The Nome nugget., 1962-03-19


 Following statement by James A Williams before the subcommittee on Minerals Materials and Fuels of the Senate Interior and nsuar Affairs Committee Senate Joint Reo luion A, Washington, DC, March IS, loo2)
 MY NAME IS James A. Williams I m the Director of the A Division of Mines and Minerals Department sources State of Alaska registered professional mining engineer and also presently chairman of Western of the B been directly connected with mining in Alaska except period military service speak for the State of Alaska and the Alaskan mining industry
 We urge passage of Senate Joint Resolution A s35 per ounce subsidy the gold miner will increase production provide stimulus exploration and discovery deposits and economic boost for the mining states particularly Alaska The subsidy will increase Alaskan gold production 1863 by
 peak production year for US 4s7oooo ounces) and Alaska (74sooo ounces) o4o with Alaska producing 15 per of the nations total Estimated production 526oOO and if40oO respectively showing Alaska to be presently producing only z5 per of the nations total gold would indicate that gold mining been reduced than that of other states should remember that per Gin 1oo0 the nations gold byproduct of base mining Alaskas production pre- sent all from placer operations Alaska produces gold from mines that primarily for gold than other except Dakota where production is practically all from one under ground producer With basic industry Alaska has the most to will receive the largest boost wise, in its economy, from a gold subsidy
 annual production This will production of than per year Alaska The greatest effects will be the small placer operations that will almost medatey and in the in prospecting and exploration that discoveries The importance of new dis should be discovered well gold As noted above base metal opera fon produce substantial of gold Further developments will also be ofhore mining sudden interest in ofhoe gold mining in Alaska has resulted in the filing for many offhoe prospecting permits The subsidy will help these expensive
 Although the Fairbanks district dredges will probably be continued by the USSR Go under $35 subsidy is these and others will be available for which may be started This will reduce the capital outlay for of the probable operations This will reduce the capital outlay necessary for at least some o the probable new operations However labor value ratio study of 1858 data indicates that the capital expenditures in Alaskan gold mining higher hour and the value of lower than in gold mining the other This will of remain after the incentive bonus added and will dusy be expected Even doubling the value labor unit wifi place the industry substantially above other Alaskan mining industries and will leave substantially below other mining in the US
 We estimate the in employment will be from the 1o61 level of 7oo workers (ncludng propeco) than 1,500 workers Thus the impact within the industry will be doubling of present production with quaduplng of its dollar value plus doubling of the working force.
 To summarize: with the indicators that the effect of J. Res A will double Alaskan gold production reasonable the nations production will also be doubled This will accomplish the desired results of strengthening the gold mining ndusty and improving the position of the United States gold