Opponents to the project had long argued it could jeopardize the pristine environment of U.S. biggest salmon fishery.

Global miner Rio Tinto said on Monday it is pulling out of the polemic Pebble Mine copper and gold project in the Bristol Bay region of Alaska, by giving away its 19.1% percent stake in Northern Dynasty Minerals, the owner of the huge deposit.

The company said the project does not fit its strategy, so it will donate its shares to two Alaskan charities. This way Rio becomes the second large diversified miner to back out of the project in less than seven months.

Anglo American left the project last September, handing its 50% stake in the project back to Northern Dynasty and taking a $300 million write down in the process. Rio itself took a $130 million write down on the asset in its 2013 results.

Environmentalists across the world praised Rio’s decision. Washington, DC-based watchdog Earthworks also applauded the giant miner for respecting locals’ wishes.

“Rio Tinto’s divestment from Pebble may not be the final nail in the coffin, but it’s surely one of the last,” the group said in a statement. “With Rio Tinto’s departure…there is now no mining company behind Pebble that has actually mined anything,” it added.

The project has faced increased scrutiny from environmental campaign groups and the U.S. Environmental Protection Agency (EPA) regarding its potential risk to salmon fisheries. Northern Dynasty and Anglo previously said that the project could be built without harming Alaska’s salmon fishing industry.

In February, EPA initiated a rarely used process under the Clean Water Act that would block development of the copper-gold deposit, one of the largest in the world, citing the potential of “irreversible harm” to the state’s salmon fishery.

Half of Rio’s shares will go to the Alaska Community Foundation and the other half will go to the Bristol Bay Native Corporation Education Foundation, the company said.

Rio Tinto walks away from massive Pebble copper-gold project“We look forward to meeting with the leadership of the Alaska Community Foundation and Bristol Bay Native Corporation Education Foundation 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 can make the greatest possible contribution to the people and communities they serve,” said Northern Dynasty after Rio’s announcement.

Pebble mine would have become the largest open pit copper and gold mine in the world, but its opponents claimed it would have generated tons of potentially dangerous waste material.

The Pebble deposit holds an estimated 55 billion pounds of copper and 67 million ounces of gold.

Shares in Northern Dynasty crashed on the news. The stock was 3.85% in Toronto this morning at 11:20 am ET.

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Earthworks applauds Rio Tinto’s withdrawal from Pebble Mine proposal in Alaska’s Bristol Bay

Earthworks Press Release

7 April 2014

Statement from Earthworks’ Bonnie Gestring

“Earthworks applauds Rio Tinto’s decision to withdraw from the Pebble Mine proposal that threatens Alaska’s Bristol Bay watershed, home to the world’s largest wild sockeye salmon fishery.

We also applaud their recognition that “Alaskans should have a say in Pebble’s future development”.

And Alaskans have had their say: they overwhelmingly oppose the mine. 98% of comments from Bristol Bay residents oppose the Pebble Mine proposal. That’s largely because, as the U.S. Environmental Protection Agency’s peer reviewed scientific assessment of large scale mining’s impacts on the watershed showed, the Pebble Mine would destroy 94 miles of salmon streams, and threaten the $480 million/year salmon fishery and the 14,000+ jobs that depend upon it.

With Rio Tinto’s departure following close upon Anglo American’s withdrawal last year, there is currently no major funder backing the Pebble mine proposal. Perhaps more importantly, there is now no mining company behind Pebble that has actually mined anything.

Rio Tinto’s divestment from Pebble may not be the final nail in the coffin, but it’s surely one of the last”.

***

More Information

Our Bristol Bay

Rio Tinto Pebble withdrawal statement

EPA Bristol Bay web page

Earthworks is dedicated to protecting communities and the environment from the impacts of irresponsible mineral and energy development while seeking sustainable solutions.

Twitter: earthworksrocks
Facebook: earthworksaction

CONTACTS:
Bonnie Gestring, 406-549-7361, bgestring [at] earthworksaction [dot] org
Alan Septoff, 202-887-1872×105, aseptoff [at] earthworksaction [dot] org

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Rio Tinto gifts stake in Northern Dynasty Minerals to Alaskan charities

http://www.riotinto.com/media/media-releases-237_10183.aspx

7 April 2014

Rio Tinto will gift its 19.1 per cent shareholding in Northern Dynasty Minerals Ltd (Northern Dynasty), owner of the Pebble Project, to two local Alaskan charitable foundations. 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.

The shares in Northern Dynasty will 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.

Rio Tinto Copper chief executive Jean-Sebastien Jacques said “Rio Tinto has long and historic ties to Alaska and we continue to see Alaska as an attractive location for potential future investment. 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.”

About Rio Tinto

Rio Tinto is a leading international mining group headquartered in the UK, combining Rio Tinto plc, a London and New York Stock Exchange listed company, and Rio Tinto Limited, which is listed on the Australian Securities Exchange.

Rio Tinto’s business is finding, mining, and processing mineral resources. Major products are aluminium, copper, diamonds, thermal and metallurgical coal, uranium, gold, industrial minerals (borax, titanium dioxide and salt) and iron ore. Activities span the world and are strongly represented in Australia and North America with significant businesses in Asia, Europe, Africa and South America.

About Alaska Community Foundation and the Bristol Bay Native Corporation Education Foundation

The Alaska Community Foundation is a state-wide philanthropy organisation established in 1995 that is focused on strengthening Alaska’s communities. The Alaska Community Foundation will use the gift of shares to create a new Vocational Fund for Alaska’s Future which will support programmes that provide vocational training and skills development needed in the mining and extractive industries. The Bristol Bay Native Corporation Education Foundation, established in 1986, is a Native Alaskan charitable organisation that supports education and cultural programmes for Bristol Bay native youth. Both organisations have independent boards of directors and mandates to manage assets for the benefit of future generations.

