Page 1

3.3 BILLION

PEBBLE

POUNDS OF MOLYBDENUM (MEASURED & INDICATED)

2.3 BILLION

POUNDS OF MOLYBDENUM

WHERE IS IT & WHAT’S THERE?

(INFERRED)

67 MILLION

· 200 air miles southwest of Anchorage, Alaska · 100+ air miles from Bristol Bay · State of Alaska land designated for mineral exploration and potential development.

OUNCES OF GOLD

(MEASURED & INDICATED)

40 MILLION OUNCES OF GOLD (INFERRED)

55 BILLION

26 BILLION

POUNDS OF COPPER (INFERRED)

POUNDS OF COPPER (MEASURED & INDICATED)

THE U.S. IMPORTS

35%-40% OF ITS COPPER FROM PEBBLE WOULD FOREIGN SOURCES - U.S. Geological Survey

EXPAND

WHY DOES PEBBLE MATTER? comes from oil, funding everything from roads to

bring, even more important. In the Lake & Peninsula Borough, these jobs matter even more. Jobs in-region mean reversing

16%

IS MORE THAN

1 BILLION

$

Contributions to GSP.

ALASKA MINING TAX REVENUE

13%

EDUCATION & HEALTH SERVICES

EMPLOYMENT IN THE BRISTOL BAY REGION Of the eligible workers, 63% have some type of

40%

job. Of that, only 35% worked year-round.

LOCAL GOVERNMENT

ALASKA STATE TAX & ROYALTY CONTRIBUTIONS The numbers reported for the Potential Subsequent Development phase are based on one additional 20-year production cycle.

50

%

ALASKA

PERMANENT FUND

INITIAL PRODUCTION ANNUAL

CREATED ANNUALLY

$1.14B–$1.435B

Annual average for Alaska and the Lower 48 during Initial Production Phase

the trend of economic and social decline.

CONSTRUCTION CUMULATIVE $135M

INITIAL PRODUCTION CUMULATIVE

IN LOCAL, STATE & FEDERAL TAXES

$3.4B–$4.5B

Cumulative estimated contribution during Initial Production Phase

25-YEAR CUMULATIVE TAXES State Taxes State Royalty Payments

2.87B–$3.77B

$

525M–$725M

POTENTIAL SUBSEQUENT DEVELOPMENT CUMULATIVE $6.1B–$6.9B 20-YEAR CUMULATIVE TAXES State Taxes State Royalty Payments

POPULATION DECLINED

21%

BOROUGH RESIDENTS LIVING BELOW THE POVERTY LINE*

10%

MORE THAN DOUBLE THE STATE AVERAGE OF 9.5%

*2007-2011 American Community Survey 5-Year Estimates, U.S. Census

POPULATION DECLINED

25%

LAKE & PENINSULA BOROUGH

POPULATION DECLINED

NONDALTON LEVELOCK

44%

5.22B–$5.82B

CONTRIBUTIONS

900M–$1.10B

$

Cumulative estimated contribution to U.S. GDP during Initial Production Phase

The lack of year-round jobs and industry diversity in Southwest Alaska leads to many people leaving local communities.

- U.S. Census Data 2000, 2010

$

OUTMIGRATION IN SOUTHWEST ALASKA

PEBBLE COULD ADD 10,000 ALASKA JOBS...

...AND BILLIONS OF DOLLARS TO ALASKA’S ECONOMY.

Estimated jobs across Construction, Initial Production and one Subsequent Development phases—the kinds of jobs that change lives and communities.

During the Initial Production Phase, the project could expand Alaska's economy by $1.1 - $1.4 billion annually—plus $2.14 - $2.36 billion annually in any single potential subsequent development phase.

www.facebook.com/PebbleProject 

www.twitter.com/PebbleProject 

15,000 $ REVENUE 18 BILLION $ ECONOMIC 64 BILLION JOBS

$400M

$

PEBBLE PROJECT

OF ALL ROYALTIES ALLOCATED TO THE

$2.14B–$2.36B

REVENUE

What would that mean to people, businesses and governments?

THE ECONOMIC VALUE OF THE

PEBBLE ROYALTIES TO ALASKA

POTENTIAL SUBSEQUENT DEVELOPMENT ANNUAL

9%

TRADE, TRANSPORTATION & UTILITIES

DURING INITIAL PRODUCTION PEBBLE COULD MORE THAN

ANNUAL OPERATING BUDGET

CONTRIBUTIONS TO ALASKA

MANUFACTURING

DISTRIBUTION OF SOUTHWEST ALASKAN RESIDENT WORKERS

DOUBLE

THE PEBBLE PROJECT’S PROJECTED

- Based on 2011 initial production levels of 1.1 million metric tons.

schools to the Permanent Fund. Diversifying makes projects like Pebble—and the jobs it could

The project would include various infrastructure investments, including a multi-modal port, power plant and a transportation corridor. This infrastructure would likely create additional value for the local communities, including potentially lower power expenses, lower shipping costs and economic growth and diversification.

