By REP. KEVIN MCCABE
At Gov. Mike Dunleavy’s Sustainable Energy Conference, leaders came from across the state and from many foreign countries to discuss our clean energy future, national security, and economic opportunity. The mining breakout had many who spoke of rare earth elements, copper, graphite, and cobalt, minerals that power everything from electric vehicles to fighter jets.
They pointed to Alaska’s vast potential, from the copper of the Ambler Mining District to the Antimony at the top of West Susitna to graphite deposits scattered across the Interior.
However, while the panelists were busy applauding our mineral reserves, and discussing new mining techniques, they forgot to answer the most basic question: How do we actually move these minerals from the rocks in our wilderness to the global markets that need them?
Resource development begins and ends with transportation and it’s time we had some focus on it.
Alaska is rich in resources, but poor in infrastructure. Many of our huge deposits lie hundreds of miles from any road or rail, buried deep in rugged Alaska terrain. The Ambler Mining District sits 200 miles northwest of Fairbanks, with no connection to tidewater. Estelle mine sits at the north end of Mount Susitna with no road or rail to tidewater. And even when we do move the minerals slurry, where does it go? Anchorage’s port is jam-packed; Seward is more of a cruise stop than a freight hub; and Valdez is built for oil, not ore.
We talk about becoming a mineral powerhouse, but until we solve the transportation gap, those minerals will stay buried. What we have right now are stranded assets; it’s like having gold in your safe with no key to open the door.
Moving minerals by truck or air is expensive and makes it hard to compete with global suppliers. Rail is a cost-effective, scalable, and environmentally sound solution. It reduces shipping costs by up to 70 percent, lowers emissions, and supports bulk exports to Asia, Europe, or the Lower 48.
And we already have a state-owned tool for the job, the Alaska Railroad Corporation. With 656 miles of track connecting Fairbanks, Anchorage, and our ports, the ARRC was created to grow our economy. Yet it hasn’t laid a mile of new track since 1985. Instead, it has prioritized cruise passengers over freight, pouring $137 million into a new dock in Seward while mineral wealth sits idle.We must shift this paradigm.
This is not a tourism problem; it’s a freight problem. And the solution has been sitting half-built in the Mat-Su for over a decade.
The Point MacKenzie Rail Spur is a 32-mile extension from Houston to Port MacKenzie, a deepwater port with 9,000 acres of developable land, built specifically to support large-scale exports. It is 75 percent complete. We’ve already spent $184 million to build 25 miles of embankment, all bridges, 110 culverts, and a one-mile loop. What’s missing? About $100 to $150 million for track and signaling. Yet the ARRC’s latest monetary request clocks in at $290 million; more than necessary, in the eyes of many.
What is clear is this: the spur is the fastest, most practical way to get Alaska’s minerals to tidewater. Port MacKenzie can handle ships too big for Anchorage, reducing shipping costs and opening access to smelters in Asia. It’s ideal for Trilogy Metals’ copper and zinc concentrates from Ambler, up to 1.7 million tons annually. It could move rare earths from Estelle and support graphite from the Interior or even coal and fly ash from Usibelli or Canyon Creek.
The Alaska LNG Project would also benefit, saving hundreds of millions in logistics as it moves pipe and construction equipment to the North Slope. Even the US military would see gains, moving equipment, vehicles, and munitions more efficiently between Fort Greely, Eielson, and tidewater.
President Trump’s 2025 Executive Order specifically calls for expanded rail infrastructure to unlock American critical minerals. That’s a huge point of agreement between Alaska and the current administration. The order encourages streamlined permitting, funding support, and a focus on national security.
That puts the Point MacKenzie Rail Spur at the intersection of state potential and federal priority. It aligns with every goal discussed at the governor’s conference: energy independence, economic development, military readiness, and environmental responsibility.
We know what needs to happen:
- Finish the Spur: The ARRC must prioritize the final $100 to $150 million to complete the project. CRISI grants, state bonds, and private partnerships, especially with companies like Trilogy Metals or the Alaska Gasline Development Corporation, can get it done.
