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Powering Alaska’s Economy With Mining

Published: November 20, 2018 |

Rick Van Nieuwenhuyse.

Rick Van Nieuwenhuyse.
[Click image to enlarge]

Alaska is on the cusp of economic breakthroughs that will transform its economy and introduce much-needed diversification, made possible by new developments of the natural resources that we are blessed with. The guiding principle is simple: Alaska first, for all Alaskans.

Alaska’s economy is unlike any other in the United States. It is estimated that more than a third of Alaska’s jobs are tied to oil and gas, according to the Alaska Oil and Gas Association. Unfortunately, that leaves Alaska vulnerable as the price of oil drops due to global political and supply issues beyond our control. Alaska has been victim to these disruptions multiple times since statehood.

Putting Alaska first means changing the equation by adding the huge natural gas and raw mineral resources that are ready for development into the equation. Bringing these projects to fruition will result in further raising the standard of living for all Alaskans throughout the state, in small communities and large. It will create more high-paying jobs for generations to come, and at the same time, preserve the soul of the state as captured by our motto: The Last Frontier.

Historically, it is this Alaska pioneering spirit that has propelled development and job growth in the energy and mining sectors. Natural Gas — economical and efficient natural gas — which already powers a significant number of Alaskan homes, could reach even more communities as more gas is developed on the North Slope and in the Cook Inlet. This has the potential to dramatically cut electrical costs for thousands of households. And for industry, it is a game changer. The use of gas to generate power at a much lower cost and higher efficiently will result in a more competitive cost structure on a worldwide basis for large industrial projects like remote mining sites.

In a convergence of the natural gas and mining sectors, Trilogy Metal’s proposed Trilogy Arctic mine in the Northwest Arctic Borough would be powered by relatively inexpensive and clean burning natural gas instead of the high cost and old-school diesel run generators.

Hundreds of Alaskans are working on energy and mining development projects now underway. If development decisions are made, tens of thousands of high-paying jobs will come with the construction and operation of these projects and plants. For example, at its peak, the Alaska Gasline project to transport Alaska’s vast reserves of natural gas could create 12,000 jobs, according to the Alaska Gasline Development Corporation. There are now about 4,500 Alaska jobs directly linked to mining activity throughout Alaska. Trilogy’s first mining operation would add an additional 400 to 600 as the project progresses through construction and operations. The remote location of the Ambler Mining District coupled with a commitment to local hire programs, mean that many of these new high-skill, high-paying jobs will be in these remote communities where there are few other economic opportunities. Just in the exploration phase, we are already seeing direct benefits in the NANA region.

And many of the new jobs will require training and experience that can benefit a growing number of young Alaskans in both the urban and rural communities. That’s why Trilogy is committed to using Alaska’s existing training programs and educational institutions to allow more native Alaskans to gain the skills required to join the mining workforce. This opportunity for Alaskans to enter into the mining industry is a vital component of Alaska’s future; however, specialized jobs in the mining industry require appropriate training and that process needs to start right now. Domestic Effect and International Trade The impact of new Alaskan workers will be felt far beyond the Alaskan economy itself.

New Alaska mineral and energy production will make vital contributions to bolster U.S. national security, supplying the country with a home-grown energy source and a reliable source of industrial metals. These metals would be used to manufacture more energy efficient electric vehicles, wind energy, solar panels, and ever more efficient modern technologies. The result will be lower energy and transportation costs for consumers and a smaller carbon footprint for the country.

Globally, on top of supplying gas and LNG to Alaska, the anchor customer may be China. Shipping massive volumes to China could offset the large U. S. balance of trade deficit with that country. Cleaner air and a lower carbon footprint for China, also means the whole planet benefits — after all, global warming is a global phenomenon.

However, this economic transformation cannot be accomplished without solving a basic problem: maintaining and expanding our existing infrastructure. Delivering minerals and LNG to export markets in the Lower 48 and overseas depends on maintaining and improving Alaska’s freight delivery systems. Our existing seaports and rail freight services are severely underutilized and operating well below potential capacity. We are fortunate to have the existing transportation infrastructure, but now it’s time to step up our game and prepare to use it to accommodate the new mining and LNG expansion. If we don’t, we risk not having it available in the future.

We are turning an important economic corner; each sector of this diversified economy will do its part to create a firmer financial foothold for Alaska, not as heavily reliant on oil, but on the rarefied resources in mining and the production of LNG.

— By:  Rick Van Nieuwenhuyse, Newsminer

Rick Van Nieuwenhuyse is the chief executive of Trilogy Metals, Inc. Trilogy Metals is a British Columbia-based mining company that is in the exploratory phase of developing a mine at two mineral deposits in the Ambler Mining District, which is just south of the Brooks Range. He grew up in Anchorage and splits his time between Fairbanks and Vancouver, B.C.

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