[ed. Sounds like the end might be near but big projects like this never really seem to die (in Alaska, anyway), they just cycle through a couple generations (or less) and reappear in new packaging. For additional background see: Gold Fish]
Anglo American, one of the key backers of the controversial Pebble mine in Alaska's Bristol Bay region, announced Monday that it is withdrawing from the Pebble Partnership -- and will take a $300 million hit for doing so. The London-based Anglo American has a 50 percent share of the Pebble venture, with Northern Dynasty Minerals out of Vancouver, Canada controlling the other half. The company said that Northern Dynasty will assume sole responsibility for the project.In a statement, Anglo American CEO Mark Cutifani said that the company was seeking other investment opportunities.
"Despite our belief that Pebble is a deposit of rare magnitude and quality, we have taken the decision to withdraw following a thorough assessment of Anglo American’s extensive pipeline of long-dated project options," Cutifani said. "Our focus has been to prioritize capital to projects with the highest value and lowest risks within our portfolio, and reduce the capital required to sustain such projects during the pre-approval phases of development as part of a more effective, value-driven capital allocation model."
John Shively, CEO of the Pebble Partnership, insisted that reports of Pebble's death are premature. “Obviously we’re disappointed, but we still have a great project,” he said. “Anglo American was reviewing all of their assets. When they got to us, we didn’t make the cut,” he said.
Shively, who learned of the pullout this weekend in phone calls from the owner companies, said he expects that Northern Dynasty will decide in the next two or three weeks what its next steps should be. He said the “partnership has to be unraveled,” and Northern Dynasty has to consider its options.
Pebble has received intense scrutiny during the exploratory phase of the project. Critics say the mine's proposed location could present a risk to the Bristol Bay watershed and salmon fishery, one of the most lucrative fisheries in the world. Supporters have accused the Environmental Protection Agency of playing politics with the project after the EPA released an assessment of the potential impacts of a large open-pit mine on Bristol Bay fisheries last year. That report said that even barring a major mishap, damage to salmon runs were a likely side effect of mine development.
Meanwhile, the Pebble Mine prospect is also a high-value proposition: Northern Dynasty estimates that the proposed mining area could contain as much as 81 billion pounds of copper, 5.6 billion pounds of molybdenum and 107 million ounces of gold. Estimates have put the value of the resources at up to $300 billion.
by Ben Anderson, Alaska Dispatch | Read more:
Image: EPA
