Vancouver-based Northern Dynasty Minerals Ltd. announced today that the Pebble Limited Partnership board of directors has approved expenditures of US$91 million in 2011 in order to complete a feasibility study for the Pebble Project in 2012.
The project consists of the Pebble deposit in Alaska, surrounding mineral claims and a stream of financing provided by Northern Dynasty's project partner, Anglo American US (Pebble) LLC.
The Pebble Partnership was established in July 2007, with Northern Dynasty and Anglo American PLC each owning 50%. Northern Dynasty and Anglo American each have equal and identical rights of management and control in the partnership.
The project’s goal is to responsibly develop a copper, gold and molybdenum deposit in southwestern Alaska into a modern, long-life mine. The project is located 200 miles southwest of Anchorage on state land designated for mineral exploration and development.
Northern Dynasty’s president and CEO Ron Thiessen said, “Upon reaching commercial production, Pebble would become one of the world's leading producers of copper, gold and molybdenum as well as a tremendous driver of economic wealth and opportunity in Alaska and the United States.”
“Given its national and global importance, the Pebble Partnership has been very deliberate, methodical and patient in designing a project that will meet and exceed the exacting environmental regulations and permitting requirements in Alaska, while delivering superior returns for shareholders. I'm pleased to report that this project design process is nearing important milestones and that the partnership intends to enter the permitting phase towards the end of 2012.”
The US$91 million dollar cash investment will be used for engineering and environmental studies as well as stakeholder engagement and public affairs programming, including workforce and business development, local community relations, public education and community investment.
By the end of 2011 Anglo American will have invested approximately US$410 million into the Pebble project.
Under the terms of the Pebble Limited Partnership Agreement, Anglo American is required to fund $1.5 billion in staged investments in order to retain its 50% interest in the Pebble Project.