Prince of Wales Island Economy: From Logging to Rare Earth Minerals

Prince of Wales Island Economy

The economic landscape of Prince of Wales Island has undergone a significant transformation over the last century. Once dominated by a robust timber industry, the region has diversified into commercial fishing, tourism, and high-stakes mineral exploration, while maintaining a strong connection to its federal land management and indigenous heritage.

Key Facts

  • Logging: Formerly the primary economic driver; now reduced to a few small-scale sawmills.
  • Fishing: A foundational industry for towns like Craig, Klawock, Hydaburg, Port Protection, and Point Baker.
  • Mining: Home to the Bokan Mountain deposit, the largest heavy rare earth deposit in the United States.
  • Governance: Dominated by federal land managed by the Craig and Thorne Bay ranger districts.
  • Indigenous Presence: Home to four federally recognized Alaska Native tribes.

The Evolution of the Logging Industry

Throughout most of the 20th century, logging served as the mainstay of the Prince of Wales economy. However, the industry faced significant legal and legislative challenges in the 1970s. In 1975, the Point Baker Association and other groups sued the United States Forest Service to protect 400,000 acres (1,600 km²) of land on the northern portion of the island.

While Judge von der Heydt initially enjoined all clearcutting—the practice of removing all trees from a specific area—on these lands in December 1975, the U.S. Congress responded in March 1976 by passing the National Forest Management Act. This legislation removed the injunction, though only half of the marketable timber in the north end was eventually harvested.

Development in the Labouchere Bay area began in early 1975 with road construction and the establishment of floating camps. The company Robertson & Sons utilized a retired tugboat, the Irene, as a floating hotel for employees and their families. By 1976, the Tuxecan logging company began operations under the supervision of the US Forest Service. By the late 20th century, the industry declined sharply, leaving only a few small sawmills. In 2010, Senators Lisa Murkowski and Mark Begich introduced S730, a bill aimed at privatizing stands of old-growth forests on the island.

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Commercial Fishing and Tourism

Commercial fishing remains the economic bedrock for several key settlements, including Craig, Klawock, Hydaburg, Port Protection, and Point Baker. The industry is highly seasonal and diverse:

  • Summer: Trollers and seiners target all five species of Pacific salmon.
  • Year-round: Dungeness crab and shrimp seasons remain open.
  • Winter: Dive fisheries focus on geoducks, sea cucumbers, and sea urchins.
  • Specialized: Longliners harvest halibut and black cod.

Parallel to fishing, tourism and sport fishing have grown in importance. This growth is attributed to two primary factors: the legacy of logging roads, which now provide hikers and campers access to remote areas, and the establishment of the Inter-Island Ferry Authority, which has improved accessibility for visitors.

Mining and Rare Earth Elements

Prince of Wales Island has a history of mineral extraction, including the Ross-Adams mine in Kendrick Bay, which was the only producing uranium mine in Alaska. Today, the focus has shifted toward critical rare earth oxides—elements essential for high-tech applications.

Bokan Mountain is a site of global interest. According to the Technology Metals report, it ranks as the third highest for the relative quantity of individual critical rare earth oxides, tied with Canada's Strange Lake. The Bokan-Dotson ridge deposit, owned by Ucore, is estimated to contain 5.3 million short tons (4.8 million metric tons) of heavy rare earths, including 207,000 short tons (188,000 t) of dysprosium. While small globally, it is the largest such deposit in the United States. As of August 2019, the mine remained in the planning stages after Ucore Rare Metals Inc. acquired a 9,421-acre (38.13 km²) claim for approximately $1 million.

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Government and Tribal Administration

Because the island consists almost entirely of federal land, the US Forest Service's Craig and Thorne Bay ranger districts are major local employers. Additionally, the island is the ancestral home of four federally recognized Alaska Native tribes:

  • Craig Tribal Association
  • Hydaburg Cooperative Association
  • Klawock Cooperative Association
  • Organized Village of Kasaan
Economic Sector Summary of Prince of Wales Island
Sector Key Assets/Products Current Status
Logging Old-growth timber Declining; small-scale sawmills
Fishing Salmon, Halibut, Crab, Geoducks Foundational/Active
Mining Heavy Rare Earths (Dysprosium) Exploration and Planning
Tourism Hiking, Camping, Sport Fishing Increasing

Frequently Asked Questions

What is the significance of Bokan Mountain?

Bokan Mountain contains the largest deposit of heavy rare earths in the United States, specifically the Bokan-Dotson ridge deposit, which is rich in dysprosium.

Which towns rely most heavily on commercial fishing?

The towns of Craig, Klawock, Hydaburg, Port Protection, and Point Baker rely on commercial fishing as the foundation of their economies.

How did the logging industry impact modern tourism?

Roads originally constructed by logging companies have provided the necessary infrastructure for tourists to access hiking and camping sites across the island.

What are the primary federal employers on the island?

The two US Forest Service ranger districts, located in Craig and Thorne Bay, provide significant employment due to the high percentage of federal land on the island.

What happened to the logging injunction of 1975?

The injunction against clearcutting 400,000 acres was removed in 1976 after the U.S. Congress passed the National Forest Management Act.

References

  1. "Prince of Wales Island". Geographic Names Information System. United States Geological Survey, United States Department of the Interior. Retrieved May 3, 2009.
  2. "Tongass National". Archived from the original on December 30, 2011. Retrieved May 14, 2010.
  3. Bidlack, Allison L.; Cook, Joseph A. (2001). "Reduced genetic variation in insular northern flying squirrels(Glaucomys sabrinus) along the North Pacific Coast". Animal Conservation. 4 (4). The Zoological Society of London: 283–290. Bibcode:2001AnCon...4Q.283B. doi:10.1017/S1367943001008885. S2CID 86509197.
  4. Mammals, Prince of Wales-Hyder County AK (January 15, 2024). "Observations - iNaturalist".
  5. Kan, Sergei (2015). Sharing Our Knowledge. Board of Regents of the University of Nebraska. p. 210. ISBN 978-0-8032-4056-8. Retrieved February 27, 2018.