FEATURES
06
Coeur Alaska sells half of Alaskan gold to China
beginning and who will participate in the economic benefits Kensington will provide,” Dennis E. Wheeler, More than 60,000 ounces of Alaska’s Chairman, President and Chief gold, annually, is to be purchased by Executive Officer of Coeur, said on China. the Coeur D’Alene Mines Corp.’s In a landmark trade agreement, website. China’s largest gold producer will Coeur has a history of purchase approximately half of the gold environmentally friendly, award produced at Kensington Gold Mine. winning mining. The company, Kensington Gold Mine, owned by which is one of the world’s leading Coeur D’Alene Mines Corp. with its silver producers, has collected over subsidiary Coeur Alaska Inc., is the first 20 national and international awards U.S. precious metal mine to be involved for their dedication to safety and in a trade with a company owned by the environmental awareness. People’s Republic of China, according to Kensington Gold Mine, which Coeur. includes nearby Jualin properties, Coeur announced the contract on received the Hardrock Mineral June 22. The agreement is the beginning Community Outreach and Economic of a long-term relationship with China Security Award in 2006 from the National Gold Group Corp., an enterprise Bureau of Land Management. that produces 20 percent of China’s gold After 900 environmental studies, and shares 30 percent of China’s gold public feedback and agency reviews, resources. Coeur established an effective Kensington Gold Mine, located 45 means of recovering the gold, miles northwest of Juneau, is expected dealing with the left over material to produce an average of 125,000 ounces and maintaining an aesthetically of gold per year for just over 12 years of satisfactory landscape. PHoTo CoURTESy of CoEUR ALASKA production. While cyanide is a common “Gold production began on June The Kensington Gold Mine’s mill sits at the base of Lions Head Mountain. The mine is anticipated to produce up to 125,000 chemical used to retrieve gold in 24,” Tony Ebersole said, Director of ounces of gold concentrate annually. Approximately half of this gold is contracted to be sold to China National Gold Group. mining, it raised concerns with Corporate Communications at Coeur local residents, according to Coeur school of thought that it’s mostly just a strategy of securing sources of resources: Alaska. d’Alene Mines Corp. “We’re looking iron, aluminum, oil,” Johnson said. “It’s at about 50,000 ounces of production this bubble that will eventually fall.” “Instead, the gold will be recovered Gold prices fl uctuate constantly and it kind of encouraging that they are thinking using a flotation process. This involves year.” Coeur does not own any refineries, is possible that, by the end of Kensington’s of Alaska for a long-term relationship. It’s use of degradable flocculants, detergents making it necessary for them to sell their life, prices could be radically different than helpful for us when economic situations and air to produce bubbles, which the gold today. go bad because it means that we have a mineral attaches to and is then collected,” gold to companies that do. “The price (of gold) is quite volatile guaranteed long-term buyer in contract.” “It’s kind of a standard agreement, according to the Coeur Alaska website. The Kensington trade agreement is selling gold to a third party that will refine and could easily fall by a large percentage Left over material from mining, it,” Ebersole said. “They purchase it and over the next 10 years, to average much not only profitable for Coeur, but also for known as tailings, was also a concern of the income comes to the company from the lower,” Oliver Goldsmith said, UAA Alaskans, particularly in the Southeast. environmental, federal and local agencies. economics professor with expertise in Construction of Kensington produced 300 Seven options of disposal were evaluated production.” jobs and operation of the mine will allow and the tailings will be used to create an The Kensington Gold Mine cost over international economics. Currently, there is no established for 200 jobs. $400 million. The total cost included embankment below Lower Slate Lake, “These are long-term jobs that will which they will also stock with native capital, taxes and employee wages and purchase agreement for the other 50 percent of gold production. be there as long as the mine operates,” fish. This option is the least invasive and benefits. “(The remaining gold) will likely have an Ebersole said. “The jobs generate salaries, environmentally detrimental process of all “The operating cost per ounce is estimated to be, over the life of the mine, agreement with someone else, if not China people buy houses in Juneau and they spend alternatives. about $490 per ounce,” Ebersole said. “So Gold, to purchase the gold,” Ebersole said. their money in the economy in Juneau.” The mine itself is underground with “I don’t think there’s anything eminent. We This helps to expand Juneau’s processing facilities above ground limiting of all the $490, there would be a profit.” government heavy job force. Coeur’s the aesthetical impact. The mine and all of The current value of gold sits at about would make that public when it happens.” China has also recently established a