Legislature(2001 - 2002)
02/06/2001 12:15 PM Senate RES
| Audio | Topic |
|---|
* 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 RESOURCES STANDING COMMITTEE
SENATE RESOURCES STANDING COMMITTEE
February 6, 2001
12:15 p.m.
HOUSE RESOURCES MEMBERS PRESENT
Representative Drew Scalzi, Co-Chair
Representative Hugh Fate, Vice Chair
Representative Joe Green
Representative Mike Chenault
Representative Lesil McGuire
Representative Gary Stevens
Representative Mary Kapsner
Representative Beth Kerttula
HOUSE RESOURCES MEMBERS ABSENT
Representative Beverly Masek, Co-Chair
SENATE RESOURCES MEMBERS PRESENT
Senator John Torgerson, Chair
Senator Robin Taylor
Senator Kim Elton
Senator Georgianna Lincoln
SENATE RESOURCES MEMBERS ABSENT
Senator Drue Pearce, Vice Chair
Senator Rick Halford
Senator Pete Kelly
OTHER LEGISLATORS PRESENT
Representative Ken Lancaster
Senator Gary Wilken
Senator Loren Leman
Senator Donny Olsen
COMMITTEE CALENDAR
MINING INDUSTRY BRIEFING
PREVIOUS ACTION
No previous action to record
WITNESS REGISTER
STEVEN BORELL, Executive Director
Alaska Miners Association, Inc.
3305 Arctic Number 202
Anchorage, Alaska 99503
POSITION STATEMENT: Gave an overview on Alaska minerals.
RON PLANTZ, Human Resources and Safety Manager
Kennecott Greens Creek Mining Company
P.O. Box 32199
Juneau, Alaska 99803
POSITION STATEMENT: Gave an overview of the production at
Greens Creek.
DAN GRAHAM
Usibelli Coal Mine, Inc.
P.O. Box 1000
Healy, Alaska 99743
POSITION STATEMENT: Gave an overview on the financial and
environmental impact of the Usibelli Coal Mine on Alaska.
TOM IRWIN, General Manager
Fort Knox Mine
Fairbanks Gold Mining Company
Number 1 Fort Knox Road
P.O. Box 73726
Fairbanks, Alaska 99707
POSITION STATEMENT: Gave a PowerPoint presentation regarding
the Fort Knox Mine.
KARL HANNEMAN, Alaska Regional Manager
Teck-Pogo, Inc.
(No address provided)
POSITION STATEMENT: Gave a PowerPoint presentation regarding
the Pogo project update.
CHARLOTTE MacCAY, Senior Administrator of Environmental Affairs
Cominco Alaska, Inc./Red Dog Mine
P.O. Box 1230
Kotzebue, Alaska 99752
POSITION STATEMENT: Gave an overview regarding the Red Dog
Mine.
ACTION NARRATIVE
TAPE 01-8, SIDE A [House Resources tape]
Number 0001
CHAIR JOHN TORGERSON of the Senate Resources Standing Committee
called the joint meeting of the House Resources Standing
Committee and the Senate Resources Standing Committee to order
at 12:15 p.m. Members present at the call to order were
Representatives Scalzi, Fate, Green, and Chenault, and Senator
Torgerson. Representatives Stevens, Kapsner, Kerttula, and
McGuire, and Senators Taylor, Elton, and Lincoln arrived as the
meeting was in progress.
Number 0120
STEVEN BORELL, Executive Director, Alaska Miners Association,
Inc., reviewed the format of the briefing and explained that the
order of the presenters was based on how close to completion of
their projects they are. He gave a basic industry overview on
Alaskan minerals [handout available in committee packet],
stating that prices for gold, silver, and most base metals have
remained depressed for the last several years. Worldwide
exploration has [decreased by 60 percent], while exploration in
Alaska has only decreased by 20 percent.
MR. BORELL noted that the two areas in which the mineral
industry holds interest in exploration are Nevada and Alaska.
