The Economic Impacts of Alaska's Mining Industry - Alaska Miners ...

CHAPTER II: CURRENT MINING
INDUSTRY ACTIVITY IN ALASKA
To appreciate the economic benefits of the mining
industry in Alaska, it is important to have an
understanding of the type and scale of miningrelated
activity in the state. This chapter
summarizes exploration, development and mineral
production in Alaska.
Exploration Programs
Each year, millions of dollars are spent in Alaska
searching for and evaluating mineral deposits.
According to the State of Alaska’s Division of
Geological and Geophysical Surveys (DGGS),
exploration expenditures in Alaska in 2004 totaled
$71 million. 5
The preliminary estimate for 2005 exploration
expenditures is $95 million, an increase of 33
percent over 2004 expenditures. 6 Since 1981,
mining and exploration companies have spent a
billion dollars in Alaska on mineral exploration
programs.
In 2004, there were 26 significant exploration
projects in Alaska, including 15 with expenditures
for the year of over a million dollars. Companies
explored for gold, copper, nickel, silver, lead, zinc,
platinum, diamonds, molybdenum, and coal (as
well as construction minerals). There were 66 new
federal mining claims and 6,965 new state mining
claims recorded in 2004. 7 In 2004, there were 141
new prospecting sites pushing the statewide total
to 1,581 active prospecting sites.
Exploration occurred throughout Alaska, though
most expenditures were focused on two
Southwestern Alaska projects, the Pebble Project
and the Donlin Creek Project (described in detail,
below).
Exploration Expenditures in Alaska, 1981-2005* ($Millions)
Total Exploration Expenditures:
$1.0 Billion
Source: Special Report 59, Alaska’s Mineral Industry 2004, Division of Geological & Geophysical Surveys/Department of
Commerce, Community and Economic Development, October 2005.
*Preliminary 2005 estimates provided by the Division of Geological & Geophysical Surveys.
5
Alaska’s Mineral Industry 2004, Special Report 59. Division of
Geological and Geophysical Surveys/Department of
Commerce, Community and Economic Development, 2005.
6 Division of Geological and Geophysical Surveys, Alaska
Department of Natural Resources.
7
Alaska Department of Natural Resources Land Records
Information Section and U.S. Bureau of Land Management.
The Economic Impacts of Alaska’s Mining Industry McDowell Group, Inc. • Page 9