Legislature(2023 - 2024)BUTROVICH 205
04/15/2024 03:30 PM Senate RESOURCES
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| Audio | Topic |
|---|---|
| Start | |
| SJR19 | |
| Presentation(s): Department of Natural Resources Next Generation Mineral Assessment in Alaska | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SJR 19 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| + | TELECONFERENCED | ||
ALASKA STATE LEGISLATURE
SENATE RESOURCES STANDING COMMITTEE
April 15, 2024
3:32 p.m.
MEMBERS PRESENT
Senator Click Bishop, Co-Chair
Senator Cathy Giessel, Co-Chair
Senator Bill Wielechowski, Vice Chair
Senator James Kaufman
Senator Forrest Dunbar
Senator Matt Claman
MEMBERS ABSENT
Senator Scott Kawasaki
COMMITTEE CALENDAR
SENATE JOINT RESOLUTION NO. 19
Supporting trade policies for the United States that hold China
and other countries accountable, reward leadership in clean
production standards, reward superior environmental performance,
support economic development, and support the rebuilding of
supply chains in the United States.
- MOVED CSSJR 19(RES) OUT OF COMMITTEE
PRESENTATION(S): DEPARTMENT OF NATURAL RESOURCES, NEXT
GENERATION MINERAL ASSESSMENT IN ALASKA
- HEARD
PREVIOUS COMMITTEE ACTION
BILL: SJR 19
SHORT TITLE: SUPPORTING CERTAIN US TRADE POLICIES
SPONSOR(s): RESOURCES
03/22/24 (S) READ THE FIRST TIME - REFERRALS
03/22/24 (S) RES
04/15/24 (S) RES AT 3:30 PM BUTROVICH 205
WITNESS REGISTER
JULIA OCONNOR, Staff
Senator Cathy Giessel
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented the explanation of changes from
Version B to S of SJR 19.
DAVE BANKS, Managing Director
Battle Group
Fairfax, Virginia
POSITION STATEMENT: Delivered a presentation related to SJR 19.
MELANIE WERDON, Director
Division of Geological & Geophysical Surveys
Department of Natural Resources (DNR)
Fairbanks, Alaska
POSITION STATEMENT: Co-presented the presentation on Next
Generation Mineral Assessment in Alaska.
JOHN CROWTHER, Deputy Commissioner
Department of Natural Resources (DNR)
Anchorage, Alaska
POSITION STATEMENT: Co-presented the presentation on Next
Generation Mineral Assessment in Alaska.
ACTION NARRATIVE
3:32:11 PM
CO-CHAIR CATHY GIESSEL called the Senate Resources Standing
Committee meeting to order at 3:32 p.m. Present at the call to
order were Senators Claman, Dunbar, Kaufman, Wielechowski, Co-
Chair Bishop, and Co-Chair Giessel.
SJR 19-SUPPORTING CERTAIN US TRADE POLICIES
3:32:57 PM
CO-CHAIR GIESSEL announced the consideration of SENATE JOINT
RESOLUTION NO. 19 "Supporting trade policies for the United
States that hold China and other countries accountable, reward
leadership in clean production standards, reward superior
environmental performance, support economic development, and
support the rebuilding of supply chains in the United States."
3:33:09 PM
CO-CHAIR GIESSEL solicited a motion.
3:33:11 PM
CO-CHAIR BISHOP moved to adopt the Committee Substitute (CS) for
SJR 19, work order 33-LS1498\S, as the working document.
3:33:46 PM
CO-CHAIR GIESSEL objected for purposes of discussion.
3:33:57 PM
JULIA OCONNER, Staff, Senator Cathy Giessel, Alaska State
Legislature, Juneau, Alaska, presented the explanation of
changes from Version B to S of SJR 19:
[Original punctuation provided.]
SENATE JOINT RESOLUTION 19
SUPPORTING CERTAIN U.S. TRADE POLICIES
Explanation of Changes
SENATE CS for Senate Joint Resolution 19 (RES)
Version 33-LS1498\B to 33-LS1498\S
The Senate Resource Committee adopted the following
changes:
• Updated title, technical change
• Page 2, lines 12 to include Russia along with
China as a focus of the resolution
3:34:28 PM
CO-CHAIR GIESSEL announced invited testimony on SJR 19.
