Mining industry tops $1 billion — again

State releases Alaska Mineral Industry Report; commodity prices and exploration increase 10% compared to 2001 levels

Patricia Jones

Petroleum News Contributing Writer

Alaska’s mineral industry contributed an estimated $1.073 billion to Alaska’s economy in 2002, a slight increase compared to the prior year, according to the Alaska Mineral Industry report released Nov. 6.

A 10 percent increase in both exploration spending and in the total value of minerals mined and sold in 2002 helped offset a $47 million decline in development spending by the mining industry.

Of the $26.5 million spent for exploration in Alaska, more than $17 million went to prospecting for gold and associated precious metals. About half of that was spent by NovaGold Resources on the Donlin Creek gold deposit in southwest Alaska.

The estimated value of Alaska’s mine production in 2002 was $1.013 billion, a hefty increase compared to the $917 million in minerals produced in 2001.

Gold miners produced about $170 million worth of the precious metal in 2002, including 22,000 ounces reported by placer miners.

Despite sagging market prices, zinc contributed about $500 million to Alaska’s mineral production in 2002. The industrial metal is produced by Teck-Cominco’s Red Dog mine, the world’s largest zinc mine located in northwest Alaska, and also by the Greens Creek mine in southeast Alaska.

Included in Alaska’s mine production is $152 million for industrial minerals such as jade, soapstone, rock, sand and gravel, and $37.6 million for coal and peat.