Economic Benefits of Red Dog Operations

Since 1989, Red Dog Operations, the worlds largest producer of zinc concentrate, has been a key contributor to Alaska’s economy, creating jobs, investment and revenue, and significant economic and community benefits to Alaska’s Native population.

Red Dog Operations provides significant economic benefits to the State of Alaska and is a prime example of how mining benefits Alaskans through taxes, direct employment, direct purchases and shareholder dividends.

• From 1989-2009, total direct and indirect economic impacts of the mine to the regional and state economy were $921 million. In 2009 alone, the mine provided $116 million in federal and states taxes. 
• With a total payroll in 2009 of $52 million, Red Dog Operations provides 550 full-time family-supporting jobs for the local and regional economy. The workforce typically expands in the summer for seasonal work (primarily construction). In 2010, the mine will provide over 200 additional jobs.
• To date, the total capital investment in Red Dog Operations exceeds $1 billion.
• Under the operating agreement between Teck Alaska Incorporated and the NANA Regional Corporation, NANA receives annual royalty payments. A total of $471 million in royalties has been paid to NANA since the agreement was signed in 1982.
• For the last five years (2005 to 2009), royalty payments to NANA totalled $373 million. NANA shares 62 percent of the royalty payments with other Alaska Native corporations.
• The mine is the sole taxpayer in the Northwest Arctic Borough and also serves as an important source of revenue for the borough. In 2009, the borough received about $6.7 million in lieu of taxes as a result of its agreement with Teck Alaska. Red dog is the borough's only taxpayer and provides 60% of its revenue.
• In 2009, Red Dog invested $217 million in the local and state economy purchasing goods and services from Alaskan suppliers.