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RAPAPORT... Anglo American, the parent company of De Beers, told shareholders today that its U.S. subsidiary, Anglo American (U.S.) Pebble LLC, notified the Pebble Limited Partnership that it would withdraw from proposed gold and copper mining project in Alaska. The Pebble Limited Partnership was created in 2007 between Anglo American and Northern Dynasty Minerals Ltd. Anglo stated that the Pebble mine would proceed under the sole ownership of Northern Dynasty. The proposed copper, gold and molybdemum mine at the headwaters of Bristol Bay, Alaska has attracted many environmental critics in the past few years, including Earthworks and dozens of major jewelers in the U.S.
Anglo American expects to record a $300 million impairment charge on December 31, on a post-tax basis due to this decision.
Mark Cutifani, Anglo's CEO, said, “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. 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. We wish the project well through its forthcoming permitting process and express our thanks to all those who have supported Pebble and who recognize the opportunities and benefits that such an investment may bring to Alaska.”
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