Rural Alaska

NANA, NovaGold deal could benefit Alaska Native Corporations

One of the state's most successful Native corporations has inked a deal with NovaGold in a step toward exploring and developing what's believed to be a rich mining prospect in Northwest Alaska, according to a news report from the The Canadian Press.

NANA, a Native regional corporation serving Inupiat shareholders with roots in the Kotzebue region, can choose to become a joint-venture partner or earn a net-proceeds royalty if mining occurs in the Ambler district well to the east of Kotzebue. The area contains copper, zinc, lead, gold and silver across a mineralized belt stretching dozens of miles, the article notes.

Learn more about some of the planning here.

Net-proceed royalty payments have been a bonanza to NANA in its agreement with Teck, operator of one of the world's largest zinc mines in the Brooks Range foothills. Proceeds from Red Dog mine have boosted NANA's bottom line by more than $500 million over the years. They've also proven lucrative to other Native corporations, contributing $82 million last year alone under a federal sharing agreement designed to help Native corporations that lack mineral bounties.

The deal struck with NovaGold will also promote hiring of NANA shareholders, according to a report by The Canadian Press.

"This agreement ratifies the co-operation that has been and will be essential to the successful development of these significant mineral deposits," NovaGold president and chief executive Rick Van Nieuwenhuyse said in a statement.

Contact Alex DeMarban at alex(at)alaskadispatch.com

Alex DeMarban

Alex DeMarban is a longtime Alaska journalist who covers business, the oil and gas industries and general assignments. Reach him at 907-257-4317 or alex@adn.com.

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