Contacts

Media Relations, EMEA/Americas
Illtud Harri
T +44 20 7781 1152
M +44 7920 503 600

David Outhwaite
T +44 20 7781 1623
M +44 7787 597 493

Investor Relations, EMEA/Americas
Mark Shannon
T +44 20 7781 1178
M +44 7917 576597

David Ovington
T +44 20 7781 2051
M +44 7920 010 978

Grant Donald
T +44 20 7781 1262
M +44 7920 587 805

Media Relations, Australia/Asia
David Luff
T +61 3 9283 3620
M +61 419 850 205

Bruce Tobin
T +61 3 9283 3612
M +61 419 103 454

Investor Relations, Australia/Asia
Christopher Maitland
T +61 3 9283 3063
M +61 459 800 131

Rachel Storrs
T +61 3 9283 3628
M +61 417 401 018

Galina Rogova
T +852 2839 9208
M +852 6978 3011

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Alaska foundations need to take good look at Rio Tinto’s Pebble gift horse

Should two Alaska charitable foundations deliberately hang on to 19.1% of a mining company trying to develop what is the most controversial of U.S. copper/gold mining projects?

Dorothy Kosich – http://www.mineweb.com/mineweb/content/en/mineweb-gold-news?oid=236452&s...

8 April 2014

RENO – As the environmental groups applaud Rio Tinto’s decision to give its 19.1% shareholding in Northern Dynasty Minerals to two local charitable foundations, this reporter is simply perplexed.

What happens if the massive Pebble Project copper/gold project near Bristol Bay in southwest Alaska never becomes a mine?

Will the Alaska Community Foundation and the Bristol Bay Native Corporation Education Foundation never see a dime from Rio Tinto’s largess?

Rio Tinto announced Monday that its shares in Northern Dynasty Minerals will be divided equally between the Alaska Community Foundation to fund educational vocational training, and the Bristol Bay Native Corporation Education Foundation, which supports education and cultural programs in the region.

“By giving our shares to two respected Alaska charities, we are ensuring that Alaskans have a say in Pebble’s future development and that economic benefit supports Alaska’s ability to attract investment that creates jobs,” said Rio Tinto in a news release.

“We are pleased that Rio Tinto’s interest in Northern Dynasty will provide meaningful, long-term economic contributions to charitable organizations in Alaska that are dedicated to providing education opportunities for young people, and to preserving cultural and traditional ways of life,” declared Northern Dynasty CEO Ron Thiessen.

“We look forward to meeting with the leadership of the Alaska Community Foundation and Bristol Bay Native Corporation Education Foundation 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 can make the greatest possible contribution to the people and communities they serve,” Thiessen added.

Does that mean the foundations can at least get a seat on the Northern Dynasty Board for their 19.1% stake?

As may be anticipated, the anti-Pebble Project opponents Monday had a field day with Rio Tinto’s latest Pebble project strategy. Joel Reynolds, western director of the Natural Resource Council, observed, “Rio Tinto’s decision is the latest demonstration that the Pebble Mine is economically and environmentally infeasible, even for the largest mining companies in the world.”

“With Rio Tinto’s departure following close upon Anglo American’s withdrawal last year, there is currently no major funder backing the Pebble mine proposal,” said Earthworks. “Perhaps more importantly, there is now no mining company behind Pebble that has actually mined anything.”

“Rio Tinto’s divestment from Pebble may not be the final nail in the coffin, but it’s surely one of the last,” Earthworks declared.

Ironically, the Bristol Bay Native Corporation officially came out against the Pebble Project in 2009. Now their education foundation will own a stake in its future development.

U.S. Sen. Lisa Murkowski, R-Alaska, and the ranking member of the Senate Energy and Natural Resources Committee, apparently also is somewhat perplexed by this situation.

“I appreciate the way Rio Tinto is handling this decision. Instead of simply divesting, it has committed to investing in the education of Bristol Bay’s next generation. This will help ensure that local residents have the skills to get or create the kind of jobs that will allow them to provide for their families,” she said in a statement Monday.

Nevertheless, she added, “I understand that many mining companies are reevaluating their project portfolios right now, but I’m concerned by what else may have prompted this decision. If we want to attract investment to our state and our economy, we need a regulatory system at the federal level that is predictable enough to allow responsible development to go forward – at least to the permitting stage, and without the threat of a preemptive veto from the EPA hanging over it.”

Several months ago, the U.S. Environmental Protection Agency took the unprecedented and, perhaps, illegal step of shooting down the Pebble Project before any permit application had been filed, using the Clean Water Act and the Bristol Bay fishery as weapons against any mining project that may locate near Bristol Bay.

If the EPA’s actions stand and the Pebble Project never comes to fruition, then two Alaska foundations could wind up owning 19.1% of nothing or pray that Northern Dynasty eventually develops another mining property in a more politically hospitable environment.

Or, with the voting power offered by owning a 19% stake in Northern Dynasty, the two Alaskan charitable foundations could make life even more difficult for Northern Dynasty and the future of the Pebble project.

If the foundations choose to support Northern Dynasty and Pebble, they could find themselves targeted by billionaire Bob Gillam and his fellow Wharton School alumni gang, now top executives in several U.S. corporations, who together have funded a significant portion of the now international anti-Pebble Movement campaign.

The foundations could also find themselves in a lose-lose situation concerning their relationship with domestic and international environmental and human rights NGOs, who have little problem taking on aboriginal peoples as these organizations’ campaigns against seal, whale and polar bear hunting have demonstrated.

Perhaps it’s not too late for the Alaska Community Foundation and Bristol Bay Native Corporation Education Foundation to politely return their Northern Dynasty equities and ask for a few shares of Rio Tinto stock instead?