By Tim Bradner
Alaska Journal of Commerce

The state of Alaska reported increases in mineral exploration and development spending in 2008, but declines in the value of total minerals produced, according to information released Nov. 4 from the state Department of Natural Resources.

The state's annual minerals report is released in October, coinciding with the annual convention of the Alaska Miners Association. The report details industry activity during the previous calendar year.

Exploration spending reached $347.3 million in 2008, an $18 million increase over $329.1 million spent in exploration during 2007, the report said.

The bulk of the exploration spending - $228 million - was on one project, the Anglo American-Northern Dynasty Minerals' Pebble gold/copper project in Southwest Alaska.

Other exploration occurred across the state, with 74 projects spending more than $100,000 and 35 projects spending more than $1 million, the report said.

Development work at existing mines or new mines under construction totaled $396.2 million on 33 projects, a 24.3 percent increase over the $318.8 million spent in 2007.

Significant development work in 2008 included a new heap leach at the Fort Knox gold mine owned by Kinross Gold near Fairbanks, and at the Red Dog Mine in Northwest Alaska operated by Teck Alaska.

Production values for 2008 totaled $2.417 billion, down from $3.367 billion in 2007.

Zinc production from the Red Dog Mine and Greens Creek Mine near Juneau and owned by Hecla Mining Co, accounted for $43 percent of total values. Gold production accounted for 29 percent, and a variety of minerals, including coal, sand and gravel, accounted for much of the remainder.