NANA | Annual Meeting recap |
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NATURAL RESOURCES AND RED DOG ROYALTIES Since 1989 the development of natural resources on NANA lands has played a significant role in the success of NANA – and Red Dog Mine has played the largest positive role in ensuring NANA ’ s financial future .
However , the current mine plan is projected to run out of ore in 2031 . Mining projects take a long time to go from exploration to production . Unless new ore bodies are discovered , the hundreds of NANA shareholder jobs at the mine are at risk , as is the money NANA receives from mine operations and contracts at the mine .
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When we talk about jobs at Red Dog , we are talking about thousands of jobs in 35 years of operations . Think about how many lives that has changed . Think about how much mine operations have contributed to our region . We know that shareholders overwhelmingly support mine operations . Right now , Teck needs to secure a 404 permit to explore two deposits on state lands near Red Dog that could help mine operations continue long into the future . These ore bodies are called Aktigiruq and Anarraaq . Looking back , we ’ ve been talking about these potential ore bodies for about a decade .
Teck needs to build a 10-mile exploration road to explore the area fully , so we know if the potential deposits are economically viable to help the operations keep going . The 404 permit is the last permit they need for the exploration road . Red Dog
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has already received more than 35 permits related to exploration .
So , what is a 404 permit ? It is a section under the Federal Clean Water Act to allow dredge or fill material into the waters of the United States , including wetlands . It establishes a program to regulate the discharge of material according to an environmentally sound plan approved by the Army Corp of Engineers . Such permits are needed also for new buildings , roads , gravel pits , and any village project that may impact wetlands . The 404 permit process and upkeep isn ’ t new to Teck ; they ’ ve had similar permits in the past throughout their entire operation including current operations at the Aqqaluk deposit . Without the 404 permit , Teck will not be able to do all the necessary exploration at the mine to continue mine life beyond 2031 . In the worst-case scenario , the mine would have
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to go into care and maintenance mode , meaning that shareholder jobs today could be put on hold . Benefits to the villages and the borough would be put on hold , and so would benefits to NANA . However , we can work together to help mitigate those risks .
Right now , NANA and Teck are speaking with communities in the region to ask for support for the 404 permits . We would like to thank the Shungnak , Buckland and Kiana IRAs and the Regional Elders Council for passing resolutions of support for the 404 permit and the continued exploration program at the mine . We ask the other communities in the region to consider the same . Our team will be visiting those communities soon . It is very important we hear from NANA communities on this matter so we can keep benefits from Red Dog going .
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AKIMA In addition to natural resources , we also have a reinvestment plan and strategy to grow our federal and commercial business . These investments will be funded by earnings from operations and not from Red Dog . Our initial focus will be maximizing the use of our competitive advantage in the federal sector and some Alaska markets . In future years , we also plan to pursue non-federal work in the lower 48 that will take advantage of capabilities that we ’ ve developed in the federal market . Reinvesting in our businesses is important because they are performing well .
Akima has a diverse set of businesses that specialize in providing contract services , primarily to the federal government . It is why we are a global company – because Akima operates in all 50 states and 15 territories and countries . Total gross
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revenue from Akima was $ 1.9 billion , and total net revenue was $ 1.5 billion — that is a 13 % increase , about $ 174.2 million , over last year . As you read in your annual report , Akima won more than $ 2.5 billion in contract awards last year . They acquired Pinnacle Solutions Inc . in FY23 and Pinnacle is already proving its worth .
Akima was awarded a $ 15 million dollar subcontract to Bell Textron to provide crew training and helicopter maintenance for the Bell fleet of H-1 helicopters in the Czech Republic . The Pinnacle integration is coming along very well , and we expect to realize meaningful revenue and earnings reflected in the coming year ’ s financials .
While Akima has a large global footprint and their work may seem far away , the company and Akima employees are committed to our region and shareholders , raising more than $ 61,000 for Maniilaq ’ s
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Behavioral Health Suicide Prevention Program . They also raised a significant amount to support the Aqqaluk Trust , KOTZ Radio and youth programs throughout the region .
10,000 of NANA ’ s more than 13,000 employees work at Akima ’ s 50 whollyowned businesses . Quyana to all the Akima employees who understand the mission
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of our nation – and NANA ’ s mission . We expect even more growth from Akima in the coming years , especially because there is a commitment by the federal government to increase the share of contracts coming to the SBA 8 ( a ) by 50 % by 2026 , which could result in even more opportunities moving forward . |
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NANA NORTH In 2023 , we reorganized our Alaska-based businesses and NANA ’ s shared services personnel that support them , under NANA North – a wholly-owned subsidiary of NANA .
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You can think of NANA North as a Swiss army knife for resource development companies wanting to do business with NANA in Alaska . We offer everything under one roof . As Mike Ciricillo , NANA North ’ s president , likes to say , we can do it all – from pre-feasibility studies , |
engineering , construction , camp services , to transportation and logistics solutions and more . To make sure we are serving our customers well , we ’ ve moved the support services related to our Alaska work under the NANA North banner – this includes finance , human resources , |
IT , legal , contracts , safety and marketing . Our shareholder relations team is working with NANA North to transform how we connect shareholders with jobs . We know we need to do better on this front , and we are committed to working together in new ways to be of better service to you . |