Case Study: Red Dog Mine

American bush pilot Bob Baker flew his Beechcraft D50 Twin Bonanza across the state of , prospecting for minerals from the late 1940s well into the 1950s. The Alaska Hall of Famer noticed the peculiar red coloration around the Ikalukrok Creek, near the town of Kotzebue, in the mid-50s, and encouraged a U.S. Geological Survey (USGS) geologist to survey the area. The subsequent USGS survey of the area surrounding Kotzebue found and prompted further assessment by the U.S. Department of the Interior’s Bureau of Land Management, ultimately leading to additional private exploration and a stake by Cominco American through the U.S. open mineral access system. The land upon which the zinc deposit sits is owned by the NANA Regional Corporation, an Alaska Native Corporation operating in northwestern Alaska and owned by more than 14,500 Iñupiat shareholders. Now operated by Teck Alaska, the mine’s investors have worked with NANA at every stage of development to be inclusive of local indigenous populations. Over 50 percent of mine personnel are NANA shareholders. Through a Payment In Lieu of Taxes (PILT) to the Northwest Arctic Borough, Red Dog has paid $140 million dollars since mining began in 1989. In addition, financial contributions have been made by both NANA and Teck to local schools, cultural organizations and scholarship programs over the mine’s lifetime. Teck strictly enforces the commencement of each shipping season to allow for Iñupiat subsistence hunting, and routinely works with communities to ensure traditional land use is protected. Through the Alaska Industrial Development & Export Authority, State of Alaska provided loans to the mine operator to construct the DeLong Mountain Transportation System. Both the creek, and the mine were named Red Dog in honor of Baker’s Irish Terrier, who often flew with him while prospecting. Though it did not officially open operations until 1989, Red Dog Mine now accounts for a majority portion of Alaska’s mineral revenue and provides jobs and economic opportunity to the people in this remote area of Alaska. The Red Dog Mine demonstrates many of the key elements that underpin the Energy Resource Governance Initiative. The USGS, in cooperation with private prospectors and explorers, collected and managed critical data for mining investors to make an informed decision. The United States General Mining Law allowed for Cominco American to stake and develop the mine, while a state and federal law empowered native groups to participate in the mining venture. Finally, has continued to pursue Value Beyond Compliance by engaging with and supporting the local community through jobs, infrastructure, education and training opportunities, and cultural appreciation. Responsible mining requires thoughtful policy from start to finish, before the shovels hit dirt and after the mine closes down. The Red Dog project embodies this responsible attitude and demonstrates an equitable balance between people, profit, and the planet.

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