Northern Dynasty Minerals Ltd. (TSX: T.NDM, Stock Forum) (NYSE: NAK, Stock Forum) has unveiled details of a US$107 million program aimed at preparing its massive Pebble project in Alaska for environmental permitting this year.
Pebble is a very large copper, gold and molybdenum deposit located in southwest Alaska, about 200 miles southwest of Anchorage. It is situated about 1,000 feet above sea level, 65 miles from tidewater at Cook Inlet.
If developed, Pebble will emerge as one of North America’s biggest open pit mines. However, the project has been enormously controversial because it straddles streams that feed rich runs of red salmon, king salmon and rainbow trout.
Those runs would be destroyed if the project goes ahead, opponents say.
The project is being advanced by a partnership that was established in July 2003 and consists of Northern Dynasty and a wholly-owned subsidiary of Anglo American PLC.
Northern Dynasty and Anglo American have equal ownership and direction of the Pebble Partnership. Under an agreement, Anglo American is required to commit $1.5 billion in staged investments in order to retain its 50% stake in the project.
"Following the completion and release of the 27,000 page Pebble Environmental Baseline Document (EBD) earlier this year, the Pebble Partnership is now focused on finalizing the other principal document required to trigger permitting under National Environmental Policy Act (NEPA) - a Project Description," said Northern Dynasty President & CEO Ronald Thiessen.
"After years of methodical and intensive geological, environmental, socioeconomic and engineering study, we are now finalizing a proposed design for the Pebble Project that will meet and exceed environmental regulations and permitting requirements in Alaska and the United States, while providing significant benefits to the region, the state and the nation."
The partnership plans to lead a public consultation initiative in Alaska in fall 2012 to share the status of project engineering with stakeholders.
Since the Pebble Partnership was established in July 2007 to the end of December 2011, Anglo American has invested approximately US$400 million to advance engineering, environmental and socioeconomic studies.
Trading at $4.02 this week, Northern Dynasty has a market cap of $381.8 million, based on 94.9 million shares outstanding. The 52-week range for the stock is $12.70 and $4.03.