Name of the Project
Pebble copper/gold/molybdenum project.

Location
Alaska, US.

Client
Pebble Limited Partnership (PLP), wholly owned by Northern Dynasty Minerals.

Project Description
The project proposes to construct a large openpit mine; an on-site milling facility; on-site storage for rock, ore and tailings; a port facility; an access road connecting the mine site to the port; an on-site water supply for the mill; and to provide electrical power for the mine site, in south-west Alaska.

In addition, the project plans to include an on-site 378 MW gas-fired turbine plant, a 138 km transportation corridor to Cook Inlet for road and pipeline rights of way and a new deep-water port at Cook Inlet.

The current resource estimate includes 6.44-billion tonnes in the measured and indicated categories containing 57-billion pounds of copper, 70-million ounces of gold, 3.4-billion pounds of molybdenum and 344-million ounces of silver; and 4.46-billion tonnes in the inferred category, containing 24.5-billion pounds of copper, 37-million ounces of gold, 2.2-billion pounds of molybdenum and 170-million ounces of silver. The deposit also contains quantities of palladium and rhenium.

Jobs to be Created
Not stated.

Net Present Value/Internal Rate of Return
Not stated.

Value
Capital expenditure on Pebble will reach between $6-billion and $8-billion.

Duration
Not stated.

Latest Developments
The US Environmental Protection Agency (EPA) has issued a prepublication federal register notice to withdraw the July 2014 Clean Water Act (CWA) Section 404(c) proposed determination, which would have pre-emotively imposed restrictions on the discharge of dredged or fill material from the Pebble project.

The EPA has agreed to initiate the proposed withdrawal as part of a May 11 settlement agreement with PLP.

Under the May settlement agreement, the Pebble project will be allowed to proceed with normal course permitting under the CWA and the National Environmental Policy Act (Nepa).

Northern Dynasty has hailed the federal agency's proposal to formally withdraw its proposed determination as a further clarification of PLP's right to proceed into normal course permitting, unencumbered by any extraordinary development restrictions.

According to PLP CEO Tom Collier, EPA administrator Scott Pruitt – an appointee by US President Donald Trump and seen as much more pro-mine development than his predecessor – has stated that he does not support the unprecedented pre-emptive veto that his predecessor initiated at Pebble in July 2014. However, Pruitt has also made it clear that his staff will follow the necessary steps to properly assess and withdraw the proposed determination – an administrative process that has started.

The EPA in May also agreed not to file a recommended determination under CWA Section 404(c) until a final environmental-impact statement for the Pebble project had been completed by the US Army Corps of Engineers – as long as it occured within  four years following the settlement and PLP applied for permits within 30 months of the settlement date.

In return for these commitments, PLP agreed to terminate two lawsuits it brought against EPA under the Federal Advisory Committee Act and Freedom of Information Act.

The EPA has invited the public to comment on its proposal to withdraw the pre-emptive proposed determination. The project continues to face stiff local and international opposition, however, as First Nations and nongovernmental organisations rally to defend what they term as the most valuable salmon fishery in the world, located within the pristine Bristol Bay watershed.

Meanwhile, Northern Dynasty has advised that it is focusing on qualifying and securing a new major funding partner for the Pebble project, while PLP advances plans to initiate federal and state permitting with a smaller, environmentally optimised project design.

Key Contracts and Suppliers
Wardrop Engineering (preliminary assessment report).

On Budget and on Time?
The long-stalled Pebble project has garnered significant interest from speculators lately, as they expect the controversial project will be approved by the administration of US President Donald Trump.

The Pebble deposit has inspired intense controversy, as a broad and bipartisan coalition, including environmentalists, Alaska Natives and commercial fishermen, have fought its planned development, causing the EPA to stop the project in 2014. The election of Trump, however, has fuelled hopes that a more mining-friendly EPA will allow the project to progress.

Contact Details for Project Information
PLP, tel +1 907 339 2600, fax +1 877 450 2600 or email receptionist@pebblepartnership.com.