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Resource Development Council for Alaska, Inc RESOURCEOct2003 REVIEW APERIODIC PUBLICATION OF THE RESOURCE DEVELOPMENT COUNCIL FOR ALASKA, INC. www.akrdc.org This Edition ALASKANS SUPPORT PROPOSED Sponsored By ConocoPhillips Alaska ROADLESS RULE EXEMPTION Wells Fargo ocal communities, Alaskans from all King Cove walksL of life and businesses representing vir- tually every industry and economic sector in Road Issue Alaska responded to RDC’s Action Alert in August urging support for an Alaska exemp- tion from the Roadless Area Conservation Resurfaces Rule. The Alaska Municipal League (AML), a The controversial road link statewide organization of over 140 cities, between King Cove and Cold boroughs and unified municipalities repre- Bay is back on center stage with senting over 98 percent of Alaska residents, the release of a draft environ- was one of many organizations across Alaska mental impact statement (DEIS) supporting proposed rulemakings to exempt and a new round of public hear- the Tongass and Chugach national forests ings. from the roadless rule. In September, RDC’s Projects “The application of the roadless rule to the Coordinator Jason Brune testi- Tongass and Chugach would stifle future fied in favor of the DEIS economic development opportunities in a Preferred Alternative which state that already has more land in protected calls for a 17.2 mile, one-lane status than all other states combined,” said gravel road with a hovercraft Kevin Ritchie, Executive Director of AML. link to Cold Bay’s all-weather Some of the nation’s largest environmental airport. The option, one of sev- groups made it a top priority to mobilize If Alaska is granted an exemption to the roadless rule, its two eral outlined in the DEIS, is also their members to block the proposed exemp- national forests will continue to be managed with an em- favored by the Aleutians East tion for the nation’s two largest forests, de- phasis on preserving the wild character of the land. No com- Borough. spite the fact that both are among the most mercial logging would occur in the Chugach and only 3 Another option would elimi- percent of the timber in roadless areas of the Tongass would protected in America and would remain so nate the hovercraft entirely by be available for logging. even with the exemption. RDC rallied its members to support the exemption. (Continued to Page 8) exemption in order to preserve multiple use “We understood that with the passage of ANILCA in 1980, there would be no further opportunities in the dwindling areas of the I NSIDE Tongass and Chugach that remain open to a land withdrawals,” wrote Juneau Mayor Sally Smith in comments to the Forest variety of activities ranging from public ac- Mining Prospects 3 cess, transportation, tourism, power trans- Service. “ANILCA was meant to Roadless Exemption 4 mission grids, recreation, mining, timber strike a balance between protected harvest and other public uses. areas and those managed for multiple Alaska Exports 5 In addition to AML, the City and Borough use,” Smith said. “Application of the Alaska Development 6 of Juneau, Ketchikan, Wrangell, Seward, roadless rule would destroy that bal- Environmental Protection 7 ance, further compromising the eco- Valdez and the Kenai Peninsula Borough Valdez Board Tour 9 nomic and social needs of the people of were among Southeast and Southcentral President’s Message 10 Alaska communities to support the Alaska.” Conference Information11 (Continued to Page 4) Resource Development Council Executive Committee Officers 121 W. Fireweed, Suite 250 President John Shively Resource Review is the official periodic publication Sr. Vice President Mark Hanley Anchorage, AK 99503 of the Resource Development Council (RDC), Phone: (907) 276-0700 Vice President Jack Williams Fax: (907) 276-3887 Secretary Chuck Greene Alaska's largest privately funded nonprofit economic Treasurer Stephanie Madsen E-mail: [email protected] Past President Chuck Johnson development organization working to develop Website: www.akrdc.org Staff Alaska's natural resources in a responsible manner Material in this publication may be reprinted without permission provided Executive Director Tadd Owens and to create a broad-based, diversified economy appropriate credit is given. Deputy Director Carl R. Portman Writer & Editor Carl Portman Projects/AMEREF Coordinator Jason Brune while protecting and enhancing the environment. Finance/Membership Billie Rae Gillas Page 2 October 2003 Resource Review www.akrdc.org A MESSAGE FROM THE EXECUTIVE DIRECTOR TADD OWENS TWO MAJOR MINING PROJECTS CONTINUE TO MOVE FORWARD Optimism is growing in Alaska’s mining industry as two developed as an underground major projects continue to move toward completion — the mine with a 2,400 tons per day proposed Pogo Gold Mine northeast of Delta Junction and mill. Coeur Alaska expects to the proposed Kensington Gold Mine north of Juneau. Each produce an average of 175,000 of these two projects will bring significant new economic ben- ounces of gold annually for 10 efits to Alaska. years. Kensington is located Both projects are nearing the end of