Whitehorse Daily Star

‘Things are booming' in Alaska's mining industry, forum told

Alaska is experiencing the same increase in exploration and mining as seen in the Yukon and northwestern B.C., says Alaskan geologist David Szumigala.

By Chuck Tobin on November 25, 2010

Alaska is experiencing the same increase in exploration and mining as seen in the Yukon and northwestern B.C., says Alaskan geologist David Szumigala.

Speaking in Whitehorse this week, Szumigala said overall value of the mining industry is approaching $3.5 billion US this year, or half a billion dollars more than last year.

Most of the value is in the production of minerals, accounting for $3 billion, explained the state's representative. He was in Whitehorse for the 38th Annual Geoscience Forum.

He pointed out Teck's Red Dog lead-zinc mine on the northwest coast near Kotzebue accounted for $1.5 billion in value on its own.

"That is probably the most significant thing that happened, that they continued to produce that much.”

Szumigala said expenditures on exploration in the state are up by 20 per cent, from $180 million in 2009 to an estimated $218 this year.

Money spent on mine development is at about $250 million, he explained.

"Development dropped a little from last year because most of what was being developed is now a mine.”

By comparison, officials with the Yukon government are estimating the total value of the territory's mining industry this year is about $560 million, including:

• an estimated $260 million in the value of production by the Minto Mine, the placer gold industry and now Alexco Resource's Bellekeno silver mine; and

• an estimated $140 million to $150 million in exploration and $150 million in production.

Szumigala pointed out Red Dog also secured permits to begin mining a new ore body next-door to the existing open pit operation, creating an additional 20 years of mine life, at least.

Several other mines and advanced exploration projects were very much on the radar this year, he said.

Szumigala said NovaGold and Barrick Gold U.S., for instance, spent $47 million on their Donlin Creek project west of Fairbanks, said to be one of the world's largest undeveloped gold deposits.

Almost all the money, he added, was spent studying the feasibility of a 550-kilometre natural gas pipeline to supply a source of energy for the project.

"Alaska is just like northwest B.C. and the Yukon right now,” he said. "Things are booming.

"Drilling dollars are up, helicopters are in short supply, and companies are always looking for experienced workers.”

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