| Wed 1 Aug 2007, 8:47 | | AGL - Anglo American Plc & Northern Dynasty Establ |
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AGL
ANAAL
AGL - Anglo American Plc & Northern Dynasty Establish 50:50 Partnership To
Advance Pebble Project To Production
Anglo American plc
Incorporated in the United Kingdom
(Registration number: 3564138)
Short name: Anglo
Share code: AGL
ISIN number: GB0004901517
Anglo American & Northern Dynasty establish 50:50 partnership to advance Pebble
project to production
Anglo American plc ("Anglo American") is pleased to announce the signing and
completion of a transaction, whereby a wholly owned subsidiary of Anglo American
("Anglo") has become a 50% partner with the Northern Dynasty Partnership (a
wholly owned affiliate of Northern Dynasty Minerals Ltd. ("Northern Dynasty"))
in a limited partnership with equal rights in the Pebble Copper-Gold-Molybdenum
Project ("the Pebble Project") in southwestern Alaska, USA, by making a staged
cash investment of US$1.425 billion.
The Pebble Project`s key assets are the near surface, 4.1 billion tonne, open
pit style Pebble West deposit and the deeper and higher grade 3.4 billion tonne
Pebble East deposit that is amenable to underground bulk mining methods. The
Pebble resources rank among the world`s most important accumulations of copper,
gold and molybdenum.
The purpose of the partnership is to engineer, permit, construct and operate a
modern, long-life mine at the Pebble Project. The transaction agreements lay
out a schedule to accomplish this goal, targeting completion of a
pre-feasibility study in December 2008, a feasibility study by 2011 and
commencement of commercial production by 2015.
Anglo`s staged investment includes a committed expenditure of US$125 million to
complete a pre-feasibility study targeted at the end of 2008. After the
completion of the pre-feasibility study, Anglo must, in order to retain its
50% interest, elect to commit to a further US$325 million for a feasibility
study, the completion and approval of which is targeted for 2011, and this is
expected to take the partnership to a production decision. Upon a positive
decision to develop a mine, Anglo must elect to commit to the next US$975
million of expenditures to retain its 50% partnership interest, completion of
which will meet the US$1.425 billion requirement. Thereafter, any further
expenditure will be funded on a 50:50 basis. If the feasibility study is
completed after 2011, Anglo`s overall funding requirement increases to US$1.5
billion.
The Pebble project will enhance Anglo American`s major portfolio of copper and
copper-gold projects already under evaluation, including an expansion at Los
Bronces and debottlenecking at Collahuasi, both in Chile, and Quelleveco and
Michiquillay in Peru
Cynthia Carroll, CEO of Anglo American said "As one of the world`s largest
copper-gold-molybdenum deposits, Pebble has the potential to be a world-class
operation. The project offers Anglo American a unique opportunity to be involved
in a very long life, low operating cost mine. We are excited to be initiating
operations in the State of Alaska, a jurisdiction known around the world for the
responsible development of its natural resources. Like Northern Dynasty, Anglo
American is committed to the highest international standards for community
relations, environmental protection and health and safety. We are very pleased
to bring these skills and experience to this partnership. We also look forward
to working closely with the people of Alaska and, in particular, the communities
of the Bristol Bay area and Kenai Peninsula, to maximize the value of these
resources for all stakeholders, taking into account the positive long-term
demand prospects for copper."
Ron Thiessen, President & CEO of Northern Dynasty stated: "Alaska`s
environmental standards and permitting requirements are among the most stringent
in the world. Northern Dynasty`s experienced, largely Alaskan based, mine
development team has been undertaking thorough and balanced technical,
environmental and social assessments to ensure that the Pebble project is
developed in a manner that protects the environment and traditional ways of
life. We have sought a partner that shares our approach to development, has the
ability to finance, and is an experienced mine operator. Anglo brings
commitment and depth in all of these key areas. Our shared goal is to develop a
state-of-the-art operation with a high annual metal production profile that will
bring direct benefits to the local communities, as well as being a catalyst for
sustainable economic development in the region and across the State."
For further information:
Investor Inquiries
Anna Poulter
Tel: +44 207 968 2155
Charles Gordon
Tel: +44 207 968 8933
Media Inquiries
Anna Poulter
Tel: +44 207 968 2155
Notes to Editors:
Anglo American plc is one of the world`s largest mining and natural resource
groups. Based in the United Kingdom, the company has operations in 45 countries
across Africa, Europe, Australia, South and North America, and Asia. With its
subsidiaries, joint ventures and affiliates, it is a global leader in the
production of platinum group metals, gold and diamonds, with significant
interests in coal, base and ferrous metals, and industrial minerals: key
materials that contribute to improved standards of living. The company is
actively involved in two major copper mines, and in advancing two other copper
projects.
Northern Dynasty Mineral Ltd. is part of the Hunter Dickinson (HDI) group of
companies. HDI is a multi-disciplinary team with expertise in the fields of
geoscience, engineering, the environmental sciences, finance and investment,
property acquisition, regulatory and government affairs, and community
development that provides services to publicly traded companies active around
the world in mineral exploration, development and production. Northern Dynasty
has a clearly defined, progressive approach predicated on a principle of
responsible mineral development.
1 August 2007
Sponsor: J.P.Morgan Equities Limited
Date: 01/08/2007 08:47:49 Produced by the JSE SENS Department.
