Donlin Gold mine explained

Donlin Gold Project
Pushpin Map:Alaska
Coordinates:62.0381°N -158.2108°W
Place:Crooked Creek
Subdivision Type:State
State/Province:Alaska
Country:United States
Owner:NovaGold Resources (50%), Barrick Gold (50%)
Official Website:http://www.donlingold.com/
Discovery Year:1988

The Donlin Gold Project is a large, undeveloped, refractory gold deposit located north of Crooked Creek, Alaska, on the Kuskokwim River, about northwest of Anchorage. The deposit has proven and probable reserves estimated to be 33.9 million ounces of gold at a grade of 2.1 g/t and could produce an average of one million ounces annually over a 27-year mine life.[1] [2]

Owners

The project is a partnership between NovaGold Resources, Barrick Gold, Calista Corporation, and The Kuskokwim Corporation. Calista is one of 13 regional Alaska Native corporations established as part of the Alaska Native Claims Settlement Act of 1971 (ANCSA) and under ANCSA has title to the subsurface estate in the region.[3] The Kuskokwim Corporation (TKC) was formed in 1977 with the merger of 10 upper river village corporations and TKC has the surface estate in the region. [4]

Permitting

On July 20, 2021, the Alaska Department of Natural Resources granted Donlin Gold the right to lease state land to build a pipeline that will power its mine.[5] On May 27, 2021, the commissioner for the Alaska Department of Environmental Conservation upheld a key state water quality certificate for the Donlin Gold project, citing numerous analyses performed by multiple federal and state agencies throughout the permitting process showed mining operations would meet state and federal environmental and water quality standards.[6] Previously, on April 12, 2021, an administrative law judge recommended that the State of Alaska rescind the project's water quality certificate, required under the Clean Water Act, on the grounds that the State “erred in their hasty issuance” of the certificate, asking the State “to ensure protection of salmon streams.”[7] The public was given only 15 days to comment, during COVID-19 lockdown, on 12 different water rights permits for a mine that, if developed, would be one of the largest in the world, placed in the watershed of a major, salmon-bearing river.[8]

Drilling activities

Donlin Gold's drilling program for 2022 is budgeted at USD $60 million, their largest drill program in a decade according to spokeswoman Kristina Woolston.[9]

Social and economic impact

According to a March 8, 2022 study published by the Institute of Social and Economic Research at the University of Alaska Anchorage, much of Alaska's mining potential is dominated by two projects - the proposed Donlin Gold mine and projects in the Ambler mining district. [10] The development of the Donlin Gold project would bring positive economic benefits to the Alaska Native regional and village corporations across the entire state, which under ANCSA Section 7(i) requires regional corporations to distribute 70% of net revenues from resource development on ANCSA land among the rest of the regional corporations, and in turn, Section 7(j) requires that half of the Section 7(i) payments received are distributed to the respective village corporations within each of the ANCSA regions.[11] According to the Yukon-Kuskokwim Region's Comprehensive Economic Development Strategy 2018–2013 report (187 pages) prepared for the United States Department of Commerce, Economic Development Administration and published in July 2018, a potential Donlin gold mine could bring new employment opportunities and new infrastructure investment that could help lower energy and transportation costs. If the project moves forward, initial construction will require 3,000 workers and a $300 million payroll; normal production will require 800-1,200 workers and a $100 million annual payroll; infrastructure would include a port in Bethel, a small river port, a camp, a timber mill, a natural gas pipeline and a fiber optic cable.[12]

Local controversy

There are some published news articles[13] about the environmental concerns of the Donlin mines proposed operations, and there is some local controversy.[14] One main concern, voiced in the public comment section of the Environmental Impact Statement (EIS) issued by Donlin Gold Project, is that it may exceed Alaska's water and air quality regulations.[15] The project's Clean Water Act permit has been challenged by the Orutsararmiut Native Council (ONS) on the grounds that there is no reasonable assurance that the project will comply with state water quality standards or Alaska's Antidegradation Policy. The proposed decision for the case is that Donlin Gold Project and the Alaska Department of Environmental Conservation, Division of Water, in issuing a certificate for Donlin, have not provided the necessary 'reasonable assurance' that water quality standards will be honored in order to proceed with mining operations. Three areas of concern are mercury levels in the water, water temperatures, and degradation of essential salmon habitat.[16]

On May 27, 2021, the Alaska Department of Environmental Conservation, after extensive review, consistently and thoroughly supported the Donlin Gold project's clean water certificate, stating, In this matter, Orutsararmiut (ONS) cherry-picked portions of the record describing potential impacts in a highly technical report and characterized them as conclusive. The Division consistently and thoroughly rebutted each of Orutsararmiut’s assertions with analysis of relevant information and data using its subject-matter expertise,” the state’s notice stated.[17] The Alaska Department of Environmental Conservation said its clean water certificate is "supported by a reasonable basis in law and substantial evidence in the record." The State said the ONS tribe's concerns had been addressed through conditions attached to the certification.[18]

