Seafood exports continue to be strong and Alaska’s flag ship product, accounting for $1.4 billion of Alaska’s total $2.7 billion exports. Sales of roe, cod, salmon, and pollock all showed significant growth in 2003. Exports of herring, halibut, and crab also improved last year.

To a great extent this is because consumers in Japan and Korea, our largest seafood trade partners, favor Alaska’s wild product. These consumers recognize the distinct taste of the wild product and have concerns over the health hazards of the farmed fish. Alaska’s unique product niche as a wild seafood provider has led to a widening of the spectrum of seafood products being exported to Asia.

Though forest products exports are below their historical highs, Alaska still has the advantage of geography. Our Pacific Rim location puts us closer to the wood-buying markets in Japan, Korea and China. Exports did increase in 2003, up 18% to $152 million.

One of the areas of interest to forest products exports is the potential of the expanding Chinese market. Recent decisions in the Tongass are also a positive signal that Alaska may be able to increase its supply of wood products in the near future. The Ketchikan Wood Technology center has been conducting scientific experiments on a variety of Alaska trees to demonstrate their special characteristics. For example, Alaska Yellow Cedar has proven strong and more rot-resistent. As a result, the American Lumber Standards committee created a new species designation for it. This will increase its value and architectural applications.

The outlook for Alaskan minerals shows great promise. Alaska exported $414 million of the resources in 2003, up 9% from 2002. For 2004 and beyond, the upward trend is expected to continue.

The Pogo mine, near Delta Junction is expected to have over $2 billion in gold. Canadian and Japanese companies are partnering to invest $250 million in capital to open Pogo. To date, they have invested nearly $100 million in Alaska. This new money from foreign sources enters Alaska, then circulates and multiplies throughout our economy.

In addition to the Pogo Mine, there are two other world class operations in the development stage: Pebble Copper in the Bristol Bay area, Donlin Creek in the Y-K Delta. They are considered the two largest known gold deposits in North America, each with over 25 million ounces or roughly $9 billion in gold. There is also renewed interest in gold exploration in Nome at Rock Creek, activities at Kensington north of Juneau, and a great deal of exploration is ongoing in the Interior. The good news on the mineral front has been helped by the Murkowski administration’s attention to mineral development, including pressing for a reasonable timetable for the permitting process.