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Donlin Gold Project: Joint Message from the Board Chair and President

By Robert Beans, Board Chair, and Andrew Guy, President & CEO

Storyknife, September 2018 edition

Robert Beans, Calista Board Chair

Robert Beans, Calista Board Chair

Andrew Guy, Calista President & CEO

Andrew Guy, Calista President & CEO

 

Recently, there have been media reports regarding the development of the Donlin Gold Project which are stirring up fear and misrepresentations of the facts. We want you to know the benefits and reality of mine development in our Region. After all, it is essential to our culture to deliberate and then act accordingly, carefully considering all factors for the people we represent.

 

 

Here are some of the benefits we see:

  • Lasting employment opportunities
  • Cultural collaboration to protect our subsistence way of life
  • Infrastructure development
  • Housing growth

Calista has been involved with the proposed Donlin Gold Project site for over the last 45 years. Calista and leaders from the Yukon Kuskokwim (YK) Delta have worked toward and supported the effort to mine gold from the area. Our early leaders successfully fought for the right to select the land because of its rich mineral deposit. It is important to keep in mind that collaboration and planning are vital when discussing opportunities within the industry. Our families and especially our children deserve the best when making decisions that affect their lives now and well into the future.

 

Here are the Facts:

Opponents of the mine argue that a significant amount of mercury will contaminate the Kuskokwim River watershed. This is not true—according to the Environmental Impact Statement (EIS) conducted by the U.S. Army Corps of Engineers, mercury will not be used for processing and would not be shipped to the mine site. Naturally occurring mercury will be removed by Donlin Gold via containers that adhere to state and federal standards.

Some have claimed that subsistence living will end with development of the mine. However; we can co-exist with economic development, while preserving subsistence and creating jobs. The Donlin Gold project will work with YK region employees to provide time to subsistence hunt and fish. Additionally, Shareholders will serve on community-based transportation and subsistence committees in collaboration with the mining operations.

Local Donlin Gold employees could have the best of both worlds—affording a subsistence lifestyle with year-round employment. For example, since the Red Dog Mine in the NANA region was developed in 1982, it has distributed over $221 million in dividends to shareholders and created more than 600 full-time living wage jobs. Since 1989, NANA shareholders have also received more than $469 million in wages from working at Red Dog Mine and subsistence activities continue in the NANA region. If built, Donlin Gold would create hundreds of high-paying jobs to one of Alaska’s most economically distressed areas.

We Can Coexist with economic development, while preserving subsistence and creating jobs.

According to the Denali Commission, in 2017, all but two communities in the Calista Region qualified as distressed. The Donlin Gold Project will bring vital infrastructure to the YK region including a natural gas pipeline from Cook Inlet to the project site, the creation of two new ports, a power generation plant, water treatment plant, access roads, housing and an airstrip to name a few. Local businesses will grow by providing supplies and materials to these projects. The natural gas energy and fiber optic infrastructures can be expanded into the communities of the YK Delta.

The Donlin Gold Project will provide economies of scale and will improve the socio-economic conditions of our Shareholders. The project will ensure investment in the YK region—village corporations will receive revenue sharing distributions and increased revenues can also provide greater dividends and other benefits to our Shareholders from royalty payments. The trickledown effect from Donlin Gold operations will serve as a catalyst for growth within Calista, creating more jobs for our Shareholders within the various subsidiaries and business lines such as those in construction. Lastly, our youth will be interested in graduating from high school to obtain trade certification or college degrees for jobs provided in-region. This will be beneficial to YK Delta families by providing opportunities to stay in their home communities.

Some have asserted that mining will ruin our environment. We want to be clear that the Donlin Gold Project will be managed in accordance with best practices, while abiding by stringent state and federal regulations related to mining operations. Current day mining operations include extensive risk mitigation beginning with exploration, continuing throughout the mining process, and carrying on after the mine closes. It is important to note that the rigorous environmental review process that Donlin Gold has just completed as required by the National Environmental Policy Act, implemented in 1970, has led to substantial improvements to environmental safety. We need to only look at the 5 largest mines operating in Alaska today to see how modern mining techniques tied with stringent environmental protection standards can result in safe operations. The Fort Knox mine near Fairbanks, AK is a good example of a gold mine safely operating in the headwaters of the Yukon River and providing good paying jobs to residents.

We must strike a balance between economic, social and environmental responsibilities to improve the quality of life for our communities, Shareholders and non-shareholders of our Region. We will do this while ensuring that our water, fish and subsistence foods are protected. Our intent is to make a positive contribution to the environment and communities within our Region and the state of Alaska. The Donlin Gold Project could be a model of success between a mining company and the communities of the YK region.

Donlin Location for Sept 2018 Storyknife

Our goal is to continue providing honest and accurate information regarding the development of the Donlin Gold Mine project to our Shareholders, employees, and to the public. We cannot let outside interests dictate what we believe is beneficial to our Region. Opportunities and advancements are made with people working together—people creating bridges of understanding.

Our goal is to continue providing honest and accurate information regarding the development of the Donlin Gold Mine project to our Shareholders, employees, and to the public. We cannot let outside interests dictate what we believe is beneficial to our Region. Opportunities and advancements are made with people working together—people creating bridges of understanding.

 

Quyana,

Robert Beans, Calista Board Chair    /    Andrew Guy, Calista President & CEO

Learn About Donlin Gold’s Environmental Plan