75 Years of Progress: Alaska Mining

75 years of progress

The Alaska Miners Association

2 Sunday, April 6, 2014ALASKA MINERS ASSOCIATION

1990 Phillips Field Road, Fairbanks, AK� 99701 (907) 452-3110

WE SALUTE OUR WE SALUTE OUR ALASKAN PIONEERS, ALASKAN PIONEERS,

PROSPECTORS & MINERS PROSPECTORS & MINERS OF THIS GREAT STATE. OF THIS GREAT STATE.

“100% Alaskan Women

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“Serving the Interior of Alaska since 1904”

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By Deantha Crockett

This year marks the 75th anniversa-ry of the Alaska Miners Association. During the last 75 years, AMA has been advocating and promoting the respon-sible development of Alaska’s mineral resources through both difficult and good times.

AMA is a nonprofit membership organization established in 1939 to represent the mining industry in Alaska. We are composed of more than 1,500 individual prospectors, geologists, engineers, vendors, suction dredge miners, small family mines, junior mining companies and major mining companies. Our members look for and produce gold, silver, platinum, molybdenum, lead, zinc, copper, coal, limestone, sand and gravel, and other

materials.In 1939, the challenges were physical

— miners had to confront the physical environment with limited resources and limited infrastructure. In 2014, the challenges are mired in paperwork, endless regulation and lawsuits. Min-ing has so much to offer Alaska in the way of good paying jobs, a strong tax base and resources that are needed, not only by Alaska, but also by the world. AMA strives to make Alaska known as a good place to do business, a place where investment makes sense.

We hope you’ll join us at our 24th Biennial Mining Conference in Fair-banks from April 7-13 at the Carlson Center to learn more about where Alaska’s mining industry has been and where we’re going. Cheers to another 75 years.

Alaska miningreaches 75 years

By Tom Bundtzen

Prior to the arrival of Russian colonists, materials such as high quality obsidian and chert cores were traded and used by Native Americans for the manufacture of spear points and arrowheads.

Later, copper from the Wrangell Moun-tains region was acquired by several native groups and sold to the Russian-America Company.

Modest amounts of coal were mined by the Russians themselves on the Kenai Pen-insula. Alaska did not yield a significant mineral endowment for Russian colonists.

One resource venture did work out for the Russian America Company—that of mining ice from lakes near Kodiak and Sitka and shipping down blocks to the gold rush boom town of San Francisco for food preservation applications. Because the ice mining partnership was left out of the original $7 million U.S. offer to purchase Alaska, an extra $200,000 was added to the transaction—thus the final purchase price of $7,200,000.

After the 1867 Alaska Purchase, Cana-

dian and American prospectors moved north and discovered copper and gold in Southeast Alaska. In 1880, Joe Juneau and Richard Harris discovered placer gold near the present town site of Juneau and by 1886, hardrock mines throughout the “Juneau Gold Belt” were producing millions of tons of gold ores annually with a workforce of several thousand. Alaska’s capital was relocated from Sitka to Juneau.

Alaska’s first integrated power utility, AEL&P, was formed to provide power for the mines, which still produces power for Juneau.

At the same time, gold prospectors ven-tured into the Yukon basin in the search for placer gold. Commercial quantities of gold were first discovered in the Fortymile district in 1886; followed by discoveries in the Circle area (1893), at Sunrise on the Kenai Peninsula (1894) and Unga Island (1895) in the Alaska Peninsula region. But it was the 1896 discovery of rich gold deposits in the Klondike district in Yukon, Canada that captured the imagination of

A history of mining

HISTORY » 3

Gold1,380 metric tons

$9.94 billion•

Silver9,827 metric tons

$2.99 billion•

Copper697,450 metric tons

245 Million USD•

Lead2,611,160 metric tons

$2.74 billion•

Zinc12,512,908 metric tons

$17.38 billion•

Tin3,990 metric tons

$12.52 million•

Platinum20.88 metric tons

$57.33 million•

Antimony5,535 metric tons

$9.84 million

•Mercury

1,555 metric tons$12.91 million

•Chromium


•Barite


•Coal

74,652,934 metric tons$1.63 billion

•Sand and Gravel

1,312,561,135 metric tons

$3.32 billion •

Rock151,898,052 metric tons

$929.80 million•

Total$ 39.37 billion

— From state of Alaska records and writer files

Selected historic mineral production from Alaska

This special section is produced by the Fairbanks Daily News-Miner.

3Sunday, April 6, 2014ALASKA MINERS ASSOCIATION

thousands of treasure seekers worldwide. The enthusiasm generated by this great

rush is credited by some historians with ending the economic depression of 1892-1895, which had engulfed both Europe and North America. The Klondike strike trig-gered more than 30 back-to-back strikes throughout Alaska, most notably Nome (1898), Fairbanks (1902), Iditarod (1909) and finally culminating in Livengood (1914-1915).

By 1906, the Fairbanks district was accounting for more than 40 percent of all the gold mined in Alaska — about 450,000 ounces gold that year — earning the name America’s Klondike.

Gold developments were accompanied by other developments in the territory.

Copper mining began in southeast Alas-ka and in Prince William Sound in 1900 and by 1905, and many small copper mines were active.

In 1899, rich copper lodes were discov-ered in the Wrangell Mountains near Ken-necott Glacier.

By 1911, a 186-mile-long railroad, the Copper River and Northwestern, was built to haul copper ores and concentrates to Cordova. The railroad construction alone would employ more than 5,000 men, the first large scale transportation project in Alaska’s history.

Kennecott Copper Corporation was formed to develop the mines. The com-pany-owned Alaska Steamship Company was formed to haul supplies north and ship ores and concentrates south to market, but it also provided efficient maritime trans-portation for citizens traveling from the Pacific Northwest to the vast Territory.

Early in the 20th Century, tin was being shipped from the Seward Peninsula, and marble, gypsum and garnet were being mined in Southeast Alaska.

On the eve of World War I, mining industry employment peaked at about 9,000 in Alaska. Post war economic condi-tions would reduce mineral output. Copper and silver prices steadily declined and then crashed during the Great Depression.

By the end of 1938, the Kennecott mines closed. However, new projects and eco-nomic conditions would stimulate the mining industry in other ways. Coal mining was initiated in the Sutton area near Palm-er, where mines were developed to supply

fuel for the engines of the Alaska Railroad and also for U.S. Navy boilers. Many coal mines from this area would operate until about 1970.

Redesign of the Alaska-Juneau gold mine in Juneau resulted in one of the larg-est and most efficient gold milling opera-tions in the world.

During the 1920s, an east coast-based firm, the United States Smelting and Refin-ing Company (USSR&M), built a large gold dredging fleet in the Fairbanks district and deployed dredges in the Nome, and eventu-ally, the Fortymile and Hogatza areas.

In 1934, gold price increased from $20.67 to $35 per ounce and miners rein-vested in Alaska.

By 1940, more than 50 bucketline stacker gold dredges operated throughout the Alaska territory, and mainly on the strength of placer gold mining, industry personnel climbed from 4,000 in 1925 to about 7,500 in 1940.

WWII and its aftermath would greatly

change the landscape of the Alaskan min-eral industry. Federal Order L-208 shut down the gold mining industry for most of WWII and increased costs afterwards began to slowly erode the economic viabil-ity of an industry battling inflation in the post-war period.

By the early 1950s, nearly all hardrock gold mines had closed; the dredge fleets would continue on but became inactive by the mid-1960s. Development of strategic minerals would help offset these declines.

