EDITORIAL & OPINION — FACTS ‘N’ FIGURES — Alaskan mining sector strengthens

Exploration, development and production spending in Alaska topped $1.2 billion in 1997, up from $1 billion in 1996, according to figures released by the Department of Natural Resources.

The report, entitled Alaska’s Mineral Industry, shows that, compared with 1996 figures, exploration spending was up 30%, at US$57.8 million, and production spending was up 59%, at US$936.2 million. However, 1997 development expenditures, at US$168.4 million, were down 57% from US$394 million in 1996. Overall, Alaska’s growth in the mineral sector continues. In 1996, figures for these three areas of mineral development were up 10% over numbers in 1995, whereas last year’s tally was an increase of 13% over 1996.

Exploration activities throughout the state were widespread. Highlights included the addition of reserves at Cominco’s Red Dog mine, near Kotzebue; doubling of the resources at Pebble Copper, near Iliamna, and at Placer Dome’s Donlin Creek, near Iditarod; and identification of a gold reserve of 4.5 million oz. at Teck’s Pogo property, near Delta.

Development projects include work on the open-pit mine and port at Red Dog, on the open pit and leach pad at Dakota Mining’s Illinois Creek, on the tanks and tailings dam at Kinross Gold’s Fort Knox, and permitting at the Kensington project of Coeur d’Alene Mines.

Zinc production from the Greens Creek mine of Hecla Mining and the Red Dog mine accounted for 53% of all commodity value in 1997, followed by gold at 22%, silver at 8%, aggregates at 6%, lead at 5%, and coal at 4%. For the first time in more than 50 years, gold production from hard-rock mines, at 481,439 oz., exceeded output from placer sources, which provided 109,077 oz.

Mining employment increased by 3% overall, to 3,862 jobs. Jobs in the production phases of mineral development were up, offsetting decreased employment in the development sector. These changes, including higher employment for hard-rock gold production, reflect the startup in 1997 of the Fort Knox and Illinois Creek gold mines.