The export of minerals topped $500 million last year for the first time in Alaska’s history. This amount is double the $249 million exported only eight years ago in 1996. International mineral sales increased 9% in 2003 and an impressive 22% in 2004.

Lead and zinc production dominates this category. Additionally, $90 million in gold and $14 million in coal were sold internationally in 2004, however these products are counted in the precious metals and energy categories respectively.

Alaska’s largest producing mines include the Red Dog lead and zinc mine near Kotzebue, the Fort Knox gold mine near Fairbanks, the Usibelli coal mine near Healy, and the Greens Creek silver, lead and zinc mine near Juneau.

One quarter of Alaska’s mineral exports head to Canada, one third are sold to Europe and 40% are bound for Asia, primarily Korea, Japan and China.

A majority of this production comes from the Red Dog mine in northwest Alaska, the largest zinc mine in operation in the world. It is owned by the NANA native regional corporation and operated by Canadian owned subsidiary Cominco Alaska.

Canada plays a key role in Alaska’s mining industry, accounting for 70% of exploration capital invested last year. Notable Canadian companies active here include Teck Cominco, Northern Dynasty, Kinross, Freegold Ventures, Nova Gold, Placer Dome, Full Metal Minerals and St. Andrews Goldfields.

Mining activity has picked up substantially in Alaska over the last two years. High metal prices have spurred exploration worldwide and Alaska is viewed as one of the largest untapped mining prospects on the planet. Opportunities for new discoveries are excellent.

Of Alaska’s 365 million acres of land, 104 million acres are owned by the state government and most is open to mining. This is an area larger than the entire state of California that remains essentially unexplored.

An additional 44 million acres are owned by Alaska’s 12 Native Corporations, and many actively market resource development on their lands. Several of Alaska’s greatest success stories, including the massive North Slope oil fields and the Red Dog mine, have come from partnerships between Native Corporations and international investors.

A current example is the Calista Native Corporation’s relationship with Placer Dome, which has led to the leasing and exploration of land in the southwest region of the state. To date, over 23 million ounces of gold have been identified in this Donlin Creek project, making it the second largest gold mine in North America.

The largest gold mine prospect on the continent is also located in Alaska. The recently discovered Pebble Copper mine, owned by Northern Dynasty, has announced resource finds of 26.5 million ounces of gold, 16.5 billion pounds of copper, and other collocated metals.

Alaska has made great strides to provide a predictable regulatory environment that attracts international companies to trade and invest here. The swift and successful efforts last year to resolve environmental concerns at the Pogo Mine clearly demonstrate the Murkowski administration’s commitment to ensure responsible development will occur in Alaska.

The Pogo Mine was fully permitted in 2004. The 50 mile all season access road has been completed, power connections are underway, and the mine’s facility infrastructure is under construction. The Japanese Sumitomo Corporation and its subsidiaries own a 60% stake in the mine, while Canadian Teck Cominco Ltd. owns the remaining 40%.

Pogo is expected to produce up to 500,000 ounces of gold per year for 12 years after investing approximately $250 million in start up capital costs. It will support a workforce of up to 700 people for construction and 360 full time positions once operations begin.

Other significant mining investments in the pre-development or permitting stages include the Kensington Mine near Juneau and the Rock Creek mine near Nome.

As these world class mines move from the advanced exploration phase into the construction and production phases, Alaska’s international export of minerals is poised to increase dramatically in the near future.

The Alaska Miners Association is well organized and has a wealth of information available for anyone who wants to take an active interest in the area.