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The Alaska Miners Association Convention wraps up this week in Anchorage. (Zac Gooch/KTUU-DT)
John Roop makes jewelry, which he says demonstrates the ultimate end product of mining. (Zac Gooch/KTUU-DT)
The Red Dog Mine near Kotzebue is the largest zinc producer in the world. (File/KTUU-DT)
The price of gold has increased for the past nine years, which has helped the mining industry get through the recession. (Zac Gooch/KTUU-DT)by Ted Land
Thursday, November 05, 2009
ANCHORAGE, Alaska -- The Alaska Miners Association Convention wraps up this weekend.
They've been hit hard by the global recession, and that's one of the things they've been talking about this week.
2008 was not a great year-- the total value of the industry in Alaska was down about 21 percent compared to 2007.
Miners say they're optimistic things will improve this year and next, but for some, the future looks especially bright.
Of the hundred or so booths at the Convention, John Roop's stands out.
"I do all the soldering here, I do all the design work," he said.
The gold jewelry he crafts is a showcase of Alaska's precious metals and represents what so many people at the convention are working towards.
"This is the end product of all the mining and permitting," he says.
"The exciting thing is the price of gold continues to go up. That's a real benefit for the industry. Metal prices in general are improved as compared to last year when we were in a financial meltdown nationwide," said Steve Borrell, the Association's executive director.
Gold's price is up 23 percent this year, heading for the ninth straight annual gain.
Exploration companies like Full Metal Minerals say next year they'll be devoting nearly their entire budget to gold.
"It spurs growth, really. Without the price of gold, the company I work for wouldn't exist, other companies wouldn't exist, you wouldn't be hearing a lot about the Pebble and Donlan projects. It's just huge," said Cullan Lester, of Full Metal Minerals.
Other mining endeavors are not so certain.
Red Dog Mine, near Kotzebue, is the largest zinc producer in the world. Its main deposit is expected to run out in the next few years.
They're hoping to move to a nearby deposit, but first must get approval from the EPA, which Red Dog expects in the next few weeks.
"We're a little bit concerned about that but we're hopeful it will progress as planned," said one man at the convention.
"We need to keep Red Dog going. We need the jobs, we need the livelihood," said a woman also there.
After the global recession, miners say they need all the business they can get.
Mining employment in Alaska was at about 3,400 jobs last year, compared with more than 3,500 in 2007.
Last year the average wage for a miner in Alaska was about $7,400 a month.
The head of Golden Valley Electrical Association said that coal will play a role in their future.
They say as fuel prices fluctuate, coal remains steady, and they have plenty at nearby Usibelli Coal Mine in Healy.
Contact Ted Land at tland@ktuu.com
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