ECONOMY

PRODUCTION BY

OTHER

funding for Alaska's long-term economic stability

JOBS, REVENUE AND ECONOMIC CONTRIBUTIONS FOR ALASKA

CONSTRUCTION ANNUAL

U.S. COPPER

22%

In Alaska, 93% of the state’s unrestricted revenue

THE PEBBLE PROJECT

The Pebble Limited Partnership (PLP) has the potential to develop one of the most significant discoveries of copper, gold, molybdenum and silver in the world.

www.linkedin.com/company/pebble-ltd.-partnership 

www.pebblepartnership.com


3.3 BILLION

PEBBLE

POUNDS OF MOLYBDENUM (MEASURED & INDICATED)

2.3 BILLION

POUNDS OF MOLYBDENUM

WHERE IS IT & WHAT’S THERE?

(INFERRED)

67 MILLION

· 200 air miles southwest of Anchorage, Alaska · 100+ air miles from Bristol Bay · State of Alaska land designated for mineral exploration and potential development.

OUNCES OF GOLD

(MEASURED & INDICATED)

40 MILLION OUNCES OF GOLD (INFERRED)

55 BILLION

26 BILLION

POUNDS OF COPPER (INFERRED)

POUNDS OF COPPER (MEASURED & INDICATED)

THE U.S. IMPORTS

35%-40% OF ITS COPPER FROM PEBBLE WOULD FOREIGN SOURCES - U.S. Geological Survey

EXPAND

WHY DOES PEBBLE MATTER? comes from oil, funding everything from roads to

bring, even more important. In the Lake & Peninsula Borough, these jobs matter even more. Jobs in-region mean reversing

16%

IS MORE THAN

1 BILLION

$

Contributions to GSP.

ALASKA MINING TAX REVENUE

13%

EDUCATION & HEALTH SERVICES

EMPLOYMENT IN THE BRISTOL BAY REGION Of the eligible workers, 63% have some type of

40%

job. Of that, only 35% worked year-round.

LOCAL GOVERNMENT

ALASKA STATE TAX & ROYALTY CONTRIBUTIONS The numbers reported for the Potential Subsequent Development phase are based on one additional 20-year production cycle.

50

%

ALASKA

PERMANENT FUND

INITIAL PRODUCTION ANNUAL

CREATED ANNUALLY

$1.14B–$1.435B

Annual average for Alaska and the Lower 48 during Initial Production Phase

the trend of economic and social decline.

CONSTRUCTION CUMULATIVE $135M

INITIAL PRODUCTION CUMULATIVE

IN LOCAL, STATE & FEDERAL TAXES

$3.4B–$4.5B

Cumulative estimated contribution during Initial Production Phase

25-YEAR CUMULATIVE TAXES State Taxes State Royalty Payments

2.87B–$3.77B

$

525M–$725M

POTENTIAL SUBSEQUENT DEVELOPMENT CUMULATIVE $6.1B–$6.9B 20-YEAR CUMULATIVE TAXES State Taxes State Royalty Payments

POPULATION DECLINED

21%

BOROUGH RESIDENTS LIVING BELOW THE POVERTY LINE*

10%

MORE THAN DOUBLE THE STATE AVERAGE OF 9.5%

*2007-2011 American Community Survey 5-Year Estimates, U.S. Census

POPULATION DECLINED

25%

LAKE & PENINSULA BOROUGH

POPULATION DECLINED

NONDALTON LEVELOCK

44%

5.22B–$5.82B

CONTRIBUTIONS

900M–$1.10B

$

Cumulative estimated contribution to U.S. GDP during Initial Production Phase

The lack of year-round jobs and industry diversity in Southwest Alaska leads to many people leaving local communities.

- U.S. Census Data 2000, 2010

$

OUTMIGRATION IN SOUTHWEST ALASKA

PEBBLE COULD ADD 10,000 ALASKA JOBS...

...AND BILLIONS OF DOLLARS TO ALASKA’S ECONOMY.

Estimated jobs across Construction, Initial Production and one Subsequent Development phases—the kinds of jobs that change lives and communities.

During the Initial Production Phase, the project could expand Alaska's economy by $1.1 - $1.4 billion annually—plus $2.14 - $2.36 billion annually in any single potential subsequent development phase.

www.facebook.com/PebbleProject 

www.twitter.com/PebbleProject 

15,000 $ REVENUE 18 BILLION $ ECONOMIC 64 BILLION JOBS

$400M

$

PEBBLE PROJECT

OF ALL ROYALTIES ALLOCATED TO THE

$2.14B–$2.36B

REVENUE

What would that mean to people, businesses and governments?