He pointed out that many of the placer miners are barely able to
pay for fuel and wages, and some have "idled" right now,
maintaining their permits, until such time as the price goes
back up and they can go back to work. Mr. Borell stated that
Vancouver was the "real measure of exploration, almost
worldwide," adding that 77 percent of the exploration funds
spent in Alaska last year came from Canada. He noted that a
couple of "targets" had changed, with real interest developing
in platinum group elements and base metals, both of which occur
in Alaska. He predicted there would be some "new players" in
the state this year.
MR. BORELL mentioned new or renewed projects that would not be
discussed at length during this overview. First, Donlin Creek,
on Calista [Corporation] Native land, has "defined" 11.5 million
ounces of gold. Mr. Borell defined Donlin Creek as a
significant resource, but not a mine, noting that it had
infrastructure problems and lack of power in the area and was
not economical. Second, Illinois Creek, a fully air-supported
operation located approximately 50 miles south-southwest of
Galena, was in bankruptcy, but is no longer; the goal of the
people there is to mine enough gold to pay for the cost of
bringing the mine to closure. He mentioned that Illinois Creek
was working in cooperation with the Department of Natural
Resources (DNR).
MR. BORELL noted two highlights from last year's exploration.
First, on Doyan, Ltd. lands at Northway, North Star Exploration
has a lease with Doyon, and has found "some extremely good
intersections" that will lead to additional work in the area
this summer. Mr. Borell stated that a request had been made to
the Delta Mine training center to get some more drill-helper
training for the people at Northway. Second, 30 miles southwest
of Tok and 10 miles off the Tok cutoff is a project called
"Whitegold," which is a discovery on state lands.
MR. BORELL pointed out a map, supplied upon his request by DNR
and located on the last page of his handout, that shows the
statewide geophysical/geological mineral inventory, with "areas
that [DNR] has proposed for the future." Mr. Borell expressed
appreciation to the legislature for allocating the funds [that
make it possible to provide the map]. [In reference to the
map], Mr. Borell mentioned the interest level in Alaska [in
mining] and said, "I describe it like 'chumming' for fish, but
we're 'chumming' for mining companies, and every year they're
sitting there waiting, to watch for this new data and to see
what it looks like. And of course the data goes on the shelf
and is available for many years to come."
MR. BORELL asked the members to pay attention to the upcoming
budget discussions with DNR, reminding them to ask [DNR] about
the promises it made last year regarding claim processing and
the backlog of work. He stated his opinion that [DNR] has done
exactly what it promised to do.
Number 0153
RON PLANTZ, Human Resources and Safety Manager, Kennecott/Greens
Creek Mining Company, described Greens Creek as an underground
poly-metallic and surface concentrator, operating on only one-
half square mile of the 1,500 square-mile Admiralty Island,
south of Juneau. He showed the members pictures of the
facility. First was an aerial view of the "920" mine site, so
named for being located 920 feet above sea level, with the entry
portal underground and administration buildings visible on the
top left corner of the page. Also on the page were depicted the
ship-loading facility and the "dry-stack" tailings storage
facility. Mr. Borell stated that approximately half of the
[Greens Creek] tailing materials go back underground to fill the
holes that were dug, and the other half will be used to create a
hill that will eventually be capped and reclaimed.
MR. PLANTZ stated that [Greens Creek] had a record year and
achieved its budgeted production midway through December, and
had a record backfill year. He said [Greens Creek] completed a
$6 million cleaner cell project, which allowed for improved
metallurgical recovery, primarily from the zinc circuit, and
added to the profitability of the operation; it also completed a
$2.6 million tailings impoundment extension, extending out to
the boundaries of the leased land, providing a safe place to put
tailings for five years. The mine also completed a public
opinion survey through the McDowell Group, which turned out
favorably.
MR. PLANTZ stated that out of the 270 employees at Greens Creek,
85 percent are Alaskan-hire, with 75 percent of the total
workforce coming from the Juneau area and 10 percent coming from
the rest of Southeast Alaska and the Wasilla-Palmer area. He
stated that Greens Creek has a $6 million payroll, spends
approximately $6 million on local contractors, gave away $15,000
in philanthropic contributions, and spends approximately $80,000
a year in community-related activities, including "Gold Rush
Days."
