By Alex MacDonald
LONDON--Mining titan Rio Tinto PLC (RIO) said Monday it has
withdrawn its investment in one of the world's largest copper
deposits by gifting its minority stake in Northern Dynasty Ltd.
(NDM.T), the developer of the massive Alaskan Pebble copper and
gold project, to two Alaskan charities.
The decision follows a strategic review of its 19.1% stake in
Northern Dynasty Ltd. announced last year, which concluded that the
Pebble project didn't fit with Rio Tinto's strategy, the company
said.
Rio Tinto is the second large diversified miner to back out of
the project in nearly seven months. Anglo American PLC (AAL.LN)
announced in September that it would withdraw from the project by
handing its 50% stake in the project back to Northern Dynasty and
taking a $300 million write down in the process.
The project has faced increased scrutiny from environmental
campaign groups and the U.S. Environmental Protection Agency
regarding its potential risk to salmon fisheries. Northern Dynasty
and Anglo American previously said that the project could be built
without harming Alaska's salmon fishing industry.
"Rio Tinto has long and historic ties to Alaska and we continue
to see Alaska as an attractive location for potential future
investment," said Rio Tinto's copper chief executive Jean-Sebastien
Jacques in a statement. "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."
The shares in Northern Dynasty 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.
Write to Alex MacDonald at alex.macdonald@wsj.com
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