Governor Parnell Signs Bill Boosting Economy in Southeast Alaska
Senate Bill 99 allows for financing of REE, Multi-Mineral Mines, & Hydroelectric Project
KETCHIKAN-Today, Governor Sean Parnell signed into law Senate Bill 99, which will allow the Alaska Industrial Development and Export Authority (AIDEA) to issue bonds for two multi-mineral mining projects in Southeast Alaska as well as a loan for the Blue Lake Hydroelectric Project. SB99, sponsored by Senator Lesil McGuire (R-Anchorage) also makes technical amendments to the Sustainable Energy Transmission and Supply (SETS) Fund within AIDEA.
“Natural resources are the base of Alaska’s economy. Today’s bill signing further broadens that base by supporting responsible development and creating new jobs while giving a big boost to industry in Southeast Alaska,” said Senator McGuire. “These two projects will give the much-needed economic injection into the Ketchikan area in the same way the SETs fund is helping Interior Alaska with the gas-trucking project the Legislature passed last year. The other project will reduce the cost of electricity in Sitka, which is essential to revitalizing the economy in the region.”
First, SB99 allows AIDEA to issue bonds to finance the infrastructure and construction costs of the Bokan-Dotson Ridge rare earth element (REE) project located on Prince of Wales Island about 40 miles southwest of Ketchikan.
REEs are needed to make a wide-variety of items including high-tech military equipment, wind turbines, solar panels, advanced batteries, geothermal steam turbines, plus almost all high-tech consumer goods including flat screen TVs, computers, tablets and cell phones. China currently controls 95-percent of the world’s rare earth elements, but reduced the exports of those elements by 54-percent between 2005 to 2010, and then another by nearly 50-percent in from 2010 to 2011.
“The United States used to be almost self-sufficient in rare earth elements, but now we almost completely rely upon foreign sources for those important minerals,” said Senator McGuire. “We need to move now to become a dominant world player in the development of rare earth elements which are critical for military and economic security, as well as renewable energy systems.”
Second, SB99 also allows AIDEA to issue bonds to finance the development of the Niblack mine project and the Gravina Island Industrial Complex (near Ketchikan) for an ore processing facility. Niblack is a gold, copper, zinc, and silver deposit also located on Prince of Wales Island. During mine operations, Niblack has the potential to provide 200 full-time jobs, with about two-thirds of workers at the mine site and one-third at the processing facility.
Finally, SB99 includes an amendment that if the Alaska Energy Authority (AEA) approves a loan to the City and Borough of Sitka for the Blue Lake Hydroelectric project, the Legislature will authorize AEA to loan up to $18,600,000 from the power project fund for this development.
“Between the two mines and the Blue Lake Hydroelectric Project, this legislation is a win-win situation for Southeast Alaska,” said Senator McGuire. “It will help deliver cheaper electricity to Southeast residents while creating hundreds of jobs for folks in that region.”