Donlin Gold targets 2027 investment decision on $10B Alaska mine

Donlin Gold expects to complete a bankable feasibility study by mid-2027 and then make a final investment decision on its $10 billion Kuskokwim mine project, the company's general manager told the Senate Finance Committee on Wednesday. The timeline depends on completion of the feasibility study led by Fluor Corporation, which the company selected in January 2025, along with a federal record of decision anticipated in May 2027.

The project would become one of Alaska's largest private infrastructure investments. Costs have grown from an estimated $7.5 billion in 2017 due to price increases across equipment, steel, and construction labor. If approved, construction would begin in 2028 and run through 2031, creating 2,000 to 3,000 jobs over three to four years with $1.7 billion in construction payroll.

"We anticipate that that work will be completed right at Q1, Q2 of 2027," the general manager said. "At that point, we will be in a position to make an investment decision. Now, based on the investment decision being go, go forward, then we will start the early works construction and be in construction through 2031."

The open-pit mine near Crooked Creek would operate for 27 years on land owned by Calista Corporation. It would produce about 1.1 million ounces of gold per year in the first five years, then about 1 million ounces annually thereafter. The project would employ 750 permanent workers at $120 million in annual payroll, with shareholder hiring preferences for Calista and The Kuskokwim Corporation.

Donlin Gold received the majority of major permits in 2018, with additional state permits secured between 2020 and 2025. In April 2025, NovaGold acquired Barrick's 50 percent stake, resulting in 60 percent NovaGold ownership and 40 percent ownership by Paulson & Co. The project received designation under the Fixing America's Surface Transportation Act, known as FAST-41, in late October 2025 for streamlined federal permitting. The Alaska Supreme Court upheld DNR permits for water appropriation and pipeline right-of-way on November 14, 2025.

The project is currently completing a supplemental environmental impact statement under FAST-41 oversight to address a remanded tailings impoundment permit. A federal judge did not vacate the permit but sent it back for additional analysis of potential tailings release scenarios. The record of decision is expected in May 2027.

The project includes a 316-mile natural gas pipeline from Cook Inlet's west side to power a 220-megawatt on-site power plant. Donlin Gold signed a non-binding letter of intent with Glenfarne Alaska LNG for up to 50 million cubic feet per day of natural gas supply. The buried pipeline would reduce diesel fuel needs by roughly half, from about 76 million gallons annually to 38 million gallons. It is permitted as a common carrier with capacity to serve villages along the route.