New US climate law could lead to mining 'renaissance' in Alaska, causing excitement and concern

A rock hammer lies over a core sample from an Arctic deposit inside the Bornite core shed, a mineral deposit and exploration camp in the Ambler Mining District, 2021. (Loren Holmes / ADN)

Small-scale Australian prospectors sent geologists to state warehouses this spring to scrutinize old rock collections.

A geologist leveled a handheld scanner against rock samples pulled from a shelf at the Alaska Geological Materials Center in Anchorage. It was drilled in the Cantwell area decades ago by other mining companies.

They found what Discovery Alaska described to its shareholders as a “widespread presence” of lithium. This is the mineral used in rechargeable lithium-ion batteries, from iPhones to electric vehicles.

The company’s director, Jerko Zuvela, said it remains to be seen whether the lithium can be extracted profitably.

But mineral hunts highlight a growing global interest in so-called key minerals Used in solar panels, wind turbines and electric vehicles, they are increasingly powering the global economy.

Geologist Curt Johnson, curator of the Alaska Department of Natural Resources’ Alaska Geological Materials Center, stands near a box of mineral core samples from last month’s Coal Creek Prospect. (Bill Ross/ADN)

A recently passed $370 billion climate law, called the Inflation Reduction Act, has increased interest in Alaska, with many of these minerals likely to be mined. is attracting attention.

The law, which passed without a Republican vote last month, provides for tax cuts and could lead to more mining in the U.S. and Alaska, industry observers say. This includes his 10% tax deduction for the operating costs of U.S. companies that produce vital minerals.

Brett Watson of the University of Alaska Institute for Socioeconomic Studies said the new law could bring about a “renaissance” for Alaska’s mining industry.

But that is if the state can overcome many of the hurdles that often delay or stop mining projects, such as lack of roads and ports, high energy and development costs, and 20-year timelines for exploration and construction. is limited to

“We have rocks here in Alaska, but the question is whether we can take advantage of the opportunities,” he said.

Opposition from local residents and environmental groups to the mining proposal is also a factor. National-level conservation groups have hailed climate law as a major victory, but are concerned about how it will affect Alaska.

Rachel James is SalmonState’s Public Lands and Waters Officer. Taken in Anchorage on August 26, 2022. (Marc Lester/ADN)

“Myopic tracking of critical minerals in the name of climate change is no excuse for less oversight, less public involvement, and hastily building mines everywhere,” SalmonState said. Rachel James, Director of Public Lands and Waters, said.

“If there is to be more mining in Alaska, Alaskans must lead the way, and our rules and regulations reflect the fact that we live closer to land and water than most people. I do,” she said. “Some locations are identified as unsuitable for large-scale mining as part of the decision-making process.”

Alaska Leader Sees Opportunity

Alaskan political leaders have wasted no time since this law was passed They argue that in-state mining could help meet President Joe Biden’s goal of net-zero carbon emissions by 2050.

Specifically, the Biden-backed legislation encourages U.S. development of 50 minerals that were labeled as important by the U.S. Geological Survey earlier this year. They are considered economically and strategically important, and many are controlled by China and other potentially hostile countries, and are at risk of supply disruption.

Alaska’s key minerals include graphite and cobalt, which combine with lithium and other minerals to make lithium-ion batteries. Tin and Indium used in touchscreen coatings so you can operate apps at your fingertips. Zinc from his Red Dog mine, one of the world’s largest metal deposits, is used to keep solar panels and wind turbines from rusting.

Red Dog’s zinc and lead mining port is on the shores of the Chukki Sea south of Kivalina, seen in 2014. (Bob Hallinen/ADN)

At a key minerals conference held last month at the University of Alaska Fairbanks, which happened to be days after the climate law was passed, Alaskan politicians and others discussed the properties of the state’s minerals and how they compared them. They also sought streamlined federal permits.

“If we care about the environment, we need to produce resources in Alaska,” said Gov. Mike Dunleavy. “If we care about social justice, we need to produce resources here in Alaska. If we care about enriching people, not dictators, we need to produce resources here in Alaska.

Conservation groups were not on the summit agenda but did participate. They are concerned that interest in domestic minerals could lead to irresponsible mining. They want stronger mining laws.

Andrea Feniger, head of the Sierra Club’s Alaska chapter, said he fears Alaska will be “sold out” for mining due to climate change laws.

“While we are happy that (the Inflation Reduction Act) has addressed many climate issues, there are many terrifying possibilities for Alaska,” she said.

She said the U.S. needs to focus on making products more efficient and recycling renewable energy components and materials to reduce reliance on new mines.

