Alaska is positively crying for money for schools, human services, road maintenance and infrastructure needs, yet the Legislature leaves millions of dollars on the table for every year that they fail to update the mining laws.
Let’s put it into perspective. The combined value of all minerals (gold, silver, antimony, copper, lead, zinc, etc.) mined in Alaska annually is approximately $4.8 billion. By contrast, under the current mining laws, the mining industry returned about $136M to the state’s coffers in 2023. So, the mining industry returned roughly 2.8% of their total profits to the state ($136,000,000 divided by $4,800,000,000). And, with the run on antimony, gold and copper, their total profits only seem poised to increase. It’s a rockin’ deal for the mining industry but a cryin’ shame for the land, water and people of Alaska— more so when you consider that we let them use our roads, bridges and other infrastructure for free. Their presence in our state costs us money while they make money hand over fist from our resources. One top of that, most of the profit leaves Alaska for Canada and Australia, rather than recirculating in Alaska’s economy. The whole mess is a terrible deal for Alaska.
The Legislature needs to put on its big girl pants and update our mining laws. Why is it too much to ask corporations who want our minerals to make a fair return to the state? Revised and updated mining laws could also do more than just bring in more money —
they could hold corporate feet to the fire on issues like consultation with tribes and private landowners, compensation, mitigation and reparations for communities where multinational corporations want to mine. The law could also create a road-use compensation structure and ensure that local employment agreements and light, noise and traffic mitigation measures are part of the deal. Most importantly, our laws must require the mining corporations to post bonds that will cover the actual cost of health impacts, reclamation and cleanup of mine sites. This is especially important for mines with tailings dams which are vastly more expensive to clean up if (when) they fail. Think Fort Knox.
The Legislature has the power to comprehensively overhaul our mining laws in order to protect residents and to ensure that the state gets our fair share of the wealth generated by the exploitation of our natural resources. An update to the mining laws can help right the state’s sinking fiscal ship — if the Legislature can grow the political cajones to do it.
As natural resources like antimony, gold, copper, zinc, etc., only become more valuable with time, I think we can afford to leave them in the ground until we get a better deal.
Author Lou Brown left California 37 years ago to build a home and a life in Fairbanks.
[Column reproduced with permission. Photo credit: Kinross]