MR. PLANTZ named the mill expansion of the cleaner circuit as
the major project for 2000, when Greens Creek also added
floatation cells and provided an opportunity for several local
contractors to work on the project. He told the members about a
plan for this coming year to add a 5-megawatt generator to the
power house at Greens Creek, which will provide a much cleaner
engine, as well as additional power and productivity for the
mill.
MR. PLANTZ also talked about an upcoming "payspill" (ph)
project. Currently, the mine hauls the backfill material in
trucks to fill up the holes that have been dug underground. Mr.
Plantz explained that the mine would be building a plant that
can turn the backfill material into a toothpaste-like material,
which then could be pumped into those holes and hardened in
place. Another project, called "Tails II permitting," he
described as an expansion of Greens Creek's tailing facility "to
encompass through the known reserves - known life - of the
mine." He added, "And we're currently reclaiming certain areas
- old waste piles, things like that - as we go, with different
types of capping technology and doing some experimentation
there." Mr. Plantz stated that the mining operation was a
"sustaining" one; in 2000 Greens Creek had a $.5 million program
for underground exploration, and replaced in reserves as much as
it took out.
MR. PLANTZ highlighted segments of a survey done by the McDowell
Group [available in the committee packet], which showed the
opinion of Juneau residents regarding Greens Creek. The results
showed that 82 percent of Juneau residents were aware of the
existence of Greens Creek, 42 percent through the newspaper,
followed by "friends and family." In the blind survey, Mr.
Plantz pointed out that Greens Creek and Princess Cruises were
listed as the two major contributors to charity in the Juneau
area. He read from the survey that over two thirds of Juneau
residents felt that the mine was doing a "fairly good job" of
protecting the environment.
Number 0248
DAN GRAHAM, Usibelli Coal Mine, Inc., pointed to a handout
summarizing the financial and environmental impacts of the
Usibelli Coal Mine on Alaska [available in the committee
packet]. He described Usibelli Coal Mine as a family-owned
company that has been in business since 1943; it currently
produces 1.5 million tons of coal a year for sale, with a goal
of 2 million tons in the next year to year and a half. Mr.
Graham emphasized that the energy market is presently very
competitive. He stated that to combat the decreasing revenues
in coal over the last few years, Usibelli has invested over $8
million in new equipment, larger trucks, and new loaders and
excavators in order to improve productivity and efficiency,
thereby lowering costs.
MR. GRAHAM gave a PowerPoint presentation detailing Usibelli
Coal Mine's sites, productivity, reclamation practices, and
goals for the future. He showed an image of the Poker Flats
mine, the main site in production since 1977, showing areas that
have been reclaimed. He stated that Poker Flats has produced 27
million tons of coal to date, which carries a value of nearly
$.5 billion and has "about 18 months remaining." He mentioned
areas "six," "four," and "three" that had been mined.
MR. GRAHAM defined reclamation, as it relates to coal mining, as
a "contemporaneous" activity: the company reclaims as it mines.
He described the process by which Usibelli does aerial reseeding
and fertilizing on reclaimed areas, planting approximately
25,000 seedlings annually, as well as building drainage channels
that minimize erosion. Over the next several years, Mr. Graham
said Usibelli will reclaim the total 900 acres from the mine
site at a total cost of over $9 million. He added that his
personal goal is to see the job done well enough to qualify in a
few years' time as a candidate for the governor's annual
reclamation award.
Number 0293
MR. GRAHAM showed an image of the next mine, called "Two Bull
Ridge." He explained that the process of starting a new mine is
a slow one: Between 1974 and 1987, Usibelli drove over 300
holes on the mine site and entered them into the database; from
1987 to 1994, Usibelli put its efforts into modeling, mine
planning, and design work; in 1994, the group moved into the
permitting phase; by 1996, the permit application was completed
and submitted to the state; and in late 1997, it was approved.
Mr. Graham made note that having a "stable permit atmosphere"
really helped the company out, because its people knew what was
expected. The next step, he said, was to spend two years
developing a road in the area. In 2000, Mr. Graham told the
members, [Usibelli] started developing the "box cut" and would
continue "stripping" there for the next 18 months in
anticipation of a "drag line" showing up. He mentioned 2,500
acres and a total permit area with up to 40 million tons of
coal, and an additional 5 millions of "waste coal." He defined
waste coal as that which does not meet [Usibelli's] existing
contract specification, but which can be burned at a new project
called the Healy Clean Coal Project.