Platinum was mined at Goodnews Bay in southwestern Alaska from 1934 to 1980 — the country’s only source of this strate-gic metal until the 1980s. Tin, tungsten, chromium, antimony and mercury were mined for their strategic values and some production was subsidized by the U.S. gov-ernment.

Beginning in the 1940s, Usibelli Coal Mine Inc. (UCM) initiated coal shipments

HISTORYContinued from 2

HISTORY » 4

Even though pending federal legislation would greatly restrict mineral entry on much federal acreage in Alaska, the late 1970s marked a time of renewed optimism for Alaska’s mineral industry. Armed with modern scientific, predictive models on how mineral deposits formed, geophysical and geochemical surveys, and mod-ern computer technologies, exploration firms would find a number of world class deposits of gold, copper, lead, zinc, silver and other metals.

By Amadna Bohman

Roger Burggraf pulled two gold nuggets out of his pocket.

The seven ounce nugget was flat and about the size of a pancake. The smaller nugget resembled a chili pepper.

The nuggets came out of Dome Creek, off the Elliott Highway, and Nolan Creek in the Brooks Range.

Burggraf, 81, a long-time prospector and mining industry consultant, has seen a lot of nuggets in his more than 40 years in the mining industry.

“I enjoy mining,” he said. “You always have hopes you are going to strike it rich. Finding it, that’s the challenge.”

Burggraf liked rocks as a boy. When he was 12, a family friend returned from a trip to South America with a gift, a rock collection. “That really sparked my inter-est in minerals,” Burggraf said.

Years later when Burggraf was a young man working for the U.S. Fish and Wild-life Service in Mud Bay, near Haines, he befriended a prospector named Joe Ibach.

Ibach discovered a vein of gold in the Glacier Bay area. “He’d go up there and chip off rocks and bring them home and crush them,” Burggraf said.

Burggraf ’s life path took him in other directions, including the military and banking, until the 1970s. The trans-Alas-ka oil pipeline was being built. Burggraf resolved to get a job on the pipeline and save enough money to buy some land with mining claims. A few years later, he bought land on Ester Dome and expand-ed the Grant Mine.

It was a small operation with a handful of employees, and Burggraf said the learn-ing curve was high. The mine operated for

a few years and then the federal govern-ment established new mining regulations. Burggraf said he had no choice but to sell to a larger company, Silverado Gold Mines Ltd. Burggraf became a mining industry consultant.

He estimates the Grant Mine produced about 20,000 ounces of gold--most of it mined by Silverado Gold Mines Ltd.

“The experiences I had there were unique and something I will always remember,” Burggraf said.

Silverado sent Burggraf to other gold mines, including the Nolan Creek Mine in the Brooks Range. The company pulled a humongous 41-ounce nugget out of that mine in 1989, according to Burggraf.

“Basically, it’s a labor of love,” Burggraf said. “The chase is the big thing.”Contact freelance writer Amanda Bohman at [email protected].


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to Interior power plants along the north-ern Alaska Railroad corridor. This sta-ble, low cost energy source is utilized to the present day.

The period beginning in the mid-1950s and continuing to the mid-1970s was a time of mineral industry stagna-tion for Alaska, with annual industry employment numbering less than 1,000. With infrastructure needs related to development of oil and gas on the Kenai Peninsula and North Slope, large quan-tities of sand and gravel were quarried, helping offset the decline.

Even though pending federal legisla-tion (1980 ANILCA Act) would greatly restrict mineral entry on much federal acreage in Alaska, the late 1970s marked a time of renewed optimism for Alaska’s mineral industry. Armed with modern scientific, predictive models on how mineral deposits formed, geophysical and geochemical surveys, and modern computer technologies, exploration firms would find a number of world class deposits of gold, copper, lead, zinc, silver and other metals.

University and state and federal research dollars would contribute through the publication of geologic and geophysical maps and engineering stud-

ies designed to aid the industry. New markets for Pacific Rim coal

resulted in opportunities for UCM’s Healy coals.

Discoveries at Red Dog in North-western Alaska and Greens Creek in Southeast Alaska would result in the development of two of the most import-ant sources of lead, zinc, and silver in North America. Both of these mines were placed into production in 1989 and continue to ship mineral concentrates to many offshore locations.

These would be followed by the devel-opment of the Fort Knox gold mine near Fairbanks (1996), the Pogo gold mine near Delta Junction (2004), and the Kensington mine near Juneau (2010). By 2012, mineral industry employment had rebounded from less than 1,000 in the 1970s to more than 5,000, according to the latest economic surveys. From 1886 to 2012, minerals worth about 39.37 billion USD (at time of sale) have been produced from Alaska’s mines.

The future of the industry will rely on providing environmentally safe mining methods, stable commodity prices, prac-tical federal, state and municipal min-eral policies, and on how native groups manage their mineral estates.

A key to mineral development will be overcoming hurdles such as the high costs of transportation and energy in remote areas.

HISTORYContinued from 3 Roger Burggraf goes from

rock hound to mineral pioneer

Political science graduate focuses on Alaska resource development

ROGER BURGGRAF

By Amanda Bohman

Deantha Crockett found a way to com-bine duel interests in geology and politics as the executive director of the Alaska Min-ers Association.

Among her duties are to help influence voters and policymakers to keep Alaska mining friendly. To understand why Crock-ett does this work, you need only read the message at the bottom of her emails. “This email has been sent from a computer made of the mined minerals we depend on for

everyday life,” Crockett’s email sign-off says. “As we communicate together, please be thankful mining makes it possible.” Crock-ett, 31, started out focussing on geology at the University of Alaska Anchorage. “But after a few years, I became infatuated with politics, particularly American govern-ment,” Crockett wrote in an email. Her office is based in Anchorage.

She switched her studies to political sci-ence and has dedicated her career to foster-ing

CROCKETT » 5

resource development in Alaska. Crockett spent seven years as the projects coordinator for the Resource Development Council, a statewide business association involving oil and gas, mining, forest products, tourism and fisheries industries. She joined the min-ers association in 2012. “I was approached by some of the members in common to consider the position, and at first I balked at the idea,” Crockett wrote. “I didn’t complete that geology program, and I certainly wasn’t an engineer. What do I know about mining? I learned very fast that being with AMA is having nearly 2,000 experts on hand in the form of members.”

At the Resource Development Council, Crockett focussed on mining and tourism. One of the projects she worked on was fighting a 2008 ballot initiative establishing stricter regulations on mining. The initiative failed. Since joining the miners association, Crockett has worked to support Nome’s off-shore mining efforts, which have expanded in recent years.

“It’s brought some struggles into the com-munity as they don’t have adequate housing, boat storage in the harbor etc.,” Crockett wrote, “and we have been playing a role to

foster communication between the offshore miners, Nome residents, local government and the onshore miners who have been there for years.”

Under Crockett’s leadership, the miners association has evolved, adding staff and moving its offices. “It is a wonderful job, both challenging and rewarding, and I am very blessed to have it,” Crockett said.Contact freelance writer Amanda Bohman at [email protected].


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By Alaska Miners Association

The Alaska Miners Association’s 24th Interior Conference to be held April 7-13 will feature five courses that should be of interest to the public.

These courses are presented by industry experts and federal and state regulators.

These courses are, in expected order of public interest, Mining 101, Placer Min-ing 101, Mine Regulatory Requirements — Environmental & Permitting, Mineral Processing, and Freshwater Habitat Miti-gation. An additional two MSHA Refresher Annual Training courses will be presented. Course registration information can be found at www.alaskaminers.org.

A number of conditions are common to all courses.