THE ECONOMIC VALUE OF THE

PEBBLE ROYALTIES TO ALASKA

POTENTIAL SUBSEQUENT DEVELOPMENT ANNUAL

9%

TRADE, TRANSPORTATION & UTILITIES

DURING INITIAL PRODUCTION PEBBLE COULD MORE THAN

ANNUAL OPERATING BUDGET

CONTRIBUTIONS TO ALASKA

MANUFACTURING

DISTRIBUTION OF SOUTHWEST ALASKAN RESIDENT WORKERS

DOUBLE

THE PEBBLE PROJECT’S PROJECTED

- Based on 2011 initial production levels of 1.1 million metric tons.

schools to the Permanent Fund. Diversifying makes projects like Pebble—and the jobs it could

The project would include various infrastructure investments, including a multi-modal port, power plant and a transportation corridor. This infrastructure would likely create additional value for the local communities, including potentially lower power expenses, lower shipping costs and economic growth and diversification.

ECONOMY

PRODUCTION BY

OTHER

funding for Alaska's long-term economic stability

JOBS, REVENUE AND ECONOMIC CONTRIBUTIONS FOR ALASKA

CONSTRUCTION ANNUAL

U.S. COPPER

22%

In Alaska, 93% of the state’s unrestricted revenue

THE PEBBLE PROJECT

The Pebble Limited Partnership (PLP) has the potential to develop one of the most significant discoveries of copper, gold, molybdenum and silver in the world.

www.linkedin.com/company/pebble-ltd.-partnership 

www.pebblepartnership.com


JOBS

PERCENTAGE OF RESIDENT WORKERS IN ALASKA

Pebble could create thousands of jobs. These are estimates, but here’s how we see the employment numbers breaking down over the three main phases of the project.

Pebble expects to hire 75% of its direct operations workforce from within Alaska, and has committed to ensuring that local applicants will receive priority consideration based on qualifications and merit. How does that compare with other industries?

WHERE ARE THEY? STATE GOVERNMENT 93.5%

WHAT KIND OF JOBS? GOOD, YEAR-ROUND JOBS!

Pebble is a world-class project with the potential to employ generations of Alaskans, across a wide range of industries—from environmental scientists and mechanics to power plant operators, clerks and security guards.

ALASKA

LOWER 48

DIRECT

DIRECT

2,525 JOBS

INDIRECT 925 JOBS

INDUCED

0 JOBS

TOTAL ALASKA JOBS

4,725 JOBS

1,275 JOBS

INDIRECT

6,250 JOBS

TOTAL LOWER 48 JOBS

INDUCED

5,200 JOBS

DIRECT

14,715

DIRECT

915 JOBS

INDIRECT 1,175 JOBS

TOTAL AK + U.S. JOBS

11,450 JOBS

INITIAL PRODUCTION (25 Years) 305 JOBS

TOTAL ALASKA JOBS

2,890 JOBS

INDUCED

INDIRECT 6,070 JOBS

TOTAL LOWER 48 JOBS

TOTAL AK + U.S. JOBS

11,825 JOBS

CONTRIBUTIONS TO LOCAL, STATE & NATIONAL CONSTRUCTION 79.6%

68.2% RESIDENT

MINING 68.2%

75K $ 63K CONSTRUCTION 5 YEARS

SEAFOOD PROCESSING 23.5%

WORKERS

23.5% RESIDENT

5,450 JOBS

ALASKA

INITIAL PRODUCTION

WORKERS

POTENTIAL SUBSEQUENT DEVELOPMENT*

2X

109K $ 72K

$

ALASKA AVG. OF $51K

114K $ 80K

$

DIRECT JOBS ALL JOBS*

DIRECT

DIRECT

350 JOBS

1,050 JOBS

INDIRECT 800 JOBS

TOTAL ALASKA JOBS

2,750 JOBS

INDUCED 900 JOBS

INDIRECT 7,150 JOBS

TOTAL LOWER 48 JOBS

TOTAL AK + U.S. JOBS

13,900 JOBS

INDUCED

6,400 JOBS

CONSTRUCTION 5 YEARS

$2.14B–$2.36B ANNUAL

PEBBLE PROJECT COULD PAY

THE LAKE AND PENINSULA BOROUGH

ANNUAL TAX RECEIPTS OF

29M TO $33M

$

38%

63K

$

HIGHER THAN LOWER 48 AVG. OF $46K

INITIAL PRODUCTION 25 YEARS

CONSTRUCTION

$1.175B

INITIAL PRODUCTION

$1.290B

POTENTIAL SUBSEQUENT DEVELOPMENT*

$1.520B

THAT CONTRIBUTION WOULD

INCREASE THEIR ANNUAL BUDGET

L&P BOROUGH SEVERANCE TAX REVENUE

22%

ALASKA STATE TAX REVENUE

MORE THAN

23%

DISTRIBUTION OF GOVERNMENT REVENUES DURING INITIAL PRODUCTION

66K

$

ALL JOBS*

ALASKA

SUBSEQUENT DEVELOPMENT 20 YEARS

CONSTRUCTION

- Over 2013 levels.

