Alaska approves New Amalga mine access road after major opposition

The state has approved the first segment of a mining road requested by Grand Portage Resources Ltd., a Canadian mining company. Nearly 90% of 196 public comments received earlier this year opposed the road.

“Alaska’s public lands and transportation systems exist to serve Alaskans — not to subsidize private industrial expansion at public expense,” wrote Juneau resident Brooks Horan.

The private non-exclusive easement includes a 15-foot-wide gravel road and two one-acre helicopter pads on state land off Glacier Highway. The road will stretch for approximately 1.3 miles between the Herbert Glacier and Eagle Glacier trail and does not directly intersect any of the existing recreation trails.

For this reason, the state acknowledges that while the road and staging areas will impact recreation in the area, it “does not agree that the wild and scenic nature of the area will be irreversibly damaged by approving this easement.”

“This is a small total footprint within the entire Eagle-Herbert River valley. Due to the non-exclusivity of the easement, public access will not be restricted within the area, therefore even though the experience may change, the public will still be able to recreate within the corridor,” the state’s public notice issued last Tuesday states.

In July, local conservation nonprofits gathered community members concerned about the road and proposed mining project. Attendee Riley Moser said even though public access will not be restricted, it would be severely disrupted by safety hazards and noise.

Among other attendee reasons for opposition were that profits from the mine benefit a private, foreign corporation and its investors.

“The adjudication process does not evaluate or distinguish applicants based on nationality, corporate structure, or location of incorporation,” the state’s approval says.

The approval also notes the requested road will provide direct economic benefit to the state through the Entry Authorization and Annual Use Fee. If the proposed mining project is approved, the state would receive further direct economic benefits through tax revenues.

Supporters also recognized local contractors and businesses will be used to construct the road. Also, if the mining project is approved it will provide indirect economic benefits to the state through municipal property tax revenues, more business for local vendors, and job opportunities in the construction, mining and industry sectors.

A company representative said earlier this year the mine is expected to create 277 jobs and a pre-tax net present value of nearly $1 billion during an initial seven-year production cycle.

“As an avid outdoorsman and a local business owner of Juneau I would like to express my support for this road and the project,” wrote Colter Boehm of Bobcat Juneau and Ketchikan. He added the local jobs offered by both would be excellent and long-term.

The easement application was first submitted last August and public notice took place from February to March. The road was approved Aug. 18 and will provide Grand Portage access for the unapproved New Amalga Gold Project near the face of Herbert Glacier on U.S. Forest Service land.

Public comments also included concerns about noise and visual impacts associated with construction, heavy equipment use, helicopter operations, ore hauling, and potential future blasting if mineral extraction occurs.

If the project moves forward, the road will lead to an approximate 30-acre surface facilities site, which is expected to host equipment shops, electrical generation, water treatment plants, ore sorting facilities and temporary rock staging pads.

The state intends to authorize the requested road in two phases.

The first phase authorizes the immediate development of the 0.17-mile segment of road closest to Glacier Highway and the first one-acre helicopter staging area. The second phase authorizes the development of the remaining 1.13-mile road segment and staging area, once Grand Portage receives Forest Service approval to begin mineral extraction production.

The Alaska Division of Mining, Land and Water says the phased approach is a mitigation measure that enables better-controlled construction of the easement and ensures “it will serve its purpose and not unnecessarily disrupt the recreational area.”

“Although recreation is not the primary reason DMLW is implementing a phased approach, it does potentially lessen any negative impacts to recreation should the mining project not be approved on the adjoining federal lands.”

The decision follows the approval of a faster federal permitting process earlier this month, which officials said doesn’t mean the New Amalga Gold Project can skip any regulatory steps or is more likely to gain approval.

Grand Portage applied for an easement term of 35 years. DMLW issues it for 25 years, stating it’s the standard term length.

“This will allow the state to better manage and re-evaluate the easement at a sooner date, while still providing the applicant with a long-term authorization,” the notice states.

A driveway or approach road permit for the turnout from Glacier Highway is expected to be obtained from the Alaska Department of Transportation and Public Facilities before development.

Grand Portage stated since the mining project is currently only accessible via helicopter, the road development and staging areas will reduce the distance of supply shuttles and reduce noise impacts to residential areas in the Mendenhall Valley.

“The helicopter shuttle distance for slinging equipment and supplies will be reduced by approximately 60% for each cycle compared to the previous staging area located in the Juneau Mendenhall Valley suburbs,” a company press release on Aug. 20 states.

The state received comments claiming authorization was not in the public interest because of conflicts with existing land uses and the state’s responsibility to manage resources for multiple use.

“Under the State’s multiple-use mandate, long-term land stewardship does not mean restricting state land to preservation-only uses; it requires balancing environmental, recreational, economic, and access needs in a way that serves the broader public interest,” the state’s approval responds. “In this case, the proposed use, supporting mineral exploration and potential resource development, is a recognized, allowable use of state land.”

And since mining is an allowable designated use “it is reasonable to infer that development of mining roads, staging areas, and similar support infrastructure are an allowable designated use as well,” according to the state’s approval.

In addition, DMLW states public road access would conflict with the easement’s purpose, and allowing unrestricted vehicular access along the easement “would inevitably pose unnecessary hazards and safety risks.”

It adds that existing public access to state-owned land in the area of the proposed easement will remain open, although the applicant will be allowed to install a gate at the easement’s entrance to control vehicular access along the roadway for safety measures. A chain-link fence will be installed around the perimeter of each staging area, as well as solar-powered security cameras.

No public comments are being sought on the public notice, but appeals are accepted until Sept. 7.

DMLW states it has considered the fish and wildlife habitat in the easement, and will require a 300-foot-wide buffer along anadromous streams as a mitigation measure. It adds the easement agreement includes terms Grand Portage must follow to minimize the potential for spills and pollution, and a required Environmental Assessment report at the end of the easement term.

“Although contamination incidents from mining operations have occurred in the past, that does not mean it will happen in this instance,” the state’s approval says. “We cannot deny an authorization on the basis that contamination may occur, especially when proper containment and mitigation measures are in place.”

The future facilities at the proposed mining site are envisioned to include a selective underground mining operation, but are not planned to include an ore processing plant or tailings disposal landfill.

Due to the resource location near tidewater and less than four miles from existing paved highway, Grand Portage plans to utilize off-site processing by a third party, according to the company.

The road approval comes after the company reached the midpoint of this year’s drilling program at the New Amalga Gold Project, according to a company press release on Aug. 13.

Crews have completed five of 12 planned drillholes, totaling 1,605 meters out of 3,255 planned, as of Aug 9. Large amounts of critical data have been collected on hydrogeological and geotechnical conditions in key areas of the deposit, along with additional resource definition, according to the release.

The company states the rock mass data will be utilized for the upcoming environmental review and permitting process and will inform mine development plans.

Construction has advanced past drilling for the development of environmental monitoring infrastructure, including the installation of a river-monitoring gauge station and completion of concrete works for the foundation of the first of two planned meteorological towers. The second tower erection is planned for this September.

Wetlands mapping for the project area and wildlife, botanical and geochemical studies are also ongoing, according to the press release.

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This story was originally published by Juneau Independent and distributed through a partnership with The Associated Press.