6 ALASKA RESOURCE REVIEW WINTER 2024 THE FIRST CARIBOU DOWN WAS ALREADY BLENDING INTO THE LANDSCAPE AS THE BLOWING SNOW BEGAN TO COVER IT. A ground blizzard was developing, and it was getting dark. One of our party cut a small piece of fresh, still warm backstrap for a snack and to share as we cut up the animals. I recall such experiences with fondness (despite fighting to keep my hands warm). I embrace my hunter and gatherer side, and mostly the hunter gene. Sometimes I ask what is the drive? Perhaps it is the simplicity of a basic, hard wired connection humans have to the earth and the recognition that sustenance comes from the natural world. Maybe just the fact one never knows what the outcome will be of a hunt or adventure. The unknown and challenge is exciting. Regardless of one’s self-reflection, our survival and thriving from the dawn of human history has been based on the natural resources of the earth. Human population grew from utilization of natural resources and technological innovations. These improvements and adaptations occurred episodically. They were all rooted in the need for survival. After tens of thousands of years of human evolution, we have a technologically advanced society which still relies on our ability to utilize the resources that surround us. Even in this technological age, basic resources from the earth are critical. A fun resource fact is there are roughly 4.8 billion cell phones in the world. A phone contains over 25 metals and over 40 elements and rare earth elements. That is greater than 50percent of the periodic table! With eight billion people on the planet just cell phone use alone drives the need for metals. Advances based upon natural resources have led to global population growth. If you are 30 the population has grown by 2.4 billion since you were born. If you are 60 it has grown by nearly four billion, a doubling of the world’s population. These are staggering numbers, with every person needing resources. Based upon these examples interestingly, yet not surprisingly, today some of the biggest issues facing society remain utilization of natural resources for food and energy. The framework of climate change with the recognition that we will need more resources, has engendered interesting and often lively conversations around natural resource development. Ambitious national and international goals to reduce Green House Gas emissions by 2030 are driving many of the projections for the need for renewable energy and electric vehicles. Presently wind and solar contribute only 12 percent of the domestic electricity generation. Climate change is now a common household and political theme. One of the solutions is to increase the power generation from renewables and switch to electric vehicles to reduce emissions. However, achieving such goals is not simple or straightforward. A recent study by the Fraser Institute and the International Energy Agency reveals that to reach the international aspirational goals of electric vehicle and renewable energy integration by 2030 we will need over 388 new mines to supply renewable energy, electric vehicle, and battery technologies. Principal metals of concern are lithium, nickel, cobalt, copper, manganese, graphite and selected REE’s (rare earth elements). Given current projections there is a clear supply-demand gap of minerals essential for an energy evolution. The World Economic Forum (WEF) has advanced an initiative called Securing Minerals for the Energy Transition. A December 2023 publication by the WEF in collaboration with McKinsey and Company has highlighted the risks of reaching these ambitious goals and has identified a key element of global collaboration required to reduce the risks. We are truly at a crossroads where responsible resource development is critical to feed the world, provide energy and help reduce the impacts of climate change. For Alaskans, one question is how and where Alaska’s abundant energy resources fit in with our global and national strategies and economies. Another societal consideration is the growing pushback of renewable energy projects in one’s backyard, whether wind turbine farms, acres of solar panels or hydroelectric power from rivers or the oceans. Certainly, in the United States we need to grapple with these conflicting dynamics. The need for domestic metals in concert with mixed messaging on energy policies and permitting are effectively pushing development overseas. The leveraging of oil and gas, fishing, tourism, forest products and mining can help to diversify our Alaskan economy if we capitalize on threads common to all. The synergies of innovation, common infrastructure builds, environmental stewardship, policy advocacy, community engagement and social license must be integrated and balanced. From an Alaska perspective a strong base in the resource industries can support a growth in finance, transportation, and trade and marketing. While also ideally lowering our cost of living. Close to home, energy source availability and costs will be an issue for the rail belt of Alaska. This is not just an urban Alaska issue. The ripple effects of unaffordable energy in the urban areas will increase the cost of goods and services to rural Alaska. At RDC, we strive for a strong economic base through a diversified private sector. Finally, the organization itself embodies the most significant resource, human resources. As we move into the exciting world to come, now is the time to think creatively about working together, locally, and globally. No one has a crystal ball for the future. Just like a hunt you can plan only so much, and the outcome is never guaranteed. We had finally cut up the last caribou and the meat bags were secured in the sled. It was still an hour’s ride out in the dark with the snow blowing across the beams of the snow machines’ headlights making the ride mesmerizing. Other than an occasional ptarmigan flushing away in our lights we only had the blown in trail to follow. We were happy with our fortune from the land. In closing, rather than offer a plan I would like to challenge us all to be creative to find solutions. We are tied to our earth resources, whether the minerals needed for cells phones and advanced technology, energy to keep the lights on or simply finding your next meal. With these thoughts…. best in 2024! CREATIVE SOLUTIONS VITAL TO THRIVING ALASKA FUTURE “The leveraging of oil and gas, fishing, tourism, forest products and mining can help to diversify our Alaskan economy if we capitalize on threads common to all.” — Lance Miller, Board President, RDC
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