Benefits of Mining in Alaska

Mining keeps Alaska running. It provides high-paying, steady jobs, pumps billions into public services and wages, and helps local businesses grow. These resources—silver, zinc and gold—support communities. There are many benefits of mining, and the industry remains a foundation of the economy, keeping it stable and growing long-term. Each year, the mining industry works with the McKinley Research Group to explore the economic and community benefits of mining in Alaska.

Read the latest report on the Economic Benefits of Alaska’s Mining Industry below.
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High-Wage Jobs & Economic Growth

Mining directly employed 5,900 Alaskans in 2023, with an average annual wage of $122,568—nearly twice the state’s private-sector average. People who work in mining live in 90+ communities across Alaska, from large cities to rural villages. Beyond direct employment, mining has a multiplier effect, creating thousands of additional jobs through business partnerships, supplier networks, and employee spending on everything from homes and property taxes to groceries and gas.

The direct impact of mining in Alaska resulted in 5,900 jobs and $695 million in wages. However, the total economic impact is much broader, with an additional 5,900 jobs supported indirectly. This brings the total to 11,800 jobs and $1.1 billion in wages across the state.

Mining isn’t just an industry—it’s a source of career opportunities that sustain families and strengthen Alaska’s workforce. The benefits of mining extend to individuals and communities across the state. Mining is good for Alaska.

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Investing in Local Businesses & Supply Chains

Total State & Federal Government Take

Alaska-based businesses keep mining operations running, strengthening local economies in the process. In 2023, Alaska businesses provided more than $1.1 billion dollars in equipment, materials, and services to Alaska’s mining industry. Keeping investments local means Alaskan businesses, workers and communities see the economic benefits.

Strengthening Communities Through Investment & Giving

Beyond wages and tax revenues, Alaska’s mining companies are committed to giving back.In 2023, Alaska’s mining industry contributed $5.7 million to more than 250 nonprofit organizations, supporting causes from education to healthcare.

  • $1.5 million went to the University of Alaska and vocational training programs, investing in Alaska’s future workforce.
  • $1.1 million was provided in support of civic, business, and industry organizations.
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Alaska Native Corporations & Mining: A Partnership for Generations

Total State & Federal Government Take

Through 7(i) and 7(j) royalty-sharing payments, all Alaska Native Corporations benefit from mining revenues. In 2023, these payments totaled $235 million, continuing a legacy of economic support that has surpassed $3.2 billion since 1989.

These revenues are distributed among Alaska Native regional and village corporations, helping fund cultural preservation, business development, and community programs.

PUBLIC REVENUES THAT FUND ESSENTIAL SERVICES

Another benefit of mining is that it generates significant revenues that help fund schools, roads, emergency services, and public programs. In 2023, the industry contributed $136 million to the State of Alaska. Local governments also benefited, receiving $49.8 million in tax revenues in 2023, including:

  • $34.8 million to the Northwest Arctic Borough
  • $10.6 million to Fairbanks North Star Borough
  • $4.2 million to the City & Borough of Juneau

These revenues help maintain public services that Alaskans rely on, like road maintenance, fire departments, schools, and libraries.

A Sustainable Industry That Grows Alaska’s Economy

Alaska’s economy runs on mining. Mining is a long-term investment in Alaska’s future as it grows local businesses, creates good-paying jobs, and supports public services. When resources are developed responsibly, it creates a steady future and real opportunities for the people who call Alaska home.

By developing Alaska’s resources responsibly, the benefits of mining ensures a future of economic opportunity, self-sufficiency, and shared prosperity.

Get an overview or read the full report detailing the economic benefits of mining in Alaska, and learn where in Alaska metals are mined.

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Frequently Asked Questions About Mining in Alaska

How does mining impact Alaska’s environment?

Alaska’s mining industry operates under some of the strictest environmental regulations in the world. Modern mining companies invest in advanced water treatment systems, tailings management, and habitat restoration to minimize environmental impact. Despite outdated perceptions, sustainability is a priority, and companies actively work to restore land to a stable state once mining operations conclude.

Mining companies employ environmental scientists and collaborated with state and federal agencies to protect water quality, fish habitats, and wildlife corridors. They also use state-of-the-art monitoring systems to track air and water quality in real time, ensuring compliance with strict environmental standards. Responsible resource development in Alaska not only supports local communities but also preserves the state’s natural beauty for future generations.

