Alaska Gov. Sean Parnell June 16 signed Senate Bill 99, legislation that authorizes the Alaska Industrial Development and Export Authority to issue up to US$270 million in bonds to fund infrastructure and construction at Ucore Rare Metals’ Bokan Mountain rare earth elements deposit and Heatherdale Resources’ Niblack mine project, both on Prince of Wales Island in Southeast Alaska.
SB 99 also provides a loan of up to US$18.6 million for the Blue Lake hydroelectric energy project in Sitka. Together, the projects supported by this legislation are expected to bolster economic opportunities in the region.
“This bill isn’t just about mining or electricity - it's about giving a big boost to the economy of Southeast Alaska," said Sen. Lesil McGuire, sponsor of SB 99.
Mayors from Prince of Wales Island, Ketchikan and Sitka, as well as Alaska Miners Association Executive Director Deantha Crockett, joined the governor as he officially signed the bill into law during a luncheon hosted by the Greater Ketchikan Chamber of Commerce.
“This legislation will go a long way toward creating new opportunities for Alaskans and growing Southeast Alaska’s economy as a whole,” Governor Parnell said. “By authorizing AIDEA to issue bonds for the Bokan and Niblack mines, as well as the Blue Lake Expansion Project, we are moving these critical projects, and the many jobs they will create, one step closer to reality. I want to especially commend Senator Lesil McGuire for her work on this crucial legislation.”
“Natural resources are the base of Alaska’s economy. Today’s bill signing further broadens that base by supporting responsible development and creating new jobs while giving a big boost to industry in Southeast Alaska,” said McGuire. “These two projects will give the much-needed economic injection into the Ketchikan area in the same way the SETs fund is helping Interior Alaska with the gas-trucking project the Legislature passed last year. The other project will reduce the cost of electricity in Sitka, which is essential to revitalizing the economy in the region.”
SB 99 authorizes AIDEA to issue bonds to finance up to US$145 million of the infrastructure and construction costs at Ucore Rare Metals’ Bokan-Dotson Ridge rare earth element project, located on Prince of Wales Island about 40 miles southwest of Ketchikan.
“The official signing of SB99 is an important milestone for our company and for the people of Alaska,” said Ucore President and CEO Jim McKenzie. “Bokan will advance Alaska’s economic agenda, and ensure a secure domestic supply line of rare earth metals for the American market.”
SB 99 also authorizes AIDEA to issue bonds to finance US$125 million of the infrastructure and construction costs of a mill, dock, loading and related infrastructure facilities to be located at the Gravina Island Industrial Complex at Ketchikan, and related infrastructure at Heatherdale’s Niblack project, located roughly seven miles (11 kilometers) north of Bokan Mountain on Prince of Wales Island.
“We appreciate the efforts of Governor Parnell and the Alaska legislators as well as the local officials, businesses and individual citizens who supported the legislation,” said Heatherdale President and CEO Patrick Smith. “A project like Niblack would create a significant number of new jobs for the region and the state. We look forward to securing a strategic partner, and moving into permitting, construction and operations at Niblack in the months and years ahead.”
Passage of the bill, however, does not guarantee that either Bokan Mountain or Niblack will get funded under the provisions provided by the legislation. AIDEA also must go through its traditional project evaluation and due diligence process.
