On Alaska Mining Day, let’s remember the state’s bedrock industry

May 10 marks the fifth annual Alaska Mining Day. Established in 2013, Alaska Mining Day was created through legislation sponsored by Sen. Cathy Giessel, R-Anchorage, "to recognize and honor the intrepid individuals and industry that played an enormous role in settling and developing the territory and the state and that continue to contribute to the economy of the state."

On May 10, 1872, the General Mining Act of the United States was approved — it governs mineral development on federal lands. This law has been amended more than 50 times, but its essential principles remain in place: If a citizen explores federal public land not otherwise designated as a park, refuge or other protected status, and with their own energy, intellect, finances and hard work finds a valuable mineral deposit, that citizen, after obtaining the required environmental and operating permits, has the right to develop that deposit.

Alaska has a rich mining history, with its roots in the mining of copper, jade and gold by Alaska Natives long before the famous gold rushes brought miners, adventurers, merchants and their families north to follow their dreams. Their interest and pursuit of minerals ultimately built towns, roads, ports and railroads in what was then the Territory of Alaska.

Today, mining is a top economic driver for our state. Alaska's six large mines, hundreds of placer mines, and dozens of exploration projects provide for 9,000 jobs with an average annual wage of $108,600, twice the state average. These jobs employ residents in more than 55 communities throughout Alaska, more than half of which are in rural areas where there are few other job opportunities. In 2017, our mines contributed nearly $150 million in local and state government revenues, spent $580 million with 600 Alaska vendors, and paid $250 million to Alaska Native Corporations throughout the state.

Mining truly "works" for Alaska and is a significant portion of our state's economic portfolio. Today, as Alaska faces staggering fiscal challenges, it is imperative that we explore how mining in Alaska can grow and increase the benefits realized by residents, businesses, governments and Alaska Native entities. How can we double the amount of mining operations, increasing the industry's contribution to Alaska's fiscal solution?

First and foremost, we must appreciate that to bring a new mine into production costs an incredible amount of time and money. Our current advanced projects are expected to spend hundreds of millions — if not billions — of dollars to construct, and this follows decades of exploration and development permitting. For any of these projects to be built, their proponents must obtain a significant amount of capital, and to do so, they must convince investors that Alaska is a good place to devote resources.

Is Alaska a good place to invest? In February, the Fraser Institute published its Annual Survey of Mining Companies that analyzes states, provinces and countries around the world for their mineral investment attractiveness. The report concluded that Alaska, while ranked fifth in the world in "pure mineral potential" for our impressive mineral endowment, ranks 29th in "Policy Perception." This means that although we have world-class mineral deposits, global investors are wary of expending significant capital due to the uncertainty associated with permitting resource development projects in our state.

Specifically cited in the report are unclear and overly complex regulatory processes, as well as setting scientific policy at the ballot box. One example is the current fish habitat initiative before the Alaska Supreme Court, which would stop development of new infrastructure and resource projects across Alaska and shut down mining operations in the state.

Investors in Alaska's mineral deposits must be able to depend on reasonable, predictable permitting regimes; otherwise they will invest elsewhere. Our state has very high standards, and we are proud of our compliance record. However, when projects are evaluated and regulated outside of existing state and federal processes, without scientific basis or added protection to the environment, investors are signaled that Alaska is not a fair and reasonable jurisdiction in which to permit a mine. Judgment of the Pebble project by public officials, prior to the scientific review of its permit application, has alerted the entire worldwide mining industry that Alaska may not be the reasonable regulatory process-driven jurisdiction it once was.

Alaska's miners want to play a starring role in growing Alaska's economy, as just one more mine in production would significantly multiply revenues and jobs for Alaskans at a time when our state needs them most. This can happen, but it will happen only when we uphold consistent and fair policies for all mines, and show the world through our actions that Alaska is open for business.

Deantha Crockett serves as executive director of the Alaska Mining Association.

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