Alaska mining industry tells House Resources Committee mines bring jobs and revenue but face long permitting, appeals

Deantha Skovinsky, executive director of the Alaska Miners Association, and Karen Mathias, executive director of Alaska Metal Mines, told the Alaska House Resources Committee on Feb. 20, 2025, that mining supports thousands of jobs across more than 95 communities while major projects face lengthy permitting timelines and active appeals.

The speakers said Alaska’s mines supply family-wage jobs in rural communities and contribute to state and local revenues. ‘‘We don’t have 29 years to access the minerals that we need,’’ Skovinsky told the committee, citing a study that placed U.S. permitting times near the bottom globally.

Why it matters: Committee members heard that Alaska’s mineral projects are positioned to supply critical minerals for national supply chains, but development timelines, legal appeals and workforce and housing constraints slow new production and can affect project viability.

Skovinsky and Mathias outlined statewide activity and economic numbers. Mathias said the state currently holds about $800 million in financial assurances that are intended to fund reclamation if operators cannot complete the work. She also summarized the industry’s 2023 economic footprint, saying mines and contractors spent roughly $1 billion with about 450 Alaska businesses and generated about $136 million in state-level mining-related revenue in 2023. Mathias told the committee that revenue-sharing under the Alaska Native Claims Settlement Act has distributed about $3.2 billion in mineral royalties since 1989, with roughly $235 million going to native corporations in 2023.

Red Dog: Greta Shirk, senior adviser for government and external affairs for Teck Alaska and Red Dog Mine, described the mine’s location and community arrangements. Red Dog sits roughly 620 miles northwest of Anchorage, she said, and operates on NANA regional corporation lands where Teck is the operator. Shirk described a subsistence committee formed under the mine’s operating agreement that includes local hunters and elders and advises on timing of shipping and other activities to reduce conflicts with subsistence hunts. She said Teck recently received a final permit to construct an access road from Red Dog to adjacent state lands and that exploration on those state lands may require five to six more years of work before an economic determination is possible. Shirk said the current life of mine on NANA lands is anticipated to run through 2031.

Donlin Gold: Chris Eckert, senior environmental coordinator for Donlin Gold, described the project as a primary gold mine with planned production of about a million ounces a year over an estimated 27-year mine life. Eckert said Donlin would rely on a long-distance power solution that may include a roughly 315-mile pipeline to bring fuel or gas and that supplies would move to the site by ocean and river barges on the Kuskokwim River. He summarized the project’s aquatic monitoring and mitigation plans, including quarterly water-quality sampling, benthic and fish surveys, streamflow monitoring, and an active wetlands mitigation program that the company estimates at about 200 acres before construction. Eckert also described a pilot restoration project on Stogolch Creek and a new rotary screw trap pilot being run in partnership with the village of Napaimute to help count out-migrating salmon.

Eckert said Donlin’s timeline reflects decades of work: initial drilling in 1989, major permitting begun in 2012 and much federal permitting completed by 2018, but he added several permits remain under appeal. He told the committee the company estimates roughly two years to resolve current appeals, followed by two years of advanced engineering and three to four years of construction, if permitting and appeals progress in a way that allows project sanctioning.

Placer mining and reclamation: Brock Jorgensen, a placer miner from the 40 Mile mining district, contrasted small-scale placer operations with large hard-rock mines. Jorgensen described placer work as ‘‘all gravity and water’’ rather than chemical processing, and said most modern placer operations use closed-loop water recycling and perform much of their own reclamation work. He illustrated reclamation challenges from Franklin Gulch in the 40-Mile district, noting banks and channels must be stabilized, structures sometimes fail and natural processes such as beaver activity can help restore habitat over time.

Regulation, workforce and other issues: Committee members asked about alternatives for power at remote projects, the scale and timing of permitting costs, and the state’s capacity to process permits. Industry witnesses told the committee that permitting and white-collar staffing shortages are ongoing constraints. Skovinsky and Mathias said some state regulatory offices have vacant positions and that resource levels affect permit processing. Mathias and the presenters also discussed workforce recruitment; industry representatives described apprenticeship programs and training centers (including an underground mining training center near Delta Junction) and noted companies are investing in local hiring but face seasonal workforce pressures and housing shortages in some communities.

What the committee did: The hearing was informational; the committee did not take formal action. Presenters encouraged members and staff to attend a deeper follow-up session at the Juneau Mining Forum the following day.

Quotes (from the record): "We don't have 29 years to access the minerals that we need," Deantha Skovinsky, executive director, Alaska Miners Association. "This committee has become a model for other resource development projects around the state," Greta Shirk, senior adviser, Teck Alaska/Red Dog Mine, describing the Red Dog subsistence committee. "We're a primary gold mine ... producing approximately a million ounces, a little over a million ounces a year for 27 years," Chris Eckert, senior environmental coordinator, Donlin Gold. "Placer mining ... is all gravity and water," Brock Jorgensen, placer miner, 40 Mile Mining District.

Ending: The committee adjourned with no votes. Members and staff were invited to the Juneau Mining Forum for detailed briefings on revenue sharing, reclamation, workforce development and federal issues the next day.