involvement exceeds creating jobs, as they its facilities and structures will be removed $1,200 per ounce, the highest it has been in 20 years, adjusting for inflation. Coeur will trade agreement with Teck Resources Ltd., also have agreements and relationships with from the land upon conclusion of the gold potentially make around $700 per ounce of based in Vancouver, which operates the several Alaskan organizations, including mining, according to Coeur Alaska. Red Dog Mine near Kotzebue. In July of Kake Tribal Corp., Goldbelt Inc., Klukwan gold produced at the current value. The land used for Kensington Gold Mine “There’s basically a division of opinion 2009, China Investment Corp. purchased Inc. and Berner’s Bay Consortium. in Berner’s Bay will be restored, as well as “The startup of production at Kensington Lower Slate Lake. over gold prices. Some people think the price 17.5 percent interest in Teck, which is one of the largest producers of zinc concentrate, represents the culmination of a communityrange will hit over 2000,” Paul Johnson, wide effort by the Juneau community, UAA associate professor of economics, according to Teck. “China currently has a deliberate national which has supported the project from the said. “Then there is a totally contradictory
By Brittany Bennett The Northern Light
Justice Center determines Mat-Su service needs By Shana Roberson
Special to The Northern Light
Most Matanuska-Susitna Borough residents are not afraid of becoming victim of any sort of crime, yet over 70 percent kept a firearm in the home. Only 7 percent attend neighborhood watch meetings. Those are a couple of findings from a recently conducted state survey. The University’s Justice Center administered an annual survey of residents in the Mat-Su Borough that addressed their level of satisfaction in areas such as government services, neighborhood communities and taxation. Dr. Sharon Chamard, an associate professor in the Justice Department and lead researcher for this project, said there were two purposes for the survey. “One is to guide the policy makers of Mat-Su Borough, give them a sense of what the citizens there want in terms of development,” Chamard said. “It’s also for the faculty, as it provides us a very rich set of data about opinions.” Each year analysis is conducted once the data collection is completed. The survey is ongoing, with the fifth report set for completion this fall. Long-term analysis indicates that the people in the Mat-Su Borough community have been and continue to be satisfied. “People are more satisfied,” Chamard said. “They weren’t dissatisfied in the first place, but there is a slight increase in
all of the measures of satisfactions.” The most recent of the reports was released in May. Results showed that road, plowing, landfill and library services were ranked highest by residents, which all received ratings higher than 65 percent. The worst service the Borough provided, according to the residents, was dissemination of its own news and information. Over 82 percent of residents rated their neighborhood as an excellent place to live, while 67 percent said they trusted their neighbors. Although the residents reported their trust of one another, the survey also showed a general lack of sociability, with over 40 percent saying they visited with their neighbors less than once a month. While 66 percent of residents rated road services as good or better, over 42 percent think they pay too much for the service. Numerous residents would like to seek a different way to fund road maintenance. Nearly half of the residents said they would support an increase in tobacco and alcohol taxes to pay for certain services. Chamard is the only faculty member currently working on the analysis project. Each year the Justice Center hires students, typically justice majors, to assist with the research. Over 2,700 surveys were sent out in 2009, and the Justice Department received an impressive 51 percent response rate. Chamard credited the survey methodology. “We follow the design method,” she said. “It’s a pretty
rigorous methodology.” The design method requires contacting prospective respondents at least four times. The department also created an online survey in hopes of increasing responses. A twodollar bill accompanied the mailed surveys, which were meant to serve as extra incentive to complete and mail them back to Anchorage. The Mat-Su Borough funds the survey and receives a report each year. “We track the changes and address them as per departments,” Carol Vardeman said, who works in the Borough manager’s office. The manager’s office also advertises the results at local schools and libraries, so the public can “See what we are doing well and what we need to do better,” according to Vardeman. Chamard pointed out that this survey allows the Borough the opportunity to hear from all citizens rather than only those that are civically active. “I think it is important for politicians and decision makers within the government to have a good sense of what the citizens want,” Chamard said. “So often the voices that guide policy making are the very vocal citizens, but they are not always the most typical person. A survey like this can reach out to all parts of the population and perhaps give a fuller view to policy makers.”