Legislature(2021 - 2022)BARNES 124
03/08/2022 01:00 PM House TRANSPORTATION
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| Audio | Topic |
|---|---|
| Start | |
| Presentation(s): Kinross Gold Ore Trucking Proposal | |
| Presentation(s): Dot&pf and the Kinross Ore Trucking Proposal | |
| Presentation(s): Advocates for Safe Alaska Highways | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| + | TELECONFERENCED | ||
| + | TELECONFERENCED | ||
| += | HB 366 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
ALASKA STATE LEGISLATURE
JOINT MEETING
HOUSE TRANSPORTATION STANDING COMMITTEE
HOUSE RESOURCES STANDING COMMITTEE
3:14 p.m.
MEMBERS PRESENT
HOUSE TRANSPORTATION STANDING COMMITTEE
Representative Grier Hopkins, Chair
Representative Sara Hannan, Vice Chair
Representative Harriet Drummond
Representative Tom McKay
Representative Kevin McCabe
Representative Mike Cronk
HOUSE RESOURCES STANDING COMMITTEE
Representative Josiah Patkotak, Chair
Representative Grier Hopkins, Vice Chair
Representative Sara Hannan
Representative George Rauscher
Representative Mike Cronk
Representative Ronald Gillham
Representative Tom McKay
MEMBERS ABSENT
HOUSE TRANSPORTATION STANDING COMMITTEE
Representative Louise Stutes
HOUSE RESOURCES STANDING COMMITTEE
Representative Zack Fields
Representative Calvin Schrage
COMMITTEE CALENDAR
PRESENTATION(S): KINROSS GOLD ORE TRUCKING PROPOSAL
- HEARD
PRESENTATION(S): DOT&PF AND THE KINROSS ORE TRUCKING PROPOSAL
- HEARD
PRESENTATION(S): ADVOCATES FOR SAFE ALASKA HIGHWAYS
- HEARD
PREVIOUS COMMITTEE ACTION
No previous action to record
WITNESS REGISTER
JEREMY BRANS, General Manager
Kinross Fort Knox
Juneau, Alaska
POSITION STATEMENT: Gave a PowerPoint presentation on the
Kinross gold ore trucking proposal and answered questions during
the presentation by Advocates for Safe Alaska Highways.
MICHAEL SAM, Chief
Village of Tetlin
Tetlin, Alaska
POSITION STATEMENT: Offered invited testimony during the
presentation on the Kinross gold ore trucking proposal.
RYAN ANDERSON, Commissioner Designee
Office of the Commissioner
Department of Transportation & Public Facilities
Juneau, Alaska
POSITION STATEMENT: Gave a presentation on DOT&PF and the
Kinross gold ore trucking proposal and answered questions during
the presentation by Advocates for Safe Alaska Highways.
BARBARA SCHUMANN
Advocates for Safe Alaska Highways
Fairbanks, Alaska
POSITION STATEMENT: Co-presented a PowerPoint presentation,
titled "An Alaskan Plea for Safety."
JOHN COOK
Advocates for Safe Alaska Highways
Fairbanks, Alaska
POSITION STATEMENT: Co-presented a PowerPoint presentation,
titled "An Alaskan Plea for Safety."
ACTION NARRATIVE
3:14:41 PM
CHAIR GRIER HOPKINS called the joint meeting of the House
Transportation Standing Committee and the House Resources
Standing Committee to order at 3:14 p.m. Representatives
Hopkins, Patkotak, McKay, McCabe, Cronk, Gilham, Rauscher,
Hannan, and Drummond (via teleconference) were present at the
call to order.
^PRESENTATION(S): Kinross Gold Ore Trucking Proposal
PRESENTATION(S): Kinross Gold Ore Trucking Proposal
3:15:51 PM
CHAIR HOPKINS announced that the first order of business would
be a presentation on the Kinross gold ore trucking proposal.
