INSPECTING ANOTHER GOLD MINE

During this Special Session, legislators not on legislative finance committees are in something of a “holding pattern” while those committees conduct hearings on critical oil gas and gas pipeline issues. The good news: consensus on an oil tax compromise appears to be happening in the House Finance Committee. Hopefully, an oil tax compromise will come to the House floor for debate and a potential vote within a few days.

Other good news: several legislators made good use of our time today by an on-site inspection of the Kensington Mine site being constructed about 50 air miles north of Juneau, nearby Berners Bay. This morning, Representatives LeDoux, Gardner, and I - plus several senators -helicoptered out to the Kensington Mine site for an on-site “look-see.” More legislators will make the trip tomorrow.

Certainly, oil has been the mainstay of Alaska economics. And hopefully, the gas pipeline will one day come on line - if it can survive birth process politics. Whatever, Alaska is a resource state and oil and gas are only two components of Alaska’s natural resources. Certainly, we need to increase mining to both increase and broaden our economic base.

Kensington expects to begin operations about August 2007, producing approximately 100,000 ounces of gold annually over the expected ten-year life of the mine. If additional gold is discovered, the life of the mine could be extended. According to the Kensington web site, and our in-depth briefing today, The Kensington Gold Mine, once in full production, will run an annual payroll and benefits of $16,000,000. This $16,000,000 translates into over 200 family-supporting jobs for Juneau and Southeast Alaska. That’s not pocket change.

It appears that any resource development is the bane of extreme environmentalists – ANWR for example. Likewise, Kensington Mine has had its detractors. But from what we saw today, it appears that Kensington is applying appropriate attention to protecting our environment, and that’s good.