Securing the Future of Red Dog Mine
Since 1989, Red Dog Mine has operated under an innovative agreement between NANA and Teck. This partnership has not only created substantial employment opportunities for NANA shareholders but has also significantly contributed to the economic development of the region. In 2023 alone, nearly 1,000 shareholders or their family members worked at Red Dog Mine, earning over $63 million in wages. The mine’s operations fuels more than 80% of the Northwest Arctic Borough’s budget.
The Challenge Ahead
As we look to the future, we face a critical challenge: ensuring the continuation of mining operations beyond 2031. Our current ore source, the Aqqaluk deposit, is expected to be exhausted by then. To prevent the potential closure of Red Dog Mine, we must define and fully permit a new source of ore within the next eight years. This process involves comprehensive assessments, including environmental impact studies and close engagement with communities and regulatory bodies.
More than 82% of shareholders support Red Dog Mine’s continued operations, according to our 2023 Shareholder Survey. Knowing the importance of the mine, NANA’s board has set us on a path to invest and prepare for the future.
Our Path Forward: Aktigiruq and Anarraaq Deposits
Teck is evaluating two deposits, Aktigiruq and Anarraaq, located on state lands. The primary objective is to confirm the economic viability of developing the Aktigiruq deposit into an underground source of ore. This requires thorough exploration and engineering studies to assess both the financial and technical viability of the project. While Aktigiruq offers a promising extension to mining, Teck estimates that at least six more years of exploration work are needed to determine the economic viability of mining these deposits. With only eight years remaining until the exhaustion of the Aqqaluk deposit, any delays could cause a gap in production at Red Dog Mine.
Permit Delays and Their Impact
A critical component of our exploration efforts is the construction of an access road, scheduled to begin by the end of 2023. However, the decision on Teck’s section 404 permit application by the U.S. Army Corps of Engineers (USACE) has been delayed again with the new decision date set for September 2024. This permit is essential for constructing the road and portal needed for a multi-year exploration drilling campaign.
Potential Impacts of Closure
The potential closure of Red Dog Mine in 2031 would have significant impacts on our communities and the regional economy.
- Job Losses: Approximately 980 jobs held by NANA shareholders, their spouses, and descendants could be at risk, affecting income and stability for many families.
- Tax Revenues: In 2023, Red Dog Mine contributed $26.8 million to the Northwest Arctic Borough, supporting essential services and infrastructure.
- Community Investments: The mine also contributed $8 million to the Village Improvement Fund, supporting community development projects and initiatives, as well as social programs like the Village Fuel Program, scholarships and the Aqqaluk Trust.
Moving Forward Together
NANA and Teck have been meeting with Tribal councils and regional partners to discuss the future of Red Dog Mine and our advanced exploration projects. We are also actively working with USACE and others to address their questions and highlight the importance of Red Dog Mine to our communities. Together, we can secure the future of Red Dog Mine and continue to support our communities for generations to come.
