Value Added

Value Added Resource Development

  • It is time we end resource extraction without value added jobs
  • My administration will encourage industry to process the raw product in Alaska
  • This policy change will mean increased job opportunity for Alaskans
  • Value Added Resource Development will provide long term, good paying jobs for Alaskans

Alaska’s economy is based largely upon resource extraction. There is little or no Value Added Resource Development of any of its resources in-state. This failure to use what we produce beyond taking it out of the sea, the ground, or cutting it down is demonstrated in virtually every sector of resource development. We do not have any ore processing facilities that allow extraction of metals from mineral concentrates. We do not have kilns to dry timber for making engineered lumber for construction on a large scale. We do not have refrigeration plants or canneries for our agricultural products or to support large scale meat production.

Why is Alaska exporting our resources so that others can benefit from the industry and jobs created from taking our resources and making them into finished goods?

It is time we end this policy of resource extraction without value added jobs. I intend to emphasize Value Added Resource Development. This means that not only do we produce the raw product, but my administration will encourage industry to process the raw product in Alaska to provide the source materials needed for industry and to make those source materials into finished products. This policy change will mean increased job opportunity for Alaskans. In this regard, I will work to support local hire.

Building a large volume gasline will allow for the stripping of a portion of the valuable gas liquids before the gas is shipped to Asia as LNG. The gas and gas liquids used in-state will provide fuels for heating, chemicals for plastics, and the basis to stimulate the growth of industry to use them. Such Value Added Resource Development will provide long term, good paying jobs for Alaskans. That is why a high level government official in Canada said some years ago that Alberta’s “pound of flesh” from Alaska’s gas, had the line gone through Canada, would be that the gas liquids would stay in Alberta so Alberta would have the jobs and opportunities that Value Added Resource Development provides.

Under my administration, the Department of Natural Resources (DNR) will be re-focused on Value Added Resource Development in the management of Alaska’s natural resources. I will work to make resource extraction without value added a policy of the past. The Department of Transportation (DOT) will be tasked with planning and building pioneer roads to access Alaska’s mining districts. The Alaska Railroad will be tasked with providing access by rail to those areas with long term mineral production potential. Why should our ore concentrates be barged to foreign markets for processing if we can transport them by rail to in-state processing facilities? Building such infrastructure will be an investment in Alaska that will give industry access to our raw materials.

Energy intensive processes for extracting metals from mineral concentrates, refrigeration and canning plants for agricultural products, cold storage for seafood products, and kilns for drying lumber for homes will become economical for the first time in Alaska’s history. The key is cheap and abundant energy to reduce the cost of power and heat.

It is time we put our natural gas wealth to work for Alaskans first.