Submitted by SD Contributor SRSrocco:

I wonder if we as a species will ever wake up from our current delusion.  That being said, last week Visual Capitalists came out with a huge graphic showing the top gold mines and reserves.  In it they listed the ALASKA PEBBLE PROJECT as the future mine with the largest gold reserves on the planet.  Here is part of that graphic:

Just take a look at their average ore grade of 0.33 g/t.  That is three times less than the current overall producing gold ore grade of 1.06 g/t.  Supposedly, the Alaska Pebble Mine will mill a staggering 200,000 tonnes per day of ore at a grand total of 65 million metric tons per year (based on 325 days).

This is the overall reserves & resources contained in the mine based on a 45 year mine plan:

The 45-year Reference Case produces 31 B lb

copper, 30 M oz gold, 1.4 B lb molybdenum,

140 M oz silver, 1.2 M kg rhenium and 907,000

oz palladium while mining only 32% of the

mineral resource. Cash costs per payable lb of

copper after by-product credits total –$0.11.


In this 45 mining plan, they are going to produce:

31 billion lbs of copper

30 million oz of gold

1.4 billion lbs of moly

140 million oz of silver

and some other metals…..

That’s a lot of metal.  However, the mine will not be into production until 2019-2020.  If we look at the current mining plan we see that they have nearly 8 more years before this becomes an operational mine:

It looks as if they are giving the total cost of the project around $6 billion.  Who are they fooling?  Have they not been watching the fun Barrick and other mining companies have had in huge cost over-runs?  And what will the energy situation look like when they start production in 2020?

Here is this graph of Net Oil Exports from my last article.  Brown provides us with a forecast if the present trends continue.  How much AVAILABLE NET OIL EXPORTS are there in 2020?  Looks like there are about 16 million barrels a day, a drop from 35 mbd in 2010.  Even if the figures are a bit off, this shows us that ALL THE OIL IMPORTING COUNTRIES (minus China & India) will have to survive on a lot less.

How is the huge mine going to get the fuel, chemicals, and supplies it needs when the world will be dealing with a hell of a lot less oil in 2020.

REMEMBER…. this mine has a 45 year mine plan.  Even if they could get the fuel in 2020, how about 2030 or 2040…. only 10-20 years into their mine life?  And what will the price be at that time.  Or will there be rationing as I would imagine, fuel will go to the most important aspects of the economy first… and that is farming and etc.

The mining industry is completely clueless.  I am amazed just how ignorant they are to the horrible negative forces of energy coming down he pike.

  1. How much Hopium and Unobtanium will this mine produce?  Hmmmm. 

    Max Keiser reported on a new ETF that trades on superstition and moon cycles.  I think both will end very well—for the promoters.   Wish in one hand, s*** in the other. See which gets full  first.                We have been warned. 

  2. Evidently, oil is the real currency of the world. Saudia has had free reign on oil production shoring up the USD er ahh, the petro dollar. What if a plan called for a complete reorganization of the Middle East then pummeling Saudia with a petro dollar collapse? That is what the rumor is. The dollar crash “after the elections” will hurt any and all nations dependant on the USD. Coincidence? With alot of QE1 and QE2 going to China, they have nothing if the dollar collapsed, ditto for Saudia Arabia. What of our oil supply? Two words, Gull Island. ““Both the geologic evidence and the small area not yet developed into oil fields around the Gull Island wells preclude the possibility of a giant oil accumulation,” says Ken Bird, a U.S. Geological Survey geologist and an expert on North Slope geology. In other words, the Keystone pipeline will be coming online for our oil  at Gull Island right about when the dollar collapses. So, we have China and Saudia eating dirt while the USA has real currency going into a new world order. All in all, plenty of energy for America…what has me concerned is the Fukushima Daiichi nuclear spent rod fuel about ready to melt done.


  3. It should also be noted that the institutional environmentalist community has targeted the Pebble project in an effort to kill it.  Alaska is a reasonably good place to conduct mining when it comes to political risk.  But the Pebble project is in an area that has the environmentalists up in arms.  We’re talking the big guns of the green industry, including the Pew Environment Group.

Leave a Reply