Conference registration is not required to register for the courses; pre-registration is required. All the courses including the MSHA Surface Refresher will be held in the Carlson Center. An 8 a.m. to 5 p.m. schedule will be observed. Lunch and snacks are included in the registration price. Student registration prices are pro-vided for all non-MSHA classes.

Mining 101 is a course intended to pro-vide the general public with an introduc-tion to Alaska’s mineral industry. Sixteen

presentations by experts in the industry and state and federal government will cov-er an array of subjects. The course will start with industry terminology, continue with geology of mineral deposits, present the six large Alaska hard rock mines, present a discussion of waste materials handling, permitting of mines, environmental mon-itoring, financial assurances, mine closure (reclamation) and economics of the indus-try. This course will be conducted on April 7 with registration fees of $150.

Placer Mining 101 is a one-day intensive course to provide an orientation to many aspects of placer mining in Alaska. It will include an overview of permitting, gen-eral review of sampling and exploration, mining examples, and processing systems, and best management practices for recla-mation of placer mines. This course will be conducted April 8 with registration fees of $150.

Mine Regulatory Requirements — Environmental & Permitting is a course designed to provide the small mine opera-tor with a practical understanding of per-mitting needs and exposures for failure to comply. The morning session will provide an in-depth discussion of wetlands issues; a panel discussion of presenters will be included. The afternoon session will pro-

vide a review of regulatory requirements for ADEC and federal compliance, includ-ing fuels management and water quality and an in-depth presentation for operators on federal claims. Full day registration fees are $200; one-half day registration fees of $100 are provided for those interested in either half of the course, particularly the morning wetlands session.

Minerals Processing is intended for operators, new plant hires, equipment manufacturers, utility personnel, mineral purchasers, chemical vendors, construction personnel, other support staff intending to gain a better understanding of miner-al processing equipment, and to anyone else wishing to expand their knowledge of mineral processing. Participants will be exposed to principles and practices of operation including screening, classifica-tion, cleaning, gravity separation, chemical concentration, dewatering and thickening. Presentations will include video clips, photographs/schematics, circuits, mass balance calculations, procedures for mea-suring performance, other. This course will be conducted on April 7 and cost $200.

Freshwater Habitat Mitigation for Mining Projects is designed to meet the needs of placer miners, mid- to large-scale

mine operators, and contractors associated with the mining industry as well as anyone interested in the topic. The course is divid-ed into two modules: 1) Lakes & Streams, and 2) Wetlands; each module begins with a broad overview on important Interior Alaska issues. This course will provide an overview of assessment of impacts to wetlands and fish habitat from a mining perspective and will walk through mitiga-tion project considerations needed for the permitting process. Experienced presenters from agency and the private sector will provide a practical, well-rounded guide to assessing and planning project mitigation in an upfront, manageable way without a lot of technical jargon. End of day groups will be with panel speakers and will each work an exercise in mitigation planning; this will be followed with a Q & A session. This course will be conducted on April 8 and cost $200. Two MSHA Annual Refresher training courses will be offered for those needing this mandatory update. The Surface Refresher will be conducted on April 12 at the Carlson Center and cost $25. The Underground Refresher will be conducted April 13 at the CMI conference room at 2615 20th Avenue off Peger Road and will cost $25.

Conference classes for the public

DEANTHA CROCKETT

CROCKETTContinued from 4


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By Karen Matthias

The valuable ores in Alaska have drawn people to the state for genera-tions, but just what is in these ores that causes all the interest?

To start, ore is rock that contains met-als and minerals in sufficient quantities that they can be economically mined.

Chances are you have used the prod-ucts of mining dozens of times today without even thinking about it. Maybe you got a new app on your smartphone (gold, silver, platinum, copper, alumi-num, rare earth elements), waxed your skis (molybdenum), turned on the lights in your house (copper) or ate cereal (for-tified with zinc).

Of course, most of what you eat and wear came to Alaska by ship (steel, cop-per, zinc, molybdenum) and was trans-ported to Fairbanks by truck, rail or air (again, steel, copper, zinc, lead, molyb-denum). Ideally, you didn’t need your car’s airbags (gold) or highway guard rails (zinc) and you weren’t treated in the hospital for burns (silver).

Some of those metals (gold, silver, zinc, lead) are produced right here in Alaska and others (copper, molybde-num, rare earth elements) have substan-

tial deposits that could be developed into producing mines. Given our reli-ance on minerals and metals, it’s clear that we need mining. It’s equally clear that we need to do it right ... in a way that respects the environment and the health and safety of workers and neigh-bors.

We are doing it right in Alaska, where our strict state and federal regulations ensure that the mines are developed, operated, and eventually closed in a responsible way. Mining also means good, well paying, year-round jobs, often in remote or rural communities where jobs can be scarce.

So the next time you get in your car, take a moment to consider that it may contain Alaska minerals: the underside is galvanized (zinc) so it won’t rust, the battery (lead) makes it start, the rear defroster (silver) helps you see, and you need the brake shoes (gold) to stop. Con-sider also that 4,600 people in Alaska have good jobs in mining and that many state and federal officials are working on behalf of all Alaskans to ensure that mining is done right. Then enjoy your drive.Karen Matthias is the managing consultant for the Council of Alaska Producers.

Our everyday mineral use

By Amanda Bohman

It takes more than 600 skilled people to produce each bar of gold at the Fort Knox Gold Mine. No one knows that better than Eric Hill, the mine’s 43-year-old general manager.

In 1997, one year after Fort Knox began operating, Hill started working at the large-scale open pit mine located about 25 miles northeast of Fairbanks. Hill has served as a metallurgical technician, metallurgical engineer, mining short range planner, drill and blast supervisor, general foreman, superintendent, technical services man-ager and operations manager. Last year, Hill became general manager of the mine, which poured its six millionth ounce of gold on Dec. 18, 2013. The mine, owned by Can-ada-based Kinross Gold Corp., is expected to continue pouring bars of gold into 2020.

“We would hope that we continue to add to that,” Hill said. “We are actively explor-ing.”

Hill has spent his life gold mining, getting his start in 1989 working for an exploration drilling company. The work brought Hill to Nevada, California and New Mexico serving

as a driller’s helper on an exploration drill rig, extracting rock from underground so it could be evaluated for traces of gold.

His exploration work helped one mine, the Hog Ranch Mine in Nevada, expand. Hill was eventually hired in the process


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By Josie Hickel and Dave ReesAMA HR/WFD COMMITTEE

Nearly everywhere you turn recently in the world of business, education and politics you hear leaders talk about workforce development.

They use terms like “career path-ways,” “STEM” — short for Science, Technology, Engineering & Math — P-Tech (process technology), and “pri-ority occupations.”

The focus behind all of this talk is assuring we have a skilled work force to meet the demands of employers and to provide meaningful jobs for future workers.

With several new mines planning to start production in the next 10-15 years along with the steady operations of the state’s six operating mines, an important task for the mining industry is to be sure that there is a skilled work-force available for the nearly doubled demand.

A committee of Human Resource and Workforce Development specialists has come together under the Alaska Miners Association and is building a strate-

gic plan to recruit, train and retain an Alaska workforce to meet this demand.

With large equipment, remote loca-tions and complex operations, the need will be for a workforce with good tech-nical skills as well as the “soft skills” and behaviors that make for good employees.

The challenge for the HR committee is to assure that Alaskans are aware of the job opportunities and the educa-tional pathways that will get them qual-ified for the jobs.

The HR Committee is working on “out-reach” programs to provide infor-mation to schools, communities and educators so that Alaskans can prepare for these careers.

