Value Added Resource Development

Alaska’s economy is based largely upon resource extraction. There is little or no Value Added Resource Development of any of our 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. 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.

My Administration will build the all-Alaska natural gas pipeline to Valdez with a spur line to South Central from Glennallen to the gas grid in Mat-Su. Sufficient gas liquids in our gas will be stripped before the gas is shipped to Asia as LNG. These 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. Jobs my Administration will work to create by encouraging the use of Alaska’s resources to best benefit Alaskans first.

Under my Administration, 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 a policy of the past.

Under my Administration, 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 Japan 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.

The all-Alaska natural gas pipeline to Valdez will also provide natural gas for heat and power to reduce the cost of living and industry in Alaska. This abundant energy will provide for the basis for industry that heretofore would not have considered locating to Alaska.

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.

With abundant energy at our disposal, Alaska can then begin to encourage the oil companies to do more than just ship our crude oil elsewhere to process into fuels and chemicals for industry.

It is time we put our natural gas wealth to work for Alaskans first. I will work to make that happen ASAP.