7th Apr 2014 13:33
LONDON (Alliance News) - Rio Tinto PLC Monday said it will gift its 19.1% stake in Northern Dynasty Minerals Ltd, the owner of the Pebble Project to two local Alaskan charitable foundations.
The major mining company said it decided to gift the stake following a strategic review of Northern Dynasty last year which found the Pebble project does not fit with Rio Tinto's strategy.
The company said the shares 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 programmes in the region.
"Rio Tinto has long and historic ties to Alaska and we continue to see Alaska as an attractive location for potential future investment," Chief Executive Jean-Sebastien Jacques said in a statement.
The Pebble Project is an undeveloped copper resource located in the Bristol Bay region of western Alaska.
In December, the company said that as part of the ongoing review of its investment in Northern Dynasty, Rio Tinto would consider the Pebble Project's fit with the Group's strategy of investing in and operating long life and expandable assets.
Rio Tinto shares were down 0.9% to 3,351.10 pence Monday afternoon.
By Tom McIvor; [email protected]; @TomMcIvor1
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