Metals Mining Remains Key to Alaska's Economy

Report highlights mining's $4 billion annual impact and critical role in exports

Apr. 7, 2026 at 3:25pm

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An abstract geometric illustration using bold shapes and lines in shades of blue, gray, and metallic accents to conceptually represent the scale and importance of Alaska's mining industry as an economic driver.Alaska's mining industry, valued at nearly $3 billion annually, continues to be a vital economic engine for the state despite challenges in developing new projects.Red Dog Mine Today

A new state analysis shows that metals mining continues to be a major economic driver in Alaska, accounting for 3-4% of the state's GDP and rivaling seafood as a top export industry. The sector employs over 3,500 workers with an average salary of $135,000, though a majority of those jobs are held by non-resident workers. While the industry faces challenges in developing new projects, existing mines like Red Dog and Greens Creek remain vital to Alaska's economy.

Why it matters

Metals mining has long been an important part of Alaska's history and economy, and this new report underscores its continued significance. As the state looks to diversify its economy beyond oil and gas, the mining industry provides high-paying jobs and valuable exports. However, the reliance on non-resident workers raises questions about how to better develop Alaska's own workforce to benefit more fully from this industry.

The details

According to the state Department of Labor and Workforce Development analysis, the metals mining sector in Alaska is now worth close to $3 billion per year. This includes production of minerals like zinc, silver, gold, lead, and copper, as well as the critical mineral germanium. The Red Dog mine was the sole U.S. producer of germanium in 2024 after China cut off global supplies. Overall, mining accounts for 3-4% of Alaska's gross domestic product.

  • The metals mining sector's value peaked in 2011 at nearly $3.5 billion, reflecting high metals prices and the startup of the Kensington gold mine.
  • In 2024, the most recent year for data, there were 3,533 metal mining and support jobs in Alaska, a 37% increase over the past decade.

The players

Red Dog Mine

A major zinc and lead mine in Northwest Alaska that also produces the critical mineral germanium, which became an important domestic source after China cut off global supplies.

Greens Creek Mine

A silver mine located in Southeast Alaska that is one of the state's six major metals mines.

Karinne Wiebold

The state economist who authored the Alaska Economic Trends report analyzing the mining industry's role in Alaska's economy.

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What they’re saying

“'Mines take years to come to fruition — exploration, feasibility studies, environmental reviews, and permitting are expensive, and all have the potential to derail a project. Public concerns and controversy can also slow or stop development.'”

— Karinne Wiebold, State Economist

What’s next

While the report highlights the continued importance of the mining industry, it also notes the challenges in developing new projects in Alaska. Proposed mines like Donlin Gold and Graphite One face lengthy permitting processes and potential public opposition, meaning their future development remains uncertain.

The takeaway

Alaska's mining sector, particularly its metals production, remains a vital part of the state's economy, providing high-paying jobs and valuable exports. However, the industry's reliance on non-resident workers underscores the need to develop Alaska's own workforce to maximize the economic benefits for local communities.