Name and Location
Pebble copper/gold/molybdenum project, Alaska, US.

Client
The Pebble Limited Partnership (PLP), which comprises Northern Dynasty Minerals (NDM) (50%) and Anglo American (50%).

Project Description
The project proposes to construct a large openpit mine; an on-site milling facility; on-site storage for rock, ore and tailings; a port facility; an access road connecting the mine site to the port; an on-site water supply for the mill; and to provide electrical power for the mine site, in south-west Alaska.

In addition, the project plans to include an on-site 378 MW gas-fired turbine plant, a 138 km transportation corridor to Cook Inlet for road and pipeline rights of way and a new deep-water port at Cook Inlet.

The project’s key assets are the near-surface 4.1-billion-ton openpit-style Pebble West deposit and the deeper and higher-grade 3.4-billion-ton Pebble East deposit, which is amenable to underground bulk mining methods. The Pebble resources rank among the world’s most important accumulations of copper, gold and molybdenum.

Estimates show that the Pebble deposit comprises measured and indicated resources of 5.94-billion tons, grading 0.78% copper equivalent, and containing 55-billion pounds of copper, 67-million ounces of gold and 3.3-billlion pounds of molybdenum.

The deposit also has 4.84-billion tons of inferred resources, grading 0.53% copper equivalent and containing 26-billion pounds of copper, 40-million ounces of gold and 2.3-billion pounds of molybdenum.

Value
Capital expenditure on Pebble will reach between $6-billion and $8-billion.
Anglo American is required to fund $1.5-billion of the project costs to retain its 50% interest, taking the Pebble project through permitting and into construction.

Northern Dynasty does not expect to fund any further project expenditures during its development phase as Anglo completes its staged total investment of $1.5-billion.

Duration
Commercial production is expected by 2015.

Latest Developments
The PLP has approved a budget of about $80-million to advance the Pebble project to start permitting under the National Environmental Policy Act (NEPA) before the end of the year.

The budgeted $80-million in expenditures for the Pebble project will include engineering studies to complete a project description and advance a prefeasibility study; continued environmental monitoring studies in critical areas, including groundwater hydrology, water quality and fisheries resources; site investigations, including exploration, geotechnical and metallurgical drilling, and geo-hydrological testing; stakeholder engagement and public affairs programming; workforce and business development initiatives; and public education and community investment.

Northern Dynasty Minerals, which is a 50% partner with Anglo American to develop the project, says the PLP is now nearing the final stages of completing its project description, after undertaking a substantial prepermitting planning programme and years of comprehensive study.

The PLP is expected to release a national economic impact study of the Pebble project soon, which, together with the workforce development plan and project planning updates, will form the basis for an enhanced public-engagement initiative this year.

"By the time the Pebble Partnership triggers permitting under the NEPA, more than $700-million will have been invested to ensure a robust project design from a technical, financial, environmental and social perspective. The PLP fully expects that the rigor of that work will be recognised and reflected in the outcome and efficiency of the NEPA permitting process,” Northern Dynasty president and CEO Ronald Thiessen says.

Key Contracts and Suppliers
Wardrop Engineering (preliminary assessment report).

On Budget and on Time?
Not stated.

Contact Details for Project Information
PLP, tel +1 907 339 2600, fax +1 877 450 2600 or email receptionist@pebblepartnership.com.
Wardrop media and public relations, email media@tetratech.com.