Alaska’s mineral diversity “surpasses” most other states

Under climate law, renewable energy can support the national economy by creating more opportunities in manufacturing. Jane Nakano, Senior Fellow at the Center for Strategic and International Studies, said:

She said the United States has a unique opportunity to supplement China’s lead in important minerals. We have the resources, mining experience and financial capacity to increase mineral production, she said.

Jamie Jones of the U.S. Geological Survey’s Alaska Science Center in Anchorage said perhaps two-thirds of the 50 important minerals could be produced in Alaska, but their concentrations and other details are not available. He said he needed to know more.

“Alaska’s geology is incredibly diverse and the state is very large,” said Jones. “And what that means is a vital mineral resource diversity that actually surpasses most other states.”

Jamey Jones is a geologist at the US Geological Survey Alaska Science Center. Taken on Thursday, August 25, 2022. (Bill Roth/ADN)

In an ongoing effort to increase knowledge about Alaska’s important minerals, the U.S. Geological Survey recently gave the state $7 million for new geological surveys that were part of last year’s bipartisan infrastructure law. .

“The final frontier remains the frontier of critical mineral resource development,” said the agency’s director, David Applegate, at a conference on critical minerals.

The study will focus on more than a dozen important minerals that tin and indium geologists say are found throughout Alaska. Besides its use in touchscreens, indium is used in solar panels.

State geologists are also beginning to reanalyze more than 40,000 samples of river sediments for important minerals, said Melanie Werdon, chief of Alaska’s Mineral Resources Section.

One of the key perspectives is Mount Bokan in the eco-sensitive Tongass National Forest in southeastern Alaska. It contains important minerals such as neodymium and dysprosium, which are used in powerful magnets in large wind turbines. The mineral is also a rare earth element, which is often difficult to produce and comes mainly from China.

In northwest Alaska, the state also hosts the nation’s largest graphite deposit, owned by Graphite One, about 40 miles north of Nome.

Demand for graphite is rapidly increasing as the secondary battery market expands. However, according to the U.S. Geological Survey, it has not been manufactured in the United States since the 1950s. Most come from China.

Anthony Houston, head of Canada-based Graphite One, said the tax incentives could help the company’s projects, but details of the law are needed to better understand the potential benefits. is still being researched.

Graphite One hopes to create a US supply chain for the anode part of lithium-ion batteries, the main component of the battery.

The ore will be concentrated in Alaska and shipped to Washington, where electricity costs for manufacturing are cheaper, he said.

“This will allow the United States to become independent on the anode side,” he said. “This is huge.”

Controversial mining project seeks support amid push for renewable energy

Alaska also contains large amounts of untapped copper, geologists say. It is also important for renewable energy that conducts electricity with wires. However, it is not on the list of important minerals because it is produced in large quantities in Lower 48.

Huge amounts of copper are found in the controversial pebble deposits in the Bristol Bay region of southwestern Alaska, home to the world’s largest sockeye salmon fishery. Pebble developers highlight copper as a key component of green technology, from electric vehicles to the wires that connect renewable energy projects.

But after decades of exploration, failing to win federal support under multiple presidents and fears the mine could harm fisheries, conservation groups, local tribes , and continues to face strong resistance from members of Alaska’s congressional delegation.

Geologists say copper is also present elsewhere in Alaska, including the mineral-rich Ambler mining district in northwestern Alaska. Mining company Ambler Metals is investigating copper in deposits in this area at the foot of the Brooks Mountains north of the village of Kobuk.

Bornite Camp taken on July 24, 2021. Copper was discovered in the area in 1947, and his 328 m exploration shaft was drilled by Kennecott in the 1960s, demonstrating the potential of an economically viable mineral. In 1965, another large deposit was discovered near the Arctic Circle, increasing interest in mining in the area. Bornite is on NANA Regional Corporation land, and the North Pole is on national land about 15 miles northeast of Bornite. (Lauren Holmes/ADN)

It is also exploring the potential to produce zinc as well as cobalt, an important mineral mainly processed in China and mined primarily in the Democratic Republic of the Congo.

Ambler Metals CEO Ramzi Fawaz said the new law’s tax incentives could make his company’s projects more economical.

But the project also requires access from a 200-mile industrial highway pursued by Alaska’s financing agency, the Alaska Industrial Development and Export Authority.

This road is controversial. The move would open up mineral fields across northwestern Alaska, attracting opposition over concerns that it would harm the environment and subsistence hunting.

After lawsuits were filed by conservation groups and local tribal groups, the Biden administration put a permit for the road on hold for further environmental research.

Fawaz said the tax credit alone would not make the project viable.

“Without the Ambler Access project, there would be no mine,” he said.

Contributed by Daily News reporter Riley Rogerson.