Alaska Roads to Resources Government Findings For 2004

Report of the Alaska Minerals Commission 2004

The global mining industry continues to expand rapidly in response to explosive demand for mineral commodities in developing countries. The cycle appears to be long term. The improvements to the geopolitical character of the state made by the administration and legislature are attracting minerals industry funding to the state. People in rural regions are benefiting from the increased economic activity in their areas. With continued positive change in permitting efficiency, access and infrastructure development, land tenure, Alaska’s geological database, education, marketing and a stable tax structure, the state will achieve a robust, sustainable mining industry that will provide economic and social benefits throughout the state.

FINDING: The lack of infrastructure, including roads, airports, and power transmission networks, increases the costs of mineral exploration, development, and mining. High costs decrease the rate of mineral deposit discovery and subsequent development, and render Alaskan mining operations less competitive in the global marketplace. This all limits mining industry growth and slows economic diversification, particularly in rural areas. Extensive areas of Alaska are unavailable for resource development because they have been set aside as parks and refuges. The remaining areas of Alaska that are not designated as wilderness constitute the land base that must support our society. Even though these non-wilderness areas are often beautiful or wild in their own right, they were not the crown jewels that justified prior withdrawal. Infrastructure development in these areas must be supported and projects that have the potential to significantly enhance the viability of local communities should be encouraged first.
A2a) ROADS TO RESOURCES FINDING: Many of the major mineral and coal deposits in Alaska are “stranded” and remain undeveloped because there is no road access to existing road and/or rail, major rivers, or to tidewater. The last major road built in the state was the 52-mile road from the Red Dog Mine to the DeLong Moun- tain Transportation System port near Kivalina in 1988.
Public road access could benefit many areas, including the Ambler mineral belt, the northwest Arctic and Beluga coalfields, the area around and west of Illiamna, the McGrath to Aniak region, and the Goodpaster mining district.

Although Alaska Statutes AS 19.30.020 and 19.30.030 address development access roads, the funding available, even if inflation adjusted, would probably not even begin to cover the costs of permitting. During the next few years it is possible that significant funding for access improvement might be available through GARVEE (Grant Anticipation Revenue Vehicle) bonds , the Denali Commission, and special federal appropriations similar to those used in Appalachia.
THE ALAKA MINERALS COMMISSION RECOMMENDS THAT: A2a) The Governor direct the Department of Transportation & Public Facilities to prepare a prioritized list of potential “Roads to Resources”, and investigate mechanisms whereby funds can be made available for a long-term program. This program would ideally create unrestricted public road links between potential resource development areas and existing overland supply lines (roads and/or rail), major rivers, or tidewater.