ANNUAL

CUMULATIVE FEDERAL

5

CONSTRUCTION

INITIAL PRODUCTION

25

$

POTENTIAL SUBSEQUENT DEVELOPMENT

20*

$

$

27M

136M-$180M

306M-$346M

TAX REVENUE

135M

$

$

CONSTRUCTION

3.4B-$4.5B

$

6.1B-$6.9B

$

IHS Global Insight was commissioned to assess the potential economic contributions of a “conceptual” Pebble Mine. Because the Pebble Project has not yet begun the permitting process, however, there is no definitive, approved and permitted development plan to evaluate. Therefore, IHS selected a snapshot of the project’s ongoing engineering plans to serve as a proxy and relied on preliminary planning information as key inputs for the economic models. This brochure summarizes those economic findings and includes additional data from the Pebble Environmental Baseline Document (2012). Currently, scientific studies and engineering work continue related to the deposit, and no final project design has been selected or approved at this time by the Pebble Partnership.

IHS HAS DIVIDED THE PROJECT INTO THREE MAIN AREAS:

Direct Jobs: Direct Pebble employees or full-time equivalent in contractors. Indirect Jobs: Created by Pebble’s need for infrastructure and supplies; product manufacturing, supply chains. Induced Jobs: Goods and services sector jobs created by spending from Direct and Indirect employment.

LOWER 48 STATES

CONSTRUCTION

5

CONSTRUCTION

114M

$

INITIAL PRODUCTION

25

$

POTENTIAL SUBSEQUENT DEVELOPMENT

20*

$

165M 195M

INITIAL PRODUCTION

8.5 $9.85 TO

BILLION

570M

POTENTIAL SUBSEQUENT DEVELOPMENT*

12.2 13.2

4.1B

$

3.9B

BILLION

$

$

910 MILLION

$

$

JOB CATEGORIES

51%

The revenue estimated for Pebble’s tax contribution to Alaska is based on a range of commodity price estimates.

CUMULATIVE

SOME KEY TERMS

Potential Subsequent Development: 20 Years IHS estimates that up to three additional 20-year production cycles are possible.

ANNUAL

FEDERAL TAX REVENUE

600% YEARS

ABOUT THIS DOCUMENT

Initial Production: 25 Years Conceptual timeframe for the purposes of this report.

ANNUAL

LOWER 48 STATE TAX REVENUE

* Average annual salary including direct, indirect and induced in Lower 48

Construction: 5 Years Five years of capital investment averaging $1.2B/year to construct mine site and facilities.

ANNUAL

4%

TAX CONTRIBUTIONS SUPPORT PROGRAMS

20 YEARS

25 YEARS

LOWER 48 SALARIES

59K

ANNUAL

SUBSEQUENT DEVELOPMENT

INITIAL PRODUCTION

* Average annual salary including direct, indirect and induced in Alaska

$

$1.14B–$1.435B

REVENUE

THAT’S

16,650

LOWER 48

ANNUAL

Contributions to GSP/GDP.

AVERAGE DURING INITIAL PRODUCTION

POTENTIAL SUBSEQUENT DEVELOPMENT (Potential for three subsequent 20-year production phases)

$400M

CONSTRUCTION

THAT’S OVER

ALASKA SALARIES $

LEISURE & HOSPITALITY 70.7%

Pebble could also have a significant impact on job creation in the Lower 48. These are mostly indirect and induced positions, created by the need for products such as steel and heavy equipment which cannot be sourced within Alaska.

INDUCED

800 JOBS

WORKERS

OIL & GAS 74.1%

16,175

CONSTRUCTION (5 Years)

93.5% RESIDENT

ECONOMY

*The numbers reported for the Potential Subsequent Development phase are based on one additional 20-year production cycle.

TO

$


JOBS

PERCENTAGE OF RESIDENT WORKERS IN ALASKA

Pebble could create thousands of jobs. These are estimates, but here’s how we see the employment numbers breaking down over the three main phases of the project.

Pebble expects to hire 75% of its direct operations workforce from within Alaska, and has committed to ensuring that local applicants will receive priority consideration based on qualifications and merit. How does that compare with other industries?

WHERE ARE THEY? STATE GOVERNMENT 93.5%

WHAT KIND OF JOBS? GOOD, YEAR-ROUND JOBS!

Pebble is a world-class project with the potential to employ generations of Alaskans, across a wide range of industries—from environmental scientists and mechanics to power plant operators, clerks and security guards.