- Streamline Permitting: Use the Executive Order and reduced EPA regulation to expedite approvals and sideline groups like the Sierra Club, who delayed the spur before with frivolous and costly wetland lawsuits.
- Focus on Freight: The ARRC must pivot from cruise docks to freight expansion; the economy depends on it.
- Upgrade Port MacKenzie: It’s the only port with the scale, depth, and land to handle Alaska’s resource future. Public-private investment can build out handling and loading facilities.
Completing the Point MacKenzie Rail Spur will create up to 3,000 jobs and generate $300 million annually in royalties, fees, and taxes. A 2007 economic impact study projected $4.4 billion in benefits. This is not theory; this is what shovel-ready looks like.
We can wait another ten years and hold another conference to talk about Alaska’s untapped potential, or we can lay the last few miles of rail and actually unlock it. The choice is ours.
For the sake of our economy, our national security, and our future as a resource leader, it’s time to stop talking about what Alaska could do. Let’s finish the rail spur and prove what Alaska will do.
Rep. Kevin McCabe is in the Alaska House, representing Big Lake.
As for North Slope natural gas, it would cost less to just ship the gas to Asia from Prudhoe Bay using Senator Murkowski’s new ice breaker at the necessary times of the year than running a line to Point MacKenzie where the gas would still have to be transferred to tankers.
Thinking such as this, outside of the box, is a danger, Red Dog mining is doing this level of thinking with their shipping of oar. Good on you. Cheers, A.m.J-Ketchikan
When you say “Senator Murkowski’s new ice breaker” are you talking about the Aiviq that is a retrofitted light ice breaking vessel, home ported thousands of miles away from the area discussed, and that would be wholly insufficient for the task you’ve described?
Steve; Yes,,I read it is a medium duty ice breaker and never heard that it would be insufficient but perhaps you know more about the vessel than I. If it is not capable of the task than maybe it would not work?
I have heard of another called Storis? I’m sure Mead Treadwell knows more about these things than I, just an idea.
If it’s a Murkowskis idea it’s flawed and is doomed for failure.
She only has her office because of Nepotism.
She’s a piece of crap and a bold faced liar.
Literally.
Question that I have yet to hear is what can be done to get the ARCC to DO?
Mr. McCabe, how dare you question the social and political emasculation, and “can’t do” attitude, that prevails nowadays?
I always appreciate Rep. McCabe’s guest pieces, they are well thought out and technical when necessary. I don’t align with his politics entirely nor is he my district rep. but he is someone to listen to on these subjects and certainly does well by his constituents by making this conversation a priority.
I agree.
This was a great article.
I thought the State of Alaska was in a deficit scenario (reduced PFD amounts since 2016 because the State “needed” more of the statutory PFD for its budgets instead of putting it in your pocket) without throwing in mining transportation infrastructure for free or reduced cost to the mining companies.
Who knows, maybe the mining companies can deduct the cost of building the railroad extension or necessary infrastructure without State money against their AK Mining License Tax (AMLT). State tax on “net” income [instead of GROSS income] from mining: AMLT $40,001 – 50K income – Tax: $1,200 + 3% over 40K. $50,001 – 100K income – Tax:$1,500 + 5% over 50K. Over 100K income – Tax: 4K + 7% over 100K.
Mining corporations are currently allowed to deduct their state corporate income tax from their AK mining license tax. Smart tax accountants can make sure their mining company owners don’t pay the full “net” income AML tax amount.
Well said, we need the rail spur to Point MacKenzie.
What a load of cr//. Take a drive over there and use your head for something besides a hat rack. That port was a huge waste of money and continues to be so. Any money spent over there is the PFD money owed to the Alaskan citizens, which NONE of them will benefit from.
Yeah you’re right Robert.
We need more solar panels, windmills, and democrat politicians.
That’ll solve everything.
Thanks.