Juneau thrives on mining

The seaport city of Juneau, Alaska, owes its existence to the rich orebodies discovered there more than 100 years ago. In fact, a vast number of communities throughout the North American west were founded on the economies that grew out of mineral discoveries. Mining camps grew into towns as people from all over the world came to work the mines and seek opportunities spun off from mining activity.

As the mining towns grew, far-flung transportation arteries developed, drawing yet more people and opening up more of the country. (For a time, in the early part of the last century, Juneau was home to the largest hardrock gold mine on earth.)

Certainly, mining in North America has had a colourful and checkered past. Many communities rose quickly on the hopes of sustained wealth from hardrock ore production only to be abandoned when the mines played out. The boom-and-bust cycles of mining spawned generations of nomadic fortune-seekers and entrepreneurs, who became an important force in the culture and history of the American West. Juneau, or, as it was known, Treadwell suffered its own sudden “bust” when the vast mine collapsed and filled with seawater.

Perhaps there was no era in the history of man as free and full of hope and opportunity as the heady time when the Old West was settled. Only Alaska remains as a vestige of that era, with its untapped opportunity still largely intact. The infrastructure that followed mining development in the Lower 48 never came to Alaska.

Unquestionably, early mining did have an ugly side. For most of the last century, there were little or no environmental restrictions, and the scars from the bad and irresponsible practices of mining companies can be seen in many of today’s abandoned sites.

Mining practices in North America have changed dramatically for the better over the past 40 years, as environmental concerns became more widespread. Mines are required to submit detailed reclamation plans and post bonds to cover the cost of reclamation before they can even open. A large portion of their investment must be devoted to waste treatment and air, noise and water quality.

Mining projects in Juneau must pass through one of the most stringent permitting processes anywhere in the world. Environmental compliance must be met with regulations governed by the Forest Service, the Environmental Protection Agency, the Fish and Wildlife Service, Corps of Engineers, the City and Borough of Juneau, and the Departments of Environmental Conservation, Natural Resources, and Fish and Game.

The process also involves the expertise of independent third-party environmental consultants (selected by the participating agencies) and close collaboration with local environmental interest groups.

The city’s mining ordinance is being reviewed to improve its effectiveness by removing duplicative, outdated, and unnecessarily costly regulations. Changes to the ordinance will recognize the distinction between rural and urban mines, and between new and existing mines.

Just how important is mining to Juneau’s economy? The Juneau Economic Development Council’s annual report contains an analysis of Juneau’s top 25 employers. Out of the 25, only four are private-sector employers, and just one, Greens Creek, produces a tangible product.

With 266 employees, Greens Creek is the area’s largest private-sector employer and has established a high standard for environmental responsibility. The company’s Kensington mine, north of Juneau, is now under review. It would provide another 300-400 jobs during the construction phase, as well as 225 permanent, high-wage jobs when the project is up and running. The annual payroll is estimated at $16 million, with $1 million a year going into Juneau’s tax base.

The biggest “bust” Juneau has seen in recent times was a significant loss of government jobs in the late 1980s. Given the fiscal crisis at the state and federal levels, there is no reason to believe a bust in government employment won’t happen again.

With 65% of Juneau’s employment resting on government jobs, the community is in critical need of economic diversification. The timber and commercial fishing jobs that once contributed to diversification have dwindled to a fraction of the base they provided just two decades ago.

Great technological advances in environmental sciences and processes in the past decade have made many environmental regulations outdated and obsolete. Alaska’s regulatory tangle has driven away investment.

Alaska’s governor, along with legislators, are working to remove outdated, unnecessary and duplicative obstacles to the state’s permitting process, without sacrificing environmental protection. The regulatory pendulum must swing if Alaska hopes to regain its stature as a welcoming place to do business.

— The preceding appeared as an editorial in The Juneau Empire. It is published with the permission of Donald Smith, the newspaper’s publisher.