Economic Impact

Mining is a Growing Force in Alaska’s Economy

Mining is a growing force in Alaska’s economy, providing jobs for thousands of Alaskans and millions of dollars of personal income throughout Alaska. Alaska’s mining industry includes
exploration, mine development, and mineral production. Alaska’s mines produce coal, gold, lead, silver, zinc, as well as construction materials, such as sand, gravel, and rock.

In 2016, Alaska’s mining industry provided:

  • 4,350 direct mining jobs in Alaska.
  • 8,600 total direct and indirect jobs attributed to Alaska mining industry.
  • $675 million in total direct and indirect payroll.
  • $111 million in payments to Alaska Native corporations.
  • $81 million in state government-related revenues through rents, royalties, fees, and taxes.
  • Mostly year-round jobs for residents of more than 50 communities throughout Alaska, half of which are found in rural Alaska where few other jobs are available.
  • Some of Alaska’s highest paying jobs with an estimated average annual wage of $108,000, over twice the state average for all sectors of the economy.
  • $23 million in local government revenue through property taxes and payments in lieu of taxes.

Partnering with Alaska Native Corporations

Alaska-Mining-economic-benefits-4

All Alaska Native corporations benefited from mining industry activity – in 7(i) and (j) royalty sharing payments, in jobs for shareholders, or through business partnerships.

  • In FY2016, NANA received $108.7 million in net proceeds from Red Dog Operations and distributed $65.8 million to other Alaska Native regional and village corporations
  • 58% of the 600 year-round jobs at Red Dog are filled by NANA shareholders, including Teck, NANA Lynden and NANA Management Services jobs
  • Calista Corporation in western Alaska received $2.0 million in royalties and other revenue for mineral agreements, including lode exploration, placer gold production, and construction material sales in 2016
  • 44% of all employees at the Upper Kobuk Minerals Projects, including contractor hires, were NANA shareholders in 2016
  • Many Alaska Native corporations have taken the opportunity to develop businesses that serve the mining sector, including: The Kuskokwim Corporation, Central Council Tlinglit & Haida Indian Tribes of Alaska, Goldbelt, Inc., Kake Tribal Corporation, Klukwan, Inc., Prince of Wales Tribal Enterprise Consortium, and Tyonek Native Corporation

Each year AMA commissions the McDowell Group to research the economic impact of Mining in Alaska. Continued investments by the mining industry ensure Alaska’s continued economic growth.

Economic Impact of Mining in Alaska, 2016
Economic Impact of Mining in Alaska, 2014
Economic Impact of Mining in Alaska, 2013
Economic Impact of Mining in Alaska, 2012
Economic Impact of Mining in Alaska, 2011 (summary, 1,243K)
Economic Impact of Mining in Alaska, 2011 (full report, 2,347K)
Economic Impact of Mining in Alaska, 2010 (summary, 3,359K)
Economic Impact of Mining in Alaska, 2009 (summary, 1,121K)
Economic Impact of Mining in Alaska, 2008 (summary, 1,320K)
Economic Impact of Mining in Alaska, 2007 (summary, 1,121K)
Economic Impact of Mining in Alaska, 2006 (summary, 969K)
Economic Impact of Mining in Alaska, 2006 (full report, 3,879K)