PUBLISHED: 11:01 AM on Wednesday, August 3, 2005
AIDEA Board takes step to reopen Skagway Ore Terminal
Anchorage - Yesterday the AIDEA Board of Directors passed a resolution approving a cost reimbursement agreement with Cash Minerals, Ltd., related to feasibility studies for the financing of proposed materials storage and handling improvements to AIDEA's Skagway Ore Terminal. The Ore Terminal has not been used since 1998.

Governor Frank Murkowski said, “I am optimistic about putting this idle state asset to work. I encourage the parties to work to integrate the future coal loading facility into the seasonal mix of jobs and opportunities for Skagway residents.”

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The feasibility study will develop accurate costs to modify the terminal facility to allow it to be used to stockpile and trans-ship coal from Cash Minerals' Division Mountain coal deposits near Whitehorse, Canada. “While we recognize this is a feasibility study, it is very gratifying to have interest in using the facility and we look forward to working with Cash Minerals,” said AIDEA Chair Mike Barry.

Barry asked about the potential for conflicts during Skagway's busy tourist season with cruise ship traffic tying up the dock at the Ore Terminal. The White Pass and Yukon Route owns all three docks in Skagway used primarily for cruise ship docking and passenger disembarkation. Basil Botha, President and CEO of Cash Minerals, responded that, “(White Pass) has indicated it will attempt to schedule monthly three-day windows at the Ore Dock to accommodate coal-loading activities.”

For projects being considered under AIDEA's development finance program, the project applicant is required to enter into a Cost Reimbursement Agreement to repay the requisite costs associated with the feasibility study. The AIDEA Board's resolution authorizes AIDEA to spend up to $50,000 to participate in the study. Cash Minerals expects the feasibility study to be complete by the end of September this year.