The mining newspaper for Alaska and Canada's North
The mining newspaper for Alaska and Canada's North
Approves C$21.4 million for Ore Dock Redevelopment Project North of 60 Mining News - December 5, 2023
The MSP, expected to be paid for by the Yukon government, was not a part of the original bid discussed by the Skagway assembly for its Ore Dock Redevelopment Project.
Click image to see larger image of the redevelopment plans.
Anticipating the economic jackpot expected to occur for the Yukon once Western Copper and Gold Corp.'s world-class Casino project kicks into full swing, the territorial government approved a C$21.4 million (US$15.8 million) investment in the Alaskan city of Skagway for its ongoing port redevelopment project.
As part of its larger Skagway Port Master Plan, the small port city located on the northern end of the Alaskan Panhandle that borders the Yukon relies primarily on tourism to keep afloat amidst the wilderness of the north.
Intended to modernize, optimize, and revitalize much of the aging infrastructure surrounding its primary Port of Call, the significant project also comes with a significant price tag.
Estimated at roughly US$75 million just for its Ore Dock Redevelopment Project per the single bid the city received for the project that would "install a cruise ship float, fuel header, sea walk, and other upland utilities," this project encompasses an entire ecosystem of upgraded facilities and infrastructure to make visiting this scenic coastal town much more enjoyable, as well as enticing.
While tourism seems to be the main focal point for Skagway's port master plan, the ore dock project will now include a marine services platform thanks to the latest investment by the Yukon government.
The approval of this investment follows the territorial government signing an agreement with Skagway on Sept. 7 that outlines the terms and conditions of the investment. The term sheet proposes an initial 35-year preferential access to the port with an option to extend for another 15 years, as well as a significant investment in the initial engineering of the marine services platform.
The Yukon Government is currently working toward finalizing an export cooperation agreement with Skagway.
As it stands, a future marine services platform at Skagway will be the closest tidewater port to the Casino project. For its existing infrastructure, Skagway has historically been the preferred port to ship concentrates from the Yukon and was most recently used to ship copper concentrates from the Minto Mine before its announcement of closure earlier this year – due to various factors but also because of the redevelopment of the port.
Casino, a Yukon project being advanced by Western Copper and Gold Corp. with backing from Rio Tinto and Mitsubishi Materials Corp., could ship much larger quantities of copper concentrates through the Skagway port for at least three decades, and likely longer.
A 2022 feasibility study details an economically robust mine that would produce an average of 163 million lb of copper, 211,000 oz of gold, 1.3 million oz of silver, and 15.1 million lb of molybdenum annually over an initial 27-year mine life.
The shorter the distance Western has to truck Casino ore overland, the better it is for the project.
"Further investment and commitment from the Yukon Government in advancing infrastructure for the mining industry is another step in the right direction to advancing the Casino Project," said Western Copper and Gold President and CEO Paul West-Sells. "We remain confident that the Casino Project is a great asset for the Yukon that will provide benefits to Yukon communities and First Nations for generations to come."
Despite Skagway shifting its attention to a more tourist-centric approach, the year-round economic benefits from the volume of material that could eventually come out of Casino were too enticing for the city to ignore.
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