3:35:02 PM
DAVE BANKS, Managing Director, Battle Group, Fairfax, Virginia,
delivered a presentation related to SJR 19. He gave a brief
overview of his work history. He said that he would be
discussing the challenges facing America and the threat of
Chinese and Russian aggression as well as Alaska's role in
helping to address these challenges. He stressed the need for a
new federal trade policy to help strengthen competitiveness,
increase supply chain security, bolster the economy, and create
well-paying jobs while holding major polluters (e.g. China)
accountable. He opined that Alaska would benefit from trade
policy that values high environmental and labor standards. He
commented that few states produce resources as "cleanly" as
Alaska and the industry in Alaska could serve as a model for the
rest of the world.
3:37:13 PM
MR. BANKS said that reversing the United States' decreasing
competitiveness in the national market is becoming a national
priority. US manufacturing output has fallen relative to foreign
competitors - particularly since China's entry into the World
Trade Organization (WTO). He stated that this cost the US
roughly 3.4 million jobs. He briefly described Chinese
production and trade practices.
3:38:20 PM
MR. BANKS moved to slide 2 and spoke to the maps depicting
China's increasing global dominance in importation from 2000 to
2021. He stated that this expansion has significantly decreased
access to gateway jobs from the lower to middle classes in the
United States. He shared a personal story to illustrate the
destructive impact of naïve trade policy. He emphasized the
impact this has on Americans' health and supply chain security.
The latter has an impact on key strategic sectors, including
strategically critical minerals.
3:40:41 PM
MR. BANKS moved to slide 3 and spoke to the production of
selected minerals based on country. He said that China is
wealthy in minerals - although not enough to achieve the goal of
dominating worldwide mineral trade. He said that gaining global
supremacy in mineral resource extraction and processing would
help China to secure its role as the world's factory and
increase China's power and influence. He explained that China
has reinforced its edge in domestic mineral production by
extending control of overseas mining interests. He briefly
explained this process. He stated that this is too risky for the
United States. He briefly discussed how China controls both
production and refining of various minerals and the impacts this
has on the global mineral supply chain.
3:41:45 PM
MR. BANKS briefly referred to slide 2 and reiterated that this
slide illustrates how China dominates in strategic minerals,
including extraction in Sub-Saharan Africa. He advanced to slide
4 and discussed Chinese controlled production of selected
minerals in Africa. He stated that the current trade regime
rewards "bad performers" such as China and Russia and ignores
the environmental superiority of American producers. He
emphasized that the United States leads with respect to reduced
emissions.
3:42:18 PM
MR. BANKS moved to [slide 5] and contrasted Chinese CO2
emissions with the United States' CO2 emissions. He emphasized
that from 2005 to 2020, the US led in cutting CO2 emissions and
briefly explained the data. He contrasted this with China's CO2
productions, which grew by 24 percent during the aforementioned
time period. He pointed out that China's emissions levels are
currently three times that of the US. He stated that the United
States is one of the cleanest countries in terms of the amount
of carbon needed for production. He referred to a 2020 report
published by the Climate Leadership Council that found US
manufactured products to be 40 percent more carbon efficient
than the world's average. He contrasted this with China's
manufactured products, which require at least three times more
carbon than in the US. He also contrasted this with Russian
manufactured products, which require at least four times more
carbon.
3:43:09 PM
MR. BANKS moved to [slides 7 and 8] and discussed America's
carbon efficiency across a variety of sectors compared to that
of select U.S. allies and China. He noted that mining and other
resource extraction activities in China are more than two times
as carbon intensive than in the US. For mining support services,
the gap is more than 5 times. He argued that resource production
in the US (including in Alaska) would displace "dirtier"
resource production overseas -particularly from China- and this
would reduce global emissions. He said that greenhouse gas life-
cycle emissions of coal, natural gas and oil vary by supplier.
3:44:08 PM
MR. BANKS moved to slide 9 and spoke to the 20-year life cycle
emissions from fossil fuels. He explained that Russian produced
natural gas, shipped via pipeline to Europe has roughly 41
percent higher life-cycle emissions than US liquified natural
gas (LNG) shipped to the same destination. Similarly, Russian
produced natural gas shipped via pipeline to China has 47
percent higher life-cycle emissions than US LNG exported to
China. He noted that this data reflects US Gulf Coast exports
and surmised that the numbers would be better if Alaskan exports
were included.
