With caution and concern, Skagway officials will entertain a Yukon mining company’s offer to build its own ore terminal at the mouth of the Skagway River,
Photo submitted
PROPOSAL PURSUED – Shown above is the Selwyn Pacific Dock concept being pursued by Selwyn Chihong. In the lower foreground is the ‘heritage site’ preferred by the municipality and the proposed mine. Photo Courtesy Selwyn-Chihong
SKAGWAY – With caution and concern, Skagway officials will entertain a Yukon mining company’s offer to build its own ore terminal at the mouth of the Skagway River, but the municipality’s preference remains the expansion of the current ore terminal.
In responding to the Selwyn Chihong Mining letter proposing a new terminal, the Skagway Borough Assembly invited the company to begin pursuing the project, but insisted the company open discussion with businesses that would be affected.
Selwyn’s Pacific Dock proposal presents an alternative to the expansion of the town’s already-standing ore terminal planned by the Alaska Industrial Development and Export Authority.
The expansion, on what is referred to as the “heritage site,” gained traction last month when AIDEA was given the authority to bond as much as $65 million US for the project.
But Selwyn, which would be the main client of the expanded terminal, objected to the wharfage fees it would have to pay to use the ore dock, leading the company to propose the Selwyn Pacific Dock to the assembly on June 1.
In a written response to Selwyn, the assembly asked the company to open a dialogue and request feedback from businesses that would neighbor its proposed dock, namely Temsco Helicopters, Petro Marine Services and the Skagway Airport.
The terminal could potentially block Temsco’s flight path, base manager John Whedon said.
“Anything going forward on this project would have a large impact on the operation. We will certainly be involved,” Whedon said.
The borough, in its response, said Selwyn’s proposal was generally consistent with Skagway’s Port Development Plan, something Selwyn asked Skagway to determine in its June 1 letter.
“Let the guys at least do a little bit of research with this,” assemblyman Tim Cochran said. “We’ll iron out the rest as time goes on.”
Selwyn’s timetable, which has construction on a terminal beginning next year and shipments of zinc and lead to begin in 2014, remains a concern for the assembly and residents.
But Mayor Tom Cochran said in the letter from the borough that Skagway “will not be encumbered by aggressive timelines that preclude public involvement and lead to irresponsible decisions.”
Paul Taylor, the local project manager for the Selwyn Pacific Dock, said Selwyn also prefers the heritage site, but will continue to push for its own terminal if the wharfage fee issue is not resolved.
The White Pass and Yukon Route railway, which holds the tidelands lease for the ore terminal and dock, began imposing the fees on AIDEA and the Minto Mine last fall.
White Pass president Eugene Hretzay declined to comment for this story. Last winter, he said the parties would work it out.
He also would not comment on ongoing negotiations with the borough on an extended or revised tidelands lease.
Assemblyman Dan Henry, a member of the borough’s negotiating team, would not give details about a negotiation meeting between White Pass and municipal officials June 14, but said another meeting will be held before July 1.
With the town now having to weigh the benefits of two ore terminal options, Mayor Cochran reminded the assembly of the impact its decision could have.
“We’re looking at 60 kids in our school next year,” Cochran said. “We need another leg in. We need working class people getting them in that school.
“This is where it starts.”
Skagway’s Port Commission held a meeting with Taylor late last week.
Port Commission chair John Tronrud reported at the meeting that progress is being made in the White Pass negotiations, and that something could be in writing for the borough assembly and White Pass’s board by the end of July.
By MARK ABADI
The Skagway News