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Alaska flush with sought-after minerals

Posted: November 29, 2012 - 1:08am

The world is entering a cyclical phase in metals use where demand is expected to outstrip supply — especially in a handful of minerals deemed critical and strategic to U.S. military, energy and industrial use. Alaska, unique in the U.S. and in much of the world, is flush with most of these important resources, Dan McGroarty president of the American Resources Policy Network said.

“Alaska is the single most important state when measured across the full range of hard rock metals,” McGroarty said.

McGroarty will speak at the Alaska Strategic and Critical Minerals Summit in Fairbanks on Friday. McGroarty is the Senior Advisor to the U.S. Chamber of Commerce International Division and teaches at the Graduate School of Political Management at The George Washington University. He also served as special assistant to the U.S. President and as presidential appointee to two Secretaries of Defense.

The minerals summit is sponsored by the State of Alaska and the University of Alaska Fairbanks.

Several factors point to America’s need to find as many of the building blocks of high-tech devices domestically as possible, he said.

The global population is expected to plateau at 9 billion by mid-century. The minerals exploration and extraction industry still playing catch-up to the demand for new technological gadgets, renewable energy infrastructure and advanced weaponry that all require rare metals. McGroarty said Alaska is positioned to be an important player in the strategic and critical minerals market.

“When you look at Alaska, at what it currently produces and at past production, … there are easily three dozen metals worth exploring to see if Alaska can provide,” McGroarty said.

New extraction technology could allow economic mining of old and depleted mines, he said.

In Southeast Alaska, Ucore Minerals is developing the Dotson Ridge Rare Earth Element deposit at the historic uranium mine at Bokan Mountain on Prince of Wales Island, 40 miles southwest of Ketchikan.

Contrary to their name, the 17 rare earth elements are ubiquitous in Earth’s crust. However, locations where there are sufficient concentrations for economic extraction are harder to find. Ucore has reported that Bokan Mountain has economic concentrations of these metals, especially the more sought-after heavy rare earth elements such as dysprosium, terbium and yttrium — metals used in flat-screen televisions, high-tech weaponry, wind turbines and electric vehicles, among many other uses. Each industrial wind turbine uses around one ton of the rare earth neodymium in the magnets of its generator, McGroarty said.

Currently, China produces more than 90 percent of the world’s rare earth elements. China recently shut off shipments of rare earth metals to Japan for 40 days during a dispute between the two countries.

Not all rare metals are REEs. Manganese and Lithium are not rare earth, but are rare metals, McGroarty said. The U.S. imports all of its manganese and most of its lithium from foreign sources.

“We need both if we are going to any significant penetration of electric vehicles,” McGroarty said.

In a future that looks more toward battery-powered transportation, sourcing these metals domestically is as important as domestic oil for energy security issues, McGroarty said.

Alaska can also play a role in supplying critical and strategic metals that don’t fall in the rare earth element category.

What is a strategic or critical mineral?

A strategic mineral is used in advanced weapon system that does not have a second best metal to do the job — such as certain metals used in the making of smart bombs, McGroarty said.

Minerals are considered critical if there is a near-term, present or projected shortfall in the metal, McGroarty said. This can come from the geographic location of the mineral deposit or the fluctuations of the economy, he said. But minerals can become critical also if the U.S. is not comfortable sourcing, say, gold, tin or tungsten in the Democratic Republic of Congo.

“If we shut those off successfully from our U.S. manufactures and users we may have created a critical metal out of tungsten,” McGroarty said.

• Contact reporter Russell Stigall at 523-2276 or at russell.stigall@juneauempire.com.

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Latitude58
14492
Points
Latitude58 11/29/12 - 08:14 am
6
1

Let's see

If there's a huge worldwide demand for these metals, they have strategic importance to our country, and Alaska is "flush" with them...why aren't we taxing their extraction like we tax oil?

With oil production declining, we need to replace that revenue with something or we'll soon be paying an income tax (and seeing our PFD go away). The state barely gets peanuts for mineral extraction royalties.

kpawsuh
10138
Points
kpawsuh 11/29/12 - 08:21 am
7
2

Why dont we leave them there,

Why dont we leave them there, downsize our military and our television size and use, and keep happy healthy environment full of fish and game? Just a thought...

snagger
8296
Points
snagger 11/29/12 - 08:35 am
2
3

Sounds like.....

There's a great big beautiful tomorrow......If you're a miner!!!

wavemkr
3761
Points
wavemkr 11/29/12 - 10:03 am
4
3

Good article.Good jobs.

Let's do it .

Salmon Guy
86
Points
Salmon Guy 11/29/12 - 11:03 am
6
0

Electric vehicles from China

I hope the irony doesn't escape the readers that hybrid and electric vehicle batteries and other components are made from metals mined, processed and manufactured in China with little to no environmental or humanitarian concern/regulation. Then shipped across the Pacific in vessels burning bunker fuel.

The demographic of the American public who drives these cars tends to scream for environmental protection and have cushy “intellectual” jobs.

Then, if you talk about opening a mine in Juneau, the same demographic flys off the handle!

I'm just saying...

al97ct
465
Points
al97ct 11/29/12 - 12:22 pm
4
4

"The world is entering a

"The world is entering a cyclical phase in metals use where demand is expected to outstrip supply".

What we need to do is find ways to curtail demand and it is time to change the culture of the mining industry. It needs to be reigned in. The metals are on public land and so there should be no wealth creation from extracting these metals. Mining should be treated just like any other Government contract or job.

The days of making millionaires off of mining public resources has to end. One way to do this is have the Government mine on Government land. This way the public has control over public resources.

al97ct
465
Points
al97ct 11/29/12 - 12:00 pm
1
4

Uranium mine at Bokan

Uranium mine at Bokan Mountain

Uranium mining is the process of extraction of uranium ore from the ground. Uranium ore emits radon gas.

RICHMOND - The Virginia Farm Bureau Federation is backing the continuation of the state's 30-year ban on uranium mining, concluding that the mining and milling of the radioactive ore is a threat to Virginia's multibillion dollar agricultural industry.

http://www.newsadvance.com/go_dan_river/news/pittsylvania_county/article...

Calypso
6882
Points
Calypso 11/29/12 - 12:15 pm
5
3

@salmon guy - you're exactly

@salmon guy - you're exactly right! I call it 2+2=5 with the liberal brain. It's all about the agenda - don't let facts get in the way!

This right here should tick off all the progressives - "Each industrial wind turbine uses around one ton of the rare earth neodymium in the magnets of its generator."

But somehow they'll justify the statement...all the while talking out of the other side of their mouths. And these are the same voters that gave us 4 more years of BO.

Banditrider
633
Points
Banditrider 11/29/12 - 01:38 pm
3
4

Badly needed income

This state, like many, is facing huge unfunded liabilities in retirement pensions, medical, education,welfare, Obamaphones, and I'm sure there's many more. Yes, we can shut the whole state down for a state park but our toothy grins with our beloved leader BO hanging on the wall won't pay the bills. I guess we can always place more dependence on the friendly Chinese.

ken dunker II
3341
Points
ken dunker II 11/29/12 - 02:11 pm
1
1

Want to "curtail demand"? Invite the government.

Might put a damper on the green movement though.

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