Notes and References

  1. Web site: Donlin Gold Project . Bruno . Jeff . Alaska Department of Natural Resources . 29 May 2021.
  2. Web site: Donlin Gold's Reserves and Resources . NovaGold Resources Inc . 2 April 2014 .
  3. Web site: Lang. Gregory A.. Annual Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the fiscal year ended November 30, 2014. Novagold Resources Inc.. 26 March 2015. Vancouver, BC. 31–32. 28 January 2015. dead. https://web.archive.org/web/20150402143021/http://www.novagold.com/upload/financials/2015-01-28_NOVAGOLD_10K_Q4_2014.pdf. 2 April 2015.
  4. Web site: 2014-07-23 . Kuskokwim Corp. inks deal with Donlin Gold . 2022-04-15 . Alaska Journal . en.
  5. Web site: Ebertz Bethel . Olivia . 2021-08-03 . State allows Donlin Gold to lease land for 315-mile pipeline . 2022-04-15 . KTOO . en-US.
  6. Web site: Shallenberger . Krysti . Bethel . Alaska's Energy Desk- . 2021-06-02 . Alaska DEC commissioner upholds controversial permit for Donlin gold mine . 2022-04-15 . Alaska Public Media . en-US.
  7. Web site: Future of Donlin Gold mine permit uncertain after judge recommends state regulators to rescind key certificate. 15 April 2021.
  8. Web site: Bethel tribe protests 15-day comment period for Donlin Gold water permits. 19 February 2021.
  9. Web site: Brehmer . Elwood . February 3, 2022 . Alaska Journal of Commerce . Donlin Gold starts biggest drilling program in a decade . 2022-04-15 . Anchorage Daily News . en.
  10. Web site: Segall . Peter . 2022-03-08 . Economists explore mining’s future in Alaska . 2022-04-15 . Juneau Empire . en-US.
  11. Web site: North of 60 Mining News . A golden opportunity for Calista region . 2022-04-15 . North of 60 Mining News . en.
  12. Web site: July 2018 . Yukon-Kuskokwim Region Comprehensive Economic Development Strategy (CEDS) – FINAL, July 2018 .
  13. Web site: 2022-01-26 . Alaskan Indigenous leaders fear impacts on salmon streams by mining project . 2022-04-15 . Mongabay Environmental News . en-US.
  14. Bolduc. Benjamin. Hodgkins. Suzanne B.. Varner. Ruth K.. Crill. Patrick M.. McCalley. Carmody K.. Chanton. Jeffrey P.. Tyson. Gene W.. Riley. William J.. Palace. Michael. Duhaime. Melissa B.. Hough. Moira A.. 2020-08-13. The IsoGenie database: an interdisciplinary data management solution for ecosystems biology and environmental research. PeerJ. en. 8. e9467. 10.7717/peerj.9467. 2167-8359. free.
  15. Donlin Gold. Environmental Impact Statement: Donlin Gold Project. Aug. 2013, https://dnr.alaska.gov/mlw/mining/large-mines/donlin/pdf/dg-feis-scope-report.pdf . Retrieved 28 October, 2021.
  16. Orutsararmiut Native Council v. Alaska Department of Environmental Conservation, Divisions of Water; and Donlin Gold LLC., OAH No. 20-0536 (April 12, 2021). https://npr-brightspot.s3.amazonaws.com/legacy/sites/kyuk/files/202104/2021-04-12_notice_of_proposed_decision.pdf
  17. Web site: Estus . Joaqlin . Alaska stands by decision on Donlin Gold mine . 2022-04-15 . Indian Country Today . en.
  18. Web site: Estus . Joaqlin . 2021-06-02 . Alaska stands by decision on Donlin Gold mine . 2024-02-06 . ICT News . en.
  19. Web site: Water Quality Standards Section. 2021-11-20. dec.alaska.gov.
  20. Donlin Gold Project Final Environmental Impact Statement. Donlin Gold Project, Apr. 2018, https://dnr.alaska.gov/mlw/mining/large-mines/donlin/pdf/dgfeis.pdf .
  21. "Antidegradation". dec.alaska.gov. Retrieved 2021-10-31.
  22. “ECFR :: 40 CFR Part 131 -- Water Quality Standards.” Code of Federal Regulations, https://www.ecfr.gov/current/title-40/chapter-I/subchapter-D/part-131?toc=1 .