PRESENTED BY NILS ANDREASSEN
INSTITUTE OF THE NORTH
6 June 2015
Institute of the North
Center for Alaska’s Arctic Policy
Vision: Effective land and resource governance resulting in
individual and collective prosperity.
Mission: To inform public policy and cultivate an engaged citizenry.
Strategic Focus: Understanding and conveying the opportunities and
obligations of the Arctic.
Institute of the North Values
• Value the Arctic as a commons with management of resources for the
benefit of peoples and communities of the North
• Focus on responsible energy and infrastructure development that
facilitates sustainability
• Goal of healthy, prosperous and resilient communities
• Elevate the voices of northern peoples in state, national and
international arenas
Reality, Richness, Responsibility
Our Work
• Convene and facilitate civic discourse in order to cultivate an engaged
citizenry
• Inform public policy through outreach and education
• Sustain networks of stakeholders, policy makers and technical experts
• Synthesize research for broader awareness and accessibility
Responding to:
Fundamental challenges facing Alaska and Alaska’s Arctic:
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Declining oil production and decreased state revenue
•
High energy costs in much of Alaska
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Significant fiscal hurdles in next decade
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Increasing change and activity in the Arctic
•
Insufficient response capacity – infrastructure, assets,
communication
Search for best practices, new and innovative policies and
systems that have derived maximum benefit from their resources
for their people
Mining in Alaska
Began in 1800s, spur of gold rushes
Today, 6 large scale metal mines, 1
coal mine, over 300 placer gold
mines, dozens of exploration projects
Mining Works for Alaska
4,400 mining jobs
8,700 total in
industry$100,000
average wage
$650 million payroll
Jobs for residents of more
than 50 Alaska
communities
Mining “Works” for Alaska
$20 million in revenues to local governments
$119 million in revenues to state government
$144 million to Alaska Native Corporations
$500 million to over 600 Alaskan businesses for
purchases of goods and services
Alaska’s Mining Projects
Greater
No Single Permit to Mine: there are
many permits & authorizations
Mine permitting is a mixture of State, Federal and, potentially, local permitting requirements.
Each project is unique.
FEDERAL
STATE
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Plan of Operations (DNR)
Reclamation and Bonding (DNR)
Waste Management Permits and
Bonding (ADEC)
CWA Section 402 APDES Water
Discharge Permit
Certification of ACOE Permits (ADEC)
Sewage Treatment System Approval
(ADEC)
Air Quality Permits (ADEC)
Fish Habitat and Fishway Permits
(ADF&G)
Water Rights (DNR)
Right of Way/Access (DNR/DOT)
Tidelands Leases (DNR)
Dam Safety Certification (DNR)
Cultural Resource Protection (DNR)
Monitoring Plan
(Surface/Groundwater/Wildlife)
(DNR/DEC/DFG)
These are only some of the permits required!
•US EPA Air Quality Permit review
•US EPA Safe Drinking Water Act (UIC
Permit)
•US ACOE Section 404 Dredge and Fill
Permit
•US ACOE Section 10 Rivers and Harbors
Act
•US ACOE Section 106 Historical and
Cultural Resources Protection
•NMFS Threatened and Endangered
Species Act Consultation
•NMFS Marine Mammal Protection Act
•NMFS Essential Fish Habitat
•NMFS Fish and Wildlife Coordination
Act
•USFWS Threatened and Endangered
Species Act Consultation
•USFWS Bald Eagle Protection Act
Clearance
•USFWS Migratory Bird Protection
•USFWS Fish and Wildlife Coordination
Act
Red Dog Mine – Northwest Alaska
Fort Knox Mine - Fairbanks
Reclamation of historical dredging area
Reclamation of historic dredging area
Pogo Mine – Delta Junction
Usibelli Coal Mine - Healy
Greens Creek Mine - Juneau
Kensington Mine - Juneau
Placer Mining in Alaska
• 300 placer operations actively mining
• 82,600 ounces of gold produced
• Direct correlation between increase in gold prices and
number of mines
 Benefits Alaskans
Economic impact of placer mining in Alaska
• Approximately 1,200 direct jobs
• Of the 1,200 workers: 73% live in Alaska full-time; majority of
these outside Anchorage, Mat-Su, and Fairbanks
• Average of 4 workers at each mine
• Direct income of $40 million
• “Family Farm of the North”
 Benefits Alaskans
Economic impact of placer mining in Alaska
• $65 million on goods and services: 88%, or $57 million, spent in
Alaska
• $32.4 million Fairbanks, $16.2 million in Anchorage, $8.5 million
rural
• Placer mines contribute to State of Alaska revenues: production
royalties, Alaska Permanent Fund, Mining License Tax, Corporate
Income tax, State Fuels Tax, other mining fees
 Benefits Alaskans
Upper Kobuk Minerals District
Donlin Gold - Kuskokwim
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Mining pays for itself
Mining is environmentally sound
Mining benefits Alaskans
Mining provides economic diversity
Why isn’t there more mining in Alaska?
