Alaska is pouring more than $7 million into an expansion of the ore dock in Skagway,  and a would-be Yukon mining company couldn't be happier.

Eagle Whitehorse is planning to re-mine the tailings at the old Whitehorse Copper mine site near Mount Sima to extract magnetite. 

Company president Chuck Eaton said the Alaska announcement is the final green light needed to set his plans in motion.

"We think it is the last step we needed, the last approval we needed, to build a stockpile at Skagway," he said.

"That's why they needed to expand their dock. Then a ship comes along once a month or so and we load it up and sell it as iron ore. Then we build up that stockpile again and do it again next month."

Eaton expects the operation will create about 25 full time jobs with about the same number of spin-off jobs in trucking and ore handling at the docks. 

He's hoping to have some shovels in the ground this fall to start construction on a mill that will use electromagnets to remove magnetite from the tailings at the old Whitehorse Copper site.