Key partner withdraws from Alaska gold mine
Mining giant Anglo American is pulling out of the contentious proposed Pebble Mine gold and copper project in Alaska.
The Associated Press
JUNEAU — One of the partners in a massive and contentious proposed gold and copper mine in Alaska is pulling out.
London-based Anglo American announced Monday that a subsidiary, Anglo American (US) Pebble, is withdrawing from the Pebble Mine project, leaving Canada-based Northern Dynasty Minerals as the sole owner.
Anglo American CEO Mark Cutifani said the decision follows a review of his company’s backlog of projects. He said in a statement that Anglo American’s focus has been on prioritizing money for projects with the highest value and lowest risks within its portfolio and on reducing the amount of money needed to sustain projects in the preapproval phase.
Anglo’s subsidiary had spent about $540 million on the Pebble project through June, Northern Dynasty said in a release. To retain its 50 percent interest in the project, Anglo American would have been obligated to fund $1.5 billion in project costs through permitting and construction, Northern Dynasty has said.
It’s not clear what’s next.
Northern Dynasty’s U.S.-traded shares were down more than 32 percent following the news.
Mike Heatwole, a spokesman for the Pebble Limited Partnership, which was created by Northern Dynasty and Anglo American to design, permit and run the mine, said by email that Pebble “remains an important project for Alaska and we will share additional information about the way forward for the project in the days and weeks ahead.”
In April, Northern Dynasty said the goal was to begin permitting for the controversial project before the end of 2013, but the timeline for releasing project specifics and possibly moving into permitting has slipped several times over the last few years.
Pebble has said the prospect is one of the largest of its kind in the world, with the potential of producing 80.6 billion pounds of copper, 5.6 billion pounds of molybdenum and 107.4 million ounces of gold. But it’s located near the headwaters of a major salmon fishery.
The project has been the subject of a fierce public relations battle for years. Supporters of the project contend it would bring much-needed jobs to economically depressed rural Alaska, but opponents fear it could adversely affect a way of life in the region.
The U.S. Environmental Protection Agency is studying the impact of large-scale mining in the Bristol Bay region after concerns were raised about the project. A final report, expected this year, could affect permitting for the mine.
Tim Bristol, director of Trout Unlimited’s Alaska program, said in a statement that he couldn’t think of a development project in the state’s history that has faced such “wide and deep opposition” from Alaska’s citizens. Bristol, a critic of the mine project, said Anglo American’s decision is no surprise, given the number of Alaskans who support efforts to protect the Bristol Bay region.