A massive graphite mine on the Seward Peninsula is on track to enter operations by the end of the decade. The property, owned by Canadian mining company Graphite One, will benefit from a unique federal program that fast-tracks infrastructure projects.
The Fixing America’s Surface Transportation Act sounds fairly mundane. But its acronym, FAST-41, reveals the true purpose of the program – it’s designed to fast-track permit applications for infrastructure development like highways or broadband internet.
This spring, Graphite One’s project approximately 30 miles north of Nome became the first mining project in Alaska to receive the designation of a FAST-41 Covered Project. Donlin Gold became the second such project in Alaska on Oct. 27.
Graphite One VP of Mining, Kevin Torpy, said the FAST-41 program, which began a decade ago during the Obama administration, will help shorten the time to start mining.
“The intent of it is to hold people accountable to getting their work done and reviewing that so the project proponents can make big financial decisions in a timely manner,” Torpy said.
Torpy said the U.S. Army Corps of Engineers deemed the impacts of the prospective mine “small enough” that an Environmental Impact Statement was not needed. Instead, a simpler, less time-consuming Environmental Assessment will be completed. Torpy said that doesn’t necessarily mean it'll be less rigorous.
“I think calling it FAST-41 probably causes a lot of angst with people that it's gives the illusion that maybe you're short cutting something when when you're not,” Torpy said.
Torpy estimated the environmental assessment could shave a year off the permitting process. But it’ll still be years before the mine is ready for operations. In the meantime, Graphite One needs billions of dollars to finance construction of the mine and a processing facility in Ohio.
New Alaska Native corporations enter the mix
In September, Graphite One received a letter of interest from the Export-Import Bank of the United States. It paved the way for up to $895 million in financing from the federally-owned bank.
Other entities are jumping aboard too, with Alaska Native corporations Aleut and Doyon investing a combined $5 million in early October.
“I think they recognize the way we've been doing business in Alaska and see the opportunity, from a business standpoint, to be invested with us,” Torpy said.
Aleut and Doyon join Bering Straits Native Corporation in investing into the project. Unlike BSNC, Aleut and Doyon’s agreements are strictly monetary. BSNC’s agreement, meanwhile, provides for preferential hiring for shareholders and priority for services from BSNC subsidiaries.
“Anytime you're working in Alaska, if you can have a positive relationship with the native corporations, especially for us with BSNC and being in their backyard, it's super important,” Torpy said of the new agreement.
The relationship with BSNC has deepened in recent years. In a recent permit application, Graphite One outlined plans to use several pieces of BSNC property for storage and housing. Graphite ore waiting to be loaded onto large container ships would be stored on a 23-acre parcel owned by BSNC near the Port of Nome.
There’s also plans to build single and multi-family housing on adjoining BSNC-owned parcels totaling 157 acres on the north side of Nome. Torpy envisioned Graphite One renting out or even co-signing mortgages for the houses so employees could eventually own the properties.
“We see that as a big incentive to attract employees and to keep them,” Torpy said.
Outsized impact
The project has drawn criticism from local communities citing the risk to subsistence resources. The open-pit mine itself will span just over a mile wide, removing a significant section of the Kigluiak Mountain range. A new, 17-mile haul road will spur off the Kougarok Highway so trucks can ferry graphite from the mine site to Nome’s port.
The project's feasibility study completed earlier this year estimates a 23-year life for the mine, followed by reclamation work.
Torpy, a fourth-generation miner, doesn’t deny the mine would leave a permanent mark on the landscape. But he said modern mines are held to a much higher environmental standard than older mines.
“I think people like to fall back on century old mining practices, which did leave some legacy impacts,” Torpy said. “But laws and regulations and the way companies operate anymore, it's a totally different situation.”
The U.S. Army Corps of Engineers recently extended its public comment period for the project to Nov. 30. It said in a release that it would give the U.S. Fish and Wildlife Service and the National Oceanic and Atmospheric Administration more time to weigh in, assuming the government shutdown ended by Nov. 15. The release also cited interest in extending the deadline from members of the local Alaska Native communities.
Public comments can be mailed to the address below or emailed to regpagemaster@usace.army.mil
FAIRBANKS FIELD OFFICE
Regulatory Division (1145)
CEPOA-RD
1046 Marks Road
Fort Wainwright, Alaska 99703
