Red Dog’s example is blueprint for success elsewhere

MARIE GREENE

August 07, 2008 at 11:54AM AKST

Mining is not part of the NANA Regional Corp. tradition, but working together is. And the story of the Red Dog Mine is one of shared values, common goals and mutual trust.

I was among those who originally opposed developing what would become the world’s richest zinc mine 90 miles north of Kotzebue. I was worried about what it would do to our subsistence way of life and our land. But I was also concerned about how we as a people would sustain ourselves, and how we could create an economy that would provide for our children.

The decision to move forward with Red Dog was difficult and emotional. Our people were worried about environmental issues and how the increased activity would impact the caribou migration. They talked about the new people who would come and how cultural differences would change our people.

It took 10 years of discussion and deliberation before we voted to sign a historic document with what is now Teck Cominco to develop and operate the mine in a way that protected the environment and provided real opportunities for our people. It was the right decision but it was one that brought great change to the Inupiat people of Northwest Alaska.

It brought the need for economic self-reliance to a remote corner of the state. It brought good paying jobs to an area known as economically disadvantaged with limited opportunities. It brought the job training needed to succeed at those jobs and scholarships to those seeking vocational or a higher education.

It brought a local government with a single taxpayer to provide basic services and build new schools. It brought a growing revenue stream to NANA Regional Corp., which we use to expand our businesses, save for the future, take care of our shareholders and share with Alaskans in every region of the state.

It also brought us the experience we needed to mature as a corporation. We designed our business strategy to serve Red Dog and in doing so, we were able to offer services elsewhere, while providing employment opportunities for Alaskans throughout the state.

Respecting the land
And it brought us the knowledge that is possible for a Native corporation to respect the land and our traditional culture while involving ourselves in resource development.  We are a resourceful people and are stewards of our land and resources. We have survived here for thousands of years and this land will sustain our people long into the future.

Today, NANA employs 7,000 people in operations around the world. We own strong, healthy businesses in engineering and construction, resource development, facilities management and logistics, and information technology and telecommunications. But much of our success is due to Red Dog. Last year’s payment from Red Dog more than tripled due to robust commodity prices, strong production rates and an increased royalty.

NANA’s royalty share recently increased to 25 percent of the mine’s net profits now that Teck Cominco, the mine operator, has finally recouped the last of its capital investment, accrued interest and advance royalties. This royalty rate will continue to grow until it reaches 50 percent.

We had the honor of sharing almost 60 percent of Red Dog’s royalties with the other Native regional corporations, and we heard from friends across the state that many villages used this distribution to maintain their own corporations and meet personal needs.

Red Dog is a world-class asset for NANA – and the residents of Alaska. Now some are challenging our ability to fully develop our mineral potential. Proposition 4, an initiative on the August ballot, would make it difficult, if not impossible, for Alaska to extract its mining wealth. This ill-conceived initiative would rob us – and all Alaska – of the full value of our land. That’s wrong and I strongly urge you to vote no.

Taikuu.

Marie Greene is president and chief operating officer for NANA Regional Corp. She lives in Kotzebue.