A controversial mineral exploration project near Haines has been in limbo since its biggest investor backed out late last year. Now, the company that took full ownership wants to step back, too, further complicating the project’s future.
American Pacific Mining Corp. confirmed last week it plans to distance itself from the zinc, copper, gold, silver and barite exploration site, which has long fueled debate over what a mine would mean for the local environment and economy.
The company first bought the so-called Palmer Project in 2022. But American Pacific CEO Warwick Smith said last week that the company now plans to “transact” on the project, which he indicated could mean selling it to an Alaska-based company.
“We’re in the midst of having those conversations and looking to move that asset to a new home and take equity back from it,” Warwick said during a virtual roundtable posted to the company’s YouTube channel.
The plan comes after Dowa Metals and Mining, a Japanese smelting company, gave up its 70% stake in the project late last year, leaving American Pacific with full ownership.
At the time, American Pacific said the deal came about because the two companies had different objectives for the project. And Smith touted the deal as a “transformative transaction” for the company that provided a “clear path forward” for Palmer.
But now the project stands to change hands again. Warwick said the company has decided to prioritize a different, Montana-based exploration project over Palmer. He emphasized that the latter still has a lot of potential but will require a major investment in the interim.
“It’s going to take money to do that. And it’s Alaska, it’s outside of our wheelhouse, if we’re completely honest,” Warwick said, adding that he thinks there are companies better suited to move the project forward.
For years the project has been a source of controversy. Proponents say the mine would bring much-needed jobs to Haines along with an infusion of investor dollars. Local tribes and conservation groups, meanwhile, have raised concerns because the exploration site sits near the village of Klukwan and a creek in the Chilkat watershed, which supports a run of all five species of Pacific salmon.
Kimberley Strong, who serves as vice president of the Chilkat Indian Village, said the local ecosystem for millennia has served as a “food bowl” for Tlingit communities – and today is a key pillar of the local economy, referring specifically to the fishing and tourism industries.
“This has been a sustainable society for thousands of years,” Strong said. “And there’s no reason to jeopardize that for a short term extraction process.”
During the roundtable discussion, one participant asked if Palmer would ever realistically be developed into a mine amid permitting challenges and local dynamics.
Peter Mercer, the president of Constantine Mining LLC, which operates the project locally, said Palmer could still become a mine. He nodded to other successful mines in Southeast Alaska – such as Greens Creek Mine near Juneau – and said the region boasts a “tremendous amount” of mineral potential.
Also working in the project’s favor, Mercer said, is the executive order President Donald Trump signed in Januaryfocused on “unleashing Alaska’s extraordinary resource potential.”
“Yes, this can be done here,” Mercer said. “You have to incorporate the discussions around salmon, the landscape, the environment and the culture. You have to incorporate all of that into your planning, but that’s what you have to do for all these projects in this day and age.”
It remains unclear what a sale would mean for Constantine. A potential buyer could, for example, acquire both the company and the project – or opt to bring in its own operator.
A Constantine spokesperson said the project is in a “transitional period” and that there will not be a drilling program at the exploration site this summer.