ALASKA

LOWER 48

DIRECT

DIRECT

2,525 JOBS

INDIRECT 925 JOBS

INDUCED

0 JOBS

TOTAL ALASKA JOBS

4,725 JOBS

1,275 JOBS

INDIRECT

6,250 JOBS

TOTAL LOWER 48 JOBS

INDUCED

5,200 JOBS

DIRECT

14,715

DIRECT

915 JOBS

INDIRECT 1,175 JOBS

TOTAL AK + U.S. JOBS

11,450 JOBS

INITIAL PRODUCTION (25 Years) 305 JOBS

TOTAL ALASKA JOBS

2,890 JOBS

INDUCED

INDIRECT 6,070 JOBS

TOTAL LOWER 48 JOBS

TOTAL AK + U.S. JOBS

11,825 JOBS

CONTRIBUTIONS TO LOCAL, STATE & NATIONAL CONSTRUCTION 79.6%

68.2% RESIDENT

MINING 68.2%

75K $ 63K CONSTRUCTION 5 YEARS

SEAFOOD PROCESSING 23.5%

WORKERS

23.5% RESIDENT

5,450 JOBS

ALASKA

INITIAL PRODUCTION

WORKERS

POTENTIAL SUBSEQUENT DEVELOPMENT*

2X

109K $ 72K

$

ALASKA AVG. OF $51K

114K $ 80K

$

DIRECT JOBS ALL JOBS*

DIRECT

DIRECT

350 JOBS

1,050 JOBS

INDIRECT 800 JOBS

TOTAL ALASKA JOBS

2,750 JOBS

INDUCED 900 JOBS

INDIRECT 7,150 JOBS

TOTAL LOWER 48 JOBS

TOTAL AK + U.S. JOBS

13,900 JOBS

INDUCED

6,400 JOBS

CONSTRUCTION 5 YEARS

$2.14B–$2.36B ANNUAL

PEBBLE PROJECT COULD PAY

THE LAKE AND PENINSULA BOROUGH

ANNUAL TAX RECEIPTS OF

29M TO $33M

$

38%

63K

$

HIGHER THAN LOWER 48 AVG. OF $46K

INITIAL PRODUCTION 25 YEARS

CONSTRUCTION

$1.175B

INITIAL PRODUCTION

$1.290B

POTENTIAL SUBSEQUENT DEVELOPMENT*

$1.520B

THAT CONTRIBUTION WOULD

INCREASE THEIR ANNUAL BUDGET

L&P BOROUGH SEVERANCE TAX REVENUE

22%

ALASKA STATE TAX REVENUE

MORE THAN

23%

DISTRIBUTION OF GOVERNMENT REVENUES DURING INITIAL PRODUCTION

66K

$

ALL JOBS*

ALASKA

SUBSEQUENT DEVELOPMENT 20 YEARS

CONSTRUCTION

- Over 2013 levels.

ANNUAL

CUMULATIVE FEDERAL

5

CONSTRUCTION

INITIAL PRODUCTION

25

$

POTENTIAL SUBSEQUENT DEVELOPMENT

20*

$

$

27M

136M-$180M

306M-$346M

TAX REVENUE

135M

$

$

CONSTRUCTION

3.4B-$4.5B

$

6.1B-$6.9B

$

IHS Global Insight was commissioned to assess the potential economic contributions of a “conceptual” Pebble Mine. Because the Pebble Project has not yet begun the permitting process, however, there is no definitive, approved and permitted development plan to evaluate. Therefore, IHS selected a snapshot of the project’s ongoing engineering plans to serve as a proxy and relied on preliminary planning information as key inputs for the economic models. This brochure summarizes those economic findings and includes additional data from the Pebble Environmental Baseline Document (2012). Currently, scientific studies and engineering work continue related to the deposit, and no final project design has been selected or approved at this time by the Pebble Partnership.

IHS HAS DIVIDED THE PROJECT INTO THREE MAIN AREAS:

Direct Jobs: Direct Pebble employees or full-time equivalent in contractors. Indirect Jobs: Created by Pebble’s need for infrastructure and supplies; product manufacturing, supply chains. Induced Jobs: Goods and services sector jobs created by spending from Direct and Indirect employment.

LOWER 48 STATES

CONSTRUCTION

5

CONSTRUCTION

114M

$

INITIAL PRODUCTION

25

$

POTENTIAL SUBSEQUENT DEVELOPMENT

20*

$

165M 195M

INITIAL PRODUCTION

8.5 $9.85 TO

BILLION

570M

POTENTIAL SUBSEQUENT DEVELOPMENT*

12.2 13.2

4.1B

$

3.9B

BILLION

$

$

910 MILLION

$

$

JOB CATEGORIES

51%

The revenue estimated for Pebble’s tax contribution to Alaska is based on a range of commodity price estimates.

CUMULATIVE

SOME KEY TERMS

Potential Subsequent Development: 20 Years IHS estimates that up to three additional 20-year production cycles are possible.

