To be a true Alaskan is to be pro-mining

I am a great supporter of Alaska's mining industry. How could an Alaskan not be? In 2009, Alaska's mining industry paid a total of US$12.3 million to local governments, US$35 million to the state government in royalties, rents, fees, and taxes, US$48.9 million in other state government-related revenues and US$320 million in direct and indirect payroll to a total of 5,200 industry jobs. Those are also proving to be some of Alaska's highest paid jobs.

In my six sessions with the Alaska State Legislature, I have found myself on the side of mining 95 percent of the time.

In my tenure as co-chairman of the House Resources Committee, I worked to ensure that Alaska's mining industry remained competitive in a world economy.

I sponsored legislation to maintain an equitable and stable tax structure at the state level, when many of my colleagues were proposing vast tax increases on the industry.

From my co-chair position, I also worked to preserve the integrity of the permitting process and to promote healthy access and land management.

I recently co-signed a letter to the Attorney General to make certain that the integrity of Alaska's mixing zone regulation would not be threatened by legislation.

We are all delighted with the success of the Red Dog Mine, the Fort Knox Mine, the Pogo Mine, the Greens Creek Mine, the Two Bull Ridge Mine, and 175 Alaska family-owned and operated mines.

I hope that we can soon add the Kensington Mine and the Rock Creek-Big Hurrah Mines to this list.

I strongly support extending the terminus of the Glacier Highway an additional 13 miles to gain better access to the Southeast mining district.

Additionally, last summer, I wrote a letter to the U.S. Army Corps of Engineers on behalf of the Kensington Mine, in favor of re-issuance of its 404 permit.

I understand through my business contacts how difficult the Army Corps can be to work with, and I thought a letter of support for re-issuance of Kensington's permit would be helpful.

How many other legislators wrote letters of support? All, I hope.

I am opposed to changes in the Coastal Zone Management Plan and have led the charge to take over state primacy in the National Pollution Discharge Elimination System, all of which is good for the mining industry.

As a businessman, I understand the long lead time and capital requirements inherent in the mining industry, as well as the cost of power. Many of my legislative colleagues and government officials do not understand the cost of capital. They see the gross value of minerals being extracted and do not grasp that as in oil and tourism, capital competes around the world for worthwhile projects. Keeping low taxation in place is essential.

Secondly, government can further the industry by immediately promoting infrastructure and energy.

No one understands better than I do that a small-diameter natural gas pipeline would bring down the costs of kilowatts.

A small-diameter pipeline would energize, quite literally, Donlin Creek and the International Tower Hill Mine projects, while extending the life of the Fort Knox and the Pogo mines by lowering the costs of kilowatts for Golden Valley Electric Association.

A small-diameter natural gas pipeline also would bring natural gas closer to the Pebble Project, which also has a need for low-cost energy and requires a potential volume of kilowatts comparable to the base-load of electricity used by all of Anchorage.

As for Pebble, it is not presently a mine; it is a project, a concept. We will have to wait and see what the final iteration of the Pebble proposal will look like. For example, the Pebble Project may create more jobs as an underground mine. In fact, I believe that on the East side of the claim the ore density is much greater than on the West side, and that economics and the ore configuration will ultimately drive the design of the mine, as it should. Economics will ultimately drive whether the mine is built, and there we are, back to low taxes and the effort to access low-cost kilowatts.

Meanwhile, I have an environmental sensitivity to one of the world's greatest and most unique fisheries.

However, I trust the process that we have in place to evaluate mining applications.

The state's permitting process is very rigorous and respected.

Nevertheless, I believe that as this project develops, it could benefit from a credible body like the National Science Foundation working with the state to ensure all resources can work together to successfully co-exist.

Except for this suggestion, I have not and do not intend to involve myself in any way with this process.

The Pebble Project seems to me, right now, like watching a National Football League game on television; yelling at the screen or watching passively, rooting for or against a team should not affect the outcome of the game.

The Pebble Project may ultimately prove to be a good and positive mine that will bring prosperity to a region in need. We will have to wait and see what the final iteration of the mine will look like. The good news for Alaska is that, like me, the industry wants Pebble developed carefully.

I remain a friend and supporter of the mining industry. After all, I was born and raised in Fairbanks, a city founded on mining.