3:18:19 PM
JEREMY BRANS, General Manager, Kinross Fort Knox, gave a
PowerPoint presentation, titled "Manh Choh Project Update" [hard
copy included in the committee packet]. He explained that
Kinross, a value-based company, was one of the world's largest
gold producers which took a legacy approach to new projects.
Fort Knox celebrated 25 years of operation in Fairbanks with a
total contribution of $127 million in property taxes, $50
million in state taxes, and 715 direct jobs. He emphasized
Kinross's positive impact on local and host communities. The
Manh Choh project is an open pit gold mine near Tetlin, Alaska,
which has a 4-to-5-year life expectation, with an estimated
total production of one million ounces of gold. Production
would start in 2024, bringing hundreds of good paying jobs to
the region with an average annual wage of $130,000, boosting the
local economy. The anticipated cost would be over $1 billion
for the course of the project.
3:36:26 PM
MR. BRANS conveyed that the Tetlin Village consists of Upper
Tanana Athabascans with a predominantly subsistence lifestyle.
The land is owned entirely by the Tetlin Village, which is not
part of the Alaska Native Claims Settlement Act. He noted
Kinross's effort to foster relationships in the area with the
Tetlin Tribe and stakeholders. The new business model was to
mine the ore at Manh Choh and truck it to Fort Knox using
existing infrastructure. Because of the difficulty of
amortizing a medium size deposit, the ore transport plan was the
only way to make a profit on the project; it would also reduce
the environmental impact at the project site. However,
residents and users of the Alaska Highway and Richardson Highway
may experience increased road traffic.
3:49:33 PM
MICHAEL SAM, Chief, Village of Tetlin, shared that, as elected
chief, his primary job is to look out for the physical, social,
and financial wellbeing of the Tribe members. The Manh Choh
project would create long-term revenue, fund opportunities, and
train the workforce with transferrable skills to other projects
in Alaska. The project team has been in constant communication
with the community, keeping them informed every step of the way
to ensure that Tribal culture and traditions were protected. In
response to the committee's questions, Chief Sam stated that
Manh Choh would provide more opportunities for the people of
Tetlin. His goal is to implement water and sewer
infrastructure, employ Alaskans, and boost the local economy.
The population of Tetlin is 125, of which 50 are able-bodied
employees. He added that Tribal membership is around 300
members.
4:05:20 PM
MR. BRANS resumed the presentation on the topic of the ore
transport plan. He explained that the trucks are similar to
double fuel and cargo trailers with a payload of 45 tons,
driving at an estimated 2 to 4 trucks per hour in each
direction. Kinross and its trucking partners promised to
implement a strong safety culture through recruitment, training,
driver safety, structured contracts, real-time vehicle
monitoring, purpose-built equipment, and a commitment to drive
to conditions.
^PRESENTATION(S): DOT&PF and the Kinross Ore Trucking
Proposal
PRESENTATION(S): DOT&PF and the Kinross Ore Trucking
Proposal
4:19:32 PM
CHAIR HOPKINS announced that the next order of business would be
a presentation by the Department of Transportation & Public
Facilities on the Kinross ore trucking proposal.
4:19:56 PM
RYAN ANDERSON, Commissioner Designee, Office of the
Commissioner, Department of Transportation & Public Facilities
(DOT&PF), stated that highway safety and fair access is DOT&PF's
top priority. He stated that the department had attended
Kinross's public meetings and supported the legal use of state
highways. The route from Manh Choh to Fort Knox is classified
as an interstate highway that had been maintained by a fair
amount of federal funds. The department is working with its
federal partners to evaluate the use of the corridor in a way
that addresses public and stakeholder concerns.
4:25:31 PM
COMMISSIONER DESIGNEE ANDERSON, in response to committee
questions, clarified that a formalized plan had not been
submitted by Kinross. An ideal plan would address DOT&PF
statutes, regulations, and safety aspects. He stated that the
department had already been considering investing in the
Richardson Highway by implementing passing lanes. This had been
considered with or without the Manh Choh project. He estimated
that building a new bridge on the Alaska Highway would be an
eight-to-nine-year project in total.
