0103_AIDEA-Brochure-draft7-PAGES

ALASKA INDUSTRIAL DEVELOPMENT & EXPORT AUTHORITYAMBLER MINING DISTRICTACCESS PROJECT AIDEA has submitted and the federal agencies have accepted an application for transportation and utility systems and facilities on federal lands (SF-299). The SF-299 begins the process for access to the Ambler Mining District set out in the passage of the Alaska National Interest Lands Conservation Act (ANILCA). PROJECT UPDATES: “ Congress finds that there is a need for access for surface transportation purposes across1. Bureau of Land Management the Western (Kobuk River) unit of the Gates of (BLM) filed a Notice of Intent (NOI) in the Federal Register the Arctic National Preserve (from the Ambler to begin an Environmental Impact Statement (EIS). Mining District to the Alaska Pipeline Haul “2. Scoping comments on the EIS Road) and the Secretary shall permit such are due by January 31, 2018. access in accordance with the provisions of3. BLM Scoping Meetings: BLM has been holding scoping this subsection. ANILCA, Section 201(4)(b) meetings in interested communities, including: The Ambler Mining District is an area with rich mineral resources (see map inside) and has been explored for Allakaket decades. Access to the district was recognized as needed in Anaktuvuk Pass ANILCA, which directed the U.S. Departments of Interior and Alatna Transportation to select a corridor through Gates of the Arctic Fairbanks National Preserve for a road from the Dalton Highway to Wiseman the district. Anchorage Kobuk AIDEA, as the state’s development finance authority, has Ambler experience working with the State of Alaska and private Kotzebue industry to develop needed infrastructure to support Shungnak industrial and economic development. AIDEA worked with Evansville/Bettles the State of Alaska, federal agencies, industry and Hughes landowners to construct the DeLong Mountain Transportation Huslia System (DMTS), a port and road system supporting Red Dog Mine in northwest Alaska. The mine has created jobs and4. National Park Service (NPS) provided revenues to the Northwest Arctic Borough (NWAB) is preparing ANILCA and NANA shareholders. DMTS was primarily funded by 201(4)(d) the Environmental issuing bonds to finance the project. The Ambler Project will and Economic Analysis (EEA). have a similar financing structure, and could provide similar benefits to communities in the area by creating jobs and providing revenues.

AMBLER MINING DISTRICT IPROJECT BENEFITS* ROAD CONSTRUCTION AND MINES (4 MINES) OPERATIONS JOBS CONSTRUCTIONAn annual average of 486 jobs over the road 5,933 direct jobs over two years for mineconstruction period. construction with $457.4 million in wages.Up to 68 full-time jobs annually for road 9,278 direct, indirect, and induced jobs withoperations and maintenance. $642.6 million in wages.*Based on Ambler Mining Region Economic Impact Analysis done by Cardno January 16, 2015

Alaska Industrial Development & Export AuthorityINDUSTRIAL ACCESS PROJECT MINING (4 MINES) GOVERNMENT REVENUES OPERATIONS (4 MINES) TOTAL1,534 direct jobs with $164.2 million in $261 million in mining license tax revenues towages annually. the State.3,186 direct, indirect, and induced jobs with $357 million in corporate income taxes to$324.7 million in wages annually. the State. $78 million in production royalties to the State. $6.5 million (annually) Payment in Lieu of Taxes to the NWAB per mine. www.ambleraccess.org

HOW THE ROAD MAY OPERATECommunities near the road may Traffic on the gravel, Drivers must stop and wait ifchoose to construct spur roads one-lane road may require all caribou are within 300 feet ofand/or use predetermined vehicles to travel in the same the road.staging areas adjacent to the direction during specifiedroad to haul or pick up freight. time periods. This could be managed using follow-me cars, a radio GPS system, or other traffic control means.To Mine Area FOLLOW-MEFREQUENTLY ASKED QUESTIONSWHAT IS THE AMBLER ROAD PROJECT? WHY IS AIDEA MANAGING THIS PROJECT?The Ambler Road Project proposes to construct AIDEA’s mission is to grow and diversifya limited-access industrial road from the Dalton the economy to create jobs and economicHighway to the Ambler Mining District. The Ambler opportunities, and reduce unemployment. AIDEAMining District has been explored for many has a successful history of working with the Statedecades and is rich in mineral resources (see and industry to provide needed infrastructure formap on page two). The road to the Ambler Mining economic development. The DMTS that supportsDistrict was identified and provided for in ANILCA. Red Dog Mine in northwest Alaska is an example of AIDEA’s experience.The construction cost of the access road dependson the phase of the road. A single-lane pioneerroad that is usable for several months per yearis estimated to cost $280 million to construct,whereas a two-lane, year-round road is estimatedto cost $380 million. Road maintenance andoperations are estimated at $8-10 million per year.

