Linking Alaska’s Resources to Alaska’s People 54 2024 Meet Alaska Conference & Trade Show “Back then we have nearly 10 billion barrels of recoverable oil in Prudhoe Bay, and it seem to some almost an inexhaustible supply and the revenues from it a never-ending source of wealth. Well, today we should be wiser. More than three billion barrels, or one-third of those 10 billion barrels, are gone. And I think we should ask ourselves, and our elected representatives, if the revenues from those 3 billion barrels are also gone forever, or can we point to a strengthened infrastructure from those funds which will assure us a prosperous future when Alaska’s oil and gas reserves are all gone, as the will someday surely be? “And it seems appropriate right now to recall the simple wisdom of Mark Twain in this regard. He said: It’s okay to put all your eggs in one basket…but don’t drop the basket.” H. M. Giegerich, President and General Manager of Cominco Alaska (Red Dog Mine) Speaking in 1984 as the mine was still in development stages, long before it became the largest zine mine in the country. In 2024 the Red Dog Mine is one of the great mining success stories in America and also generates substantial revenue for Alaska Native corporation shareholders. “The Red Dog (mineralization) is not unique in this area. Exploration work has delineated a large horseshoe-shaped zone in an area 30 by 25 miles. So far, 14 discoveries including Red Dog, with significant mineralization have been made in the region, and we’re probably looking at one of the world’s major new silver/ zinc/lead mineral provinces. “The technical key to Red Dog is transportation. Unfortunately, we do not have the advantages of being right beside deep water… This requires that concentrate be stored at the mine over the winter for shipment in the summertime, which of course adds significantly to the cost of an Arctic project. “I must stress at this point that Cominco has not made the production decision. This will depend on what we can see ahead for world markets and metal prices and how the project can be financed…we’re looking for a significant improvement in metal prices in order to achieve an adequate return on the investment. “You’ve heard the previous speakers discuss transportation as one of the keys for development of resources in Alaska.” “It’s obvious that the transportation will be the biggest single hurdle to overcome in development of Alaska’s resources …” “I think it can be considered that transportation is an area where support by the state can act as a strong encouragement and a catalyst for mineral development in Alaska. Editor’s note: It was AIDEA’s investment in building the road that made the Red Dog Mine possible, so his prediction came true. Senator Ted Stevens “As the battle over the Trans-Alaska Oil Pipeline clearly demonstrates — and I should note here that we observed the 10th anniversary of the signing of the TAPS authorization into law two months ago—the federal government has to power to shape in a fundamental way the development of Alaska’s resources, even when those resources are located on state lands. “The Alaska Congressional delegation also has placed a high priority om trying to facilitate the building of a transportation system for North Slope natural gas. Senator (Frank) Murkowski held hearings on this crucial last November. We must support any gas line proposal that will get our gas to market. Ted on Alaska Mining: “It is no secret that EPA is taking a close look at placer mining in Alaska, and we can’t CONTINUED from PAGE 53 STEVENS
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