The Alaska Department of Natural Resources issued a final commissioner’s decision Jan. 22 in favor of offering a right of way over state lands to Donlin Gold LLC for a natural gas pipeline from Beluga on Cook Inlet to the company’s proposed mine in the Yukon Kuskokwim region of Western Alaska.
The proposed mine site lies 10 miles north of Crooked Creek village on surface land leased from Calista Corp. and Kuskokwim Corp. Calista owns the subsurface land and mineral rights in the proposed mine area.
The ROW decision, signed by Commissioner Corri Feige, proposes to offer the lease over 207 miles of state lands for 30 years, the maximum period allowed by law.
Feige found that Donlin is “fit, willing and able to properly construct, operate, maintain and terminate the Donlin Pipeline.”
The decision follows a series of public notices, hearings, community outreach and comment periods which began in 2014.
In addition to review of the pipeline application, the state participated as a cooperating agency in the National Environmental Policy Act process which resulted in modifications of the preferred route to minimize overlap and impacts to the Iditarod trail and Dalzell Gorge.
The U.S. Army Corp of Engineers, lead agency of the NEPA process, authorized Donlin’s preferred route based on the final environmental impact statement.
The Donlin Gold mine would require an average load of 157 megawatts, requiring a 14-inch gas pipeline to generate that level of power, Donlin Gold said.
Donlin Gold said it considered coal, hydroelectricity, a power-line intertie, biofuel and even nuclear energy during the feasibility analysis but those options “did not meet the current needs of the project.”
Were natural gas not an option, the most likely power source would be diesel shipped by barge from Bethel.
“If the pipeline is included in development, approximately two barges per day would take small amounts of diesel fuel and camp supplies from Bethel to a port site approximately eight miles downriver from Crooked Creek,” the company said. “The diesel and supplies would then be transported on a 30-mile access road to the mine site.”
The total length of the proposed gas pipeline is 312 miles.
Public notice period comments spur no substantial changes
DNR said it received 85 written comments and that 18 people spoke in person at public hearings during the proposed decision public notice period. In addition, clarification comments were received from state agencies, such as the State Historic Preservation Office.
None of the comments resulted in changes to the published Analysis and Proposed Decision, and no substantial changes were made to the published Draft Right of Way Lease.
DNR received comments requesting that the pipeline be relocated north of the Alaska Range in low lying black spruce forests over concerns for wildlife habitat, slow growing vegetation, heavy snowfall and avalanche risk, subsistence and traditional uses, headwater streams, and effects on permafrost.
DNR said the route along the face of the Alaska Range is fairly direct from its exit near Farewell westward to the mine site, adding that the soils on the North Face of the Alaska Range have fewer wetlands and less permafrost than the lowlands in the black spruce forest.
The pipeline will be buried along most of its length in the area.
Buried pipelines don’t prevent animal migration, grazing or calving post construction, DNR said.
Restoration and re-vegetation of disturbed areas and stabilization, rehabilitation and reclamation will be required following construction.
DNR also received comments of support, including those for new job opportunities in the area, burial of the line to minimize impacts to land users, excess capacity in the line to facilitate gas supply to other users in the area, a well designed pipeline, and Donlin’s community outreach during exploration and project development.
Noting that a mine site is energy intensive, comments praised the use of natural gas, rather than diesel as a fuel due to cleaner power generation.
Mine holds bright financial prospects for the Calista Region
Donlin Gold is co-owned by NOVAGOLD Resources and Barrick Gold Corp.
The Donlin Gold Project is proposed as an open-pit gold mine which would process approximately 59,000 short tons of ore per day for an estimated 27 years, with approximately 39 million ounces of gold in the measured and indicated resource categories, inclusive of proven and probable reserves, Donlin Gold said.
Infrastructure plans also include a power-generation plant, water-treatment plant, access roads, housing, two ports, and an airstrip, with a mine construction timeline of three to four years.
Donlin Gold believes the proposed mine could produce an average of 1.1 million ounces of gold annually during operation, making Donlin Gold one of the world’s largest gold mines.
According to Calista Corp., mining has historically had a significant effect on economic and social well-being in the Calista Region.
The Goodnews Bay platinum mine and the Red Devil mercury mine at their peak provided hundreds of jobs, Calista said, adding, “Placer gold production continues on a small scale and is an important source of revenue for Calista.”
If the Donlin Gold Project goes to development, year-round employment will be available to shareholders and residents, Calista said.
“In addition to providing local jobs and economic growth, the project will also benefit all Alaska Native Corporation shareholders through ANCSA 7(i) and 7(j) resource revenue,” Calista said.
-STEVE SUTHERLIN