3:45:17 PM
MR. BANKS said that US producers would benefit from a policy
framework that rewards environmental performance. He argued that
this type of approach would drive efficiency gains across the
global fossil fuel supply chain, encouraging industries to
invest in advanced technologies and adopt best practices. He
said this would hold foreign competitors like Russia and China
accountable. He reiterated that current trade rules do not
reward US industry for its environmental performance; instead,
poor environmental performers such as Russia and China are
rewarded. He argued that this results in the off shoring of
domestic jobs and undermines socio-economic mobility in the US.
3:46:15 PM
MR. BANKS moved to slide 10 and said that America and its allies
are at a significant disadvantage, with Chinese dominance in
global trade and supply chains. He asserted that America must
work to wrest control of these critical supply chains from China
and Russia. He argued that a new trade policy would offer an
opportunity to bolster US economic and job security while
reducing the influence of American adversaries in the global
economy.
3:47:01 PM
CO-CHAIR GIESSEL removed her objection; finding no further
objection, CS SJR 19 was adopted.
3:47:19 PM
CO-CHAIR GIESSEL asked Mr. Banks to summarize the CS SJR 19.
3:47:28 PM
MR. BANKS replied that the purpose of the resolution is to send
a request to the federal government to reset US trade policy. He
clarified that CS SJR 19 does not specify a particular policy;
rather, it calls for a new trade policy that would hold foreign
polluters accountable and reward US industry for its
environmental performance.
3:48:15 PM
CO-CHAIR GIESSEL agreed with this summary. She added that this
would include raising awareness of the carefulness the US places
on the protection of air, water, and land. She pointed out that,
while Alaska has vast minerals, these are largely sent to China
for processing. Once they cross the border into China, they
become property of China. The Chinese government is then in
control of the export of these minerals, which poses challenges
when the US attempts to buy them back. She briefly discussed
several minerals that are produced at the Red Dog Mine and are
now banned from export in China. She asked Co-Chair Bishop if
her understanding is correct.
3:49:28 PM
CO-CHAIR BISHOP shared his understanding that this is correct.
3:49:42 PM
SENATOR KAUFMAN said that he is glad SJR 19 is being considered.
3:49:57 PM
CO-CHAIR GIESSEL thanked Senator Dunbar for proposing to hold
Russia accountable.
3:50:19 PM
CO-CHAIR GIESSEL opened public testimony on SJR 19; finding
none, she closed public testimony.
3:50:37 PM
CO-CHAIR GIESSEL solicited the will of the committee.
3:50:40 PM
CO-CHAIR BISHOP moved to report CSSJR 19, work order 33-
LS1498\S, from committee with individual recommendations and
attached fiscal note(s).
3:50:58 PM
CO-CHAIR GIESSEL found no objection and CSSJR 19(RES) was
reported from the Senate Resources Standing Committee.
3:51:03 PM
At ease
^PRESENTATION(S): DEPARTMENT OF NATURAL RESOURCES NEXT
GENERATION MINERAL ASSESSMENT IN ALASKA
PRESENTATION(S): DEPARTMENT OF NATURAL RESOURCES
NEXT GENERATION MINERAL ASSESSMENT IN ALASKA
3:53:00 PM
CO-CHAIR GIESSEL reconvened the meeting and announced a
presentation titled "Next Generation Mineral Assessment in
Alaska" delivered by Melanie Werdon and John Crowther from the
Department of Natural Resources (DNR).
3:53:45 PM
MELANIE WERDON, Director, Division of Geological and Geophysical
Surveys, Department of Natural Resources (DNR), Fairbanks,
Alaska, co-presented the presentation on Next Generation Mineral
Assessment in Alaska.
3:54:10 PM
MS. WERDON advanced to slide 2 and discussed different mineral
systems:
[Original punctuation provided.]
Goal: Exploring Alaska's Mineral Belts
"Mineral systems":
• Define favorable geologic belts for investigation
• Predict likely critical mineral co-products
Example:
• Porphyry Cu-Mo-Au: Copper, molybdenum, gold,
silver, lead, iron, zinc, tin, tungsten,
platinum-group, tellurium, arsenic, bismuth,
cobalt, gallium, germanium, indium, antimony
MS. WERDON briefly explained how mineral belts are formed. She
noted that many mineral belts are on state land, and many
include operating mines or major discoveries. She stated that
the Division of Geological and Geophysical Surveys (DGGS) is
targeting these areas for data collection.