Alaska Industrial Development & Export AuthorityAll drivers will be required to All drivers will be required to A guard will be stationed 24/7take an Ambler Road-specific have two-way radios to report at the gate to the Ambler Roadclass with instruction on unique any unauthorized users or off the Dalton Highway to stoprequirements for operating activities they see. any unauthorized vehiclesvehicles safely on this road. from entering. STOP To Dalton HwyWOULD LOCAL COMMUNITIES BE ABLE WHO WOULD ENFORCE HUNTING ANDTO USE THE ROAD FOR SUBSISTENCE FISHING REGULATIONS ALONG THE ROAD?HUNTING AND FISHING? The Alaska Department of Fish and Game has authority to enforce hunting and fishing regulationsAIDEA will work with local communities in the along the majority of the route. In addition,vicinity of the road to make sure the road does AIDEA will prohibit commercial road users fromnot impact subsistence hunting and fishing. Road hunting and fishing along the road and implementcrossings would be designed in cooperation with procedures for reporting any traffic on the roadthese communities to allow them to safely cross that is not permitted. There will be securitythe road where needed. operations that will setup gates and checkpoints, and monitor compliance with “rules of the road.” www.ambleraccess.org

FREQUENTLY ASKED QUESTIONSAMBLER MINING DIS TRIC TWHAT BENEFITS COULD THERE BE FOR I HAS AIDEA REACHED OUT TO THE PUBLIC?LOCAL RESIDENTS? COULD THEY GET AIDEA, and before it the Alaska Department of Transportation and Public Facilities (DOT&PF), hasJOBS? COULD IT REDUCE COSTS? held over 30 community meetings in the Upper Kobuk, the Upper Koyukuk region, and otherThere are a number of potential benefits for local areas. AIDEA has also participated in regionalresidents. Hundreds of jobs would be created from subsistence advisory meetings and other eventsroad construction, maintenance, and operations, to share information and gather feedback fromincluding security operations at man camps the public, and particularly regional communities.and checkpoints, and monitoring compliance on Public input shifted the project from a publicthe road use restrictions. Other residents may road (DOT&PF) to an industrial road (AIDEA),get jobs on mine exploration, development, or and resulted in changes to the alignment. AIDEAoperations projects. Some residents may use expects to continue to work with interested partiesthis as an opportunity to build their own freight to develop measures to minimize project impactsor transportation businesses. Although AIDEA and increase project benefits.would not construct spur roads, local communitiescould decide to construct roads to staging areas WHAT TYPE OF IMPACTS WOULD THE ROADadjacent to the access road. Local communitiesor entrepreneurs could hire commercial freight HAVE ON THE ENVIRONMENT?companies to haul freight to the staging areas,where it could be picked up and transported to Road construction generally includes removal ofrural communities. This could reduce the cost of vegetation, surface grading, excavation of highliving in some communities by reducing the cost areas and fill in low areas, and compaction ofof fuel, food, and other goods. Finally, Native gravel. The BLM’s EIS will evaluate the potentiallandowners would have the potential to gain land environmental impacts of the road.lease payments or gravel extraction revenuesassociated with the project.WHY IS MINING IMPORTANT TO ALASKA? 4,350Mining supports direct jobs in Alaska.The mining industry has a long history as amajor part of Alaska’s economy. Mining provides 8,600Alaska mining accounts for jobshigh-paying jobs in the state, with the estimated when you consider direct and indirect positions.average annual wage over $100,000. Miningcompanies spent more than $65 million onexploration in 2015 and more than $3.4 billionsince 1981. Another $120 million was spent onmine development in 2016. Mines also paid $23million to local governments in 2016. Red DogMine is the largest taxpayer in the NWAB, andmines are the largest property taxpayers in theFairbanks North Star Borough and the City andBorough of Juneau. Mining also paid $81 millionto the State in 2016 and $111 million to AlaskaNative corporations.* Based on Ambler Mining Region Economic Impact Analysis done by Cardno January 16, 2015*Data from The Economic Benefits of Alaska’s Mining Industry, January 2017

