Red Dog’s dwindling ore is forcing the entire region to consider its future

The Red Dog excavation adjacent Kotzebue is 1 of nan largest zinc-lead mines successful nan world. (Google Earth)

The Red Dog excavation has been a immense economical motor for nan Kotzebue region for decades. But nan zinc and lead deposits nan excavation relies connected are moving debased and Red Dog whitethorn unopen down operations arsenic soon arsenic 2031. KOTZ’s Desiree Hagen has been pursuing this story.

The pursuing transcript has been lightly edited for clarity.

Ava White: If Red Dog closed really large of an economical deed would this be?

Desiree Hagen: So conscionable a small inheritance first. The Red Dog Mine produces astir 4% of nan world zinc supply. The onshore is owned by nan NANA Regional Corporation, while nan excavation itself is owned and operated by Canadian mining company, Teck Resources. Red Dog is often held up arsenic a occurrence communicative for really an world mining institution tin activity pinch an Alaska Native corporation.

And nan economical effect would beryllium tremendous if nan excavation closes down. In 2023, astir a 1000 NANA shareholders were moving for nan mine, which equates to astir $62 cardinal successful yearly wages to shareholder employees.

Here’s NANA’s Vice President of Lands Liz Cravalho.

“We cannot accent capable nan effect of Red Dog’s planned closure connected shareholders and nan region arsenic a whole,” said Cravalho. 

As Cravalho said, it’s not conscionable shareholders. Red Dog gross touches everything successful nan Northwest Arctic.

The Northwest Arctic Borough receives astir 80% of its gross from what’s known arsenic a costs successful lieu of taxes statement aliases PILT. So nan Red Dog excavation contributed astir $26 cardinal to nan Borough past year. That money helps support nan region’s schools, infrastructure projects and things for illustration h2o and sewer successful nan villages, moreover nationalist radio.

Red Dog gross besides supports different Alaska Native Corporations done 7(i) and 7(j) contributions which is simply a proviso of nan Alaska Native Claims Settlement Act. Since excavation operations began successful nan precocious 1980s, NANA said nan institution has shared astir $1.8 cardinal pinch different Alaska Native Corporations/ANCs. 

AW: Do you person a consciousness of really apt it is that Red Dog will unopen down?

DH: It’s kinda successful limbo. There are 2 deposits adjacent to nan excavation that Teck and NANA are looking astatine developing. If developed they could widen nan excavation life for decades. But earlier a determination is made, Teck needs to build a gravel roadworthy to entree nan deposits and do much exploratory work. Right now nan institution is waiting for a licence from nan Army Corps of Engineers earlier they are capable proceed. 

AW: What tin you opportunity astir these imaginable deposits?

DH: They are located astir 8 miles from Red Dog’s main operating site, connected authorities land, dissimilar Red Dog’s existent location which is connected NANA-owned land. This brings into mobility really those deposits would cookware retired economically some for NANA and nan authorities if they are developed. As acold arsenic nan deposits themselves – they are not easy accessible from nan aboveground and would require underground mining – which is different from nan unfastened pit mining Red Dog presently uses. Teck said they aren’t really capable to opportunity overmuch astir nan deposits until much exploration activity is done. 

AW: Do we cognize erstwhile Teck will make a decision?

DH: According to nan company, erstwhile Teck receives nan permits and nan exploratory activity originates it will return astir six years earlier they tin find if nan deposits are “economically and environmentally viable.”

That puts america really adjacent to nan planned 2031 closure of nan mine. But support successful mind, if Teck moves guardant pinch those deposits there’s still much activity that would person to beryllium done. Any awesome improvement would require biology permitting, a haul roadworthy to carrier ore, and a excavation would request to beryllium planned and constructed. It could beryllium a lengthy process.

Here’s what Teck typical Wayne Hall said successful a caller interview.

“I can’t really estimate connected nan timelines,” said Hall. “What I tin show you, it’s successful each of our champion interests to do immoderate we tin to shorten these timelines truthful that location is not a spread successful production.”

AW: Does nan borough person a scheme B if nan excavation doesn’t proceed producing ore?

DH: Both NANA and nan Northwest Arctic Borough person begun preparing. Last autumn NANA shareholders voted to found a money modeled aft nan Alaska Permanent Fund that puts Red Dog revenues speech to invest. This would guarantee that NANA shareholders will proceed to person sizable dividends erstwhile nan excavation yet closes – whether that’s successful 8 years aliases decades from now. 

The Borough who – retrieve – receives nan mostly of its gross from nan excavation has begun making fund cuts and is looking much earnestly astatine nan programs and services that it funds.  But, nan mobility of what will hap if aliases erstwhile nan excavation closes is simply a chat astatine each caller Borough meeting. Several Assembly members person called it a “difficult and ongoing” conversation.