3:55:12 PM
MS. WERDON advanced to slide 3 and discussed industry
expenditures and production value. She stated that from 2018-
2023, Alaska's mineral exploration expenditures were $1.23
billion. During this same timeframe. mineral development
expenditures were $2.16 billion, and total mineral production
value was $18.36 billion. She noted that this is a large sector
in Alaska's economy and explained that this presentation
considers how the Department of Natural Resources (DNR) can
facilitate future mineral exploration, which would help the
industry make new discoveries and help discoveries advance up
the pyramid (illustrated on slide 3) to become mines.
3:56:13 PM
MS. WERDON advanced to slide 4 and discussed modern prospecting:
[Original punctuation provided.]
Modern Prospecting is Data-Driven
Generalized Process:
• Compile all available geoscience data
• Process the data
• Apply Artificial Intelligence (AI) & Machine
Learning techniques
• Make sure AI results make sense
• Use prospectivity map to locate & field-test
targets
MS. WERDON explained that fieldwork is expensive and this is a
more cost-effective approach to exploration.
3:57:13 PM
MS. WERDON advanced to slide 5 and discussed the technology-
driven exploration future:
[Original punctuation provided.]
Technology-Driven Exploration Future
• Alaska is set up to gain major long-term benefits
from next-generation data gathering about our
mineral potential
• The more data we provide, the more exploration
and potentially development we can expect
• New technology hyperspectral scanners, airborne
geophysics, handheld XRF chemistry, data
bandwidth/storing capacity, and processing
techniques/Artificial Intelligence (AI)
• New demand boom for mineral commodities as
energy demand for renewables grows, world economy
expands, and energy markets evolve
• New support federal programs have significantly
expanded, with Alaska as a key target
MS. WERDON said that exploration is driven by many factors;
however, those listed here have a high level of impact.
3:58:59 PM
CO-CHAIR GIESSEL asked if any of these technologies are used to
better identify natural gas deposits.
3:59:18 PM
MS. WERDON replied yes. She said that it is not only the mineral
industry applying these techniques - they are also used in the
energy industry, specifically in the North Slope. She added that
this could also be applied to Cook Inlet.
3:59:42 PM
MS. WERDON advanced to slide 6 and explained hyperspectral
scanning technology:
[Original punctuation provided.]
New Technology: Hyperspectral Scanning
• Arrives at Geologic Materials Center - spring
2025
• Digitally preserve 500,000 feet of legacy core;
generate massive amounts of spectral data
• Leverage $50 billion in energy and mineral
exploration samples to facilitate new discoveries
• Build machine-learning datasets
• Provide global research access online
MS. WERDON said that the custom designed hyperspectral core
scanner was recently purchased. She noted that there are few of
these in the world and Alaska hopes to lead the technology
advantage.
4:00:53 PM
CO-CHAIR BISHOP asked for clarification of the third point on
slide 6. He questioned whether the state currently has $50
billion worth of core samples in the core shack.
4:01:13 PM
MS. WERDON replied that the core shack currently has roughly
half a million feet of materials. She explained that, if DNR
were to gather these core samples today, the current market
value of the resulting samples would be $50 billion.
CO-CHAIR BISHOP said that he wanted the record to reflect the
value of the materials currently in the core shack.
4:01:56 PM
CO-CHAIR GIESSEL clarified that the building he is referring to
is the Geologic Materials Center (GMC).
4:02:03 PM
JOHN CROWTHER, Deputy Commissioner, Department of Natural
Resources (DNR), Anchorage, Alaska, said that $50 billion is a
conservative estimate. He explained that some of the wells were
drilled long ago and were drilled in the $10 millions or $100
millions (at the time of drilling). He stated that some of these
can never be recovered, and this technology allows for the
preservation and/or expansion of the data provided by these
samples.
4:02:34 PM
MS. WERDON advanced to slide 7 and explained core scanning
technology:
[Original punctuation provided.]
