Regulatory Changes, Delays And Associated Costs Quartz Hill Molybdenum Project, Southeast Alaska ? Introduction

In 1971, United States Borax & Chemical Corporation (U.S.Borax) initiated a mineral exploration program on federal lands in Southeast Alaska, with the commitment that any possible development would be done with great care for the environment. This program resulted in the discovery of a molybdenum deposit and the location of mining claims in 1974, in an area 45 miles east of Ketchikan, now called the Quartz Hill Molybdenum Project (Figure 1). At the time of this mineral discovery, the area was part of the Tongass National Forest, managed by the Forest Service, United States Department of Agriculture, and open to mineral entry and multiple use. In late 1978, the area was designated Misty Fjords National Monument and closed to mineral entry, and in late 1980 the area surrounding Quartz Hill was classified as Wilderness. These new laws and regulations, as well as the special interest environmental groups which oppose resource development, have significantly delayed and increased the costs of developing Quartz Hill.