16th Sep 2013 09:10
LONDON (Alliance News) - Anglo American PLC Monday said it expects to book a GBP300 million impairment charge after it pulled out of an Alaskan copper project.
The company said its US unit Pebble had given notice that it will pull out of a partnership formed in 2007 with Northern Dynasty Minerals Ltd. to develop the copper project, and Northern Dynasty will now own the project.
The exact details of Pebble's withdrawal are still being worked out and implemented as the parties try and ensure an orderly exit, Anglo American said in a statement.
"Despite our belief that Pebble is a deposit of rare magnitude and quality, we have taken the decision to withdraw following a thorough assessment of Anglo American's extensive pipeline of long-dated project options," Chief Executive Mark Cutifani said.
"Our focus has been to prioritise capital to projects with the highest value and lowest risks within our portfolio, and reduce the capital required to sustain such projects during the pre-approval phases of development as part of a more effective, value-driven capital allocation model," he added.
Anglo American shares were up 1.5% at 1,590.5 pence Monday morning.
By Steve McGrath; [email protected]; @SteveMcGrath1
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