ANNUAL

FEDERAL TAX REVENUE

600% YEARS

ABOUT THIS DOCUMENT

Initial Production: 25 Years Conceptual timeframe for the purposes of this report.

ANNUAL

LOWER 48 STATE TAX REVENUE

* Average annual salary including direct, indirect and induced in Lower 48

Construction: 5 Years Five years of capital investment averaging $1.2B/year to construct mine site and facilities.

ANNUAL

4%

TAX CONTRIBUTIONS SUPPORT PROGRAMS

20 YEARS

25 YEARS

LOWER 48 SALARIES

59K

ANNUAL

SUBSEQUENT DEVELOPMENT

INITIAL PRODUCTION

* Average annual salary including direct, indirect and induced in Alaska

$

$1.14B–$1.435B

REVENUE

THAT’S

16,650

LOWER 48

ANNUAL

Contributions to GSP/GDP.

AVERAGE DURING INITIAL PRODUCTION

POTENTIAL SUBSEQUENT DEVELOPMENT (Potential for three subsequent 20-year production phases)

$400M

CONSTRUCTION

THAT’S OVER

ALASKA SALARIES $

LEISURE & HOSPITALITY 70.7%

Pebble could also have a significant impact on job creation in the Lower 48. These are mostly indirect and induced positions, created by the need for products such as steel and heavy equipment which cannot be sourced within Alaska.

INDUCED

800 JOBS

WORKERS

OIL & GAS 74.1%

16,175

CONSTRUCTION (5 Years)

93.5% RESIDENT

ECONOMY

*The numbers reported for the Potential Subsequent Development phase are based on one additional 20-year production cycle.

TO

$


JOBS

PERCENTAGE OF RESIDENT WORKERS IN ALASKA

Pebble could create thousands of jobs. These are estimates, but here’s how we see the employment numbers breaking down over the three main phases of the project.

Pebble expects to hire 75% of its direct operations workforce from within Alaska, and has committed to ensuring that local applicants will receive priority consideration based on qualifications and merit. How does that compare with other industries?

WHERE ARE THEY? STATE GOVERNMENT 93.5%

WHAT KIND OF JOBS? GOOD, YEAR-ROUND JOBS!

Pebble is a world-class project with the potential to employ generations of Alaskans, across a wide range of industries—from environmental scientists and mechanics to power plant operators, clerks and security guards.

ALASKA

LOWER 48

DIRECT

DIRECT

2,525 JOBS

INDIRECT 925 JOBS

INDUCED

0 JOBS

TOTAL ALASKA JOBS

4,725 JOBS

1,275 JOBS

INDIRECT

6,250 JOBS

TOTAL LOWER 48 JOBS

INDUCED

5,200 JOBS

DIRECT

14,715

DIRECT

915 JOBS

INDIRECT 1,175 JOBS

TOTAL AK + U.S. JOBS

11,450 JOBS

INITIAL PRODUCTION (25 Years) 305 JOBS

TOTAL ALASKA JOBS

2,890 JOBS

INDUCED

INDIRECT 6,070 JOBS

TOTAL LOWER 48 JOBS

TOTAL AK + U.S. JOBS

11,825 JOBS

CONTRIBUTIONS TO LOCAL, STATE & NATIONAL CONSTRUCTION 79.6%

68.2% RESIDENT

MINING 68.2%

75K $ 63K CONSTRUCTION 5 YEARS

SEAFOOD PROCESSING 23.5%

WORKERS

23.5% RESIDENT

5,450 JOBS

ALASKA

INITIAL PRODUCTION

WORKERS

POTENTIAL SUBSEQUENT DEVELOPMENT*

2X

109K $ 72K

$

ALASKA AVG. OF $51K

114K $ 80K

$

DIRECT JOBS ALL JOBS*

DIRECT

DIRECT

350 JOBS

1,050 JOBS

INDIRECT 800 JOBS

TOTAL ALASKA JOBS

2,750 JOBS

INDUCED 900 JOBS

INDIRECT 7,150 JOBS

TOTAL LOWER 48 JOBS

TOTAL AK + U.S. JOBS

13,900 JOBS

INDUCED

6,400 JOBS

CONSTRUCTION 5 YEARS

$2.14B–$2.36B ANNUAL

PEBBLE PROJECT COULD PAY

THE LAKE AND PENINSULA BOROUGH

ANNUAL TAX RECEIPTS OF

29M TO $33M

$

38%

63K

$

HIGHER THAN LOWER 48 AVG. OF $46K

INITIAL PRODUCTION 25 YEARS

CONSTRUCTION

$1.175B

INITIAL PRODUCTION

$1.290B

POTENTIAL SUBSEQUENT DEVELOPMENT*

$1.520B

THAT CONTRIBUTION WOULD

INCREASE THEIR ANNUAL BUDGET

L&P BOROUGH SEVERANCE TAX REVENUE

22%

ALASKA STATE TAX REVENUE

MORE THAN

23%

DISTRIBUTION OF GOVERNMENT REVENUES DURING INITIAL PRODUCTION

66K

$

ALL JOBS*

ALASKA

SUBSEQUENT DEVELOPMENT 20 YEARS

CONSTRUCTION

- Over 2013 levels.

