State Home Page
   Division Home     Fact Sheets    Forms     Site Index    Contact Us
Department of Natural Resources
blue line
      State of Alaska >    Natural Resources >    Mining, Land & Water
blue line
ILLINOIS CREEK MINE

MINE EQUIPMENT FOR SALE IN ALASKA

The State of Alaska, Department of Natural Resources (ADNR) is soliciting bids for state-owned assets at the Illinois Creek Gold Mine located approximately 320 air miles NW from Anchorage, and 60 air miles SW from Galena, Alaska.

Some of the assets available for sale include a crushing plant, CAT generator sets, maintenance shop and other structures, heavy equipment, a 1000-gpm ADR gold recovery plant, assay lab equipment, electric motors and pumps, and miscellaneous equipment and supplies. A Bid Lot Document of the state-owned assets is available for review at the ADNR Public Information Counter and also on the web at: (Click here.)

The majority of the State-Owned assets are currently being utilized in the reclamation of the Illinois Creek Mine being conducted by the American Reclamation Group (ARG).

It is anticipated that all State-Owned assets will be available for removal from the site during the summer or fall of 2005. The time period, during which specific lots of assets will be available for removal from the site, will be dependent upon when these specific assets are no longer needed for remaining site closure activities. The heap leach facility is currently being rinsed to achieve closure standards set by the Alaska Department of Environmental Conservation (ADEC). The completion of the successful rinsing of the heap, will determine the schedule for the remaining site closure activities. It is anticipated that a determination of the success of current rinsing efforts will be made by June 1, 2005.

Once ADEC approves the rinsing of the heap, the State ADNR will consult with ARG and notify the successful bidders as to the anticipated time period when each specific asset will be available for removal from the site, and the latest date for asset removal (i.e. “specific lot removal date”). Delays in the site reclamation schedule, may affect the time period when specific assets will be available for removal from the site. The State will make reasonable efforts to advise successful bidders of changes to the dates of asset removal availability in a timely manner.

If the condition of specific assets has significantly changed between the dates of bid submission and asset availability, the successful bidder may elect to rescind their bid on that specific asset and submit a modified bid. The State may elect to award the sale of these assets based on the amount of the modified bid vs. the amounts of previously submitted bids, re-offer the asset for sale, or choose to dispose of the property, as the State deems necessary.

The American Reclamation Group owns certain equipment assets at the Illinois Creek Mine. Should successful bidders on State-Owned assets wish to utilize equipment owned by the American Reclamation Group, in the dismantling, packing, transport and loading of equipment or materials from the Illinois Creek Mine, these bidders will be required to negotiate an equipment and camp use agreement with ARG. The following rates will apply:

  • CAMP: Successful bidders will need to contact ARG to arrange for the use of the ATCO Camp. There will not be a catering service at the camp. Successful bidders will need to provide their own food, bedding, toiletry items, cooking and cleaning.
  • DIESEL and GAS: The successful bidders will need to determine and advise ARG of the amount of usage they expect and prepay for that consumption at ARG’s replacement prices prevailing at that time.
  • EQUIPMENT RENTAL RATES:
    • 992 CAT Loader - $100 per hour wet with ARG operator
    • 966 CAT Loader – $100 per hour wet with ARG operator
    • 773 CAT Truck – $100 per hour wet with ARG operator
    • D-8 CAT Dozer – $100 per hour wet with ARG operator
    • 14 G CAT Road Grader – $100 per hour wet with ARG operator
    • 15-Ton Mobile Crane – $100 per hour wet with ARG operator
    • Service / Tire / Lube / Water Trucks – $100 per hour wet with ARG operator
  • ARG equipment rental rates include an ARG operator. Successful bidders will not be allowed to operate ARG equipment. Standby time for ARG staff at the airstrip will be billed at $65 per hour per ARG employee.

Should successful bidders on State-Owned assets wish to utilize other equipment owned by the State; these bidders will be required to negotiate an equipment use agreement with ADNR.

There will be no additional scheduled opportunities to inspect items at the site prior to bidding; however, bidders will have the opportunity to inspect their awarded items during the period May 17-20, 2005 and decide to decline to take any or all awarded items. Bidders must notify the State in writing of those items that they are declining to accept not later than May 27, 2005. In such cases, those items will be disposed of by American Reclamation Group. Should bidders elect to not inspect items during this time period, they will be responsible for either removing or disposal of said items at their expense. In either case, no refunds will be made to bidders.

If the successful bidders wish to keep items on site beyond the specific asset removal date, (either for future mineral exploration in the area or to allow for future back-hauls with aircraft) the terms of the sale will require that they obtain a Miscellaneous Land Use Permit for keeping the equipment or assets on state land and post a performance bond with the Division of Mining, Land & Water in a form and amount acceptable by the Division that would be sufficient to cover the cost of future removal or burial by the State or a contractor.

Questions regarding the bidding process should be directed to Debbie Denny at telephone: (907) 269-8665, or Fax: 907-269-8909.

For technical questions relating to specific assets please contact Dan Delauder at telephone: (907) 229-3792.

Questions regarding the application process for obtaining a Miscellaneous Land Use Permit for keeping the equipment or assets on state land beyond the specific asset removal date should be directed to Steve McGroarty at telephone: (907) 451-2795 or by email at steve.mcgroarty@alaska.gov

bullet Mining Home
bullet Abandoned Mine Lands
bullet Coal Regulatory
bullet Large Mine Permitting
bullet Placer Mine Permitting
bullet Mineral Property Records
bullet Mining Fact Sheets
bullet Mining Forms
arrow
 Chuitna Coal Project
arrow
 Donlin Creek Project
 Fort Knox Mine
arrow
 Galore Creek Project
 Greens Creek Mine
 Kensington Project
arrow
 Niblack Project
arrow
 Nixon Fork Mine
 Pebble Project
 Pogo Mine
 Red Dog Mine
Bullet
 Rock Creek Project
 True North Mine
 Tulsequah Project