VANCOUVER _
Northern Dynasty Minerals Ltd. (
TSX:T.NDM,
Stock Forum) said Monday that
Rio Tinto PLC (
NYSE: RIO,
Stock Forum) is reviewing its investment in the company, including a possible sale of the 19.1 per cent stake.
Northern Dynasty was set to hold a conference call at 8:00 a.m. (Pacific) to discuss this development, the company said in a press release.
``As part of its review, Rio Tinto will consider the Pebble Project's fit with the group's strategy of investing in and operating long life and expandable assets, and with the strategy for its copper business,'' Rio Tinto said.
Northern Dynasty shares fell 5% to $1.69 Monday, leaving the company with a market cap of $161.5 million, based on 95 million shares outstanding. The 52-week range is $4.19 and $1.07.
This development comes three months after Anglo American PLc announced that it was withdrawing from the massive Pebble metals project in Alaska, leaving Northern Dynasty with 100% stake in the highly controversial project.
This was after Anglo had spent US$541 million on the project, which is estimated to host 55 million pounds of copper, 67 million ounces of gold and 3.3 billion pounds of molybdenum.
However, despite its world class nature, Pebble has faced major headwinds. This is due to the remoteness of the site and public opposition due to environmental concerns.