ADA proposes cleanup funding for contaminated Skagway ore terminal site

Concerns over environmental cleanup took center stage during the Alaska State Legislature's House State Affairs meeting on April 1, 2025. The discussion focused on the aftermath of the closure of the ore terminal in Skagway, which was previously managed by the Alaska Development Authority (ADA).

Representative Story raised critical questions about the contamination left behind when ADA handed the facility back to the municipality. He highlighted the presence of environmental hazards, including oil waste and ore dust, and expressed concern over the condition in which the terminal was returned.

In response, ADA officials acknowledged the situation, revealing that the previous tenant, Minto Minerals, had left the facility in poor condition before declaring bankruptcy. ADA pursued legal action in Canada and managed to recover approximately $50,000 to $60,000, which they offered to the city for cleanup efforts. However, the former borough manager declined this offer.

ADA representatives indicated their willingness to work with the new borough manager to facilitate the cleanup, emphasizing that while they recognize the need for remediation, they do not believe they should bear full responsibility for contamination that predates their lease. They noted that other leaseholders also share accountability for the environmental issues at the site.

This ongoing dialogue underscores the complexities of environmental responsibility and the challenges faced by local authorities in managing contaminated sites. As the ADA prepares to engage with the new borough leadership, the outcome of these discussions could significantly impact Skagway's environmental health and community relations.