By the Journal of Commerce

The total value of Alaska's mineral industry in 2007 set a new record of approximately $4 billion, up 13.3 percent from the 2006 level, the state Department of Natural Resources announced Nov. 5.

The total value combines exploration and development expenditures with production value. The figure is used as a general indicator of minerals industry activity levels in Alaska.

Minerals industry employment also reached the highest number of jobs over the past decade, at 3,558 full-time-equivalent positions, the department said in a press release. Alaskan metal miners made an average weekly wage of $1,578 during 2007.

Exploration expenditures in Alaska during 2007 reached $329.1 million, 84 percent higher than the $178.9 million spent on exploration in 2006.

At least 33 projects had expenditures of $1 million or more and 85 projects had exploration expenditures in excess of $100,000. Exploration spending is considered one of the most important figures in the industry total value calculation because it represents the search for new discoveries, some of which may become producing mines.

Companies explored for a wide variety of mineral deposits: copper-gold porphyry systems (grouped with polymetallic deposits) were the major exploration target in 2007.

The Pebble copper-gold-molybdenum project was the largest exploration project in Alaska during 2007. Barrick Gold had the largest exploration drill program in Alaska with more than 230,000 feet of core drilling on the Donlin Creek gold property.

Mineral development projects were spread across the state, with total development expenditures of $318.8 million, 35.7 percent less than the record 2006 value of $495.7 million. Permits were received for the Walter Valley heap leach facility, a major expansion at the Fort Knox gold mine.

The mineral production value of $3.367 billion eclipsed all previous years on record-metals accounted for 95 percent of that value. Production volumes were up for all commodities except coal and rock. Continued strong metal prices also contributed to record production values for Alaska's minerals.

The state of Alaska and municipalities received a total of $142.4 million in royalty and tax payments from the mineral industry in 2007. These payments were almost $30 million less than the 2006 payments, but were still the second highest on record.

Mining companies were the largest taxpayers in the city and borough of Juneau and the Fairbanks North Star, Denali and Northwest Arctic boroughs, contributing total payments of almost $16 million.

Red Dog Mine paid the Alaska Industrial Development and Export Authority annual user fees of $17.7 million for use of the state-owned DeLong Mountain Regional Transportation System. Teck Cominco Ltd. paid NANA Regional Corp. $58.1 million in fiscal year 2007 as a net smelter royalty, nearly double the fiscal 2006 payment of $29.7 million.

Alaska's mineral exports topped $1.3 billion in 2007, a 10 percent increase from 2006 and another new record. Zinc ore was the highest value commodity exported from the state.

Hard-rock (lode) gold production increased from 509,747 ounces in 2006 to 673,084 ounces in 2007. The increase in hard-rock production primarily reflects a higher output from Pogo Mine and some production from Nixon Fork Mine.

Placer gold production decreased from 60,382 ounces in 2006 to 53,849 ounces in 2007. Rapidly increasing operating costs have had a negative effect on operations. However, recreational placer mining continues to increase with the improved gold prices, with 1,882 ounces produced in 2007 compared to 1,133 ounces for 2006.

Sales of sand and gravel in 2007 totaled 14.2 million tons, up slightly from 14 million tons in 2006. Rock production was 2.2 million tons, down from 2.4 million tons in 2006. Coal production was nearly 1.3 million tons, down from 1.4 million tons in 2006.

In other developments, Sherwood Copper Corp. signed an agreement with Alaska Industrial Development and Export Authority to use the Skagway ore terminal for copper-gold ore concentrates from its Minto mine in the Yukon Territory, Canada. The ore terminal began receiving truckloads of high-grade concentrates in July.

In state actions, geologists from the Alaska Division of Geological and Geophysical Surveys (DGGS) mapped and sampled in the northeastern Fairbanks mining district and along part of the Alaska Highway portion of the proposed gas pipeline corridor between Delta Junction and Dot Lake.

The state, through DGGS, also funded and acquired airborne magnetic and electromagnetic geophysical surveys for 180 square miles of the Styx River survey area in the northeastern Lime Hills and northwestern Tyonek quadrangles.

DGGS released airborne magnetic and electromagnetic geophysical survey data for 613 square miles of the eastern Bonnifield district. DGGS acquired additional airborne magnetic and electromagnetic geophysical data, with funding from the U.S. Bureau of Land Management, for a 250-square-mile area of the western Fortymile mining district.