Canada-based Northern Dynasty Minerals Ltd. (NAK, NDM.T) plans
to begin the permitting application process for its $4.7 billion
Alaskan copper and gold project by the end of this year even after
its major project partner, Anglo American PLC (AAL.LN), suddenly
withdrew from the project, Northern Dynasty's chief executive said
Monday.
"Everything will be under review by NDM," Ron Thiessen, Northern
Dynasty's CEO, told The Wall Street Journal in a telephone
interview. However, he noted that "not too much work is left on the
project other than to go to permitting."
Anglo American Monday said it has taken an impairment charge of
$0.3 billion after withdrawing from Pebble, a massive,
environmentally challenging Alaskan copper-and-gold venture, in
favor of prioritizing high-value, low-risk projects. Anglo
American's CEO Mark Cutifani, who had this summer vowed to pare
back Anglo American's $17 billion of projects, said Pebble would
now proceed under the sole ownership of Northern Dynasty.
Mr. Thiessen said Anglo American informed Northern Dynasty on
Friday about its decision to pull out of the partnership. He added
that Northern Dynasty would now review its project plan but
effectively wouldn't have to compensate Anglo American for the
amount Anglo had invested to date because Anglo didn't invest above
an undisclosed threshold. Anglo American had invested $540 million
out of the $1.5 billion it committed to spend on the project as of
the end of June, Mr. Thiessen said.
He added that Anglo American's decision to withdraw was due to
the FTSE-100 miner's decision to reprioritize its project pipeline
rather than any concern about the project.
"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," said Mark Cutifani, who took over as
CEO of Anglo American in April.
"We wish the project well through its forthcoming permitting
process and express our thanks to all those who have supported
Pebble and who recognise the opportunities and benefits that such
an investment may bring to Alaska," said Mr. Cutifani in a
statement.
Anglo American and Northern Dynasty will embark upon a 60-day
process to unwind their partnership, Mr. Thiessen said.
Write to Alex MacDonald at alex.macdonald@wsj.com
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