Long-term benefits to communities of extractive industry partnerships: Evaluating the Red Dog Mine
|Session Name||5.1 Current research on extractive industries and the sustainability in the Arctic|
|Author(s)||Matthew Berman (University of Alaska Anchorage, USA)|
The Red Dog Mine -- a joint venture between Teck Resources, Inc. and the NANA Regional Corporation -- has often been cited as a model for developing extractive industries in a way that benefits arctic Indigenous communities. The mine is located in an impoverished region in Northwest Alaska that has few other economic opportunities for the largely Inupiat population. Although the mine has unquestionably brought significant financial benefits to the area, questions persist about its long-term benefits to local communities. This paper assesses the long-term benefits of the Red Dog mine, based on findings from unique 16-year panel dataset. The analysis addressing the following set of questions: What percentage of the mine workers live in the communities in the region, and what percentage of the total payroll do local workers receive? How long do most local residents hired to work at the mine keep these jobs, and how does landing a job at Red Dog affect workers’ mobility and long-run earnings? The findings illustrate the strengths and limitations of partnerships between Indigenous organizations and multinational corporations, and offer insights relevant to communities across the arctic and other remote regions considering partnerships with multinational corporations to develop local resources.
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