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April 10, 2014 --- Vol. 08, No. 15April 2014

Opposition: Rio Tinto exit hammers ‘nail in coffin’ for Pebble

By giving its 19.1 percent interest in Northern Dynasty Minerals Ltd., owner of the Pebble Project, to two Alaska charitable foundations, Rio Tinto has graciously bowed out of the enormous Pebble copper-gold-silver project in Southwest Alaska.

“Rio Tinto has long and historic ties to Alaska and we continue to see Alaska as an attractive location for potential future investment. By giving our shares to two respected Alaskan charities, we are ensuring that Alaskans will have a say in Pebble’s future development and that any economic benefit supports Alaska’s ability to attract investment that creates jobs,” explained Jean-Sebastien Jacques, chief executive, Rio Tinto Copper.

The 18.15 million common shares in Northern Dynasty, valued at about US$16.7 million at the time of the gifting, will be divided equally between the Alaska Community Foundation to fund educational and vocational training and the Bristol Bay Native Corporation Education Foundation, which supports educational and cultural programs in the region.

Northern Dynasty, currently the sole owner of the Pebble Limited Partnership, is familiar with both charitable foundations that now each own roughly 9.5 percent of its shares and, by extension, the Pebble project. The Alaska Community Foundation helped facilitate the Pebble Partnership’s five-year, US$5 million investment in Bristol Bay communities via the Pebble Fund.

“We are pleased that Rio Tinto’s interest in Northern Dynasty will provide meaningful, long-term economic contributions to charitable organizations in Alaska that are dedicated to providing educational opportunities for young people, and to preserving culture and traditional ways of life,” said Northern Dynasty President and CEO Ron Thiessen. “"We look forward to meeting with the leadership of the Alaska Community Foundation and Bristol Bay Native Corporation Education Foundation in the days ahead to better understand their long-term goals and aspirations, and how their ownership interest in Northern Dynasty and the Pebble Project can make the greatest possible contribution to the people and communities they serve.”

Bristol Bay Native Corporation Education Foundation Executive Director Greta Goto said, “Rio Tinto’s gift will benefit organizations that serve the people and communities of Alaska. The gift is expected to increase the BBNC Education Foundation’s ability to meet its mission of supporting educational opportunities for BBNC shareholders.”

Bristol Bay Native Corp. President and CEO Jason Metrokin said the gift does not change the stance of the corporation that represents some 9,500 Alaska Natives of Southwest Alaska’s Bristol Bay region.

“Rio Tinto deserves credit for its willingness to reconsider its position in the Pebble Project,” Metrokin said. “This gift provides an example of what open discussion and relationship building between stakeholders with differing views can accomplish. However, BBNC’s opposition to the proposed Pebble mine has not changed.”

Pebble Partnership CEO Tom Collier welcomed the new 19 percent owners of the Pebble project.

“They have a seat at the table and we want them to pull up a chair,” he said during an April 10 presentation at the Arctic International Mining Symposium in Fairbanks.

Environmental groups opposed to Pebble see the departure of Rio Tinto as heralding the demise of the enormous project.

“With Rio Tinto’s departure following close upon Anglo American’s withdrawal last year, there is currently no major funder backing the Pebble mine proposal,” said Bonnie Gestring, Earthworks. “Rio Tinto’s divestment from Pebble may not be the final nail in the coffin, but it’s surely one of the last.”

Collier, however, informed attendees of the Arctic Mining Symposium that there is still a lot of life left in the Pebble Partnership.

“We are going to win this battle and I am going to be here next year talking about how we are ready for hiring people back at Pebble so we can move ourselves into permitting,” he told the audience.


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