Name and Location
Pebble copper/gold/molybdenum project, Alaska, US.

Client
Northern Dynasty Minerals (NDM).

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 project’s key assets are the near-surface 4.1-billion-tonne openpit-style Pebble West deposit and the deeper and higher-grade 3.4-billion-tonne Pebble East deposit, which is amenable to underground bulk mining methods. The Pebble resources rank among the world’s most important accumulations of copper, gold and molybdenum.

Estimates show that the Pebble deposit comprises measured and indicated resources of 5.94-billion tonnes, grading 0.78% copper equivalent and containing 55-billion pounds of copper, 67-million ounces of gold and 3.3-billlion pounds of molybdenum.

The deposit also has 4.84-billion tonnes of inferred resources, grading 0.53% copper equivalent and containing 26-billion pounds of copper, 40-million ounces of gold and 2.3-billion pounds of molybdenum.

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

Duration
Commercial production is expected by 2015.

Latest Developments
US environmental regulators have moved to block development of the Pebble mine, citing potential "irreversible harm" to the state's salmon fishery.

The Environmental Protection Agency (EPA) 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 Vancouver-based company has condemned the EPA's action, saying the agency is aiming to preemptively block the project without allowing it to go through the established permitting and environmental review process.

Northern Dynasty remains confident that Pebble, one of the richest copper/gold deposits in the world, will eventually move ahead. It has said the mine can be developed in a safe manner and will provide an economic boom for Alaska.

Opponents have long said that the environmental risks outweigh the benefits, citing the potential for widespread damage if polluted water were to enter streams in the region.

The EPA can use the Clean Water Act to effectively veto the mine. It has initiated similar processes 29 times and has completed the entire process only 13 times. The review will include a new consultation period, public hearings and further consultations with the Army Corps of Engineers and the company.

Permits cannot be approved during the review process.

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

On Budget and on Time?
Not stated.

Contact Details for Project Information
PLP, tel +1 907 339 2600, fax +1 877 450 2600 or email receptionist@pebblepartnership.com.
Wardrop media and public relations, email media@tetratech.com.