(Juneau, AK) — In a decision issued Friday, Nov. 14, the Alaska Supreme Court upheld the Department of Natural Resources’ (DNR) issuance of key permits for the Donlin Gold project, affirming the State’s regulatory framework and clarifying the scope of Article VIII of the Alaska Constitution. The Court rejected arguments that misread the Alaska Constitution to require DNR to analyze the cumulative impacts of development by private landowners, including Alaska Native Corporations.
The decision marks a significant victory for responsible resource development and legal clarity in Alaska.
“This decision is a major win for Alaska,” said Attorney General Stephen Cox. “The Court rightly recognized that the State’s permitting process met constitutional standards and that Article VIII does not extend to lands owned by Alaska Native Corporations or other private entities. This ruling not only affirms the integrity of DNR’s work but also protects the rights of Alaska Native Corporations and provides certainty for future development.”
The ruling in Orutsararmiut Native Council v. Boyle centered on challenges to DNR’s approval of permits related to the Donlin Gold project, one of the world’s largest undeveloped gold deposits. The permits involved the appropriation of State water at the mine site and a pipeline right-of-way lease across State lands. Appellants argued that the Alaska Constitution’s policy of making the State’s natural resources “available for maximum use consistent with the public interest” required the State to consider the cumulative environmental impacts of the private resource development at Donlin. The Court rejected this claim.
In its opinion, the Court made clear that Article VIII’s provisions apply only to State lands and waters—not to lands owned by private parties, including Alaska Native Corporations. While the State is constitutionally required to “take a ‘hard look’ at all factors material and relevant to the public interest” when authorizing the use of State resources, that requirement does not extend to “the extraction of privately owned minerals on private land.” The Court held that DNR correctly applied the law when it granted the water appropriation permits and the right-of-way lease.
The decision strengthens the legal foundation for permitting complex, multi-phase projects like Donlin Gold. “This ruling confirms that Alaska’s permitting process is both rigorous and constitutionally sound,” said Attorney General Stephen Cox. “It also ensures that Alaska Native Corporations retain the autonomy to manage their lands without unwarranted constraints.”
The Donlin Gold project, located in the middle Kuskokwim River region, is a joint venture between NOVAGOLD Resources and Paulson Advisers. The project is situated on lands owned by The Kuskokwim Corporation and Calista Corporation, both Alaska Native Corporations. Calista Corporation owns the subsurface mineral rights.
