Mining to become a cornerstone of Alaskan economy says report

A state government report on Alaska’s mineral industry concludes that mining will “again become a cornerstone of the state’s economy.”

Alaska’s Mineral Industry, 1987, the annual economic summary of mining activities in the state, summarizes developments during the year. Two new mining projects featured prominently in the report: BP Minerals Greens Creek mine on Admiralty Island near Juneau, and Cominco’s Red Dog project north of Kotzebue on the Chukchi Sea. Greens Creek will be the largest silver mine in the United States when it comes on stream in 1989 and Red Dog the largest zinc producer the following year.

Exploration expenditures by mining companies nearly doubled from 1986 to 1987 and 75% of the $15.7 million spent last year when to gold mining. “Many of the more advanced programs concentrated on discovering new deposits in Alaska’s many historical mining districts,” the report noted.

Gold production increased from 160,000 oz in 1986 to 230,000 oz last year due primarily to expanded operations at several large placer mines including WestGold’s dredging operation near Nome.

The state legislature passed a new mineral policy act earlier this year which the report says will “further economic growth through development of Alaska’s mineral resources.”

Alaska State Governor, Steve Cowper, emphasizes in the report that his administration is determined to “broaden the state’s economy beyond our present dependence on oil.”

“If mineral demand and metal prices remain strong, mining in Alaska has the greatest growth potential of any of our basic industries. The minerals policy act highlights the importance of the growth of this industry to our economic future.” he contends.