In 2006, Eklutna, Inc. entered into a joint venture with CIRI and AIC for sand and gravel supply to the Anchorage and Matanuska-Susitna Borough markets. The operation opened for business in May 2007. The location of approximately 20 to 50 million tons of gravel reserves and its quality will make our commodity the preferred on the market.

In 2007, during the implementation of gravel operations, the Corporation started to explore additional services that would complement the gravel operations. There were significant revenue streams to be captured on the exportation of peat and other types of dirt to the Matanuska-Susitna Borough.

Not only does this added service bring value to our clients, it brings additional revenues to our Corporation without selling the land. The Corporation will not take contaminated materials and plan to utilize the materials for restoration projects, fill on other corporate lands, and generate additional revenue through topsoil production. This new venture will become more significant as the market discovers these sites.

We accept dirt at the Eklutna Pit, Site 1, to enable round robins.  Eklutna also accepts dirt at Site 4 in North Eagle River.

In 2007, during the implementation of the gravel and dirt operations, the Corporation continued to explore additional services and product lines that would complement the gravel and dirt operations by considering the acceptance of materials from demolished buildings. The Corporation owns a parcel of land within the MOA, that is easily accessed, with a tract (CBA Site) containing a deep, large dry gully that is being explored for this type of fill site. Currently, there is only one place in the Anchorage market to take construction debris materials. These materials are made up of, but not limited to, lumber, sheet rock and dry wall products, large stumps, and other non-hazardous materials. Several prominent companies within the industry have approached the Corporation about the CBA site. The Corporation views this potential as significant with a goal of commencing operations late 2010 or early 2011. Management will be developing a cost analysis/pro-forma with relevant market data during the winter of 2009/2010.

Currently in Eagle River, large box stores like Fred Meyers and Wal-Mart export their snow south to Anchorage or north to the Matanuska-Susitna Borough. Contractors, including the MOA Transportation and Roads Department, have expressed an interest in a site closer to the Eagle River market. The Corporation is in the early stages of exploring the suitability of Site 4 in North Eagle River as a location for a snow dump. A snow dump site may have synergy in the winter utilizing summertime fill sites. During the conditional use application process, the Corporation listed possible uses at this site which included gravel extraction, imported materials, and future snow removal.

Currently the Corporation is exploring the potential of quarrying hard rock reserves for the Anchorage market place. Discussions are underway with several potential clients who include, but are not limited to, the Port of Anchorage, the Alaska Railroad Corporation, the State of Alaska through the Department of Transportation, and several large scale civil contractors that develop other projects.

Two specific sites being considered are the Chugiak source known as Site 3, and the Knik River Knob. Another option under consideration by the Corporation is to purchase the remaining reserves of a local site from a private party. These reserves are directly adjacent to Site 3. This would provide the Corporation the option of pursuing development of a hard rock quarry. This quarry under consideration currently contains reserves of five million tons and when extinguished would provide access to Site 3.

Once again, here is an example of the Corporations diversification strategy utilizing resources connected to our lands and providing value added products to the market place without selling our asset, our land.