There are valuable reserves of gold, silver, iron ore and copper. Many countries are increasing their mining activities beneath the tundra. Russia has exploited a large portion of the tundra to extract minerals.
Gas and oil are abundant. The US government is extracting oil from the oilfields near Prudhoe Bay, Alaska. Heat from the terminal buildings, workers homes and transport to and from the oil fields has led to permafrost melt and buildings subsiding.
The cold coastal waters have good fish stocks. These waters attract commercial fishing. The deep, cold water is ideal for unusual fish which command a high price in markets around the globe. Overfishing had led to fish stocks being depleted.
Places such as Antarctica have seen an increase in the number of tourists. Approximately 170,000 tourists visited Antarctica in 2020. Adventure tourism to extreme cold environments is a growth industry for countries and local communities.
Building roads, railways and pipelines for water and electricity supplies is very difficult on frozen ground that is liable to melt. Pipelines need to withstand freezing as they cannot be buried underground due to the permafrost.
If the permafrost layer begins to melt, the ground will become unstable with possible landslides. Creating solid foundations for buildings is difficult (frozen and unstable ground) making any further development challenging.
The Trans-Alaska Pipeline System (TAPS) is 800 miles long and built to transport the oil across Alaska rather than ship due to the Arctic sea ice in winter
In Anchorage, tourism creates thousands of jobs, brings in approximately $290 million in direct spending, more than $38 million in local taxes, and improves the quality of life for residents and visitors
Many areas are extremely remote, and the mountainous terrain makes access difficult and expensive
In winter, access to some towns is either by air or on dangerous ice roads
In summer, due to ground melt, some main roads are impassable as they are too soft to drive along
With a small and scattered population, people in small towns can be a long way from employment opportunities or services and goods
Everyday goods (food, drink, clothing, toys etc.) are very expensive as they have to be shipped in and during the winter months it can take weeks or months for shipments to arrive
In areas of permafrost, houses are raised on stilts to prevent their heat from melting the frozen ground beneath (which can cause the land to sink and subside)
Alaskan roads are built on 1-2-metre-thick gravel pads that stop heat transferring from vehicles to the soil beneath which would cause permafrost to melt and roads to crack