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Economic Benefits


While the Lake and Peninsula Borough and the broader Bristol Bay region possess rich natural resources, including robust salmon fisheries, they also face high levels of unemployment, a high cost of living and steadily decreasing population -- with many local villages either having lost or facing imminent loss of schools. The vast majority of the value of the Bristol Bay commercial salmon fishery does not benefit local people. There has been and continues to be a significant out-migration of Alaska Native people from local villages as the jobs and personal income required to live a traditional lifestyle in rural Alaska are simply not available to them.

Through significant capital investment, high-wage job creation, billions of dollars in government revenues and supply and service contracts, Pebble can benefit generations of Alaskans and Americans.

In May 2013, the Pebble Partnership released a comprehensive study authored by IHS Global Insight entitled The Economic and Employment Contributions of a Conceptual Pebble Mine to the Alaska and United States Economies. The IHS Global report is based on a conceptual mine plan using an iteration of the engineering work undertaken by the Pebble Partnership at that time. No final project design has been selected or approved at this time. The IHS report is intended to provide information about general economic effects/contribution of development a project like Pebble to Alaska and the United States. The report should not be used to evaluate the Pebble Project's impact on Northern Dynasty.

National economic benefits as defined in the IHS report are outlined in the table below.

National Economic Benefits Construction
(Year 1-5)
Initial Production Phase
(Year 5-29)
Potential Subsequent Development Phases
(Year 30+)
Jobs
(direct, indirect & induced1)
16,175 14,715 16,650
GDP (annual) $1.6 billion $2.4 - $2.72 billion $3.7 - $3.9 billion
Government Revenue
(annual: federal, state, local)
$323 million $670 - $772 million $1.2 - $1.25 billion


In production, Pebble will be one of Alaska's largest private sector employers, supporting an average of nearly 2,900 Alaska jobs, including 915 direct operations jobs. Total direct employment at the proposed mine over the first 25 years of production will average 1,220 with an estimated 75% of the workforce to reside full-time in Alaska. At $109,500 per annum, the projected average annual salary for Pebble mine workers is expected to be more than double the state average.

Economic benefits for the State of Alaska as defined in the IHS report are outlined in the table below.

State Economic Benefits Construction
(Year 1-5)
Initial Production Phase
(Year 5-29)
Potential Subsequent Development Phases
(Year 30+)
Jobs
(direct, indirect & induced)
4,725 2,890 2,750
GDP (annual) $400 million $1.1 - $1.4 billion $2.1 - $2.4 billion
Government Revenue
(annual: state &local)
$27 million $165 - $213 million $351 - 396 million


1 Indirect jobs are those supported in sectors providing supplies and services to the Pebble Project. Induced jobs are those supported in sectors benefitting from the spending of Pebble direct and indirect employee wages.
2 The IHS study forecasts a range of GDP and government revenue impacts associated with future development of the Pebble Project based on two different long-term metal commodity price forecasts.


Throughout the active exploration phase of the project, the Pebble Partnership was one of the most important private sector employers in southwest Alaska. As a result of a successful 'local hire' policy and worksite training program, the Pebble Partnership's workforce in Alaska over the last five years has averaged 650 people per year (includes employees, contractors and secondees).


Related Reading
The Economic and Employment Contributions of a Conceptual Pebble Mine to the Alaska and United States Economies - Full Report

News Release May 30, 2013 - Northern Dynasty Announces National Economic Impact Study of Alaska's Pebble Project

Alaska Miners Association - The Economic Impacts of Alaska's Mining Industry