The committee is also working with the university, regional training centers and other training providers to assure the appropriate training is available and accessible, no matter what part of the state the mine is located in.

Many of the jobs in the industry will require skills and attitudes that are already present in the regions, such as heavy equipment operations.

Some require short-term training on

mining specific jobs such as mine oper-ators and drillers, and some like engi-neers or geologists require longer-term college-based preparation.

The real challenge for the committee is to help define the strategy for having a workforce with the right skills at the time the industry needs them, whether it is replacement of attrition from cur-rent mines or just-in-time for the new mine operations.

Mining jobs accommodate local hir-

ing and provide good long term career options.

They offer good wages and benefits, rotational schedules, training, and opportunities for advancement all in a very fun and interesting industry.

If you are interested in more infor-mation about how you or your company can get involved, contact Alicia Amberg with the Alaska Miners Association for more information.

Mining needs a strong workforce

With several new mines planning to start production in the next 10-15 years along with the steady operations of the state’s six operating mines, an important task for the mining industry is to be sure that there is a skilled workforce available for the nearly doubled demand. A committee of Human Resource and Workforce Development specialists has come together under the Alaska Miners Association and is building a strategic plan to recruit, train and retain an Alaska workforce to meet this demand. CURT FREEMAN PHOTO

By Mike Heatwole

The Pebble Deposit, locat-ed on state of Alaska land in Southwest Alaska, is a world class discovery of copper, gold and molybdenum.

The Pebble Partnership was formed in 2007 to advance the project into permitting, con-struction and operation.

With the announcement in fall 2013 that Anglo American was withdrawing from the partnership, Northern Dynas-ty Minerals is the sole owner of the partnership.

Plans in 2014 are focused on securing a new investor for the project and preparing for permit applications to advance the project.

Through 2013, extensive work has been accomplished at Pebble including: a 10-year, $150 million-dollar invest-ment in environmental and socioeconomic studies to sup-port project design and per-mitting; advanced engineering design for mine site facilities and project infrastructure; and investment in workforce and business development, stakeholder outreach and community programs.

Two recent developments warrant specific focus: the Environmental Protection Agency’s Bristol Bay Assess-ment and subsequent 404 process under the Clean Water Act; and, an economic impact study prepared for the Pebble Partnership by IHS Global Insights, a renowned interna-

tional economic analysis and forecasting firm.

In 2010, the EPA was peti-tioned by some tribal groups and environmental organiza-tions to pre-emptively veto the Pebble Project using section 404c of the Clean Water Act.

On Feb. 28, the EPA announced it was beginning an administrative process to consider taking pre-emptive

action under section 404 of the Clean Water Act — some-thing the agency has never attempted in its 42-year histo-ry for a resource development project such as Pebble prior to a NEPA application.

PLP maintains that the objective, science based NEPA process is the appropriate place to evaluate the merits and environmental consider-

ations for Pebble.The EPA’s Bristol Bay

Assessment is a rushed and flawed document and as such should not be used as the basis for any type of agency decision making — especially a poten-tially far-reaching, precedent setting action.

The state of Alaska, elect-ed leaders, and business and trade associations across Alas-

ka and the U.S. agree with this position.

More information about this federal overreach is available at the PLP website: www.peb-blepartnership.com

In May 2013, PLP released “The Economic and Employ-ment Contributions of a Conceptual Pebble Mine to the Alaska and United States Economies” by IHS Global Insights.

The report indicates devel-opment of the Pebble Mine could produce thousands of jobs, provide billions to the state of Alaska including a contribution to the state’s Per-manent Fund, and generate significant economic activity in Alaska.

The report determined that Pebble development could contribute $1.1 billion to $1.4 billion annually to the state’s economy.

Pebble jobs could provide year-round employment in Southwest Alaska where jobs are few, the cost of living is high, the population is in decline and schools are clos-ing.

PLP believes responsible development of the mineral resource at Pebble could help change lives for the better in the region.

Pebble is an asset for the people of Alaska on state land open to mineral development.

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department at the Sleeper Mine in north-ern Nevada. There he worked as a mill operator, refinery operator and heap leach operator, using chemicals to extract gold from ore. The Twin Creeks Mine, also in Nevada, came next. Hill worked as a metal-lurgical technician, examining and testing rock samples. “This job gave me the skill set to land a job at Fort Knox in the same role,” Hill said.

For Knox is a massive operation, open 24 hours per day, 365 days per year. Major

mine facilities include the open pit mine, mill, administrative facilities, tailings stor-age facility, water storage reservoir and the Walter Creek Heap Leach facility.

Hill’s experience with both the mining and the processing sides of the business is unique. “Overall, I have had many oppor-tunities in the industry as well as Fort Knox to get experience with many of the facets of the gold industry,” Hill said. “The current role of general manager is very rewarding as it is has involvement with all aspects of the operation while also reaching out into the community and industry.”Contact freelance writer Amanda Bohman at [email protected].

PEBBLE MINE PHOTO

HILLContinued from 7


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By Joe Balash

Alaskans benefit every day from a reg-ulatory system that protects the environ-ment and allows economic activity that supports our communities. The mining industry is a significant case in point.

The Usibelli Coal Mine opened in 1943. Modern hardrock mining in Alas-ka began in 1989 with the opening of the Red Dog and Greens Creek mines. The Fort Knox, Pogo and Kensington gold mines opened between 1996 and 2010. All six mines continue to generate enormous socio-economic benefits for local communities while protecting the environment.

There is no single permit to mine in Alaska. Rather, mine applicants must secure a mixture of project-specific state, federal and local permits. Because of this complexity, the state developed the Large Mine Permitting Team, coor-dinated by the DNR’s Office of Project Management and Permitting.

The LMPT is composed of experts from state agencies who meet regularly to review regulatory issues for proposed and operating mines. The team ensures that permit applications receive a thor-ough and timely review by experienced engineers, scientists and permitting staff. It coordinates the state’s permit-ting requirements for large projects with federal requirements, which typically involve development of an Environmen-tal Impact Statement.

Protection of water quality and fish habitat is a critical aspect of the state’s permitting process for mining. The Department of Fish and Game is in charge of issuing permits for activities proposed in water bodies with fish, and works with DNR to evaluate water rights applications and authorizations for temporary water use.

The Department of Environmental Conservation establishes and maintains water quality standards that are typical-ly more stringent than in other states. The DEC’s standards ensure that per-mitted projects are developed and oper-ated in a way that protects our aquatic resources.

The public has multiple opportunities to comment before state and federal agencies issue their decisions. Public comments can and do influence the final design of a mine.

Mines must have an approved Rec-lamation and Closure Plan and post financial assurances before construction can start. During operation, audits by third-party environmental experts are required every five years to evaluate the performance of both the mine opera-

tor and the regulatory agencies. Audit results are factored into new permit conditions and updated financial assur-ances. A monitoring plan that looks at air and water quality and fish and wildlife populations during operation is required and a minimum of 30 years of post-closure monitoring must be con-ducted.

The DNR periodically seeks public input on ways to improve our permitting statutes and regulations. We began such an effort in 2011, when we and other state resource agencies launched an ini-tiative to make the permitting process more timely and efficient for individual Alaskans and businesses. This initiative has resulted in the passage of several bills to modernize the DNR’s statutes, as well as a 53 percent reduction in the Division of Mining, Land & Water’s backlog of applications for permits, easements, leases, and other authoriza-tions.

