Red Dog by the Numbers

Business

In operation since 1989, Red Dog Mine is a zinc-lead mine and is one of the world’s largest producers of zinc concentrate. Since mining began, NANA has retained approximately $480 million in the $1.3 billion it has  received net proceeds from the mine. NANA has distributed approximately $820 million to other regions and at-large shareholder via the 7 (i) sharing provisions of the Alaska Native Claims Settlement Act. Of the $480 million NANA has retained, the Corporation has distributed approximately  $221 million in dividends to shareholders primarily from the net proceeds from Red Dog Mine.

Location

Red Dog Mine is located in Northwest Alaska in the DeLong Mountains of the Brooks Range, 82 miles north of Kotzebue, 55 miles from the Chukchi Sea and 106 miles above the Arctic Circle. It is situated within the Northwest Arctic Borough. The mine is self-reliant, with power generation, an airport, worker housing and ocean shipping facilities.

Operating Agreement

The mine was developed in 1982 under an innovative operating agreement between the NANA Regional Corporation, Inc. (NANA), an Alaska Native Corporation (ANC) owned by the Iñupiat people of Northwest Alaska, and Teck Alaska Incorporated (Teck), a U.S. subsidiary of Teck Resources Limited, a diversified mining and metals company and significant producer of copper, gold and specialty metals, headquartered in Vancouver, Canada

Operations

Red Dog Mine is an open-pit, truck-and-loader operation, using conventional drill and blast mining methods. The mineral processing facilities use conventional grinding and sulfide flotation methods to produce zinc and lead concentrates. Product from the mine is shipped to Teck’s metallurgical facilities in British Columbia, Canada and to customers in Asia and Europe. Due to arctic conditions, the concentrate is stored at the port facility in some of Alaska’s largest storage buildings and is shipped to customers during a 100-day season that occurs from July to October each year. Watch a video here.

Payment in Lieu of Taxes (PILT)

Red Dog Mine is the Northwest Arctic Borough’s (NAB) sole private financial contributor in the form of Payment in Lieu of Taxes (PILT) to the borough. This money supports local government which employees hundreds of people in the NANA region and allows the Borough to provide needed monies for vital projects like schools, community projects and economic development projects.

 

2015       $11.6 million ($9.2 million to NAB, $2.4 million to Northwest Arctic Borough School District)     

2014       $11.6 million ($9.2 million to NAB, $2.4 million to Northwest Arctic Borough School District)     

 

Red Dog Mine and Alaska

According to the Alaska Department of Commerce, Community and Economic Development, Red Dog Mine contributes an estimated $558 million to the statewide economy. Overall, Red Dog Mine directly and indirectly supports 2800 Alaska jobs, and $166 million in compensation.

Royalties

Royalties from Red Dog Mine have a direct positive impact on the lives of NANA shareholders. The revenue allows NANA to create economic opportunities for shareholders through the development of NANA businesses, job creation, education opportunities and dividend distributions. They also allow NANA to contribute to essential social and cultural programs that preserve our culture and way of life.

7 (i) Distribution

Royalties from the mine are also shared with other Alaska Native Corporations (ANCs) as part of the 7(i) provision of the Alaska Native Claims Settlement Act (ANCSA). During FY 2015, NANA received approximately $187 million and shared approximately $114 million with other regions, Kikiktagruk Iñupiat Corporation, and at-large shareholders. NANA retained approximately $73 million. This money helps other ANCs reach their goals, uplifting all Alaska Native people. Since mining began (1989), NANA  has received $1.3 billion in net proceeds payments from the mine and distributed $820 million to other Alaska Native Regional Corporations, Kikiktagruk Iñupiat Corporation and at-large shareholders. NANA has retained $480 million. The Corporation has distributed approximately $221 million in dividends to shareholders primarily from the net proceeds retained from Red Dog Mine.

Employees

Mining is a way of life for many families in the region. Working at the mine allows many of the shareholders to have good jobs and live a subsistence lifestyle. Whether they work for Teck or for one of our NANA companies that provide essential services, Red Dog employees are part of the Red Dog family.
 
In 2015, more than 600 NANA shareholders were employed at Red Dog Mine, earning approximately $39.3 million in wages.

Employment and Training Committee

Under the NANA/Teck 1982 Agreement, an Employment and Training Committee is mandated to develop initiatives that will maximize the number of NANA shareholders working at the operation. Under their oversight, Red Dog Mine has an ambitious on-the-job training program and extensive student development efforts. More than 15,300 hours of on-the-job training was provided in 2008 to shareholders.

Environmental Excellence

Committed to the highest environmental standards, and continual improvement of environmental performance, the mine implemented a comprehensive environmental management system (EMS) and became ISO 14001:2004 certified, which means that its environmental management system has been independently certified and approved. The mine actively complies with 145 permits, regulations, agreements and environmental plans that contain nearly 2,300 compliance requirements that involve over 28,000 tasks that must be completed on a daily, weekly, monthly and annual basis.


Subsistence Committee

An independent Subsistence Committee, consisting of Elder hunters from Noatak and Kivalina, meets regularly with mine representatives to review all subsistence and environmental issues - including water quality - and provide guidance to the mine to ensure environmental performance.