Number 0317
MR. GRAHAM stated that the Healy Clean Coal Project ran for just
over 12 months, including a 90-day test burn, which surpassed
the targeted goal of 85 percent availability by an extra 10
percent, with emissions much lower than what was allowed under
the permit. He said that although the combustion and cleaning
technologies worked well, the question at hand was the financial
viability of running the plant. He stated an understanding that
AIDEA (Alaska Industrial Development and Export Authority) and
Golden Valley [Electric Association] were close to finishing a
study on how to make the plant acceptable to both parties. Mr.
Graham said [Usibelli] was ready to deliver coal to the Healy
plant at costs on a BTU basis that are about one-tenth of what
the recent gas prices have been in the Lower 48.
MR. GRAHAM highlighted another permit called the Rosalie Mine, a
"re-mining" of an old mine that's the old town site of Usibelli,
off the Healy Valley. He said it had been mined in the '50s and
'60s and was abandoned in the '70s. Mr. Graham told the members
that after the high-grade coal which had been left in the area
was mined, the plan was to "reclaim" the town site and work with
DNR's Division of Mining, Land and Water and with the Alaska
Department of Fish & Game (ADF&G) to create a lake that will be
used for recreation and fishing.
MR. GRAHAM mentioned another mine site called Wishbone Hill,
located near Palmer and Sutton. He described it as a "high-cost
producer" and said testing and "permit activities" were being
done to try to reduce the cost of mining. In conclusion, Mr.
Graham pointed to four new lease blocks called the Jumbo Dome
leases, which he predicted would cover energy needs for the next
ten years or more.
Number 0354
TOM IRWIN, General Manager, Fort Knox Mine, gave a PowerPoint
presentation illustrating many points from his handout [included
in the committee packet]. He stated that the mine had 91
percent local hire. He mentioned making it through the year
with zero loss and presently having over 900,000 man-hours
through January. Mr. Irwin stated there have been no notices of
alleged violation on the property since the mine began. He
mentioned a record run-time of 95.1 percent and nearly 363,000
ounces [of gold] at $203 per ounce, and emphasized the need to
keep the separation between the price of gold and the operation
costs.
MR. IRWIN showed an image of the new $3.4 million hydraulic
excavator and two out of nine of the 150-ton trucks, and he
stated, "We're still in manual bypass loading." He also showed
images of award-winning reclaimed wetlands that his company had
reseeded, and thanked ADF&G for its support in that program.
The members were shown other pictures of reclaimed areas as
well: a 3,500-acre water reservoir downstream from a tailings
facility; several thousand "catchable" [Arctic] grayling in the
reservoir, which were doing well, according to studies by ADF&G;
and several thousand "catchable" burbot. He said the estimate
this year for Arctic grayling in the wetlands is approximately
one million fry.
MR. IRWIN stated that when Fort Knox first began operation, the
price of gold was in the $371-an-ounce range and has dropped
considerably; 32 percent of the value was "the bottom point."
He pointed out that nothing could be done about the price of
gold, so the company at Fort Knox was focused on staying
competitive and not counting on the price going up. He said,
"We're here for the sustainability and the long haul." He
mentioned the relation between the changing cost per ounce of
gold and the company's operating costs and stated that what the
company is doing about the situation is a "project like True
North." Mr. Irwin explained that by mixing the lower-grade ore
with the higher-grade ore from True North, it raises the grade
to average. He mentioned remaining under $200 per ounce and
getting 10,000 tons a day from True North and 30,000 tons a day
from Fort Knox.
MR. IRWIN stated that his predecessors were considering mining
and milling at True North. Current management considered that
option, but decided there would be much less impact on the
environment if True North was used for mining only and the Fort
Knox facilities were used for the other processes in the
operation. He showed locations such as Cleary Summit and the
Steese Highway and explained that an extra million dollars was
spent to construct about 9.8 miles of road, including a bridge,
in order to create the least amount of impact to residents using
the Steese Highway.