Alaska Industrial Development & Export AuthorityINDUS TRI AL ACCE S S PROJEC TWHAT IS THE TIMELINE FOR THE PROJECT?Hunters will not be allowedThe EIS on the project is expected to be complete to access the a rea via theby December 30, 2019, with a Record of Decision Ambler Road.by January 30, 2020 (see graphic on back).WOULD THERE BE PUBLIC ACCESS ON THE A guard will be stationed at the gate to the Ambler Road 24/7 to stopROAD? COULD THE PUBLIC USE IT FOR any unauthorized vehicles.HUNTING AND FISHING? Only certified and authorized drivers will have access to theThe Right of Way permit for which AIDEA has road and will be instructed to radioapplied is a limited access, non-public industrial in any unauthorized activity inroad. Access will be limited to commercial the area.transportation and drivers with CommercialDriver’s Licenses, insurance, and other credentials. Unlike the Dalton Highway, AmblerRestricting public access increases traffic safety Road access restrictions will beon the road and road users would not be allowed written into several land-use andto use the road for hunting and fishing. There will financing documents that willbe no public access to the road for hunting legally restrict the use of theand fishing. road. Agreements with AIDEA, Doyon, NANA, Alaska Department of Natural Resources (DNR), and BLM will provide restrictions on access rights granted.The Ambler Road will not be open to the ! The industrial road will be designedpublic for hunting or any other public use – and built exclusively for commercialthe financial and land-use agreements that vehicles and will require them to bewill be in place w ill not allow any individual in radio contact. In addition to legalto open the road as was done with the restrictions, it would be impracticalDalton Highway. and potentially dangerous to allow the general public to use the road. – John Springsteen The Ambler Road will not be built to AIDEA, Executive Director public r oad standards. www.ambleraccess.org

Alaska Industrial Development & Export AuthorityCHRONOLOGY OF THE AMBLER ROAD DEVELOPMENT & FINANCING 1 2 3 In 1980, Congress specifically called Preliminary road studies, public BLM begins out the need to allow access to the input, and route refinement. scoping process. Ambler Mining District when it passed ANILCA (Section 201(4)(b)). WE ARE 4 HERE Draft EISSTART issued.8 Agreements penned 7 6 with mine(s) for terms Legal agreements with BLM issues Record on paying back BLM, NPS, DNR, NANA, of Decision. construction and Doyon, and NWAB O&M costs of the must be secured to STOP 5 road project. move forward with the Final EIS project — each issued.9 agreement will outline Finalize design and terms and conditions 13 AIDEA hires construction costs. which will restrict road use. Operation and Maintenance 12 contractor to AIDEA hires security maintain and contractor to repair the road. maintain safety and10 11 security, and toAIDEA secures financing to fund Construction of ensure the integrity of wildlife safetythe up-front costs of the road pioneer road. agreements areconstruction.PROJECT BENEFITSupheld.15RRoOadAoDpenCoOnlyNtoSliTceRnsUedC, mTiInOe aNnd AND14 Construction of mine(s) MINES (4 MINES)in the district (separate activity and not part ofOcceoPrmtiEmficuRantiAitoynT-saIpnOodnNsaourStehdoJrtirOzaafBftiicoS.nDriver Full construction CONSTRUCTION this project). of the road.An annuarel qauvireerdafogrerooafd 4us8e6. jobs over the road 5,933 direct jobs over two years for mineconstruction period. construction with $457.4 million in wages.Up to 68 full-time jobs annually for road 9,278 direct, indirect, and induced jobs withoperations and maintenance. $642.6 million in wages.16 17Mines pay tolls and mineral royalty AIDEA continues to collect toll and mineral royalty fees after thefees that escalate if traffic increases debt service for the road is paid off. This model was used for ENDor the price of minerals increase. construction of the road to the Red Dog Mine. AIDEA revenuesThese monies are used to pay back are used to support additional economic development andthe full cost of the road. provide dividends to the state’s general fund.Based on Ambler Mining Region Economic Impact Analysis done by Cardno January 16, 2015 www.ambleraccess.org