comprehensive, multi- in the Tongass National Forest Coeur Alaska is proposing to develop million dollar environmental reviews and exhaustive public about 45 miles north of the Kensington gold mine in the processes, and both Teck–Pogo, Inc. (Pogo) and Coeur Juneau. Coeur has already in- Tongass National Forest near Juneau. Alaska, Inc. (Kensington) deserve recognition for their out- vested $150 million in the project — more then $25 million has standing work to move these projects forward. been spent on environmental studies and permitting alone. Pogo is located on state lands about 85 miles east of Coeur Alaska is working primarily with the U.S. Forest Fairbanks. It is a high-grade gold deposit which will be de- Service, EPA and DNR on permitting. The draft supplemen- veloped as an underground mine with a 2,500 tons per day tal EIS will be available in early November of this year and the mill. Teck-Pogo is expected to spend be- public comment period will run through tween $200 million and $250 million in early 2004. If final permitting goes well, capital costs for the project. Production is with continued strong gold prices and a estimated between 375,000 and 500,000 positive feasibility study, Coeur Alaska ounces of gold per year. could begin construction as early as 2004. Teck-Pogo is working with the Based on Coeur Alaska’s most recent de- Department of Natural Resources (DNR), velopment plan, Kensington will employ the Environmental Protection Agency 325 people during construction and 225 (EPA) and the U.S. Army Corps of during operation. Coeur Alaska estimates Engineers among other agencies for the approximately 180 indirect jobs will be proper permits. A final environmental im- The work camp at the proposed Pogo mine is lo- created by the project. Annual payroll pact statement (EIS) for the Pogo project is cated 85 miles southeast of Fairbanks. from the mine will be approximately $16 expected late this year allowing construc- million and annual taxes are estimated to be tion to begin as early as 2004. Nearly 50 state and federal per- $1 million. mits and approvals are required for project approval. Pogo and Kensington will be significant additions to Approximately 500-700 employees will be needed during Alaska’s private sector and will provide vital diversification to the mine’s construction. Once completed, the Pogo Gold the Interior and Southeast regional economies. These projects Mine will employ 300 workers during operation for an esti- generate wealth for Alaska and increase our state’s valuable ex- mated 11 years. Teck-Pogo is working aggressively with local ports. Teck-Pogo and Coeur Alaska deserve applause for their agencies to train Alaska residents for these jobs. commitments to responsible development, local hire and in- Kensington is also a high-grade gold deposit which will be vestment in Alaska. ALASKA MINING LEGEND, CHUCK HERBERT, PASSES AWAY IN KONA, HAWAII Former RDC President Charles F. Fairbanks, served Navy Seabees and rose to the rank of Herbert passed away at the age of 93 on as deputy com- lieutenant commander while building September 3 in Kona, Hawaii. missioner of the camps, airfields and landing docks Herbert earned a bachelor’s degree in Department of throughout the Pacific. mining from the University of Alaska Natural Herbert was a long-time board mem- Fairbanks in 1934 and worked as a Resources, 1963- ber of RDC and served as its president miner in Interior Alaska from 1928-37. 67, and as commissioner of DNR, 1970- in 1981 and 1982. He was a major force He was supervising engineer for the 74. in Alaska mining circles as he not only division of mining of the While attending college in Fairbanks prospected all over Alaska, Canada, Reconstruction Finance Corporation during the early 1930s, Herbert hiked South America and Africa, but ran a from 1937-40, and after serving in the between the Interior city and number of successful gold operations. Legislature, was in the U.S. Navy from Anchorage on snow shoes and back He was truly dedicated to the responsi- 1942-46. From 1946-61 he worked as a again, delivering mail. During World ble development of Alaska’s natural miner and consultant in Anchorage and War II, he was commissioned by the resources. (907) 276-0700 October 2003 Resource Review Page 3 “Unlike many of the other restrictions, which directly damaged the timber industry then rippled through the rest of the economy, the roadless rule has been more of an equal opportunity destroyer.” - Skip Reierson, Harbor Enterprises Unlike most Lower 48 forests, there ALASKANS SUPPORT EXEMPTION are few roads in Alaska’s national forests providing public access for recreation and other activities. under these plans, manage- restrictions, which directly wide scale industrial clear- (Continued from page 1) ment emphasis would con- damaged the timber industry cutting, even with the exemp- Smith warned the roadless tinue to focus on preserving then rippled through the rest tion, logging would be rule would “further drive a the wild character of the for- of the economy, the roadless banned from 95 percent of stake in the heart of opportu- est.
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