan taught in Kwethluk, has similarly fond memories.

“The Bureau had ordered that teachers do corporal punishment for speaking Yup’ik,” Nicolai remembered. “Even though we spoke Yup’ik, she never did that, never cracked our hands. Other teachers did, but not her. That’s why we never forgot her.”

In addition to teaching, Phyllis Sullivan also found time to open her home to those in need. She and her husband once took in a family with seven kids who had been displaced by flooding in Fairbanks in 1967.

“It touched our heart because they bought us a lot of stuff that we needed because we lost a lot of stuff during the flood,” David Solomon, one of those seven kids, said. “We stayed there for over three years.”

Phyllis Sullivan said she is enjoying life and is doing fine.

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“My mother made it to 103,” she said. “So, I’ve got a while yet.”

See a spelling or grammar error? Report it to web@ktuu.com

Copyright 2026 KTUU. All rights reserved.



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Alaska Senate committee advances draft capital budget, boosting funds for school maintenance

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Alaska Senate committee advances draft capital budget, boosting funds for school maintenance


The Alaska Senate Finance committee advanced a draft capital budget on Tuesday that would put nearly $250 million toward state facilities and maintenance projects next year.

The draft budget adds $88 million to Gov. Mike Dunleavy’s proposed capital budget of $159 million, with the largest additions going toward K-12 schools and university facilities maintenance.

That was a focused effort by the finance committee, said co-chair Sen. Bert Stedman, R-Sitka, who called funding for education facilities maintenance a “heavy concentration” on Wednesday.

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Earlier this year, students and school officials testified to lawmakers that decades of deferred maintenance has reached crisis levels — with many rural school districts in particular grappling with deteriorating facilities, failing water and sewer systems — which they say is degrading student and staff morale. Lawmakers have expressed support and increased funding in recent years, but point to Gov. Mike Dunleavy’s history of vetoes as a roadblock for funding education.

The Senate draft includes $57.8 million in additional funding toward K-12 school maintenance through the Alaska Department of Education and Early Development and $17 million toward the University of Alaska. It also includes $5.7 million for the Alaska Court System’s facilities and $8 million for community infrastructure and workforce development programs through the Alaska Department of Commerce, Community, and Economic Development.

The Legislature relies on state ranked lists to prioritize where to direct funding to capital projects for K-12 schools, the university system and the court system.

For K-12 schools, the state’s current major maintenance list totals over $400 million needed for 103 school projects and repairs. Stedman said he recognized this year’s capital budget will only fund a fraction of those.

“Hopefully we get a quarter of it done, or something like that, but it’d be nice to retire the entire list,” Stedman said.

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The draft budget would fund the top 15 school projects on the list, plus funds for three other schools in need of emergency fuel tank repairs. The top projects range from roof and boiler replacements to septic systems, fire suppression and safety upgrades in schools from Fairbanks to the Aleutian Islands.

In order to distribute funds more widely, members of the finance committee reduced funding for one project in Galena, in the Western Interior of Alaska, from roughly $35 million to $5 million for renovations to the Sydney C. Huntington Elementary and High Schools. They also allocated $17 million towards rebuilding the school in Stebbins in Western Alaska, after it burned down in 2024.

The Senate draft also adds nearly $14 million in funding for the state-run Mt. Edgecumbe High School, which has been the focus of public attention and concern after a quarter of students disenrolled this year. The additional facilities dollars include $10 million to remodel the dining hall, $3.1 million to replace dorm windows, $460,000 to replace dorm furniture, $50,000 to replace mattresses and $125,000 to replace aging laundry machines.

Finance members added $17 million to fund the top nine projects across the University of Alaska system — three projects each within the three major campuses.

Sen. Jesse Kiehl, D-Juneau, serves on the finance committee and his district includes University of Alaska Southeast. He described the proposed funds as a “nickel” compared to the “colossal” deferred maintenance needs of the university system.

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“That’s been built by Legislatures and Boards of Regents for 40 years,” he said on Wednesday, adding that it is a shared responsibility to put funding towards repairs and upgrades.

“The Constitution makes them a separate body within the executive branch that puts a lot of responsibility on them, too, more than the general state government,” he said “So university major maintenance is its own huge problem.”

The draft budget also includes $5.7 million for upgrades to state court facilities, mostly targeted to Anchorage and Sitka. It contains nearly $10 million for workforce development programs geared at the construction and oil and gas sectors, including for the Fairbanks Pipeline Training Center and Alaska Vocational Technical Center in Seward.

An amendment to add $25 million to the draft budget for the Port of Anchorage, sponsored by Sen. Kelly Merrick, R-Eagle River, was voted down on Tuesday by a 5 to 2 vote.

Before voting against the proposal, finance co-chair Sen. Lyman Hoffman, D-Bethel, said during committee deliberations the priority this year is to fund as many school maintenance projects on the list as possible, saying “schools are falling apart” and must be maintained to prevent further deterioration.

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“Students that are trying to learn deserve better,” Hoffman said. “And if we are not able to provide this major maintenance, we are going to see these schools continue to crumble, and the financial burden to the state of Alaska will be hundreds of millions of dollars to rebuild schools.”

More funding for school maintenance and other capital projects could be added by the Alaska House of Representatives, who will take up the draft budget bill after it’s approved by the Senate in the coming weeks.



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