Pebble
Photo by: Northern Dynasty Minerals
TORONTO (miningweekly.com) – Northern Dynasty Minerals on Monday received another setback in its efforts to build a copper/gold mine at one of the world’s largest undeveloped deposits, the Pebble project, in south-west Alaska, after mining major Rio Tinto gave away its 19.1% holding in the company to two Alaskan charities.
The decision follows the strategic review announced last year of Rio Tinto's interest in Northern Dynasty, which concluded the Pebble project does not fit with Rio Tinto's strategy. Anglo American pulled out in September, as part of its plan to cut the cost of future options.
Rio said that the shares in Northern Dynasty would be divided equally between the Alaska Community Foundation, to fund educational and vocational training, and the Bristol Bay Native Corporation Education Foundation, which supports educational and cultural programmes in the region.
“By giving our shares to two respected Alaskan charities, we are ensuring that Alaskans will have a say in Pebble's future development and that any economic benefit supports Alaska's ability to attract investment that creates jobs,” Rio Tinto Copper CEO Jean-Sebastien Jacques said.
Prior to the gift, Rio Tinto, through Rio Tinto Fer et Titane Inc., an indirect wholly owned subsidiary of Rio Tinto plc, owned 18 145 845 common shares of Northern Dynasty.
Northern Dynasty president and CEO Ron Thiessen said that the company looked forward to meeting with the leadership of the charities in the days ahead to better understand their long-term goals and aspirations, and how their ownership interest in Northern Dynasty and the Pebble project could make the greatest possible contribution to the people and communities they serve.
The project is facing stiff local and international opposition.
Early last month, US environmental regulators moved to block development of the Pebble mine, which could be one of the largest copper projects in the world, citing potential "irreversible harm" to the state's salmon fishery.
The Environmental Protection Agency said it has initiated a rarely used process under the Clean Water Act to "identify appropriate options to protect" the Bristol Bay fishery from the impact of the proposed mine.
The decision follows a report in January that found large-scale mining would pose serious risks to salmon and native cultures in the pristine corner of south-west Alaska.
The Pebble project is located some 320 km south-west of Anchorage, in a region of Alaska that produces nearly 50% of the world's wild sockeye salmon. The area also has a booming sport fishing and tourism industry.