New study looks at economic impacts of proposed Alaska road North of 60 Mining News - March 22, 2023
Extending Alaska's limited road network 100 miles northwest from the Port MacKenzie area near Anchorage into the West Susitna area would open up a new area for Alaskans to visit the great outdoors, provide highway access to this mineral-rich region, and create a new revenue stream for the state, according to an independent economic study carried out by McKinley Research Group.
"The West Susitna Road is important for local residents and gaining fair access to hunting, fishing, and potential jobs," said Alaska Gov. Mike Dunleavy. "My administration is constantly looking at ways to grow our economy and this project is a great opportunity for not only south-central Alaska but the entire state. I am committed to this project and unlocking resources that benefit all Alaskans."
Originally proposed under Alaska's Roads to Resources program, the West Susitna Access Road would provide Alaskans with easier access to 6 million acres of recreation area for hiking, camping, hunting, fishing, and snowmachining.
The West Susitna area also hosts the last large area of state-owned agricultural lands in Southcentral Alaska. This opens large swaths of land suitable for growing hay and raising livestock, as well as Alaska-grown potatoes and other vegetables.
The largest impact of the road, when it comes to the state's economy and jobs for Alaskans, would be from mineral projects that would stand a better chance of being developed into mines with year-round access.
The proposed 100-mile road extends into an area enriched with copper, gold, silver, and other minerals critical to green energy and the economy.
Nova Minerals Ltd.'s Estelle gold project, which hosts 9.6 million ounces of gold and growing, lies near the western terminus of the proposed West Susitna Road.
US GoldMining Inc.'s Whistler property, which borders Estelle, hosts an estimated 1.1 billion pounds of copper, 24 million oz of silver, and 6.6 million oz of gold.
According to an analysis completed by McKinley Research, the development of either of these projects would create 200 and 500 new direct mining jobs and $24 million to $59 million in annual operating wages. In addition, the Matanuska-Susitna Borough would benefit from significant new infrastructure subject to property tax, and the state would generate new revenues from mining tax and royalties.
Like most large infrastructure projects in the state, the Alaska Industrial Development and Export Authority is leading the effort to permit, fund, and construct the West Susitna Road.
"AIDEA is committed to pursuing projects that will lead to jobs and economic opportunities for Alaskans," said Brandon Brefczynski, AIDEA's manager for the West Susitna Access project. "It is exciting to receive quality data that the West Su Access Project could potentially provide thousands of construction and permanent jobs and millions of dollars for the State of Alaska."
With the proposed West Susitna Road entering the permitting process, AIDEA is hosting two community meetings this month. The first will be held on March 23 at the Skwentna Roadhouse, which is near the proposed route in the Western Susitna region, and the second will be held on March 31 at Evangelo's Restaurant in Wasilla, Alaska.
If permits are approved, and funding is secured, construction of the West Susitna Road is expected to get underway in 2025.
The estimated cost for the 100-mile road is $356.9 million.
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