Challenges
• Federal overreach and burden in general
Litigation, ballot measures
• Attacks on permitting process
• Attack campaigns to public
• Fraser report ranking Alaska
• Alaska is Expensive: energy, infrastructure,
labor, more
Opportunities
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Tremendous mineral potential
Alaska is a secure jurisdiction
Strong permitting system
Commitment to workforce development
Ability to justify infrastructure
Support from Alaskan communities
Supportive lawmakers in Alaska
Recipe for Northern Mining Success:
Effective Governance
+
Sustainable Communities and Social License
+
Commercial Reality
=
Successful Northern Resource Economies
Recipe for Northern Mining Success
This recipe should result in
1) reasonable profit to the industry corresponding to
companies’ needs for returns, portfolio development,
future investment and employment
2) opportunities and benefits to local communities
through employment, business and skills capacity
3) sufficient environmental protections such that the
region’s food security is ensured
4) revenue to the appropriate levels of government,
thereby delivering on government’s commitments to
provide improved education, infrastructure and social
services
Successful Northern Resource Economies
Preparation (Stakeholder Engagement)
G/I
Consult with local community members and indigenous peoples early and often; holding
public hearings and establishing local adaptive capacity concerning relative demands
G/I
Strengthen human capital through education and training – project proponents can
partner on local capacity building focused on skills, knowledge and competency
G/I
Invite local and indigenous peoples to contribute traditional ecological knowledge
throughout the life of the project (project design, ongoing operations, and remediation)
G/I
Provide a “table” (such as a food security council) for local community members and
indigenous peoples to add input to project decision-making
G/I
Consider Impact Benefit/Participation Agreements or Socio-Economic Agreements/
Partnerships as tools for committing to and sharing benefits of a project with a community
I/C
Recruit local labor and engage local service companies; encourage local capital investments
or contribution to improve economics of project and increase local benefits
G/C Collaborate on community readiness, resilience and environmental assessments
C
Community leaders should develop a vision that is consensus-based and actionable
Successful Northern Resource Economies
Tools and Equipment (Governance and Cross-Sectoral Collaboration)
G/C Add coordinating function between levels of government, which can also facilitate partnerships
Increase quality of and access to mapping and geoscience, including modernized data dissemination as
well as sharing of science and baseline data
Improve regulatory certainty while reducing permitting delays – strong government support means
G/C
fairness, timeliness and predictability
Collaborate with northern neighbors for common mining and mine safety curriculum, as well as shared
G
standards that allow easy flow of information, services and workforce
Manage risk through adaptive environmental policy and management strategies; and add or improve
G
socio-economic assessment of projects
Develop long term planning and cumulative impact assessments, as well as identification of specific
G
high priority mineral development regions
G/I
G/C Build community capacity to locally suggest resource projects and minimize economic leakage
Provide favorable tax regimes and/or incentives to promote mineral exploration and mining,
particularly in the absence of available infrastructure
Focus infrastructure development in areas that can support industrial development, as well as
G/C community and broader economic development where possible, and secure infrastructure
development early to conserve time and money
Promote cross-border cooperation and funding, including a possible “permanent fund,” for northern
G/C
infrastructure that supports resource development
G/I Better coordination between industry and government to identify economic opportunities,
G
Successful Northern Resource Economies
Key Ingredients (Project)
I
Right-sized mineral endowment of sufficient quality, with the right commodity
prices
Access to water and clear wastewater disposal, with efficient and certain
I/G regulatory processes, which include parallel environmental assessment and
water licensing
Partner for access to the resource, including transportation infrastructure, and
I/G provision of affordable energy – both of which comprise the northern cost
premium
G
I/G
Land – sufficient size and clear title, with land claims and settlement agreements
resolved
Transparent monitoring - follow-up with better reporting of information that is
accessible to communities are informed
Successful Northern Resource Economies
Methods (Strengthening Communications)
G/C
G
G/C
Counteract pervasive non-factual anti-mining propaganda - non-governmental,
non-academic organizations should be held accountable for misinformation
Improve performance by sharing information and data on the benefits and
consequences of resource development; promoting dialogue instead of litigation
Utilize strategic planning to understand success – establish clear goals and
actions, in order to appropriately adjust tools and arrangements
Increase communications between northern communities across the Arctic to
G/C share best practices and lessons learned; debunking mining myths by showcasing
success
C/I
Create a positive environment for responsible resource development –
strengthen community and proponent interactions and communication
G
Measuring performance, through something like a Fraser Institute survey
counterpart - a matrix that reports from government and indigenous
perspectives.
Growth from the North
How can Norway, Sweden and Finland achieve
sustainable growth in the Scandinavian Arctic?
Report of an independent expert group
Norway, Sweden and Finland share common economic, environmental and social
interests in the Scandinavian Arctic. This report defines four drivers of growth and
offers four instruments for the Governments of Norway, Sweden and Finland to use to
secure sustainable economic growth in the North.
Four drivers:
1) LNG (Liquefied Natural Gas) and renewables,
2) greener mining solutions,
3) increased tourism, and
4) ice and cold climate solutions.
Four instruments:
1) one regulatory framework,
2) one pool of talent and labour,
3) one long term transport and infrastructure plan, and
4) one voice in Arctic matters.
Thank you!
Nils Andreassen
Institute of the North
nandreassen@institutenorth.org