Outlook for Mining in Alaska
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Transcript of Outlook for Mining in Alaska
Outlook for Miningin Alaska
Global Markets
Alaskan Issues
Resource Potential
• Capital Markets Are Very Tight• Junior Capital Market is Dismal• Management Focused on Return on Capital• 40% of Top Mining Companies Have Disappeared in the
Past 5 Years
Global Consolidation & Change
Average Annual Copper Prices(Cents per Pound)
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1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000
2001$ $ of the year
Annual Average Zinc Prices
(Cents per pound)
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Average Annual Gold Prices (Dollars per troy ounce)
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1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000
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Western World Zinc ConsumptionWestern World Zinc Consumption
3000
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6500
7000
7500
1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000
Trend GrowthTrend Growth
1980-20001980-2000
2.5%/yr2.5%/yr
Thou Metric TonnesThou Metric Tonnes
Source: ILZSG, Teck ComincoSource: ILZSG, Teck Cominco
ZINC REFINING CAPACITYZINC REFINING CAPACITY
2%
6%5%
4%
13% 8%33%
11%7%
2%
9%
Source: Teck ComincoSource: Teck Cominco
Total World Capacity 9,300,000mtTotal World Capacity 9,300,000mt
• Land Status Issues
• Environmental Regulations that are “Urban Oriented”
• Pre-feasibility Costs
• Transportation & Utility Costs
Restraints to Mining in Alaska
• Native Lands
• State Lands, Mining Laws & Taxation
• Effective DEC Committed to Finding Solutions
• AIDEA & Positive State Attitude
Dealing With Restraints
• Healy (Usibelli) Coal
• Green’s Creek Silver/Zinc/+
• Red Dog Zinc/Lead
• Fort Knox Gold
Alaskan Mine Producers
• Beluga Coal• Red Dog District Zinc/Lead• Pogo Gold• Donlin Creek Gold• Pebble Copper• Ambler District Copper/+
Known Big Deposits
Gold from Gravels
• Placer industry has contracted enormously in past 20 years
• Outlook is poor considering environmental and market conditions
• Historical placer districts are good places to look for big, hard rock gold deposits
Do Not Forget Gravelis Mined Too
Exploration
• Food for Future Industry
• Greatly Reduced in 2002
• Unlikely to Rebound Completely to Historical Levels
Long Term
• New Big Discoveries
• New Commodities: Platinum, Palladium, Gemstones, Tin, Others
• New Technology Especially Related To Local Power Generation and Producing Metals from Concentrate
Conclusions
• Excellent Producing Mines Insure Industry for 30 or More Years
• Very Little New Activity in 2002
• Long Term Metal Trends Are Not Favorable
• Unlikely to Rebound Completely to Historical Levels
Thanks To...
Paul Glavinovich (Anchorage) Steve Borell (AMA) Neil Seldon (Vancouver) Charlotte MacCay (TeckCominco) Andy Roebuck (TeckCominco) Jason Brune (RDC) & Others
Annual Average LEAD Prices (cents/pound)
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Average Annual Silver Prices($ Per Troy Ounce)
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1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000
2001$ $ of the year