1st Aug 2007 07:02
Anglo American PLC01 August 2007 News Release 1 August 2007 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 andcompletion of a transaction, whereby a wholly owned subsidiary of Anglo American("Anglo") has become a 50% partner with the Northern Dynasty Partnership (awholly owned affiliate of Northern Dynasty Minerals Ltd. ("Northern Dynasty"))in a limited partnership with equal rights in the Pebble Copper-Gold-MolybdenumProject ("the Pebble Project") in southwestern Alaska, USA, by making a stagedcash investment of US$1.425 billion. The Pebble Project's key assets are the near surface, 4.1 billion tonne, openpit style Pebble West deposit and the deeper and higher grade 3.4 billion tonnePebble East deposit that is amenable to underground bulk mining methods. ThePebble 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 amodern, long-life mine at the Pebble Project. The transaction agreements layout a schedule to accomplish this goal, targeting completion of a pre-feasibility study in December 2008, a feasibility study by 2011 and commencementof commercial production by 2015. Anglo's staged investment includes a committed expenditure of US$125 million tocomplete a pre-feasibility study targeted at the end of 2008. After thecompletion 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 expectedto take the partnership to a production decision. Upon a positive decision todevelop a mine, Anglo must elect to commit to the next US$975 million ofexpenditures to retain its 50% partnership interest, completion of which willmeet the US$1.425 billion requirement. Thereafter, any further expenditure willbe 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 andcopper-gold projects already under evaluation, including an expansion at LosBronces and debottlenecking at Collahuasi, both in Chile, and Quelleveco andMichiquillay in Peru Cynthia Carroll, CEO of Anglo American said "As one of the world's largestcopper-gold-molybdenum deposits, Pebble has the potential to be a world-classoperation. The project offers Anglo American a unique opportunity to be involvedin a very long life, low operating cost mine. We are excited to be initiatingoperations in the State of Alaska, a jurisdiction known around the world for theresponsible development of its natural resources. Like Northern Dynasty, AngloAmerican is committed to the highest international standards for communityrelations, environmental protection and health and safety. We are very pleasedto bring these skills and experience to this partnership. We also look forwardto working closely with the people of Alaska and, in particular, the communitiesof the Bristol Bay area and Kenai Peninsula, to maximize the value of theseresources for all stakeholders, taking into account the positive long-termdemand prospects for copper." Ron Thiessen, President & CEO of Northern Dynasty stated: "Alaska'senvironmental standards and permitting requirements are among the most stringentin the world. Northern Dynasty's experienced, largely Alaskan based, minedevelopment team has been undertaking thorough and balanced technical,environmental and social assessments to ensure that the Pebble project isdeveloped in a manner that protects the environment and traditional ways oflife. We have sought a partner that shares our approach to development, has theability to finance, and is an experienced mine operator. Anglo bringscommitment and depth in all of these key areas. Our shared goal is to develop astate-of-the-art operation with a high annual metal production profile that willbring direct benefits to the local communities, as well as being a catalyst forsustainable economic development in the region and across the State." For further information: Investor InquiriesAnna PoulterTel: +44 207 968 2155 Charles GordonTel: +44 207 968 8933 Media InquiriesAnna PoulterTel: +44 207 968 2155 Notes to Editors: Anglo American plc is one of the world's largest mining and natural resourcegroups. Based in the United Kingdom, the company has operations in 45 countriesacross Africa, Europe, Australia, South and North America, and Asia. With itssubsidiaries, joint ventures and affiliates, it is a global leader in theproduction of platinum group metals, gold and diamonds, with significantinterests in coal, base and ferrous metals, and industrial minerals: keymaterials that contribute to improved standards of living. The company isactively involved in two major copper mines, and in advancing two other copperprojects. Northern Dynasty Mineral Ltd. is part of the Hunter Dickinson (HDI) group ofcompanies. HDI is a multi-disciplinary team with expertise in the fields ofgeoscience, engineering, the environmental sciences, finance and investment,property acquisition, regulatory and government affairs, and communitydevelopment that provides services to publicly traded companies active aroundthe world in mineral exploration, development and production. Northern Dynastyhas a clearly defined, progressive approach predicated on a principle ofresponsible mineral development. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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