MR. IRWIN said [the Fairbanks Gold Mining Company] would be
mining the Hindenburg and East pits, spending another $2 million
this year "for sustainability."
Number 0444
SENATOR LINCOLN asked how many acres comprise [the Hindenburg
and East pits] combined and how many acres are on "the other
sites."
MR. IRWIN estimated 1,500 to 2,000 acres and 7,700 acres,
respectively. He talked about routes to True North, and
complimented the people of the Mental Health Land Trust Office
for their involvement in planning the road locations in that
area. In closure, Mr. Irwin showed images of what the valley in
Fort Knox looked like in 1992 and present-day. In conclusion,
he mentioned the operation of True North and the intent to
continue to maintain the environment.
Number 0473
KARL HANNEMAN, Alaska Regional Manager, Teck-Pogo, Inc., gave a
PowerPoint presentation regarding the Pogo project update
[handout available in committee packet]. He told the members
that Pogo is located approximately 35 miles northeast of Delta
Junction in Interior Alaska. He listed the partners involved:
Sumitomo, a major, 700-year-old, worldwide mining company; and
Teck Corporation, a Vancouver-based company with 11 operations
worldwide. Mr. Hanneman outlined the various phases of the
operation that were completed: surface exploration, underground
exploration, and an environmental assessment and feasibility
study. He explained that the company was currently in the
permitting phase. Still ahead would be mine construction,
operation of the mine, and then reclamation and closure.
MR. HANNEMAN stated that Pogo would be an underground gold mine;
he showed a picture depicting 12- to 15-foot-thick gold veins
that were identified by surface drilling. He pointed to a 3-D
model of the two gold veins, which together have identified
about 5.6 million ounces of gold. He explained that once the
resource was identified, the company drove a tunnel underground
to find out engineering information such as rock strength and
water inflows.
MR. HANNEMAN showed a plan view of the tunnel, which was driven
beginning March 1999, about one mile in length. He said a road
had to be constructed in order to access the work on the tunnel,
a 50-man camp was made, and specialty mining equipment work was
done under Pogo Ridge.
MR. HANNEMAN detailed the concept for building a mine at Pogo:
First, they would build a shaft, so that the mill facility would
be established on top of the ridge, with a "virtual shaft" going
down to access the ore. Next, they would raise the ore up to
that mill and crush and grind it to recover the gold. Mr.
Hanneman mentioned replacing (indisc.) back underground, similar
to Greens Creek. To support the project, Mr. Hanneman said
Teck-Pogo is proposing an all-season access road and a power
line, which will enable the workers to haul in the 35,000 tons
of cement, fuel, and supplies necessary to support the mine. He
estimated the annual gold production would be about 15 tons a
year.
Number 0529
SENATOR WILKEN asked how much power was used.
MR. HANNEMAN answered approximately 10 million watts. He showed
a computer rendering of how the facility would look, including
the mill and camp on top of Pogo Ridge, the access road, and the
storage area for surplus tailings. Mr. Hanneman stated that
although the facility was 50 miles from the nearest access road,
it would be better situated there than in other parts of the
state. He discussed a proposed all-season route along what was
called the Shaw Creek hillside route.
MR. HANNEMAN addressed reclamation issues by stating that Teck-
Pogo's mine planning was heavily geared towards making sure that
the mine would be closed properly at conclusion. He told the
members that the total projected capital cost for the Pogo
project would be $200-250 million, with an annual production
cost of $125 million, $540 [million] for two years to construct
the mine, and $300 [million] to operate it. He said the mine is
predicted to run for about 12 years.
MR. HANNEMAN said Teck-Pogo is currently undergoing the
permitting process; the EPA [Environmental Protection Agency]
had begun the EIS [Environmental Impact Statement] as of August
2000, with the cooperation of the U.S. Army Corps of Engineers
and the State of Alaska. He stated that with an efficient
permitting process, the EIS process could be completed by next
winter. He said Teck-Pogo is finalizing its feasibility
studies. In regard to the draft [of the EIS], Mr. Hanneman said
public comment was expected.