The Parnell administration is grave-ly concerned about ongoing efforts to undermine the state-federal permitting process that has worked well in Alaska. In particular, the state is vigorously challenging the Environmental Protec-tion Agency’s recent decision to assert its rarely used “veto power” to block any applicant from seeking permits to mine on state lands in the Bristol Bay region. We believe this unprecedented action will have a chilling effect on public and private-sector projects, not just in Alas-ka, but across the nation.

A robust permitting system has enabled the development of responsible mines throughout Alaska. All stakehold-

ers — including the EPA — should take pride in this system and work to sustain its credibility with the public.

Joe Balash is commissioner of the Alaska Department of Natural Resources.

Why the permitting process matters

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WHO: The Alaska Mining Hall of Fame Foundation (AMHF) was established in 1997 to honor Alaska’s Mining Pioneers. Since then about 100 men and women have been inducted.

WHERE: The AMHF Museum is located at 825 1st Avenue in downtown Fairbanks, also known as the Odd Fellow’ s Hall, it is on the National Historic Register.

FEATURED: • Paystreak Newsletters that provide biographic summaries of the pioneers. • Biographies with plaques and numerous photos depicting Alaska’ s mining history. • Movie clips and other digital media are featured at the AMHF museum • Memorabilia are for sale; such as coffee cups and T-shirts

WHEN: The Museum will open its doors from April 7-11 from 11AM-5PM, during the Alaska Miners Association Spring Mining Conference. On April 8, 2014, we will be inducting the following into the organization:

Fish creek-Fairbanks Miner Wise Mike Stepovich Journalist and Mining Activist Helen Van Campen Russian Mining Engineer Peter P. Doroshin

The Induction will take place at the museum at 825 1st Avenue beginning at 7:00 p.m. on April 8. The public is invited. There will be no charge. Our Normal Hours will begin May 27th and continue through the summer.

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By Sheldon MaierFORTYMILE MINING DISTRICT

This year, Alaska Miners Association will celebrate 75 years of representing miners in our great state. Placer min-ing, however, has been around much longer.

Placer gold mining in Alaska began in the 1800s when Russian miners first discovered deposits on the Kenai Pen-insula. However, no gold production occurred at the time. It wasn’t until 1870, when placer miners in Southeast, through dogged determination and intense exploration efforts, discovered vast deposits of ore, launching Alaska’s rich mining tradition.

While Fairbanks, Juneau and Nome are responsible for most of Alaska’s historical and current gold produc-tion, gold mining operations are found across much of Alaska.

Today, there are an estimated 400-500 placer mines throughout the state. Placer deposits are concentrations of heavy minerals that form when mineral laden soils are washed, by weather or

flooding, down slope into streams over time. The minerals settle in areas where the river current stalls and can no lon-ger suspend the minerals. Placer min-ing is a collection of mining methods that use water to separate valuable ore from the surrounding sediment. Placer mining literally began as a flash in the pan, flecks of gold awash in a slurry of sediment, recovered by miners using a skilled hand with only a pan the size of a dinner plate and river water.

Many mining operations in Alaska today are still small family operations.

I mine in the Fortymile District with my wife and three children. The lessons my kids have learned from spending time on our mine site are invaluable. Prospecting and mining in remote locations is a way of life for us. In fact, many rural communities are built around and depend upon placer mines. The profits we make in Alaska stay in Alaska’s economy.

We understand the importance of supporting small and local businesses, because we are small and local busi-nesses.

Since its start, there have been many technological advances in placer min-ing.

Today, miners process much larger quantities of ore-rich material using methods like dredging and pit-mining. As with the large mining operations, placer mining requires multiple permit applications, strict review, federal and state government regulation, and per-mitting for any exploration, transport of equipment, mining camp construc-tion, or to mine locatable minerals and conduct any reclamation operations. Alaska Miners Association works to keep family mines in business while maintaining high environmental stan-dards for our state.

Miners like myself are experiencing a stifling increase in federal regulation. We understand the need to operate responsibly and safely, and believe that regulation, within reason, is appropri-ate. However, regulations set arbitrarily

without scientific reason and no proof that they better the environment, are not reasonable, and that is what seems to be happening lately. Regulations that do not reflect the reality of Alaska con-ditions and add unnecessary layers of bureaucracy do nothing but burden the small miner and other resource devel-opers in Alaska.

We’re proud to represent the “Family Farm of the North.”

Mining helped build our state, and we hope to see it grow in the future. Placer mining continues to be a robust and key industry, providing hundreds of jobs, feeding ongoing exploration efforts and aiding population and com-munity growth across the state.

Ensuring the necessity of new reg-ulations to prevent an unnecessary burden, especially shouldered by small businesses, is paramount.Sheldon Maier is a miner in the Fortymile dis-trict where he lives with his family.

Today, there are an estimated 400-500 placer mines throughout the state. Placer deposits are concentra-

tions of heavy minerals that form when mineral laden soils are washed, by weather or flooding, down slope

into streams over time. The minerals settle in areas where the river current stalls and can no longer sus-

pend the minerals. Placer mining is a collection of min-ing methods that use water to separate valuable ore from the sediment. Placer mining began as a flash in the pan, flecks of gold awash in a slurry of sediment, recovered by miners using a skilled hand with only a

pan the size of a dinner plate and river water.

The placer mining perspective

Livengood Gold Project’s feasibility study confirms the large well-proven resource and ability to manage the environmental impacts. At over 15 million ounces of gold, the deposit is one of the world’s largest, located in an area designated for mining. Looking forward, our plans are to pursue opportunities identified in the feasibility study for potential cost reductions and project improvements. We will advance the project toward permitting by continuing baseline environmental studies, support the State of Alaska’s efforts to bring down energy costs, and further our discussions with potential strategic alliance partners. Livengood’s experienced leadership team continues its dedication to making this project a productive Alaska gold mine for decades to come.

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Fort KnoxStewardship in Action

The way we see things, stewardship extends well beyond protecting land and water.

It’s also about taking care of our people. That’s why we invest in advanced training, safety, and modern mining technology. The return? We have the best people in the industry working for us.

Fort Knox places high value in community stewardship. We buy locally, hire locally and we’re active in charitable giving, and our people volunteer in many civic and community groups.

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Fairbanks Gold Mining Inc.A Kinross company

By Jennifer Pyecha

The True North Mine, owned by Fair-banks Gold Mining Inc. is approximately 25 miles northeast of Fairbanks located within the Chatanika River watershed.

Mining operations commenced at the end of January 2001 and the first blast occurred in February 2001. The ore was hauled to the Fort Knox Mine where it was processed. During the four years of operations, 530,000 ounces of gold was produced with 25 million tons of waste ore. In 2009, FGMI made the decision to per-manently close True North.

Before mining, a Reclamation and Clo-sure Plan and Financial Assurance (FA) must be submitted to and approved by Alaska Department of Natural Resources. The True North Mine Reclamation and Closure Plan (R&C) is designed to return land disturbed by mining operations to a stabilized and near-natural condition, ensure the long-term protection of land and water resources, minimize or eliminate long-term management requirements and meet state and federal regulatory require-ments. The plan includes a description of the existing site condition, reclamation

schedule, general reclamation procedures and the methods for achieving the final closer requirements and objectives. The FA bond calculation is based on the R&C plan

the posted bond amount is $3.1 million.Between 2005 and 2012, the 480 acres

disturbed by mining activities have been graded, scarified and seeded. To date, 200 tons of fertilizer has been broadcasted over the disturbed area and growth media has been placed on 140 acres. Trails that were removed because of mining activities have been reestablished. In 2012, the state con-firmed True North was reclaimed in accor-dance with the R&C Plan. Simply put, we did what we said we were going to do. We are now in the post-closure phase. During this phase, we ensure and verify that miti-

gation efforts used to address environmen-tal disturbances are working.

