The Skagway Ore Terminal will reopen this summer to begin handling shipments from a copper-gold mine in the Yukon Territory, under an agreement reached between the state and a Canadian mining firm.
Ron Miller, executive director of the Alaska Industrial Development and Export Authority, said Jan. 25 that an agreement was reached Jan. 19 with Sherwood Copper Corp. of Vancouver, British Columbia, and its wholly owned subsidiary, Minto Explorations, for use of the terminal, which AIDEA owns.
The term of the agreement is seven years, with an option to extend for an additional 10 years if agreed upon between both parties. The estimated annual user fee is approximately $1.75 million, with a security deposit of $350,000 required. AIDEA, the state's major financing agency to promote economic growth and diversification, retains the right of access to any and all areas of the facility.
Chris Anderson, AIDEA's deputy director of credit and business development, said the lengthy negotiations “were tough, with both sides working hard to reach an agreement that works for Sherwood and AIDEA, plus that allows for additional users of the terminal.”
To conclude a successful agreement, both parties were able to remain flexible and find a compromised, acceptable solution, she said.
John Wood, an AIDEA engineer who is project manager for the ore terminal, said the state agency now has an aggressive schedule to meet if it is to be ready for Sherwood moving concentrates this summer. “We are ready to get started now that the agreements have been signed,” he said.
Gov. Sarah Palin commended the state agency. “AIDEA assets belong to all Alaskans, and I am glad we are getting this facility back in operation producing a return on the state's investment, jobs for Alaskans and a boost to the Skagway economy,” she said.
Margaret Bauman can be reached at margie.bauman@alaskajournal.com.