ANNUAL

CUMULATIVE FEDERAL

5

CONSTRUCTION

INITIAL PRODUCTION

25

$

POTENTIAL SUBSEQUENT DEVELOPMENT

20*

$

$

27M

136M-$180M

306M-$346M

TAX REVENUE

135M

$

$

CONSTRUCTION

3.4B-$4.5B

$

6.1B-$6.9B

$

IHS Global Insight was commissioned to assess the potential economic contributions of a “conceptual” Pebble Mine. Because the Pebble Project has not yet begun the permitting process, however, there is no definitive, approved and permitted development plan to evaluate. Therefore, IHS selected a snapshot of the project’s ongoing engineering plans to serve as a proxy and relied on preliminary planning information as key inputs for the economic models. This brochure summarizes those economic findings and includes additional data from the Pebble Environmental Baseline Document (2012). Currently, scientific studies and engineering work continue related to the deposit, and no final project design has been selected or approved at this time by the Pebble Partnership.

IHS HAS DIVIDED THE PROJECT INTO THREE MAIN AREAS:

Direct Jobs: Direct Pebble employees or full-time equivalent in contractors. Indirect Jobs: Created by Pebble’s need for infrastructure and supplies; product manufacturing, supply chains. Induced Jobs: Goods and services sector jobs created by spending from Direct and Indirect employment.

LOWER 48 STATES

CONSTRUCTION

5

CONSTRUCTION

114M

$

INITIAL PRODUCTION

25

$

POTENTIAL SUBSEQUENT DEVELOPMENT

20*

$

165M 195M

INITIAL PRODUCTION

8.5 $9.85 TO

BILLION

570M

POTENTIAL SUBSEQUENT DEVELOPMENT*

12.2 13.2

4.1B

$

3.9B

BILLION

$

$

910 MILLION

$

$

JOB CATEGORIES

51%

The revenue estimated for Pebble’s tax contribution to Alaska is based on a range of commodity price estimates.

CUMULATIVE

SOME KEY TERMS

Potential Subsequent Development: 20 Years IHS estimates that up to three additional 20-year production cycles are possible.

ANNUAL

FEDERAL TAX REVENUE

600% YEARS

ABOUT THIS DOCUMENT

Initial Production: 25 Years Conceptual timeframe for the purposes of this report.

ANNUAL

LOWER 48 STATE TAX REVENUE

* Average annual salary including direct, indirect and induced in Lower 48

Construction: 5 Years Five years of capital investment averaging $1.2B/year to construct mine site and facilities.

ANNUAL

4%

TAX CONTRIBUTIONS SUPPORT PROGRAMS

20 YEARS

25 YEARS

LOWER 48 SALARIES

59K

ANNUAL

SUBSEQUENT DEVELOPMENT

INITIAL PRODUCTION

* Average annual salary including direct, indirect and induced in Alaska

$

$1.14B–$1.435B

REVENUE

THAT’S

16,650

LOWER 48

ANNUAL

Contributions to GSP/GDP.

AVERAGE DURING INITIAL PRODUCTION

POTENTIAL SUBSEQUENT DEVELOPMENT (Potential for three subsequent 20-year production phases)

$400M

CONSTRUCTION

THAT’S OVER

ALASKA SALARIES $

LEISURE & HOSPITALITY 70.7%

Pebble could also have a significant impact on job creation in the Lower 48. These are mostly indirect and induced positions, created by the need for products such as steel and heavy equipment which cannot be sourced within Alaska.

INDUCED

800 JOBS

WORKERS

OIL & GAS 74.1%

16,175

CONSTRUCTION (5 Years)

93.5% RESIDENT

ECONOMY

*The numbers reported for the Potential Subsequent Development phase are based on one additional 20-year production cycle.

TO

$


3.3 BILLION

PEBBLE

POUNDS OF MOLYBDENUM (MEASURED & INDICATED)

2.3 BILLION

POUNDS OF MOLYBDENUM

WHERE IS IT & WHAT’S THERE?

(INFERRED)

67 MILLION

· 200 air miles southwest of Anchorage, Alaska · 100+ air miles from Bristol Bay · State of Alaska land designated for mineral exploration and potential development.