What regulations govern mining operations in Alaska?

Mining in Alaska is strictly regulated at both the state and federal levels. The Alaska Department of Environmental Conservation, the Alaska Department of Natural Resources, and the U.S. Environmental Protection Agency oversee mining activities, ensuring companies meet environmental and safety standards.

Before operations begin, companies must secure permits for land use, air quality, and water management. The National Environmental Policy Act (NEPA) requires thorough environmental studies before projects move forward. The Clean Water Act regulates water discharge to protect rivers and ecosystems, while the Alaska Department of Natural Resources ensures companies restore land after mining.

These regulations promote responsible mining that protects the environment, supports local communities, and strengthens Alaska’s economy.

How do mining companies address concerns about wildlife and traditional lands?

Alaska’s mining companies work closely with Indigenous communities and wildlife experts to ensure their operations respect traditional lands and protect important habitats. They collaborate with Alaska Native corporations and tribal groups, incorporating traditional knowledge into land-use decisions and safeguarding cultural heritage sites.

To minimize impacts on wildlife, companies take steps to preserve habitats, maintain migration routes, and use advanced technologies to reduce disruptions. Biologists and local communities help shape project designs, ensuring protections for caribou herds, salmon populations, and other key species. Many mining operations also invest in conservation efforts, reinforcing their commitment to preserving Alaska’s natural environment for future generations.

What are the economic benefits of mining in Alaska?

Mining plays a vital role in Alaska’s economy, providing well-paying jobs that often exceed the state average salary. The industry supports a wide variety of careers  from geologists, environmental scientists, and equipment operators to accountants, drivers, and office workers, offering steady employment across the state.

Beyond direct employment, mining boosts local businesses by creating demand for supplies, services, and equipment, keeping revenue within Alaska. Millions in tax dollars from the industry help fund roads, schools, and emergency services. In many remote areas, mining is one of the only reliable sources of income, sustaining entire communities. As demand for minerals grows for everything from medical devices to smartphones, Alaska’s mining sector remains a critical economic driver both locally and nationally.

How do miners work in extreme weather conditions?

Mining in Alaska requires extensive training, careful planning, and the right gear to handle harsh conditions. Workers rely on heavy-duty cold-weather clothing, heated shelters, and adjusted work schedules to stay safe in subzero temperatures. Transportation plans are mapped out year-round to ensure safe access to remote sites.

Specialized equipment built for Arctic conditions keeps operations running. Heated fuel lines prevent engines from freezing, climate-controlled cabins allow operators to work efficiently, and reinforced hydraulics withstand extreme cold. Avalanche forecasting, emergency response plans, and constant monitoring of conditions help ensure safety. Alaska’s miners are tough, skilled professionals who know how to work with the environment to keep the state’s mineral supply moving, no matter the weather.

What are the largest mining projects currently operating in Alaska?

Alaska is home to some of the most productive mining operations in the United States. The Red Dog Mine stands as one of the world’s largest zinc producers, while Fort Knox Mine near Fairbanks plays a key role in Alaska’s gold production. The Pogo Mine, known for its high-grade gold, continues to expand output each year.

For silver, Greens Creek Mine is the largest producer in the U.S. while the Kensington Gold Mine remains a vital producer. 2024 saw the opening of Alaska’s newest large gold mine, Manh Choh, near Tetlin. These operations not only supply essential minerals but also adhere to strict environmental and safety standards. With ongoing exploration projects poised to add even more value, Alaska’s mining industry remains a powerful economic driver.

How does Alaska’s mining industry compare to other states?

Alaska stands out in the mining industry with vast mineral deposits, expansive land, and a regulatory framework that balances economic growth with environmental protection. Unlike states with fewer natural resources, Alaska holds some of the largest untapped mineral reserves in the country, making it one of the most promising locations for mining.

While states like Nevada and Arizona are well-known for gold and copper production, Alaska offers a broader range of critical minerals essential for modern technology and infrastructure. The state has also taken a proactive approach to responsible resource development—working closely with Indigenous communities, prioritizing sustainability, and maintaining operations in some of the world’s toughest conditions.