Arctic Mining Northwest Alaska Northwest Arctic Borough

Topics I’ll discuss three items, though primarily the Northwest Arctic Borough The Payment in Lieu of Taxes(PILT) as a revenue source for the Borough government The outlook and need to invest into new transportation and energy infrastructure that would support new mine development

Northwest Arctic Borough Established In 1987 as a home rule Borough, local municipal government under State of Alaska statutes This remote region in Northwest Alaska is populated by 7800 residents, the majority of which as Alaska Native-Inupiat There are eleven villages that are of varying populations, ranging from within the 39,000 square miles of jurisdiction Historically government, education, public utilities, construction, and commercial fisheries made up the local economy Since 1987 the Red Dog Mine has become a primary component of our regions economy The Red Dog Mine provides employment opportunity for many local, state, national and international peoples

Northwest Arctic Borough-continued The Borough established following the development and construction of the Red Dog Mine The intent was to establish a local government that would capture taxable revenues for the benefit of local residents and communities The Borough has provided and continues to provide local, public benefits across many sectors. New schools have been built that benefit the education of the children. Public services as public safety, law enforcement, search and rescue and support of local utilities have been realized. The Borough has established partnerships in each of the communities with tribes and second class cities

Northwest Arctic Borough-continued The Borough has established partnerships with the primary regional organizations in formation of the Northwest Arctic Leadership Team(NWALT) whose partners include the regional Alaska Native Corporation-NANA, the regional tribal non- profit Maniilaq Association and the public education and vocational training provider-Northwest Arctic Borough School District The Borough is also party to Arctic Economic Partnership established with the North Slope Borough, Arctic Slope Regional Corporation and NANA Regional Corporation Each of these partnerships value and balance the economic opportunity needs and cultural, food security, land and natural resource needs of our indigenous people

Northwest Arctic Borough-continued We have developed multiple generations of indigenous oilfield workers and miners who have gained valuable employment opportunities, raised families in the Arctic, and invested into their home communities. We have, though, still significant challenges related to economic opportunity, academic and vocational achievements, social and cultural hurdles and local and regional infrastructure needs to establish sustainable communities in the Arctic It is the opportunities of additional oil and mineral development that will help meet our local challenges It is also the opportunities of an emerging Arctic we have before us.

Taxation & Revenue Generation The Borough has since inception of the Red Dog Mine exercised a Payment in Lieu of Taxes agreement with Cominco, formerly, now Teck Alaska. These agreements have historically run in three year terms We are currently at the end of the existing agreement and have prepared to initiate a new negotiation The Borough also does have a tax code in place, but have never exercised the use of that code Teck-Alaska.com

Outlook and Need We in partnership with others need to invest into the expansion of transportation and energy infrastructure to support new mine development in Northwest Alaska Currently the Alaska Industrial Development and Export Authority is is studying and intends to prepare the Environmental Impact Statement for a Ambler Mining Development Access Road that would spur of the Alaska Dalton Highway. This transportation corridor would support the development of base metals within the Ambler Mining district. This development would provide new economic opportunity for those community and residents in the Borough.