Throughout the reclamation process, our commitment to environmental steward-ship guides us in our environmental perfor-mance. In addition to meeting regulatory requirements, we spread growth media on the pit floors, planted seedlings and broad-casted fertilizer in years subsequent to the initial application. The True North Mine will be in the post-closure phase until it has been demonstrated the land is stable and water quality standards have been main-tained.


Reclamation working at True North Mine

Bob Loeffler of the University of Alaska Anchorage teaches mining techniques in class.

The former True North Mine is returning to nature. COURTESY TRUE NORTH

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Donlin project moving forwardBy Kurt Parkan

The Donlin Gold project is an unde-veloped gold deposit located in the his-toric Kuskokwim Gold Belt of Western Alaska.

Extensive exploration and research estimates the deposit to be 33.8 million ounces. This project is located on Calis-ta Corporation and Kuskokwim Corpo-ration lands, in the hills approximately 10 miles north of the village of Crooked Creek.

Should the mine be developed, it is estimated to have a 27-plus year life, producing approximately 1.1 million ounces of gold annually. Additionally, thousands of jobs could be created; it is estimated that 3,000 jobs could be available during the construction phase, while during mine operation, 1,400 jobs might be created, depending on production levels. Furthermore, the project will act as an economic engine; by having a reliable source of income, employees will be able to put more money back into the local economy.

After 16 years of conducting environ-mental baseline studies in the Yukon Kuskokwim region, Donlin Gold start-ed the permitting process for the proj-ect in 2012.

The Donlin Gold project is moving

through the Draft Environmental Impact Statement phase of the Nation-al Environmental Policy Act environ-mental review process.

An EIS is a decision-making process that analyzes and presents the poten-tial effects of a proposed major federal action. In the case of the Donlin Gold project, the proposed federal action is the issuance of a permit by the U.S. Army Corps of Engineers. The NEPA environmental review process requires public involvement, which gives the public opportunities to comment on the proposed project and the results of the environmental review. USACE is the lead agency in the preparation of the EIS.

They are working with cooperating agencies to evaluate plans and permits and will present alternatives for the project. Cooperating agencies include:

Federal: Environmental Protection Agency, Bureau of Land Management, U.S. Fish and Wildlife Service, and Pipeline and Hazardous Materials Safe-ty Administration;

State of Alaska: Department of Natu-ral Resources, Department of Environ-mental Conservation and the Depart-ment of Fish and Game;

Tribal: Native Villages of Crooked Creek, Chuathbaluk, Lower Kaslkag,

Napaimute, Akiak, Aniak and the Knik Tribal Council.

The Donlin Gold project EIS process will take years to complete and involves many steps. The process begins with scoping, during which the public is invited to comment on the proposed project and voice concerns or provide other insights.

The Donlin Gold scoping period was completed by the agencies last year between January and March.

Scoping is followed by the develop-ment of a draft EIS document, which

includes a scientific review by the cooperating agencies of project alterna-tives and potential impacts. Public and agency comments on the draft EIS will be collected and considered in the final EIS. The process is completed with a Record of Decision.

For updates and more information about the Donlin Gold project please visit www.DonlinGold.com.

For information about the U.S. Army Corps of Engineers’ EIS for the Donlin Gold project please visit www.Donlin-GoldEIS.com.


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One thing that you’ll notice about Jonathan, he’s always got a smile on his face. And the greatthing about smiles – they’re contagious. Whether it’s on the job, at home, or out among their Alaskan neighbors, you’ll find that Pogo employees tend to be a happy crew.

Maybe it’s knowing that they work for a company that values their personal safety and employs strong measures to safeguard the environment. Or maybe they’re smiling because their company invests over $100 million each year in the local economy andprovides a good living for 320 employees and their families.

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By Julie Herrmann

Pogo Mine General Manager Chris Kennedy started out at the bottom of the heap — shoveling dirt. Fresh out of high school in Arizona, Kennedy helped his parents move to Silverton, Colo., where he found a mining job.

“I was going to go back to go to college in Scottsdale, and I took a summer job at a crushing plant for a mine,” Kennedy said. “It was just a summer job to get some money to go back to school, and I’ve been trying to go back to school ever since.”

While working in Arizona, the Fort Knox mine owners were in the planning stage and visited the mill where Ken-nedy worked. “They asked if I ever got bored and wanted to come to Alaska, they would entertain the idea of giving me a job,” Kennedy said.

A year later, in 1995, he gave Fort Knox a call and moved to Alaska to take a position as the maintenance superin-tendent. He left Fort Knox for Greens Creek in 2001 before coming to work at Pogo in 2005.

He started out as the maintenance manager and moved from there to the health, safety and environmental man-ager before becoming the general man-ager in 2011.

“My job is to make sure that we

Pogo’s Chris Kennedy takes on the future of the mining industry

Chris Kennedy

KENNEDY » 23

20 Sunday, April 6, 2014Fairbanks Daily News-Miner

ALASKA MINERS ASSOCIATION

By Mark Huffi ngton

Today’s miners, unlike miners from the Gold Rush days, recognize the need for environmental stewardship to operate a successful mine. From conception to closure, a long list of permitting and envi-ronmental regulations must be complied with for a mining company to be sustain-able.

Federal environmental laws and regula-tions have affected the way Alaska mines are permitted and operated.

This ever-evolving governance of the mining industry has been, and continues to be, influenced by the Antiquities Act, Clean Air Act, Clean Water Act, Compre-hensive Environmental Response, Com-pensation and Liability Act, Emergency Planning and Community Right-to-Know Act, Endangered Species Act, Migratory Bird Treaty Act, National Environmental Policy Act, National Historic Preservation Act, National Forest Management Act, Oil Pollution Act, Resource Conserva-

tion and Recovery Act, Surface Mining Control and Reclamation Act, Toxic Substances Control Act and the Wild and Scenic Rivers Act to name a few.

Congress enacted legislation has occurred since the early 1900s with the signature of An Act for the Preservation of American Antiquities by President Theodore Roosevelt on June 8, 1906. This Antiquities Act was a major influence to the 1980 Alaska National Interest Lands Conservation Act.

Federal and Alaska environmental regulations are based upon legislation and are managed by appropriate agen-cies. The agencies have an active role in the permitting, operation and closure of today’s mines, whether they are plac-er, hard-rock open pit or underground mines.

Federal agency involvement often includes the US Environmental Protec-tion Agency, U.S. Army Corps of Engi-neers, U.S. Fish and Wildlife Service, Bureau of Land Management, U.S. Forest

Service and the National Park Service. Depending on the location and type of mine, mining companies may be required to comply with federal permitting and regulatory requirements for water dis-charges, waste management, wetlands, rivers and harbors, historical and cultur-al resources, land use, threatened and endangered species, essential fish habitat, bald eagle protection and migratory bird protection.

Alaska agencies are involved in the permitting process and oversite of mining projects.

The Department of Natural Resources is responsible for approving and issuing plan of operation permits, reclamation and bonding, water rights, fish habitat and fishway permits, tideland leases, dam safety certifications, cultural resources surveys, monitoring plans and coastal zone consistency determinations.

The Department of Environmental Conservation is responsible for approving and issuing waste management permits

and bonding, wastewater and stormwater permits, air quality permits and certifi-cation of U.S. Army Corps of Engineers permits.

