By the Journal of Commerce

Alaska's mineral industry continued a strong showing in 2008, despite a decline in total value from the record level set in 2007, according to the state of Alaska's latest report on the industry.

The overall value of mineral production was lower in 2008 compared to 2007, resulting primarily from the effects of lower metal prices, increased operating costs and a worldwide economic recession.

One key category within the estimate of industry value - development spending - showed continued growth in 2008, while exploration spending showed only a minor decline.

Employment in the mining industry also increased significantly, by 22 percent, in 2008 according to the report, published by the state Department of Natural Resources.

Exploration spending is an indicator watched closely by the mining industry because it best reflects companies' optimism or pessimism that new minerals deposits can be found and mines developed. The report showed that exploration activities for a variety of commodities continued across all regions of Alaska, and new discoveries were announced.

The total value of Alaska's mineral industry was $3.117 billion in 2008 22 percent lower than 2007's record value of $4.015 billion. This total value figure is a combination of expenses and receipts.

Total minerals industry employment in 2008 was estimated at 4,334 full-time-equivalent jobs. This is an increase of 776 jobs, or 22 percent, over the estimated 2007 job total. Mining employment increased over most sectors, almost doubling in the development sector.

Exploration spending in Alaska during 2008 are estimated to be $328.6 million, a slight decrease from the $329.1 million spent in 2007.

At least 72 exploration projects operating in Alaska spent more than $100,000 each; 32 of those projects spent more than $1 million each.

Exploration occurred across Alaska, but two advanced exploration projects in Southwest Alaska, Pebble and Donlin Creek, accounted for more than 60 percent of the exploration spending and drill footage, with Pebble being the largest project during 2008.

A preliminary estimate of 2008 development spending is about $379.8 million, 19.1 percent more than the 2007 value of approximately $318.8 million. The increase coincides with the near completion of the Kensington and Rock Creek projects.

Significant expenditures were noted at Red Dog Mine, Fort Knox Mine, Pogo Mine, Rock Creek Mine, Greens Creek Mine and the Kensington project.

Total employment dedicated to development amounted to 1,399 full-time-equivalent jobs for the year.