Number 0557
CHARLOTTE MacCAY, Senior Administrator of Environmental Affairs
for Cominco Alaska Inc./Red Dog Mine, gave an overview of the
handout [available in the committee packet]. She stated that
Red Dog is the world's largest zinc mine; the next largest
deposit, in Australia, is half as large. She said the main pit
holds 42 million tons, while the one adjacent to it holds 56
million tons. Additionally, resources are still being defined
that add up to another 50 million tons. Ms. MacCay described
Red Dog as a district, rather than a mine, because the company
is investing $3.5 million into mineral exploration this summer
[2001] at three new sites. She added that, at this point, the
sites have great potential, but they present metallurgical or
infrastructure obstacles to be overcome in order to develop
development plans.
MS. MacCAY explained that people don't develop mines in such
remote situations without infrastructure, "unless it's
spectacular." She said a partnership with "NANA" Regional
Corporation, Inc. and support from AIDEA in funding and
infrastructure have made the Red Dog Mine possible. Ms. MacCay
cited the reasons that NANA selected Red Dog as its partner:
Red Dog's expertise in mining and its commitment to the
community. She stated that Red Dog has a shareholder-hire
preference, presently at 60 percent, and is working on raising
that percentage by offering scholarship programs, location
training, on-site apprenticeship, and job shadowing.
MS. MacCAY stated that Red Dog Mine is a major economic
influence on the region. The average wage is approximately
$71,000 a year. She pointed out that before Red Dog was there,
the average borough wage was far below the state average of
about $33,000.
MS. MacCAY announced that Red Dog Mine is "exploring on the
prospect and the potential to replace our 18 million gallons of
diesel consumption with natural gas." She explained that there
are shale beds within ten miles of the mine, which she stated
the people of Red Dog believe could probably be developed to
provide natural gas, once a permit has been obtained to pursue
that activity. She mentioned the possibility of supplying gas
to villages, whose power bills rival those of California
residents.
TAPE 01-8, SIDE B
MS. MacCAY stated that another potential way to help the local
villages with fuel would be to utilize the port site as a
distribution center for fuel to the region. She explained that
"the two boroughs" combined would have much greater negotiating
power to buy fuel in bulk. She said there are 15 million
gallons of fuel storage at "that port," and "if we convert to
gas, we won't need most of that - it would be available for the
region." The fuel could be barged into Red Dog, Ms. MacCay
said; however, an airstrip would be needed at that port facility
in order to distribute [the fuel] to the region. She mentioned
Department of Transportation and Public Facilities monies
available to fund a feasibility study for that. She stated the
intent to move the funds and get them allocated to AIDEA for a
feasibility study in time for the next allocation of federal
monies in July 2001. She listed the benefits of having the
airstrip at the port site: getting fuel into the villages at a
much lower cost, freeing space once used to store fuel, bringing
in a spill contractor much faster if there is a spill, and
increasing accessibility for Red Dog when its own airstrip is
weathered in, among others.
MS. MacCAY stated that the economic impacts of Red Dog have been
numerous; it spent over $150 million on Alaskan vendors and
services in 2000. She said direct wages to Cominco [Alaska]
employees were over $14 million, and she mentioned transport,
catering, and housekeeping services. Ms. MacCay told the
members [Cominco Alaska] pays the following: over $2.4 million
in the mining license tax to the state; over $6 million to NANA
in leases and royalties; over $10 million in payments to AIDEA,
which go to the state general fund; and $4 million in lieu of
taxes to the [Northwest Arctic] Borough, which supports the
school system in that area. She said that Red Dog lost $150
million in operating costs, but has begun to make a profit in
the last few years; while the profit for 2000 was $75 million,
the remaining debt is $968 million.
MS. MacCAY stated that the people at Red Dog like to strive to
be an environmental model. Streams in the area that held no
fish before the existence of the mine now have fish because of
the mine's process of collecting the naturally mineralized
water, using it, and treating it to much cleaner standards. She
pointed out the following ways that the people at [Cominco
Alaska] are working toward reasonable regulations: They are
supporting the motorized transport oil spill regulations, which
they believe to be both feasible and effective; they are working
with the Department of Environmental Conservation (DEC),
reviewing some proposed ambient air boundaries that are of
concern to the company; they are presently in the Ninth Circuit
Court of Appeals, involved in a joint suit by DEC and Cominco
[Alaska] against the EPA (Environmental Protection Agency)
regarding the state's authority to make decisions in air
permitting which would be recognized by EPA without its
interference. She added that oral arguments would be next week
and that a decision should be out in a few months.