Not only are the agencies involved in mining, private stakeholders provide a non-written “social license” for the mine to operate, and one that is necessary for mining to be sustainable within the com-munity it is located. Private stakeholder involvement has influenced the mining community.

Without public involvement and the mining company’s awareness of that social license to operate, that license may never be issued.

Mining and protection of the envi-ronment has evolved through the years. Without interaction and cooperation between mines, regulatory agencies and private stakeholders, mining’s future would struggle to provide the natural resources the world demands.Mark Huffington is the Environmental Superin-tendent for Kinross Fort Knox.

The need for good stewardship

By Curt Freeman

Although some sectors of the U.S. economy enjoyed progressively better market conditions over the course of 2013, Alaska’s mineral exploration sec-tor was not one of them.

The general flight of risk capital to more prospective markets, such as the oil and gas sector, coupled with flat or declining commodities prices, resulted in a year of significant cut backs by Alaska mineral explorers.

While several of the more advanced exploration projects received strong budgets and generated impressive results, the majority of Alaska’s exploration projects remained idle or received only maintenance level explo-ration funding during 2013.

A total of 67 hard rock exploration permits were active in Alaska in 2013, down from 84 in 2012. Of the 67 proj-ects with permits, only 21 projects

reported expenditures in excess of $100,000 during the year and of those 21 projects, the largest five projects by expenditures, Donlin, Pebble, Bornite, Tetlin and Livengood, accounted for almost 50 percent of statewide explora-tion expenditures in 2013.

Although total exploration expendi-tures are still being compiled, estimates indicate 2013 exploration spending will fall in the $200 million to $250 mil-lion range, well shy of the $335 million spent on exploration in Alaska in 2012 and far below the record high spending of $365 million in 2011.

The primary commodities of interest last year were gold and copper although other commodities under exploration included lead, zinc, silver, nickel, iron, platinum group elements, rare earth elements, graphite and coal.

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Mineral exploration sees a slow growth

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Fairbanks Daily News-Miner 21Sunday, April 6, 2014ALASKA MINERS ASSOCIATION

Inside Usibelli Coal Mine Inc.

exploration in 2014 has improved marginally during the first quarter of the year, thanks in part to improved market confidence which has spurred rising equity price and to generally stabilized or improved metals prices. Despite these improvements, min-eral exploration in Alaska in 2014 is expected to remain lethargic, with the

more advanced projects continuing to garner the lion’s share of exploration spending.

Avalon Development Corp. is a Fair-banks-based mineral exploration con-sulting firm with more than 25 years of Alaska metallic mineral exploration experience. Learn more about Avalon Development at www.avalonalaska.com.

Curt Freeman is president of the Avalon Development Corp. www.avalonalaska.com

GROWTHContinued from 20

By Bill Brophy

Usibelli Coal Mine Inc. is a fourth-generation family-owned business and the only operating coal mine in Alaska. Joe Usibelli Jr. is the president and the third generation to lead the company following his father, Joe Usibelli, and grandfather, Emil Usibelli.

Usibelli Coal Mine was founded in 1943 with a one-year contract to supply 10,000 tons of coal per year to Ladd Air Field (now Fort Wainwright). Emil began operations with a small bulldozer and a converted logging truck.

UCM produces approximately 2 mil-lion tons of sub-bituminous coal per year. UCM’s surface mineable reserve on current leased lands is estimated to be approximately 700 million tons. The coal is considered ultra-low sulfur content, making it one of the clean-est-burning coals in the world.

Coal is transported to six Interi-or Alaska electric power generation plants — including five cogeneration plants: Fort Wainwright, Eielson Air Force Base, Clear Air Force Station, Aurora Energy — a wholesale supplier of electricity and provider of district heat in Fairbanks — and the Univer-sity of Alaska’s power plant. A mine mouth plant — Healy No. 1, operated by Golden Valley Electric Association, is located adjacent to the mine site and coal is delivered directly from the pit to the plant.

Through the years, Usibelli Coal Mine has exported coal to Pacific rim destinations including Chile, South Korea, China, Japan, Taiwan and Rus-sia.

The primary pieces of equipment utilized to remove overburden are the Bucyrus Erie 1300W walking dragline,

a variety of bulldozers, various large dump trucks and shovels/loaders and explosives conducting caste blasting operations.

The Bucyrus Erie 1300W walking dragline, affectionately named “Ace In The Hole,” is Alaska’s largest mobile land machine and removes overburden on top of the coal seams. The dragline bucket moves 33 cubic yards of mate-rial. The crew consists of two opera-tors that rotate positions every hour. The dragline is electrically powered by a large cable connected to the utility power system.

Caterpillar 785 haul trucks transport 150 tons of coal or overburden. The exhaust system runs hot air through the bed to keep it heated in the winter in order to prevent freezing of material to the bed.

Usibelli employs 120 full-time work-ers. More than one third of the work-force is made up of second-, third- or fourth-generation family members. The mine operates year round; in fact, the customers’ demands are greater during the cold and dark months of winter.

The environment is a high priority. Because the mine is the family’s back-yard, it was no surprise that in 1970, six years before federal law required, UCM pioneered a successful land rec-lamation program. The ultimate goal of restoration is to establish a natural landscape on previously mined land.

Usibelli Coal Mine’s commitment to provide a quality product, on schedule, at a reasonable price utilizing innova-tive technology and dedication to envi-ronmental excellence has earned the mine a position of leadership in Alaska and in the U.S. coal industry.Bill Brophy is vice president of customer rela-tions and executive director of The Usibellli Foundation.

By Julie Herrmann

Usibelli Coal Mine General Manager Alan Renshaw is a lifelong Alaskan who has worked for Usibelli for more than two decades. He was born and raised in Anchorage, and attended the University of Alaska Fairbanks in pursuit of an engi-neering degree. “I took a lot of different classes, I was kind of trying to double major in mining and engineering and civ-il engineering,” Renshaw said.

While at UAF, he did summer intern-ships, one of which involved surveying and building a road between mines. He then became a registered land surveyor before graduating from UAF in 1989.

He joined Usibelli in 1990 and worked his way up the ladder. “The way Usibelli works, it’s pretty home grown,” Renshaw

said. “Lots of places, people jump from mine to mine to mine, but our average employee is here for 12 or 13 years.”

Renshaw started out in engineering where he helped design mines and worked with blasting. “Pretty much all the classic stuff you’d think of,” Renshaw said.

He then moved to a position where he acquired permitting and ensured the mine followed regulations. He then moved to a senior engineering role where he ran the engineering department for ten years. He became the chief engineer and then Vice President of Engineering. “Once I was a VP level of engineering, when the general manager was gone, I’d cover for him,” Renshaw said. “I was kind

Alan Renshaw keeps Usibelliin touch with a family feeling

RENSHAW » 23

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By Mike Satre

Greens Creek is considered by many to be the environmental role model for the mine of the 21st Century.

Located 18 miles south of Juneau on northern Admiralty Island, the mine operates within strict standards of envi-ronmental compliance. Working closely with community leaders, regulatory agencies and environmental groups, Greens Creek has developed a general plan of operations incorporating many stewardship activities recognized as best practice. All the activities undertaken at the operation take into account sustain-ability, with the goal of leaving Admiralty Island as beautiful as it was before the mine existed.

Mineralized outcrops near Greens Creek were first sighted by geologists in early 1975 and preliminary core drilling followed soon after.

