Mining In Alaska
Abundant natural resources, a pioneering spirit, and a unique global position to create opportunity.
Donlin Gold is located in Alaska, one of the safest jurisdictions in the world with a long history of successful mine development. As the second largest US gold-producing state next to Nevada, the discovery and production of mineral resources is a significant part of the State’s economy. Alaska is home to a proven group of contractors and other businesses established to support and boost mineral development. State agencies have experienced and dedicated staff who understand how to successfully permit large mining projects. With a consistent and stable regulatory and tax environment, the State has shown that it is committed to work with companies to build mutually-beneficial partnerships and facilitate cost-effective access to projects.
Alaska Native Corporations want development on their lands and they encourage minerals exploration. In 1971 the U.S. Congress passed an act known as the Alaska Native Claims Settlement Act (ANCSA). This act established 12 Regional Native Corporations in Alaska and authorized them to select lands that would become their fee simple property. ANCSA also established about 200 village Corporations and authorized them to select the surface of lands around their villages that had been obtained by the Regional Corporations. The lands, often selected because of their high mineral potential, are owned fee simple and can be mined under agreements with Native Corporations. The Native Corporations want jobs for their shareholders and recognize mineral development as the best opportunity to improve life in the remote villages of rural Alaska.
Mining Provides Significant Economic Benefits
The mining industry in 2016 provided the following benefits for the State:
- 4,350 direct mining jobs in Alaska
- 8,600 total direct and indirect jobs attributed to Alaska mining industry
- $675 million in total direct and indirect payroll.
- $111 million in payments to Alaska Native corporations.
- $81 million in state government-related revenues through rents, royalties, fees, and taxes.
- Mostly year-round jobs for residents of more than 50 communities throughout Alaska, half of which are found in rural Alaska where few other jobs are available.
- Some of Alaska's highest paying jobs with an estimated average annual wage of $108,000, over twice the state average for all sectors of the economy.
- $23 million in local government revenue through property taxes and payments in lieu of taxes.
Mining Strengthens Local Communities
Mining is an integral part of communities, strengthening local economies by employing Alaska residents from more than 50 Alaska communities, half of which are found in rural Alaska where there are few other job opportunities. The industry also purchases supplies and services from hundreds of Alaska businesses.
Moreover, communities benefit from widespread support of local education, safety and health programs. More information on NOVAGOLD’s commitment to local communities is available by clicking here
Mining Partners with Alaska Native Corporations
Alaska Native Corporations benefit from mining industry activity in royalty-sharing payments, in jobs for shareholders, and through business partnerships.
With relationships spanning over 20 years, Donlin Gold enjoys excellent partnerships with the Native Corporations who hold the surface and sub-surface rights of the proposed mine area, Calista Corporation and The Kuskokwim Corporation. More information on the agreements between NOVAGOLD and its Alaska Native partners is available by clicking here.
SOURCE: Alaska Miners Association - The Economic Benefits of Alaska's Mining Industry, January 2017