New Technology: Core Scanning
Hyperspectral scanning provides:
• Cheaper, faster mineral identification
• Scalable geologic models
• 3D mappable alteration halos
• Superior pointers to mineralization
• Improved reservoir-quality datasets
• New data to help industry (oil & gas, CCUS,
geothermal, mineral, etc.)
MS. WERDON noted that the figure on the right (Umiat 18
hydrocarbon signature (in blue)) shows the first test scan from
the Umiat well on the North Slope. She contrasted the new
technology with identification that is done by hand and
emphasized that the former is more efficient and cost-effective.
She described "alteration signatures" and how they change.
4:04:15 PM
MS. WERDON advanced to slide 8 and explained airborne-geophysics
technology:
[Original punctuation provided.]
New Technology: Airborne-Geophysics
Gamma-ray spectrometry (radiometrics) maps trace
uranium, thorium, and potassium; helps find favorable
plutons and rare earths
Gravimetry maps slight variations in earth's
gravity, shows faults, basins, and high-density
orebodies
Electromagnetics maps conductive geology in 3D,
including graphite, massive sulfide ores, geothermal
reservoirs, and permafrost hazards
MS. WERDON explained that a gravity survey maps survey maps
slight variations in earth's gravity.
4:05:24 PM
MS. WERDON advanced to slide 9 and explained new technology in
the geochemistry realm:
[Original punctuation provided.]
New Technology: Geochemical Re-analysis
• New anomalies can be found by re-analyzing
historical samples with modern analytical methods
• Older data is missing some elements of interest
• Next focus: SW Alaska & Seward Peninsula
• Goal: complete re-analysis in Alaska's critical
mineral belts (red outlines) in 10 years
4:06:28 PM
CO-CHAIR GIESSEL noted that these are historical core samples
and inquired about the likelihood that some deposits have moved
due to seismic events.
4:06:49 PM
MS. WERDON replied that when the Denali Fault moved, DNR flew
over the fault and took measurements. She shared her
recollection that there was a 30 ft offset at one of the largest
offset points. She confirmed that deposits can shift over time
due to these types of fault motions. However, she explained that
the timeframe from collection to reanalysis for DNRs samples has
not been impacted by fault movement.
4:07:57 PM
MR. CROWTHER added that these new technologies allow for a
synthesis of the data. He explained that a variety of data sets
can show different types of responses over geologic time. This
allows for the collection of massive amounts of data that can be
used to understand trend changes over time.
4:08:54 PM
SENATOR DUNBAR asked about partnerships with federal agencies.
He commented that mineral belts could potentially be found on
federal or private land. He asked if this program is being used
for state and private land and if there is a way to share the
cost with private landowners.
4:10:03 PM
MS. WERDON replied that the Earth Mapping Resources Initiative
(EMRI) is for any land open to mineral entry (regardless of
landownership) that provides funding for this purpose. She added
that any state funding allocated to DNR is used for state land.
She said that partnerships are common and help DNR perform these
surveys. She noted that these partnerships benefit all involved.
If partners would like additional survey work done on their
land, DNR requires that the additional information be made
available to the public. She explained that the industry keeps
the majority of its data private and making this information
public (when done in partnership with the state) increases the
overall understanding of mineral resources in the state.
4:11:51 PM
MR. CROWTHER added that DNR is cognizant of the status of land
that is assessed. He reiterated that land available for mineral
entry is of primary focus - which generally does not apply to
federal lands. He explained that this is an applied exploration
to maximize development and increase the understanding of
resources within the state.
4:12:32 PM
MS. WERDON advanced to slide 10 and discussed new demand and
future forecasts of metals. She explained that the figure on the
left shows a forecasted increasing demand for energy transition
metals, while the figure on the right shows conventional metals.
Each is projected to 2050. She stated that all metal needs
trends increase.
4:13:15 PM
MS. WERDON advanced to slide 11 and gave an overview of the
Earth Mapping Resources Initiative program:
New Support: Earth MRI program
Earth Mapping Resources Initiative
• USGS geologic framework mapping program focused
on critical minerals
• Federal-State partnership between geological
surveys
• Three main components:
• Geophysical surveys (multiple types)
• Geologic mapping
• Geochemical mapping
• "Mineral systems" approach:
• Survey broad areas where the geology is
favorable for new discoveries
• Critical minerals often occur in the same
systems as conventional mineralstherefore,
need to understand the entire system
4:14:15 PM
MS. WERDON advanced to slide 12 and discussed how this new
support has led to an expanded footprint:
[Original punctuation provided.]