Between 1978 and 1980 an explor-atory tunnel was driven to allow under-

ground drilling and inspection of the ore body. Full scale mine development began in 1987 and full production was reached early in 1989. Production was temporarily halted in 1993 due to low metal prices but re-opened in July 1997. Since re-opening the mine has steadily increased its productive capacity from an initial production rate of 1,320 tons per day to more than 2,200 tons per day in 2010.

Greens Creek is a polymetallic (zinc, lead, silver and gold) underground mining operation with a surface concen-trator or mill, dry stack tailings storage facility, man camp and deepwater port. The mine and the mill are about eight miles up the Greens Creek Valley and the camp is located at Hawk Inlet. The mine is expected to operate until approximate-ly 2023 based upon 7.79 million metric tons of reserves and excellent explora-tion potential. In 2013, Greens Creek

Greens Creek seen asenvironmental leader

GREENS CREEK » 23

Fairbanks Daily News-Miner 23Sunday, April 6, 2014ALASKA MINERS ASSOCIATION

produced 7.44 million ounces of silver, 57,457 ounces of gold, 57,600 tons of zinc and 20,100 tons of lead.

The Hecla Greens Creek Mine is the largest private employ-

er in the Juneau area and as such plays an important role in helping to diversify the local economy. The mine employs more than 400 people and its commitment to local hire in the region is exemplified by its fund-ing of the Pathways to Mining Careers program at the Univer-sity of Alaska Southeast. This

program provides a curriculum and pathway for high school and college students who are inter-ested in the mining industry that starts with an overview of mining occupations and ends with internships, professional certifications and hopefully a job in the industry.

As Greens Creek approaches

its 25th year of production, the company continues to focus on safely and responsibly providing base and precious metal resourc-es to the world.

Recently, federally approved expansions of the tailings stor-age facility into the national monument not only gives the mine the room it needs to con-

tinue to grow, but it also affirms the commitment that Hecla has made to sustainable operations that protect the surrounding environment.

Tagline here and here and here and here and here Tagline here and here and here and here and here

Fort Knox an active community partner

GREENS CREEKContinued from 22

By Mark Huffington

“Thar’s gold in them thar hills.”

The Fort Knox area actively has been explored for gold placer deposits since 1902. Historically, the surrounding Fairbanks Mining district has produced in excess of 8 million ounces of gold, predominantly from placer deposits, and plac-er mining operations continue to this day.

As the placer miners discov-ered and mined gold in the Fish Creek valley, so is Kinross Gold with its hard rock open pit gold mine.

The Fort Knox Mine, Alas-ka’s largest open-pit gold mine, is located 25 miles northeast of Fairbanks near the Steese Highway’s Cleary Summit.

Between 1989 and 1992, the area known as Fort Knox saw

major exploration activity and by 1996, the mine produced its first gold ounces.

The mine encompasses 12.5 square miles with its open pit, heap leach facility, mill, wet-lands and freshwater reservoir.

Because of the hard work of 630 employees who reside in Interior Alaska, the mine poured a record 428,822 ounc-es in 2013 and became Alaska’s largest gold producer for the year.

Dec. 18, 2013, saw a signifi-cant milestone when the mine poured its 6 millionth ounce of gold just three years from its 5 millionth ounce in 2011.

Since 1996, Fort Knox mined 730 million tons of rock from its open pit and processed 330 million tons of gold-bearing ore in its mill and heap leach facilities.

The average production

mined from the pit for 2013 was 173,000 tons per day.

To achieve these production numbers, the mine uses a mas-sive fleet of heavy equipment that includes three 35-cubic-yard hydraulic shovels, three 23-cubic-yard loaders, 38 haul trucks each capable of moving up to 240 tons of ore, seven blast-hole drills, and several pieces of large support equip-ment including track dozers, motor graders, water trucks, loaders and backhoes.

This equipment consumes a daily average of 33,000 gallons of diesel fuel.

None of this is possible without a dedication to safety. Many great safety accomplish-ments were achieved in 2013.

The administration group (i.e., warehouse, safety, envi-ronmental, accounting, human resources, engineering, sur-

veying, geology, exploration) has not had a loss time inci-dent since April 2005 and has worked four years without a reportable incident.

Mill maintenance has not had a loss time incident since July 2003. Mill operations has worked one year without a reportable incident.

Mobile Equipment Mainte-nance has not had a loss time incident since December 2006. Mine operations achieved one year without a loss time incident. Keeping safety at the forefront of everything done at Fort Knox is the first and most important priority.

Fort Knox is a proud Fair-banks community member and provides support and sponsor-ship to many local organiza-tions, schools and events with its heart of gold.

Those receiving Fort Knox

support through the years include the University of Alaska Fairbanks, Fairbanks Go Red for Events, Fairbanks North Star Borough School District, 2014 Arctic Winter Games, local youth organiza-tions, and the summer’s Gold-en Days parade and events to name a few.

Fort Knox employees also have hearts of gold by gener-ously donating thousands of hours of their own time and money to local organizations and events.

Fort Knox has proudly accepted its role as a safe and environmental responsible mine and will continue these efforts throughout the coming years with its proud and dedi-cated workforce.Mark Huffington is the Environ-mental Superintendent for Kinross Fort Knox.

function safely, environmentally safely and within budget and keep the place running,” Kennedy said. “I like the fact that I can make the changes that I think need to be changed. I like helping people and making Pogo a place where people want to come to work, not have to come to work.”

One of the things Kennedy likes the most about his job, helping people, is also one of the biggest challenges. Kennedy said 40 to 45 percent of the people who work for Pogo live outside of Alaska.

The rest live across the state from Juneau, the Kenai area and Anchorage all the way up to Fairbanks.

“How do you make the schedules

friendly enough to work for them with flights? How do you make sure the schedules work daily from shift to shift? Those are always challenging.”

In the future, Kennedy expects that mining will get tougher. “I think it’s going to be more and more difficult because of environmental constraints,” Kennedy said. “I think the people will be there as long as we have training pro-grams, but I think the biggest impact is going to be environmental constraints. Not that they’re bad, they’re just con-straints.”

Kennedy lives in Fairbanks and enjoys golfing, sailing and camping with his family in his free time. He and his wife have six children, of which all but one are grown, and eight grandchildren. “I’m at the age where in 10 years, I should be able to retire,” Kennedy said. “But I don’t know if I’ll want to. Ask me in 10 years.”

KENNEDYContinued from 19

RENSHAWContinued from 21of groomed to take over.”

In 2010, Renshaw became the general manager and vice president of operations. “I work with all our different departments,” Renshaw said. “I make sure everyone is on the same page.”

Since Renshaw began working for Usibelli, the company has worked three different mines. When he start-ed, the company was working the Pok-er Flats mine. Then, Usibelli started working the Two Bull Ridge mine and is now close to finishing that mine and is beginning work at the Jumbo Dome mine. “It’s kind of fun for a person that sticks in one place long enough to watch that happen,” Renshaw said.

“I’ve enjoyed being part of that pro-cess.”

One of the things at his job he’s most proud of is Usibelli’s safety record. They recently hit 600 days with no accidents. “We take safety super seri-ously,” Renshaw said. “It’s the top goal over everything else.”

Renshaw lives in Healy and is rais-ing his three young sons, ages 7, 9 and 10, there.

His oldest son, age 24, went to the University of Alaska Anchorage, and is now attending medical school in Washington. “He got married last year, and they have a baby,” Renshaw said. “I became a grandpa last year.”

Renshaw sees himself staying in Healy with Usibelli for years to come. “My kids love school here; my wife absolutely loves it,” he said, “We love Healy.”



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75 Years of Progress: Alaska Mining