MARKETS

Alaska threatened by proposals to mine 5.5TT of coal

ALASKA'S main industries may be threatened by proposals to mine 5.5 trillion tonnes of coal.

Sadie Davidson
Alaska threatened by proposals to mine 5.5TT of coal

Alaska is estimated to have an eighth of the world’s coal reserves and its government has issued plans to tap into the Asian market by opening eight mines across the state.

The Alaska Department of Natural Resources concluded in July that it was in the best interests of the state to hold a competitive coal lease sale in the Canyon Creek area.

The lease sale would open access to an estimated 257.9 million short tons of coal in an undeveloped watershed.

Activist organisation Earthjustice argued that doing so would destroy areas that provided spawning and rearing habitat for all five species of Pacific salmon affecting the local fishing industry and the sensitive local ecosystems.

Alaska’s fishing industry is the state’s second-highest earner, falling short of the revenue made through oil and gas.

Coal from the proposed Canyon Creek area would likely be transported to Asia via the export terminal proposed for the nearby Chuitna Coal mine.

It would require a major railroad extension and possibly a road in an area whose largest thoroughfare is the Iditarod National Historic Trail.

Earthjustice brought an administrative appeal of ADNR’s decision on behalf of a coalition of conservation groups, community organizations, and an Indian tribe in July. It is awaiting a decision.

Another area proposed for mining is the Matunuska Valley. Science Daily reports of fears that the development will impinge on indigenous culture as it did when coal mining first entered the area in the 19th century.

Science Daily reported that The Chickaloon Native Village spent $US1 million rehabilitating the damaged streams and, after a century of being cut off, the salmon have returned to the area for their annual journey.

However, now the villagers are opposing three new mining proposals that will clear 20,000 acres of land and potentially damage the restored streams.

Coal mining has proven to be a controversial topic among Alaskans, who are typically pro-development. The industry is yet to gain the political influence of the oil and gas sector because of the big difference in taxation between the industries.

With just one coal mine currently operating in Alaska, the industry is yet to attain a strong foot hold in the state.

However, this could change with eight coal mine proposals under review.

TOPICS:

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Monthly Intelligence team.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Monthly Intelligence team.

editions

ESG Mining Company Index: Benchmarking the Future of Sustainable Mining

The ESG Mining Company Index report provides an in-depth evaluation of ESG performance of 61 of the world's largest mining companies. Using a robust framework, it assesses each company across 9 meticulously weighted indicators within 6 essential pillars.

editions

Mining Magazine Intelligence Exploration Report 2024 (feat. Opaxe data)

A comprehensive review of exploration trends and technologies, highlighting the best intercepts and discoveries and the latest initial resource estimates.

editions

Mining Magazine Intelligence Future Fleets Report 2024

The report paints a picture of the equipment landscape and includes detailed profiles of mines that are employing these fleets

editions

Mining Magazine Intelligence Digitalisation Report 2023

An in-depth review of operations that use digitalisation technology to drive improvements across all areas of mining production