Alaska Metals Mining

(Check out our new interactive map of all mining exploration in Alaska)

Alaska is home to large deposits of many metals, including copper, gold, silver, and zinc.  Many of these deposits have never been mined, and if current proposals go through, they could dramatically expand the mining industry in the state. Existing metal mines produce valuable commodities and provide employment and tax revenue.  However, the metal mining industry has a long history of environmental problems both inside and outside the state.

Metals mining is a controversial topic in Alaska, with political maneuvering around the Pebble Mine, and multimillion dollar lawsuits over impacts from existing mines such as Red Dog.  Much of the concern focuses on potential impacts to water, fish, and wildlife.  Fisheries and tourism are also important industries in the state, and many remote communities are dependent on fish for food.  

Alaska Gold Mining: The relative size of past, present, and possible future gold production in Alaska

FULL FIGURE

According to the Environmental Protection Agency, mining has contaminated portions of the headwaters of over 40 percent of watersheds in the western continental U.S., and reclamation of 500,000 abandoned mines in 32 states will cost tens of billions of dollars.  Within Alaska, most mines and mining prospects have faced similar environmental problems, most notably water contamination, impacts of open-pit mining, and acid mine drainage.  Many existing and abandoned mines will require active treatment and maintenance forever to mitigate the impacts of the resource extraction.

Alaska's mining history began with gold.  Russian exploration for placer gold began in the early 1800's.  The subsequent gold rushes in the 1890's were responsible for a population and settlement boom in Alaska.  Since that time a large number of mines have opened and closed throughout the state.  Today, hand-prospecting of placer deposits is limited to small tourist and recreational mining.  The vast majority of metal today is extracted from large scale open-pit and underground mines targeting metal sulfides.  

Metals mining is a major industry in Alaska, but is small compared to the oil industry.  The total value of metal production and exploration in Alaska was just under $3 billion in 2009, representing around 6% of the gross state product.  Over half of this was produced by the Red Dog zinc mine and much of the rest by the Greens Creek , Pogo, and Fort Knox gold mines.  The state of Alaska and various municipalities collected about 3% of that value in the form of taxes, about $100 million that year.   In contrast, the oil industry pays 12.5% of the value of oil extracted, plus additional taxes on profits that are tied to market price.  In 2008, the oil industry paid over $10 billion in taxes to the state, providing over 80% of the state budget.  The mining industry provides around 2,500 direct jobs in the state, and supports around 10,000 additional indirect jobs.  The seafood and tourism industries each support around 40,000 jobs.  The biggest job engines by far are the oil and gas industry and the federal government, each supporting over 100,000 jobs.

In addition to operating mines, there are a number of active mining prospects in Alaska.  Mining companies spent almost $350 million on exploration costs in 2008, a significant part of the industry's job contribution.  Most of these exploration efforts are being undertaken by foreign corporations, with 90% of the exploration costs incurred by Canadian corporations and a further 7% from overseas corporations.  The majority of exploration efforts occurred at the Pebble Mine and Donlin Creek prospects but work on smaller projects is also proceeding, such as on the Lik Prospect near the Red Dog Mine.

Alaska Hardrock Metal Mines Through Time: A timeline of metal mining in Alaska, from the known output of historical mines to the estimated reserve size of current mines and proposed future mines

FULL FIGURE

Date Created: Tue, 4 May 2010 23:44:21 -0800

Last Modified: Tue, 8 May 2012 09:23:37 -0800