OUNCES OF GOLD

(MEASURED & INDICATED)

40 MILLION OUNCES OF GOLD (INFERRED)

55 BILLION

26 BILLION

POUNDS OF COPPER (INFERRED)

POUNDS OF COPPER (MEASURED & INDICATED)

THE U.S. IMPORTS

35%-40% OF ITS COPPER FROM PEBBLE WOULD FOREIGN SOURCES - U.S. Geological Survey

EXPAND

WHY DOES PEBBLE MATTER? comes from oil, funding everything from roads to

bring, even more important. In the Lake & Peninsula Borough, these jobs matter even more. Jobs in-region mean reversing

16%

IS MORE THAN

1 BILLION

$

Contributions to GSP.

ALASKA MINING TAX REVENUE

13%

EDUCATION & HEALTH SERVICES

EMPLOYMENT IN THE BRISTOL BAY REGION Of the eligible workers, 63% have some type of

40%

job. Of that, only 35% worked year-round.

LOCAL GOVERNMENT

ALASKA STATE TAX & ROYALTY CONTRIBUTIONS The numbers reported for the Potential Subsequent Development phase are based on one additional 20-year production cycle.

50

%

ALASKA

PERMANENT FUND

INITIAL PRODUCTION ANNUAL

CREATED ANNUALLY

$1.14B–$1.435B

Annual average for Alaska and the Lower 48 during Initial Production Phase

the trend of economic and social decline.

CONSTRUCTION CUMULATIVE $135M

INITIAL PRODUCTION CUMULATIVE

IN LOCAL, STATE & FEDERAL TAXES

$3.4B–$4.5B

Cumulative estimated contribution during Initial Production Phase

25-YEAR CUMULATIVE TAXES State Taxes State Royalty Payments

2.87B–$3.77B

$

525M–$725M

POTENTIAL SUBSEQUENT DEVELOPMENT CUMULATIVE $6.1B–$6.9B 20-YEAR CUMULATIVE TAXES State Taxes State Royalty Payments

POPULATION DECLINED

21%

BOROUGH RESIDENTS LIVING BELOW THE POVERTY LINE*

10%

MORE THAN DOUBLE THE STATE AVERAGE OF 9.5%

*2007-2011 American Community Survey 5-Year Estimates, U.S. Census

POPULATION DECLINED

25%

LAKE & PENINSULA BOROUGH

POPULATION DECLINED

NONDALTON LEVELOCK

44%

5.22B–$5.82B

CONTRIBUTIONS

900M–$1.10B

$

Cumulative estimated contribution to U.S. GDP during Initial Production Phase

The lack of year-round jobs and industry diversity in Southwest Alaska leads to many people leaving local communities.

- U.S. Census Data 2000, 2010

$

OUTMIGRATION IN SOUTHWEST ALASKA

PEBBLE COULD ADD 10,000 ALASKA JOBS...

...AND BILLIONS OF DOLLARS TO ALASKA’S ECONOMY.

Estimated jobs across Construction, Initial Production and one Subsequent Development phases—the kinds of jobs that change lives and communities.

During the Initial Production Phase, the project could expand Alaska's economy by $1.1 - $1.4 billion annually—plus $2.14 - $2.36 billion annually in any single potential subsequent development phase.

www.facebook.com/PebbleProject 

www.twitter.com/PebbleProject 

15,000 $ REVENUE 18 BILLION $ ECONOMIC 64 BILLION JOBS

$400M

$

PEBBLE PROJECT

OF ALL ROYALTIES ALLOCATED TO THE

$2.14B–$2.36B

REVENUE

What would that mean to people, businesses and governments?

THE ECONOMIC VALUE OF THE

PEBBLE ROYALTIES TO ALASKA

POTENTIAL SUBSEQUENT DEVELOPMENT ANNUAL

9%

TRADE, TRANSPORTATION & UTILITIES

DURING INITIAL PRODUCTION PEBBLE COULD MORE THAN

ANNUAL OPERATING BUDGET

CONTRIBUTIONS TO ALASKA

MANUFACTURING

DISTRIBUTION OF SOUTHWEST ALASKAN RESIDENT WORKERS

DOUBLE

THE PEBBLE PROJECT’S PROJECTED

- Based on 2011 initial production levels of 1.1 million metric tons.

schools to the Permanent Fund. Diversifying makes projects like Pebble—and the jobs it could

The project would include various infrastructure investments, including a multi-modal port, power plant and a transportation corridor. This infrastructure would likely create additional value for the local communities, including potentially lower power expenses, lower shipping costs and economic growth and diversification.

ECONOMY

PRODUCTION BY

OTHER

funding for Alaska's long-term economic stability

JOBS, REVENUE AND ECONOMIC CONTRIBUTIONS FOR ALASKA

CONSTRUCTION ANNUAL

U.S. COPPER

22%

In Alaska, 93% of the state’s unrestricted revenue

THE PEBBLE PROJECT

The Pebble Limited Partnership (PLP) has the potential to develop one of the most significant discoveries of copper, gold, molybdenum and silver in the world.

www.linkedin.com/company/pebble-ltd.-partnership 

www.pebblepartnership.com

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