Some Yukon mining industry representatives and members of the legislature are welcoming news that the United States government will pay for a port project in southeast Alaska.
Gov. Mike Dunleavy announced last week that Skagway secured $38.6 million US to build a “modern industrial dock.” He said the Skagway port was among seven projects in the state that were chosen to receive federal grants under the U.S. Department of Transportation’s Port Infrastructure Development Program.
“Alaska’s ports are the economic lifelines of our communities,” Dunleavy said in a news release.
Yukon Economic Development Minister Jen Gehmair said that deal works out to $52 million Canadian for a roll-on, roll-off container system across the Canada-U.S. border in Skagway.
The port at Skagway serves as a critical link between the territory and the global market. Diesel fuel and construction materials enter the territory through the port while mines plan to export from there. Port director Cody Jennings said by email that port upgrades are needed to address outdated infrastructure that doesn’t meet today’s demands.
Prior to the fall general elections, the former Liberal Yukon government was looking to help pay for work to make the port better. Under the new Yukon Party government, those plans are off the table.
Gehmair told the Yukon Legislative Assembly in March that the territorial government previously committed to upgrading the ore dock.
However, she clarified the territory doesn’t intend to move on with those plans for an export co-operation agreement under current terms.
Gehmair cited the Yukon government’s fiscal situation, which she said makes it impossible to afford. The territory’s budget for 2026-27 contains $41,000 for a Skagway marine services platform, which the cabinet press secretary said will cover the previous years’ work.
Following the governor’s announcement, Gehmair said she has heard support from the Yukon Chamber of Mines and Selkirk Copper Mines Inc.
Mine looking forward
The head of the company behind the Yukon’s Minto Mine also appreciates the positive signals from across the border.
Colin Joudrie is president of Selkirk Copper. Selkirk First Nation, which acquired the abandoned Minto Mine last year, has a controlling equity stake in the newly formed company. That partnership aims to restart the former copper-gold-silver mine in central Yukon.
The Skagway port previously serviced Minto Mine, before its abandonment in May 2023. Joudrie said the port allowed high-grade copper concentrates to be shipped globally. He said alternatives for exporting involve higher costs tied to longer road routes.
Joudrie recognizes the Skagway port project is a “developing option.” He said the existing facility has been “mothballed” into care and maintenance mode but it could be updated, as opposed to building from scratch, with the natural environment in mind.
He said his company regularly meets with the port and harbour group within the municipality of Skagway.
“We obviously need a viable port, one that’s run well and properly. So, these dollars, in my view, just help facilitate that,” Joudrie said.
“We do view this as an important part of the development and the redevelopment of the Minto Mine. And their response to that is still sort of pending. They want to make sure that they control their own destiny.”
Earlier this year, Selkirk Copper sent a letter of intent to the Skagway port director and municipality.
The letter notes the company foresees Minto Mine being back in production by mid-2028. It expresses interest in working with Skagway to revamp the concentrate storage shed. It offers potentially spending up to $15 million Canadian on coming up with a facility for shipping and handling mineral concentrate, which the letter states could open up jobs.
Mayor juggling opportunities
Skagway Mayor Orion Hanson is juggling economic opportunities, community concerns and current industries such as tourism, freight, fuel and cargo. He said he looks forward to the option of expanding employment opportunities in his community.
“There are very differing opinions amongst our population about what the future should look like. And we have to balance all those possibilities with safety, the welfare and prosperity of, you know, not only our people, but the whole region,” Hanson said.
“There’s a lot of careful discussions that go on with that.”
Hanson said those talks are happening with the mining industry and citizens who are reflecting on mining legacies. Alaska Public Media has reported on decades of contamination largely blamed on the long-closed Faro Mine and possibly other Yukon mines, including Minto, that may have also contributed.
Hanson doesn’t know the timeline for how the federal funds will flow. He said Skagway will pitch in about $10 million US.
“This is a great time, a great moment because Skagway is the gateway to the Klondike. And without proper facilities, we don’t do a very good job of that,” he said.
Hanson said Skagway needs to keep up with the Yukon’s population growth and accommodate industrial cargo in and out of the territory to maintain that connection for the “next generation.”
Yukon NDP Leader Kate White previously expressed concern that Yukoners would be on the hook for the port build.
“Great news coming out of the United States that they’re going to fund their own ore dock in Alaska,” she said.
“Yukon had no business paying for it.”
https://www.cbc.ca/news/canada/north/skagway-port-secures-us-government-money-9.7183280