Legislature(2021 - 2022)BARNES 124
03/08/2022 01:00 PM House RESOURCES
Note: the audio ![]()
and video ![]()
recordings are distinct records and are obtained from different sources. As such there may be key differences between the two. The audio recordings are captured by our records offices as the official record of the meeting and will have more accurate timestamps. Use the icons to switch between them.
| 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
ALASKA STATE LEGISLATURE
JOINT MEETING
HOUSE TRANSPORTATION STANDING COMMITTEE
HOUSE RESOURCES STANDING COMMITTEE
3:14 p.m.
DRAFT
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.
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.
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."
JEREMY BRANS, General Manager
Kinross Fort Knox
Juneau, Alaska
POSITION STATEMENT: Answered questions during the presentation
by Advocates for Safe Alaska Highways.
RYAN ANDERSON, Commissioner Designee
Office of the Commissioner
Department of Transportation & Public Facilities
Juneau, Alaska
POSITION STATEMENT: Answered questions during the presentation
by Advocates for Safe Alaska Highways.
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, 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], dated 3/8/22. He
explained that Kinross, a value-based company, was one of the
world's largest gold producers that took a legacy approach to
new projects. Fort Knox celebrated 25 years of operation in
Fairbanks with total contributions 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 was an open pit gold mine
near Tetlin, Alaska with a 45-year life prediction and
estimated total production of one ounces of gold. Production
would start in 2024 and bring hundreds of good paying jobs to
the region with an average annual wage of $130,000, boosting the
local economy. The anticipated cost was over $1 billion for the
course of the project.
3:36:26 PM
MR. BRANS conveyed that Tetlin were Upper Tanana Athabascans
with a predominantly subsistence lifestyle. The land was owned
entirely by the Tetlin Village, not part of Alaska Native Claims
Settlement Act (ANCSA). 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. The ore transport plan was the only way to make
a profit on the project due to the difficulty of amortizing a
medium size deposit; it would also reduce the environmental
impact at the project site. However, residents and users of the
Alaska and Richardson Highways may experience increased road
traffic along the route.
3:49:33 PM
CHIEF MICHAEL SAM, Chief, Village of Tetlin, shared that as
elected Tetlin Tribal chief, his primary job was to look out for
the physical, social, and financial well-being of his Tribe
members. The Manh Choh project exacts long-term revenue and
funding opportunities and would help train the workforce with
transferrable skills to other projects in Alaska. The project
team was 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 committee
questions, Chief Sam stated that Manh Choh would provide more
opportunities for the people of Tetlin. His goal was to
implement water sewer infrastructure with the money coming in
from the project, employ Alaskans, and boost the local economy.
The population of Tetlin was 125, of which 50 were able-bodied
employees; Tribal membership was around 300 members.
4:05:20 PM
MR. BRANS resumed the presentation on the topic of the ore
transport plan. The trucks were 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 (DOT&PF) on the Kinross ore tucking 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 was
DOT&PF's top priority. The department had attended Kinross's
public meetings and supported the legal use of state highways.
The route from Manh Choh to Fort Knox was classified as an
interstate highway that had been maintained by a fair amount of
federal funds. The department was working with its federal
partners to evaluate the use of the corridor in a way that
addressed 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. The department was
considering investment in Richardson Highway with the addition
of passing lanes with or without Manh Choh. 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 (ASAH).
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 was opposed to the transportation plan, not
the mine itself, and 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 (ASAH), described
the Kinross trucking proposal as an unprecedented logistical
plan on a scale that had never been done before. He shared
statistics on the potential impact to the road system. In
addition, Kinross had not submitted a peer reviewed safety plan.
MS. SCHUMANN and MR. COOK continued the presentation by
discussing accident liability. They posited that Kinross would
not claim responsibility for accidents based on an explosion at
a Kinross gold mine in Ghana in January 2022. The state may be
targeted for liability based on the common law duty of due care
for highways users. To date, there had been no analysis of
capital and maintenance costs, and the Richardson highway was in
need of care. The route was a DOT&PF priority two for winter
maintenance. Driving 192 to 384 semi-trucks at 80 tons each
would hinder the air quality in the Fairbanks North Star
Borough. ASAH asked the following of Kinross and the state:
hold public forums, consider alternatives, task DOT&PF, the
Department of Conservation (DEC), and the Department of Law
(DOL) to initiate an analysis of the transport plan, and address
potential liability and State Implementation Plan (SIP) impacts.
5:04:00 PM
JEREMY BRANS, General Manager, Kinross Fort Knox, indicated that
Kinross would continue to hold public forums. He said ASAH was
not offering productive conversations or solutions and
falsifying calculations. Per DOT&PF, road improvements for the
corridor were already in the works.
RYAN ANDERSON, Commissioner Designee, Office of the
Commissioner, Department of Transportation & Public Facilities
(DOT&PF), 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 (SOP)
would be in place. $50 million would not cover the cost of a
new mill. Wetlands would be minimally impacted. Kinross
considered alternatives, such as railroad convoys, pioneer
roads, building a mill; however, the options were not
economically feasible. The trucking plan was precedented
throughout the U.S. and Alaska, he added.
5:35:34 PM
ADJOURNMENT
There being no further business before the committee, 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 |
| 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 |
| 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 |
| 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 |