New Support: Major Expanded Footprint
• DGGS has a long-running program to survey
Alaska's mineral belts
• Earth MRI has immensely increased the rate and
quality of surveying dramatically
MS. WERDON referred to a map and bar graph on slide 12 and noted
that Earth MRI has resulted in drastic increases in survey
quality and rate within a few short years (DNR began utilizing
this program in 2020). She added that the bipartisan
infrastructure law gave a 5-year boost to the Earth MRI program.
She explained that this increased the rate at which DNR can
provide valuable data layers for Alaska's mineral belts.
4:15:06 PM
MS. WERDON advanced to slide 13 and explained DNRs survey of the
Kuskokwim Mineral Belt:
[Original punctuation provided.]
Targets: Kuskokwim Mineral Belt
• Starting Year 2 of 3-year plan to finish
Kuskokwim Mineral Belt focus area
• Region includes major deposits of critical and
conventional minerals
• Donlin Gold project
• Nixon Fork mine
• Illinois Creek project
• High interest & exploration potential in this
region
MS. WERDON said that the Kuskokwim mineral belt has a high
potential for gold and critical minerals.
4:15:57 PM
SENATOR CLAMAN asked if the Kuskokwim mineral belt is easily
identifiable on the map on slide 12.
4:16:14 PM
MS. WERDON identified the locations of the Kuskokwim Belt and
the Yukon-Tanana Uplands on the map on slide 12.
4:16:46 PM
MS. WERDON advanced to slide 14 and discussed the 2023 Kuskokwim
Magnetic Survey:
[Original punctuation provided.]
Targets: 2023 Kuskokwim Magnetic Survey
New aeromagnetic data from our 2023 survey
• Data show two suites of plutons:
• Magnetic highs: plutons associated with gold
and copper prospects (dashed outlines)
• Magnetic lows: plutons associated with tin-
silver prospects (dotted outlines)
• New exploration plays are clearly highlighted by
the data we expect staking and investment to
follow
4:17:49 PM
CO-CHAIR GIESSEL asked how the data was collected.
4:17:55 PM
MS. WERDON briefly explained that the figure on slide 13 was
created using a magnetometer aboard on a fixed-wing aircraft (or
a helicopter for mountainous regions). She said that the
magnetometer collects 40 data points per second and layers the
data collected over time. The image on slide 13 was created
using data collected over several months.
4:18:41 PM
MR. CROWTHER commented that the level of data gathering this
image represents is inconceivable to those working in previous
eras. He said that this is the equivalent of a lifetime or more
of work that can now be done over a season or two. He added that
prospectors from around the world can consider this data and
apply different perspectives. He commented that this is a
paradigm shift in the scope and scale of the available data.
4:19:26 PM
SENATOR CLAMAN shared that around 40 years ago he worked a grid,
gathering data using a magnetometer. He said that he marked data
points every 50 feet and asked if DGGS is essentially using the
same method, but from an airplane and with more frequent data
points.
4:20:14 PM
MS. WERDON replied yes. She explained that when DGGS began using
airplanes, the mapped location was visually estimated; current
methods use the global positioning system (GPS) and radar,
mapped in three dimensions. She reiterated that the magnetometer
is taking 40 readings per second.
4:20:49 PM
SENATOR CLAMAN commented on the contrast between data collection
from work done on foot, manually placing the magnetometer and
taking readings every 50 feet, to the current method which
provides a continual reading.
4:21:18 PM
MS. WERDON advanced to slide 15 and spoke to geological mapping
over the Yukon-Tanana Upland:
[Original punctuation provided.]
Targets: Yukon-Tanana Upland
• Currently mapping Alaska's most active mineral
belt the Yukon-Tanana Upland four operating
lode mines & numerous placer mines; many
exploration projects
• Enhanced funding allows mapping of entire mineral
belts simultaneously
• Technology advances in geochemistry and airborne
geophysics allow geologists to geologically map
Alaska's mineral belts better than before
4:22:08 PM
MS. WERDON advanced to slide 16 and discussed advancements in
geological mapping. She directed attention to the figure on the
lefthand side of slide 16 and noted that this was made in the
1960s. She explained that this figure is full of question marks
and many places were not visited. She contrasted this with the
figure on the righthand side of the slide, which is a sample of
DGGS's new, more detailed geologic mapping. She stated that this
map was informed by the geophysical interpretations. She pointed
out that this map uncovered many new faults, and offered
improved characterization of geologic units - which helps to
understand the area's mineral potential. She noted that this map
suggests new types of mineral deposits based on the geology of
the location. She emphasized the importance of the new
technology in making these discoveries.
