Alaska’s Pacific Rim location, pro-development business climate and thriving resource sector makes it a strategic choice for large-scale international investment.

With 656,000 square miles of territory, Alaska is – by far – the largest state in the US as well as one of the youngest; Alaska became a state in 1959. Its 33,000 plus miles of coastline stretch across the North Pacific and Arctic Oceans, and the state is strategically located at the crossroads of the Pacific Rim and Arctic marine trade routes. Anchorage International Airport, located in Alaska’s largest city, is 9½ hours by air from 90% of the industrial world and is an important cargo hub for flights between Asia and North America.

Known as one of the most business-friendly states in the country, Alaska was recently ranked fourth in the US for best business tax climate by the Tax Foundation. With graduated corporate income taxes based on taxable income and no individual state income or sales tax, Alaska provides an extremely competitive tax environment for businesses. Alaska also offers a variety of attractive tax incentives, including tax credits for oil and gas exploration and development, in-state refineries, minerals exploration, value-added seafood processing, education and veteran employment.

Alaska is extremely rich in natural resources, which have long drawn the attention of outside interests. The state is a leader in global standards for natural resource management, securing Alaska as an enduring, stable setting for development. Through the Alaska Industrial Development and Export Authority, the state also has the ability to co-invest in viable projects.

SEAFOOD

The wild, natural and sustainable Alaska seafood brand is known around the world. Seafood is Alaska’s largest individual export; in 2014, seafood exports totalled $3.28 billion, with exports to China approaching $1 billion. Key species exported include Alaska Pollock, five species of wild Alaska salmon, black cod and Pacific cod. Alaska’s seafood industry produces more than 50% of all seafood harvested in the US and more than 95% of all US wild salmon. The total economic output of the Alaska seafood industry is $15.7 billion, including $6.4 billion in labour income, making the seafood industry the state’s largest private-sector employer.

OIL AND GAS

The oil and gas sector – long the backbone of the state’s economy – generates approximately one-third of the state’s jobs. Alaska has an estimated 40 billion barrels left on the North Slope plus additional reserves in Alaska’s Arctic offshore. While established oil producers continue to focus on maximising production from mature fields and exploring opportunities to reinvigorate production, one of the greatest new opportunities in Alaska is natural gas production and export. With legislation passed in 2014, Alaska embarked on developing a $45-$60 billion natural gas pipeline and liquefied natural gas (LNG) export project in partnership with BP, ConocoPhillips, ExxonMobil and TransCanada. The project is currently in the pre-front-end engineering and design phase for proposed pipeline corridor routes and facilities. The proposed project would export 15 to 18 million tons of LNG annually, with operations beginning in 2024.

MINERALS

Alaska’s mineral potential ranks in the top ten globally for known reserves of coal, copper, lead, gold, zinc and silver, along with more than 70 occurrences of rare earth elements. Alaska’s six major producing mines and nearly three hundred operating placer mines produced an estimated total value of $3.28 billion in 2014. Of that total, gold constituted more than 45%, followed by zinc at 33.9%. Alaska is also home to a number of world-class exploration and development projects that attract international investors, predominantly from companies based in the UK, Canada and Japan. In contrast to many other locations across the globe with rich mineral deposits, Alaska offers political stability, secure land tenure, a skilled workforce and tax incentives.