Mining Industry Beginning To Rediscover Alaska

For all the attention given to mining activities in Central and South America, Mexico, Indonesia and Papua New Guinea, it is sometimes easy to forget the activities taking place in one of North America's most important and largely untapped regions -Alaska. The Alaskan minerals industry employed about 3,406 people during 1995. That is a 23% increase from - - 1994. It also contributed about $719.8 million to the state's economy during 1995, a 10% increase. During the past few years, Alaska has seen significant increases in exploration and mining activity. Fairbanks Mining, an arm of Cyprus Amax, began producing gold during 1996 at its Fort Knox Mine, as did Nevada Goldfields' Nixon Fork gold mine. Kennecott's Greens Creek lead-silver-gold mine also reopened and USMX began operations at its Illinois Creek gold mine. In addition, several impressive exploration projects were under way in Alaska. Placer Dome reported good results at Donlin Creek project in southwest Alaska. Likewise, Newmont Exploration is getting serious about its True North gold project. And Nerox is nearing production at its Jonesville coal project in Alaska's interior. In November, about 400 miners gathered in Anchor- age for the Alaska Miners Convention. Throughout the conference and exhibition, attendees listened to updates on these precious- and base-metal and coal exploration and mining operations. They also learned that the state wants more miners to head north and help develop its natural resources. Alaska is ripe for a smelter The mining industry -Alaska's miners in particular - has a powerful ally in Sen. Frank Murkowski (R-AK). He is the chairman of the Senate Energy and Natural Resources Committee. During his luncheon address, Murkowski said it appears that it is economically feasible to extend the Alaska Railroad to northwest Alaska, taking advantage of the large coal and hard-rock mineral tracts in the Ambler mining district. He also renewed his push for building a major smelter in Alaska to process ore that would come from the Ambler mining district. Murkowski believes that Alaska's economy can be expanded by extending the railroad from Nenana to the Point Lay coal fields to open coal development. Along the way, the railroad would pass through the Ambler district, helping to develop the hard-rock deposits. An outgrowth of this additional mineral development, Murkowski said, could be a new smelter in Alaska. It could use power from the Tyee hydroelectric facility near Wrangell or from the Makushin geothermal project near Unalaska. Either site, he added, offers access to plentiful, relatively low-cost power, at tidewater to facilitate ore deliveries to the Pacific Rim. The Congressional Research Service has determined that there are enough mineral deposits and coal beds to make it possible to finance the extended railroad, he said. The 1,200-km (744- mile) rail extension would cost about $4.2 billion. The North Slope of Alaska contains up to 3.6 Tt (4 trillion st) of coal, Murkowski said, that contains less than 0.25% of sulfur and less than 4% moisture. It aver- ages 12,300 Btu in heat content. "That is a tremendous resource," he said. The Ambler mining district, meanwhile, has at least eight identifiable hard-rock deposits, Murkowski continued. These contain zinc, lead, copper, nickel, chromium, tin, barite, gold and silver. "All eight of these can generate ore concentrates at rates similar to Red Dog's cur- rent 725 ktla (800,000 stpy)" of zinc, he said.