MINING NEWS: State mining summary released

Patricia Jones

Mining News editor

Estimates of $1.05 billion for Alaska’s mineral industry value in 2003 were released by state officials on March 9, making it the eighth straight year the industry’s value exceeded $1 billion.

Rising prices for almost all metals, including gold, silver, zinc, and lead, increased the 2003 value of metal production in Alaska by 2 percent from 2002 levels, according to the annual report released by the state Division of Geological and Geophysical Surveys.

Contributing heavily to Alaska’s mineral industry are the state’s three hard-rock mines.

Greens Creek Mine near Juneau attained record production for the second consecutive year.

Mining decreased slightly at the Red Dog zinc and lead mine in remote northwest Alaska and at the Fort Knox gold mine near Fairbanks. Improved metal prices helped Red Dog, the largest zinc producer in the world and a large component of the Alaska mineral industry, post an operating profit of $59 million in 2003 compared to a loss of $28 million in 2002.

The amount spent in 2003 for placer gold production is expected to be similar to 2002 expenditures once final reports are received, while sand, gravel, rock, and other industrial materials may see a moderate decrease due to a decline in North Slope oil and gas activity and reduced statewide infrastructure projects.

Preliminary values for the mining industry totaled $1,017.1 million for 2003, a slight decrease from the $1,073.3 million in 2002.

In addition, development spending decreased in 2003 to $15.9 million, from the $33.5 million spent in 2002.

Exploration investment also declined in 2003 to $20.9 million, compared to the $26.5 million spent in 2002.

Lackluster exploration activity can be attributed to late season availability of venture capital, continued weakness of the Canadian dollar, and attractive tax incentives for investors in Canadian based projects.

Total minerals industry employment in 2003 is estimated at 2,496 full-time-equivalent jobs, a drop of about 328 jobs from the 2,824 jobs reported in 2002. Most of the decline was in the development, exploration, and industrial minerals sectors.

The annual state report, Information Circular 50, Alaska’s Mineral Industry 2003: A Summary, is available at no charge from DGGS, 3354 College Road, Fairbanks, Alaska 99709-3707 (907-451-5020) The summary is available in Adobe Acrobat PDF format through the DGGS Web site at http://www.dggs.dnr.state.ak.us.