The mining newspaper for Alaska and Canada's North
The mining newspaper for Alaska and Canada's North
Each commit $35 million to Ambler Road predevelopment costs North of 60 Mining News – February 12, 2021
The Upper Kobuk Mineral Projects at the western terminus of the proposed Ambler Access Project hosts 9 billion pounds of copper, 3.6 billion lb of zinc, 628 million lb of lead, 58 million ounces of silver, 770,000 oz of gold, and 77 million lb of cobalt.
The yellow line shows the 211-mile route federal regulators approved for the proposed road to the Ambler Mining District.
Alaska Industrial Development and Export Authority Feb. 10 announced that its board has approved a long-term agreement with Ambler Metals LLC to share up to $70 million of the predevelopment costs for a proposed road to the Ambler Mining District in Northwest Alaska.
"This is another example of AIDEA's role in establishing public-private partnerships supporting responsible development of Alaska's natural resources," said AIDEA Chairman Dana Pruhs.
Such partnerships are the foundation of AIDEA's core mission and its decades of financial success.
AIDEA was established in 1967 as a private corporation of the state that could provide various means of financing projects and businesses that provide economic opportunities and jobs for Alaskans.
Instead of receiving funds from the state, AIDEA is financed by revenues that come from financing large projects that promote economic growth.
As a result of its successful investments in Alaska, AIDEA paid a US$17.3 million dividend to the state's general fund during 2020 and has put a total of US$440 million into Alaska coffers.
AIDEA and Alaska's mining sector often meet on yet-to-be-built roads that connect the state's rich mineral deposits to world markets.
The Delong Mountain Transportation System, a 52-mile road and port facilities constructed to deliver zinc mined at Red Dog to world markets, is among the most successful AIDEA- funded project to date and serves as a model for other infrastructure projects such as the proposed Ambler Road.
The 211-mile Ambler Road would provide access to one of the richest undeveloped mineral districts in the world.
"Creating access to Alaska's abundant natural resources like the mineral rich Ambler Mining District is key to providing high wage jobs that can support Alaskans and their families," said Gov. Mike Dunleavy.
Much of the Ambler District is covered by the Upper Kobuk Mineral Projects, a partnership that brings copper-rich Alaska Native lands owned by NANA Corp. together with the world-class Arctic deposit and dozens of similar volcanogenic massive sulfide prospects located on state mining claims owned by Ambler Metals.
So far, roughly 9 billion pounds of copper, 3.6 billion lb of zinc, 628 million lb of lead, 77 million lb of cobalt, 58 million ounces of silver and 770,000 oz of gold has been outlined at Arctic and Bornite, the two most advanced UKMP projects.
These metals also happen to be concentrated into deposits with considerable grades. The reserves at Arctic average roughly 5% copper-equivalent, which considers the value of all the metals found there.
Much like Red Dog, however, a viable means of delivering concentrates to market is needed to economically develop these resources.
The Ambler Access Project would provide that link to Alaska's road and rail system and the global markets beyond.
"Projects like the Ambler Access Project help to create the tangible economic opportunities Alaskans need and deserve, especially for neighboring communities," said Pruhs. "No one does responsible resource development better than Alaska."
Under the Ambler Access Development Agreement approved on Feb. 10, AIDEA and Ambler Metals will each contribute up to $35 million for feasibility and permitting activities of the Ambler Access Project through the end of December 2024.
"We value the relationship that we've established with AIDEA and this agreement will further advance our partnership to develop the long-term potential for the Ambler Mining District," said Ambler Metals President and CEO Ramzi Fawaz.
Ambler Metals LLC is joint venture partnership owned equally by South32 Ltd. and Trilogy Metals Inc.
Over his more than 16 years of covering mining and mineral exploration, Shane has become renowned for his ability to report on the sector in a way that is technically sound enough to inform industry insiders while being easy to understand by a wider audience.
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