Number 0539
SENATOR TAYLOR asked Mr. Plantz how many megawatts of
electricity were being used at Greens Creek. He stated that the
huge need for energy should be considered when studying the
mineral industry.
MR. PLANTZ answered, 6.8 on the island.
SENATOR TAYLOR asked what the economic impact of the legislation
passed was on Mr. Plantz's facility, stating that he could not
recall whether it was 12 full hours, or just 10.
MR. PLANTZ replied it was the legislation from 1996 that allowed
10 hours at the base, which resulted in approximately an 11-to-
12-percent improvement in efficiency.
SENATOR TAYLOR stated that it was a significant controversy in
the legislature at the time, and "it's policy calls like that,
that make some of these projects feasible, where they'll
actually operate and continue to work." He explained that he
had brought the subject up not just because of the California
energy crisis, but because [Alaska] has significant reserves of
power in the Rail Belt that will reach to Fairbanks and other
areas. He said one of the reasons that the mine at Fort Knox is
operating today is because of some of the power generation that
has been done.
Number 0520
SENATOR LEMAN stated his recollection that the Rosalie Mine had
been abandoned and asked Mr. Graham if that could be a prospect
for using a Senate bill passed several years ago.
MR. GRAHAM answered that [Usibelli] has an application ready to
submit for that, and DNR would "determine that." He said
[Usibelli] has submitted applications on other properties that
weren't accepted "because they were already near the permitting
phase."
Number 0513
SENATOR LINCOLN asked Mr. Hanneman to comment on the use of
technology in relation to environmental concerns, both now and
in the future.
MR. HANNEMAN responded that with respect to planning a mine, all
the geological information is put on a computer database as a 3-
D model, so that the model can be built "in real space." He
said technology is used in training at the universities; he
commented on the support from the legislators in that regard.
Mr. Hanneman told the members about the use of remote-control
vehicles run from the surface during mining operations,
concluding that what a mine looks like and how it is operated is
changing rapidly.
Number 0486
REPRESENTATIVE FATE asked Mr. Borell if growth revenue reports
on the entire mineral industry, exclusive of the oil and gas
industry, were available.
MR. BORELL answered that the numbers on an annual report
produced by the State of Alaska last year combined the totals of
exploration, development, and production; he recalled that last
year was the fifth consecutive year that the total equaled over
$1 billion. He added that the mines represented [at the present
hearing] made the largest contribution to [that total].
Number 0478
REPRESENTATIVE KERTTULA asked the presenters if the state's
technology was keeping pace with that of the industry.
MR. BORELL responded that DNR has made incredible strides in
automating the paperwork process and that both DNR and DEC have
always been willing to get a third party to provide expertise in
any area where it's lacking.
REPRESENTATIVE KERTTULA inquired who would pay for that
expertise.
Number 0460
MR. IRWIN stated that True North just completed its permitting
process, and the individuals at DNR very capably kept up with
"masses of data." He encouraged [the legislators] to continue
their support of DNR in its efforts to keep up with the
technology, adding that the people in DNR, who spend many nights
and weekends to keep up with the work, deserve that support.
Number 0452
REPRESENTATIVE GREEN asked a question regarding mine sites
finding sources of energy and sharing those [sources] with
nearby communities.
MS. MacCAY replied that it would take a greater demand than two
villages combined would have, to actually do production at a
village. She mentioned a hope of developing more shale gas. In
response to a follow-up question by Representative Green, she
said that there was no negative [response] concerning his
suggestion; in fact, her company is very excited about the idea
and would like to provide a model that others can emulate.
ADJOURNMENT
There being no further business before the committees, the joint
meeting of the House Resources Standing Committee and the Senate
Resources Standing Committee was adjourned at 1:17 p.m.
| Document Name | Date/Time | Subjects |
|---|