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

Fort Knox Mine
A 1999 study prepared by Information Insights and
the McDowell Group provides data on the
economic impact of the Fort Knox mine in
Fairbanks. Key findings from that study include
(data has been updated where possible):
In 2004, Fort Knox was the second-largest
private sector employer in the North Star Borough,
with annual average employment of 411. It is the
eighth largest among all 2,000 public and private
sector employers in the borough.
Mine spending generated $100 million in direct
and indirect impacts on the local economy in 1998.
Fairbanks North Star Borough received $4.4
million in mine-related revenues in 1998. The
mine is the second largest taxpayer in the
borough.
Because Fort Knox is a purchaser of Golden
Valley Electric Association power ($14 million in
1998), other GVEA customers enjoy lower electric
power rates – 7 percent for residential customers
and 10 percent for large commercial customers.
Mine employees’ average salary was 70
percent higher than the borough average.
The Fort Knox Mine spent $70 million in the
Fairbanks North Star Borough in 2004, with 500
different businesses.
Fort Knox Mine
Photo courtesy of Tom Millington.
The Economic Impacts of Alaska’s Mining Industry McDowell Group, Inc. • Page 35