By Alicia Mundy
WASHINGTON--The Environmental Protection Agency took the first
step Friday to restrict, if not prohibit, the development of Pebble
Mine, a proposed open-pit copper and gold mine in Alaska that could
be one of the world's largest copper sources.
The EPA said the project poses a serious risk to the salmon
fisheries and native tribes in the Bristol Bay area. EPA
administrator Gina McCarthy, in a media call, said the agency is
turning to a little-used authority under the Clean Water Act to
protect the fisheries, which produces about half the world's wild
sockeye salmon.
The EPA was acting, she said, "to ensure protection for the
world's most productive salmon fishery from the risks it faces from
what could be one of the largest open pit mines on Earth." Under a
provision in the law, the EPA can prevent the mining company from
getting a government permit if it has enough data to show serious
environmental dangers.
In January the agency released the results of a three-year
scientific study of the project. Ms. McCarthy said the study
produced "ample reason to believe that the Pebble Mine would likely
have significant and irreversible negative impacts" on the Bristol
Bay watershed.
The Pebble Limited Partnership, which is leading development of
the mining site, said it intends to fight the EPA's move. "We're
pretty confident we're going to drive a stake in it," Pebble CEO
Tom Collier said in an interview.
The partnership hasn't yet formally applied for a federal
permit, he said, adding he believes the EPA "does not have legal
authority" to move to block the mine before a permit is issued.
A spokesman for the EPA, Thomas Reynolds, said, "The agency's
authority is very clear under the Clean Water Act."
Mr. Collier also criticized the EPA's scientific study, saying
its outcome was "predetermined." The company has written the EPA's
Inspector General, requesting an investigation into whether there
was "collaboration" between environmental groups and EPA officials
to "manipulate the review process" and stop the mine.
He said environmental groups have encouraged native tribes to
petition the EPA, which triggered the agency's formal review of
Pebble Mine's effect on Bristol Bay.
Mr. Reynolds said, "Every single day, the EPA talks with
business, industry, and advocacy groups--it's our business to talk
with them." Ms. McCarthy stressed the EPA's process on Pebble Mine
is only beginning.
The EPA announcement is one more blow to Vancouver-based
Northern Dynasty Minerals Ltd. and its roughly $5 billion project.
Northern Dynasty has estimated the copper and gold mine deposits
could ultimately be worth between $300 and $500 billion.
Last year, in the wake of falling mining commodity prices as
well as a campaign by the environmental community against the mine,
Northern Dynasty's partner, Anglo American, withdrew from the
project. Some international jewelers also said they wouldn't
process Pebble minerals.
In December a major investor in Northern Dynasty, the
international mining giant Rio Tinto, said it was reviewing its
stake in the company. Rio Tinto had received letters from pension
fund managers in California and New York City criticizing the mine
proposals because of environmental concerns. Rio Tinto is still
conducting its review of strategic assets including Northern
Dynasty, said a spokesman for Pebble Mine.
Joel Reynolds, Western Director of the Natural Resources Defense
Council, praised the EPA's move. "The science is sound, EPA's legal
authority is clear, and the people of Bristol Bay have demanded
protection. It's time to say no to Pebble Mine," he said.
Write to Alicia Mundy at alicia.mundy@wsj.com
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