BHP Billiton studying Arctic coal

Arctic Slope Regional Corp. and multinational BHP Billiton signed a series of agreements in July providing BHP Billiton an exclusive right to explore and possibly develop the coal-bearing land held by ASRC in northwestern Alaska. The Western Arctic region includes a number of known low-sulfur bituminous coal-bearing areas. ASRC holds land and mineral rights in the region as a result of the Alaska Native Claims Settlement Act of 1971.

BHP Billiton will begin an exploration program on ASRC lands north of the Brooks Range in the Western Arctic, inland from the Inupiat communities of Point Lay and Point Hope, later this year. In addition to exploration, BHP Billiton is committing to continuation of ASRC's environmental studies of the area and establishing a community consultation process. Should exploration results prove positive, BHP Billiton will begin project concept studies to determine preliminary feasibility and possible mine development.

BHP Billiton brings extensive Arctic exploration and mining experience gained through development of the Ekati diamond mine in Canada's Northwest Territories. ASRC is one of the 12 Alaska-based regional corporations established by Congress under the Alaska Native Claims Settlement Act of 1971. It represents eight North Slope villages including Point Hope, Point Lay, Wainwright, Atqasuk, Barrow, Nuiqsut, Kaktovik and Anaktuvuk Pass. ASRC has nearly 9,000 shareholders and has paid nearly $150 million in dividends since its inception. The corporation has investments in energy services, petroleum refining and marketing, technical services and engineering and construction.