Alaska Miners Association - Reference Material
For Immediate Release
June 20, 1995
Alaska Governor Approves $20 Million Exploration Incentive Act
FAIRBANKS--Alaska Governor Tony Knowles has signed an exploration incentive bill that will allow up to $20 million of credit per project for mineral exploration. At the signing ceremony Governor Knowles stated, "The mining industry is reawakening in Alaska and by creating partnerships between the state and industry, this legislation will help stimulate new minerals development and new jobs across the state and help diversify our economy."
The act provides for credit of qualifying exploration costs against future taxes and royalties due to the State. The credits can be taken for exploration on state, federal or private lands. The credits are site specific and may be assigned to successors in interest.
"This will provide encouragement for mining companies' to come to Alaska rather than going to foreign countries as has happened over the past several years," said Harry Noyes, Manager of Resource
Development for DOYON Ltd, the largest private landowner in the U.S. "DOYON and the other Alaska Native Corporations selected much of their land because of the high mineral potential and the opportunity for creation of jobs for their shareholders," Noyes continued.
Steve Borell, Executive Director of the Alaska Miners Association, said, "This is a significant incentive for companies to invest their high risk exploration dollars here in Alaska. When compared to most areas of the world Alaska is essentially un-explored and the opportunities are tremendous."
This is the second resource development incentive act passed by the Legislature and signed into law by Governor Knowles this year. Borell continued, "This mineral exploration incentive act and the State's on-going annual airborne geophysical survey program, now in it s third year, are proving to the world that the Governor and the Alaska State Legislature are serious about encouraging mineral development."
Major Points of Alaska Exploration Incentives Act
- Qualifying costs can be credited against future taxes and royalties due to the State.
- Qualifying costs include geophysical and geochemical surveys, trenching, drilling, bulk sampling, underground exploration, and metallurgical testing.
- Total credit allowed is up to $20 million per project.
- Applies to all lands State of Alaska, private and federal lands.
- Credits are site specific and may be assigned to successors in interest.
- Credits can continue to be earned until such time as all permits for the new mine have been received.
- Credits are certified annually to eliminate potential disagreements with the State when the company wants to actually begin taking the credits.
- Credits not used can be carried forward for up to 15 years.
- Credits may be taken against up to 50% of the amount of taxes and/or royalties due to the State in any year.
- Data generated by the exploration must be given to the State at such time as a company begins taking the credit.
- Three years after first taking the credit, the data becomes available to the public.