4:22:53 PM
MS. WERDON advanced to slide 17 and spoke to results of DGGS'
geophysical surveys and mapping:
[Original punctuation provided.]
Results: New Claims, Revenue, and Activity
• DGGS' geophysical surveys and geologic mapping
helped drive industry exploration interest and
success in the Bonnifield District near Healy
• International investment, drilling, new
discoveries
MS. WERDON said that the map on slide 17 charts each data
release and noted that the number of claims increased.
4:23:45 PM
MS. WERDON advanced to slide 18 and offered the following
summary:
[Original punctuation provided.]
Conclusions
• All jurisdictions that want to be globally
competitive in attracting industry investment
provide regional-scale geoscience datasets
• New datasets mean new opportunities for industry
to identify exploration targets in Alaska,
utilizing modern tools such as Artificial
Intelligence
• Providing more datasets increases Alaska's
worldwide favorability ranking and builds our
reputation we fortunately enjoy very favorable
rankings in the industry standard Fraser
Institute Survey, and more data will help us
maintain and increase our ranking
4:24:34 PM
SENATOR KAUFMAN asked if the data is continuously corrected to
account for relative distance to the ground.
4:25:18 PM
MS. WERDON replied yes. She shared her understanding of this
process and the tools used. She emphasized that it is important
to maintain a constant elevation above the topography, as this
ensures that the instrument-to-ground distance remains the same.
She noted that it is possible to correct this; however, the
initial process is optimized.
4:26:07 PM
SENATOR KAUFMAN commented on the potential to tighten up the
data even further.
4:26:29 PM
SENATOR WIELECHOWSKI asked how much is spent annually to obtain
this information. He also asked what lands are chosen to survey
- specifically whether it is leased or unleased - and how the
information is released. He questioned whether a fee is charged
for the information or whether it is in the public domain.
4:26:57 PM
MS. WERDON said the information is free and can be downloaded
from the website. She asked him to repeat the last two
questions.
SENATOR WIELECHOWSKI asked how much is spent annually to gather
the data. He also asked how the surveyed land is chosen - and
whether it is existing leased area or any prospective areas.
MS. WERDON answered that they are flying the mineral belts and
restricting the surveys to land that is open to mineral entry.
She said that there are a couple of areas in the state with
mineral leases; however, this is generally on a claim-staking
basis. She briefly described the claim-staking process. With
respect to annual costs, she said that DGGS's annual funding has
increased dramatically due to Earth Mapping Resources Initiative
Program. She recollected that, for the previous year, the
federal funding for this program was $5.825 million and the
state match was roughly $2.75 million.
4:28:45 PM
SENATOR WIELECHOWSKI asked for clarification as to whether DGGS
is surveying land that is already staked or that has been leased
out to be mined.
4:28:57 PM
MS. WERDON clarified that the survey is continuous across the
area, which ensures a clean image and provides a continuous data
set (without holes). As a result, some of the land surveyed is
already staked. In this case, DGGS reaches out to whoever has
the claim to see if they would like to participate in the
survey.
4:29:36 PM
SENATOR WIELECHOWSKI asked if it is typical for this information
to remain free and if there is recoupment in instances where
companies use this free information and find a large amount of
minerals.
4:29:52 PM
MS. WERDON replied that, to her knowledge, this information is
typically given for free, because it entices industry into the
state. She added that there are studies in Australia and Canada
demonstrating high returns on the initial investment. She stated
that this is a way to attract industry jobs, exploration, and
claim-staking - and this is where the return on investment can
be found.
4:30:37 PM
SENATOR DUNBAR asked for clarification on the two countries
mentioned.
4:30:46 PM
MS. WERDON replied that [Australia and Canada] are the most
parallel jurisdictions that DGGS strives to emulate insofar as
the practices used are beneficial for Alaska.