^PRESENTATION(S): Advocates for Safe Alaska Highways
PRESENTATION(S): Advocates for Safe Alaska Highways
4:36:51 PM
CHAIR HOPKINS announced that the next order of business would be
a presentation by the Advocates for Safe Alaska Highways.
4:37:33 PM
BARBARA SCHUMANN, Advocates for Safe Alaska Highways (ASAH),
gave a PowerPoint presentation, titled "An Alaskan Plea for
Safety" [hard copy included in the committee packet]. She
emphasized that ASAH is opposed to the transportation plan, not
the mine itself. She expressed concern about public safety,
infrastructure, liability, and environmental impact. She
believed that the project would take longer than four to five
years.
4:42:11 PM
JOHN COOK, Advocates for Safe Alaska Highways, described the
Kinross trucking proposal as an unprecedented logistical plan on
a scale that has never been done before. He shared statistics
on the potential impact to the road system. He added that
Kinross has not submitted a peer-reviewed safety plan.
MS. SCHUMANN continued the presentation by discussing accident
liability. She argued that Kinross had not claimed
responsibility for accidents based on an explosion at a Kinross
gold mine in Ghana in January 2022. If an accident were to
happen, she suggested that the state could be liable based on
the common law duty of due care for highway users.
MR. COOK resumed the presentation. He pointed out that, to
date, there has been no analysis of capital and maintenance
costs, and the Richardson highway needs care. He said the route
is a DOT&PF priority for winter maintenance. He argued that
driving 80-ton semitrucks from 192 to 384 miles would hinder the
air quality in the Fairbanks North Star Borough. He stated that
ASAH has asked the following of Kinross and the state: hold
public forums, consider alternatives, task DOT&PF, the
Department of Conservation, and the Department of Law to
initiate an analysis of the transport plan, and address
potential liability and State Implementation Plan impacts.
5:04:00 PM
MR. BRANS indicated that Kinross would continue to hold public
forums. He said ASAH has not been offering productive
conversations or solutions, and it has been falsifying
calculations. Per DOT&PF, road improvements for the corridor
were already in the works.
COMMISSIONER DESIGNEE ANDERSON, in response to committee
questions, said structural deficiencies in the bridges were
being monitored and addressed, but could handle the load.
MR. BRANS, in response to additional committee questions,
assured the committee that a standard operating procedure would
be in place. He said that $50 million would not cover the cost
of a new mill. He responded that wetlands would be minimally
impacted. He stated that Kinross has considered alternatives,
such as railroad convoys, pioneer roads, building a mill;
however, the options were not economically feasible. He
concluded that the trucking plan is precedent throughout the
U.S. and Alaska.
5:35:34 PM
ADJOURNMENT
There being no further business before the committees, the House
Transportation Standing Committee and the House Resources
Standing Committee meeting was adjourned at 5:35 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| ASAH Presentation - 3.8.2022.pdf |
HRES 3/8/2022 1:00:00 PM HTRA 3/8/2022 1:00:00 PM |
Manh Choh Project |
| ASAH Sheet - Executive Summary - 3.8.2022.pdf |
HRES 3/8/2022 1:00:00 PM HTRA 3/8/2022 1:00:00 PM |
Manh Choh Project |
| ASAH Sheet - Kinross by the Numbers - 3.8.2022.pdf |
HRES 3/8/2022 1:00:00 PM HTRA 3/8/2022 1:00:00 PM |
Manh Choh Project |
| ASAH Sheet - Letter to DOTPF Commissioner - 3.8.2022.pdf |
HRES 3/8/2022 1:00:00 PM HTRA 3/8/2022 1:00:00 PM |
Manh Choh Project |
| Kinross Presentation - 3.8.2022.pdf |
HRES 3/8/2022 1:00:00 PM HTRA 3/8/2022 1:00:00 PM |
Manh Choh Project |