The time has come to broaden our economic horizons beyond relying primarily on oil revenue. Our state’s shaky financial health proves the need for diversification and innovation. Although Alaska still has significant oil reserves, reports are not signaling any big booms around the corner. Yet, amidst these challenges lies a promising opportunity for prosperity through strategic foresight and groundwork for other types of economic sectors. One of these staring us in the face at present is mining.
Alaska’s wealth extends far beyond its famed oil fields. The state is a treasure trove of minerals (ranked 5th internationally for desirability[1]), including gold, silver, copper, zinc, graphite, cobalt, lead, and rare earth elements, many of which are vital to the burgeoning renewable energy sector. In fact, Alaska currently has deposits for 49 of the top 50 most desirable minerals in the US.
These minerals are essential for the technological age in which we live as well as for new energy solutions and a myriad of items vital to our daily lives. The international community has taken note of Alaska’s mineral riches, while wise American investors are starting to see opportunities in Alaska as a means to reduce dependency on foreign imports. Recognition of Alaska’s treasure trove along with our track record of caring for and stewarding our environment when we develop our natural resources is coinciding with a recognition that reliance on adversarial nations for essential minerals is not good for the United States or for the balance of power in our world.
A glimpse into Alaska’s potential
Recent developments have shed light on significant mineral deposits in the Matanuska-Susitna Valley, offering a glimpse into Alaska’s potential to revolutionize its economy through conscientious mining practices. These ventures promise to inject new revenue streams into the state’s economy, support job creation, and enhance our economic resilience over the coming decade. The plan to build the Western Susitna Access Road is key to access several gold, silver, antimony, and coal deposits that will be game-changers for both the region and the state-at-large.
Alaska’s mining sector already makes a significant impact, with six major mines (Fort Knox, Greens Creek, Red Dog, Usibelli, Pogo, and Kensington) providing substantial employment. In 2019 alone, these mines accounted for 2,675 full-time jobs out of nearly 4,600 in the industry, contributing to a total of 9,400 direct and indirect positions across the state and injecting $740 million into local economies. These opportunities are especially vital in rural Alaska, where alternative employment options are scarce.
By championing domestic mining, we not only create jobs but also ensure that a larger share of profits remains within the state and the U.S., fostering economic stability and growth. It also increases the ability to accommodate Alaska’s growing population and its needs, reducing critical “either or” situations when it comes to basic and necessary state services.
As we pivot toward this new economic paradigm, it’s clear that development of our vast mineral resources should be a pillar in building Alaska’s future prosperity. By making informed and strategic decisions today, we can secure a vibrant and sustainable economic future for Alaska, one that will benefit all its residents and continue to set the standard for what Alaska is well-known: responsible resource management.
