JUNEAU, Alaska (AP) - A major shareholder of a company behind a contentious Alaska mine project on Monday announced it was giving its shares away to two Alaska charitable organizations, at least one of which belongs to a larger group that has come out publicly against the project.
London-based mining company Rio Tinto announced plans to give its $16 million worth of shares in Northern Dynasty Minerals Ltd. to the Alaska Community Foundation and the Bristol Bay Native Corp. Education Foundation.
“By giving our shares to two respected Alaskan charities, we are ensuring that Alaskans will have a say in Pebble’s future development and that any economic benefit supports Alaska’s ability to attract investment that creates jobs,” Rio Tinto chief executive Jean-Sebastien Jacques said in a statement posted on the company’s website.
“This gift provides an example of what open discussion and relationship building between stakeholders with differing views can accomplish. However, (Bristol Bay Native Corp.‘s) opposition to the proposed Pebble mine has not changed,” Bristol Bay Native Corp. President Jason Metrokin said in a statement.
The Pebble Mine project - a massive gold-and-copper prospect near the headwaters of a world-premier salmon fishery in Alaska’s Bristol Bay region - has faced a series of setbacks by those worried about its environmental repercussions.
The U.S. Environmental Protection Agency in February announced it was taking the first steps toward restricting or even prohibiting development of a mine in that area of Alaska, but stressed that no final decision has been made.
The company late last year said it would review its major holding in Northern Dynasty Minerals under pressure from the overseers of pension funds in California and New York City, who said there were risks to Rio Tinto’s reputation for being associated with the proposed Pebble Mine project.
“This is good news for both Rio Tinto’s investors and the ecology of Bristol Bay. It is clear that Northern Dynasty’s actions were a folly with costly consequences for both its investors and the environment,” New York City Comptroller Scott M. Stringer told The Associated Press.
“We’re pleased that the people of Bristol Bay and Alaska will now have a direct stake in the project,” Sean Magee, a Northern Dynasty vice president, told the AP. “We believe that local ownership and local input can provide a significant benefit for the advancement of the project.”
He said they plan to schedule meetings with both Alaska organizations, possibly as soon as this week.
Magee said the meetings would provide a “start to understand a little bit of what their intentions are.”
The Alaska Community Foundation, a philanthropic organization, holds more than $70 million in 300 funds for the benefit of Alaskans.