4:31:32 PM
SENATOR DUNBAR commented that this is referring to the return on
investment. He asked what the revenue structures are in
[Australia and Canada]. He questioned whether they have a sales
tax or an income tax - or other ways to capture revenue. He
questioned whether Alaska is capturing revenue in the same (or
similar) ways. He surmised that the calculations from these
countries include a way to capture revenue.
4:32:02 PM
MS. WERDON replied that this is beyond her scope of knowledge.
She stated that the Division of Mining, Land and Water (DMLW)
deals with the revenue component of the mineral industry, while
DGGS works to generate the data that attracts industry to the
state.
4:32:30 PM
MR. CROWTHER added that DGGS could create a summary and provide
this to the committee at a later time; however, he emphasized
that this is not an area of DGGS expertise.
4:32:45 PM
SENATOR DUNBAR opined that it is an interesting way to look at
the calculation. He noted that there are several factors that
may be different in Alaska - e.g. many of the largest companies
in the industry are not based in Alaska, which may not be the
case in Australia. Therefore, those profits do not stay in
Alaska - while they might remain in Australia. He expressed a
desire to see some analysis of this issue and reiterated his
belief that the economics do not work the same way in Alaska as
they do in Canada and Australia.
4:33:48 PM
CO-CHAIR GIESSEL inquired about the investment in the people of
Alaska. She briefly discussed Alaska Resource Education (ARE), a
non-profit that educates students about opportunities in the
resource industry. She pointed out that ARE has programming that
is specifically geared toward encouraging young women to join
the resource industry in Alaska. She shared her belief that most
high school students would be interested in the technology used
to survey. She asked whether DGGS reaches out to young people in
Alaska and emphasized that many young people are leaving the
state and not returning. She opined that DGGS could offer a
tremendous opportunity that would excite young people.
4:35:00 PM
MS. WERDON replied yes and explained that DGGS visits schools
when there are opportunities to do so. She stated that there is
a worldwide shortage of geophysicists and encouraged everyone to
study physics and math. She said that, in some instances, DGGS
has trained people in order to meet the needs of the state.
4:35:59 PM
CO-CHAIR GIESSEL commented that as people reach retirement age,
a wealth of information is lost, and it is important that young
people be able to fill these gaps. She said that this is an
investment and return that is not monetary. She expressed
appreciation for DGGS speaking to young people and for the
presentation. She expressed hope that this information is shared
with high schools.
4:37:07 PM
MR. CROWTHER noted that Ms. Werdon has advertised DGGS
employment opportunities across the US. He encouraged those who
are interested to contact DGGS.
4:37:51 PM
MS. WERDON shared that she recently contacted every geophysics
professor in the US and Canada seeking a geophysicist.
4:38:01 PM
CO-CHAIR GIESSEL asked if she was successful in finding a
geophysicist.
MS. WERDON replied that she was able to find a geophysicist
through different means.
4:38:50 PM
There being no further business to come before the committee,
Co-Chair Giessel adjourned the Senate Resources Standing
Committee meeting at 4:38 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SJR 19 Sponsor Statement.pdf |
SRES 4/15/2024 3:30:00 PM |
SJR 19 |
| SJR 19, version B.pdf |
SRES 4/15/2024 3:30:00 PM |
SJR 19 |
| SJR 19 Fiscal Note 4.12.24.pdf |
SRES 4/15/2024 3:30:00 PM |
SJR 19 |
| SJR 19, version S.pdf |
SRES 4/15/2024 3:30:00 PM |
SJR 19 |
| SJR 19 Summary of Changes, version B to S.pdf |
SRES 4/15/2024 3:30:00 PM |
SJR 19 |
| SJR 19 Supporting Document_Greenhouse Gas Lifecycle Assessment.pdf |
SRES 4/15/2024 3:30:00 PM |
SJR 19 |
| SJR 19 Supporting Document_New Trade Regime Can Counter Chinese Supply Chain.pdf |
SRES 4/15/2024 3:30:00 PM |
SJR 19 |
| SJR 19 Dave Banks SRES Presentation 4.15.24.pdf |
SRES 4/15/2024 3:30:00 PM |
SJR 19 |
| DNR Mineral Assessment SRES Presentation 4.15.24.pdf |
SRES 4/15/2024 3:30:00 PM |