EDITOR: | March 22nd, 2014 | 9 Comments

Labor and Commerce Committee Passes Bill with Provisions to Boost Southeast Alaska Economy

| March 22, 2014 | 9 Comments
image_pdfimage_print

March 21, 2014 (JUNEAU) –Today, the Senate Labor and Commerce Committee passed Senate Bill 99, sponsored by Senator Lesil McGuire (R-Anchorage), which would give the Alaska Industrial Development and Export Authority (AIDEA) the ability to issue bonds for two multi-mineral mining projects in Southeast Alaska while also making technical amendments to the Sustainable Energy Transmission and Supply (SETS) Fund within AIDEA.

“I believe we need to use every tool we can to make sure our economy continues to grow, while creating job opportunities for Alaskans in every possible corner of the state,” said Senator McGuire.  “Senate Bill 99, with its two amendments, could now bring hundreds of jobs to Southeast Alaska, while boosting a critical sector in our economy: mining.”
Senator Bert Stedman (R-Sitka) introduced the two amendments to SB99. The first amendment would allow 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.

The second amendment would allow 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.

“I’m proud of the Legislature for doing everything it can to promote economic development opportunities in Southeast,” said Senator Bert Stedman, R-Sitka.  “We need these important projects to move forward so our residents have good, livable wage jobs.  I thank Senator McGuire for supporting the inclusion of my amendments for Niblack and Bokan-Dotson Ridge into her bill.”

SB99, by allowing AIDEA to help secure funding for the Bokan-Dotson REE project, furthers the work completed by legislators last year to push for the development of REEs.   In April, the Alaska State Legislature unanimously voted in favor of Senate Joint Resolution 8, sponsored by Senate McGuire, stating the Legislature’s support for continued and increased exploration, extraction, processing and production of REEs in Alaska.

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.

“As China continues to withdraw its supply of rare earth elements from the world market, we need to be ready to fill those supplies or we will see devastating economic consequences,” said Senator McGuire.  “On the flip side, building rare earth element research and production facilities here in the 49th state will create new job and career opportunities for Alaskans.”

For more information, please contact Jesse Logan in Senator McGuire’s office at (907) 465-2995.


Tracy Weslosky

Editor:

Tracy Weslosky is the Founder and CEO of InvestorIntel Corp., a company that publishes InvestorIntel.com. A leading e-news source for investors, entrepreneurs and industry leaders ... <Read more about Tracy Weslosky>


Copyright © 2016 InvestorIntel Corp. All rights reserved. More & Disclaimer »


Comments

  • Tracy Weslosky

    Government sanctioned financing for the rare earth sector is — a game changer. I see that UCU.V was up nearly 20% (19.43%) on Friday on this news. This formula is obviously intended to provide jobs for the citizens of Alaska and respected industry, and will be a critical variable towards building a supply chain for heavy rare earths and achieving sustainability for the American market.

    March 22, 2014 - 12:31 PM

    • Daniel

      Market failure when companies/individuals plan only for the short term. Heavy Rare Earth has limited supply. We need to form a cartel to allocate the limited resource where its best utilized for the greater good.

      March 22, 2014 - 3:49 PM

      • Tim Ainsworth

        Or perhaps Daniel we should let private capital allocate the limited demand to the most efficient resources? Or is that an oxymoron?
        I.e. Kingsnorth’s 800\850t 2016 Dy forecast isn’t leaving a lot of luv to spread around, and doesn’t sound like Siemens are going to be wanting much, if any, for their next gen turbines.

        March 23, 2014 - 4:08 AM

  • hackenzac

    When it comes to sovereign wealth in a friendly mining jurisdiction, it’s hard to beat Alaska. Their Permanent Fund, money in the bank for whatever they want, is at a record 50 billion dollars. North to the Future. It’s not just a slogan.

    March 22, 2014 - 12:53 PM

  • $145 million bonds show Alaska’s unprecedented support to Ucore’s Bokan-Dotson Ridge project: marks end of sink-of-swim policy | InvestorIntel

    […] support the rare earth industry, the Alaska Senate Labor and Commerce Committee passed a new bill (click here) granting the Alaska Industrial Development and Export Authority (AIDEA) the ability to issue […]

    March 22, 2014 - 3:28 PM

  • $145 million bonds show Alaska’s unprecedented support to Ucore’s Bokan-Dotson Ridge project: marks end of sink-of-swim policy | InvestorIntel

    […] the rare earth industry, the Alaska Senate Labor and Commerce Committee recommended a new bill (click here) which would grant the Alaska Industrial Development and Export Authority (AIDEA) the ability to […]

    March 22, 2014 - 5:36 PM

  • $145 million bonds show Alaska’s unprecedented support to Ucore’s Bokan-Dotson Ridge project: marks end of sink-or-swim policy | InvestorIntel

    […] the rare earth industry, the Alaska Senate Labor and Commerce Committee recommended a new bill (click here) which would grant the Alaska Industrial Development and Export Authority (AIDEA) the ability to […]

    March 22, 2014 - 5:54 PM

  • Veritas Bob

    Government eavesdropping and restrictions on free speech and free choice, government run economies designed to enrich the elite at the expense of the common folk. We’re becoming more like China every day. Here’s to “progress”.

    March 22, 2014 - 6:08 PM

  • Market is like "waiting for water to boil" | InvestorIntel

    […] policy as a follow up to the news release put out by the Alaskan government on Friday, March 21st (click here) that clearly shows a State government that understands what sustainability […]

    March 25, 2014 - 9:50 AM

Leave a Reply

Your email address will not be published. Required fields are marked *