Arctic Mining
Northwest Alaska
Northwest Arctic Borough
Topics
• I’ll discuss three items, though primarily the Northwest Arctic
Borough
• The Payment in Lieu of Taxes(PILT) as a revenue source for the
Borough government
• The outlook and need to invest into new transportation and energy
infrastructure that would support new mine development
Northwest Arctic Borough
• Established In 1987 as a home rule Borough, local municipal government under
State of Alaska statutes
• This remote region in Northwest Alaska is populated by 7800 residents, the
majority of which as Alaska Native-Inupiat
• There are eleven villages that are of varying populations, ranging from 200-3000
within the 39,000 square miles of jurisdiction
• Historically government, education, public utilities, construction, and commercial
fisheries made up the local economy
• Since 1987 the Red Dog Mine has become a primary component of our regions
economy
• The Red Dog Mine provides employment opportunity for many local, state,
national and international peoples
• www.nwabor.org
Northwest Arctic Borough-continued
• The Borough established following the development and construction
of the Red Dog Mine
• The intent was to establish a local government that would capture
taxable revenues for the benefit of local residents and communities
• The Borough has provided and continues to provide local, public
benefits across many sectors. New schools have been built that
benefit the education of the children. Public services as public safety,
law enforcement, search and rescue and support of local utilities have
been realized.
• The Borough has established partnerships in each of the communities
with tribes and second class cities
Northwest Arctic Borough-continued
• The Borough has established partnerships with the primary regional organizations
in formation of the Northwest Arctic Leadership Team(NWALT) whose partners
include the regional Alaska Native Corporation-NANA, the regional tribal nonprofit Maniilaq Association and the public education and vocational training
provider-Northwest Arctic Borough School District
• The Borough is also party to Arctic Economic Partnership established with the
North Slope Borough, Arctic Slope Regional Corporation and NANA Regional
Corporation
• Each of these partnerships value and balance the economic opportunity needs
and cultural, food security, land and natural resource needs of our indigenous
people
Northwest Arctic Borough-continued
We have developed multiple generations of indigenous oilfield workers
and miners who have gained valuable employment opportunities,
raised families in the Arctic, and invested into their home communities.
We have, though, still significant challenges related to economic
opportunity, academic and vocational achievements, social and cultural
hurdles and local and regional infrastructure needs to establish
sustainable communities in the Arctic
It is the opportunities of additional oil and mineral development that
will help meet our local challenges
It is also the opportunities of an emerging Arctic we have before us.
Taxation & Revenue Generation
• The Borough has since inception of the Red Dog Mine exercised a
Payment in Lieu of Taxes agreement with Cominco, formerly, now
Teck Alaska.
• These agreements have historically run in three year terms
• We are currently at the end of the existing agreement and have
prepared to initiate a new negotiation
• The Borough also does have a tax code in place, but have never
exercised the use of that code
• Teck-Alaska.com
Outlook and Need
• We in partnership with others need to invest into the expansion of
transportation and energy infrastructure to support new mine
development in Northwest Alaska
• Currently the Alaska Industrial Development and Export Authority is is
studying and intends to prepare the Environmental Impact Statement
for a Ambler Mining Development Access Road that would spur of the
Alaska Dalton Highway.
• This transportation corridor would support the development of base
metals within the Ambler Mining district.
• This development would provide new economic opportunity for those
community and residents in the Borough.