Alaska Roads to Resources Government Findings For 2006

ALASKA MINERALS COMMISSION
JANUARY 2006

The mining industry in Alaska continued to prosper during 2005. World metal prices have increased faster than most costs, making existing operations more profitable and stimulating additional exploration in the state. Substantial risk capital was available for exploration and development of projects and some new discoveries were announced. Construction of the Pogo gold mine continued and construction began at the Kensington gold project. The total value of Alaska’s mining industry will be up for 2005 to about $1.7 billion compared to $1.6 billion in 2004. Initiatives put forth by the administration, such as “Permit Efficiency Streamlining”, “Roads to Resources”, and NPDES assumption continue to bolster the industry. Just as importantly, these programs have improved the outside perception of Alaska as a quality place to invest. The state and the industry are beginning to reap the rewards of these initiatives.
Red Dog, Fort Knox, and Greens Creek, Alaska’s three major metal mining operations, and Usibelli Coal Mine all turned in strong performances. These mines contributed significantly to the employment base and economic vitality of their respective host communities and rural regions. Placer gold mining operations benefited from increased gold prices, although very high fuel prices had an offsetting negative affect.