Anglo subsidiary withdraws from U.S. copper project

Anglo American plc, the global diversified mining company, said on Monday that its wholly owned US subsidiary, Anglo American (US) Pebble LLC, has given notice under the Pebble limited partnership agreement that it is withdrawing from the Pebble copper project in Alaska. 
The Pebble Limited Partnership (PLP) was created in 2007 between AA Pebble and an affiliate of Northern Dynasty Minerals Ltd. (“Northern Dynasty”), who are equal partners in PLP. ┬áFollowing the withdrawal, PLP will proceed under the sole ownership of Northern Dynasty.
In light of the parties’ shared desire to ensure an orderly exit, the detailed aspects of AA Pebble’s withdrawal from the Pebble project are being developed and implemented.
Anglo American expects to record an impairment charge of $0.3bn at 31 December 2013 on a post-tax basis.
Chief Executive of Anglo American, Mark Cutifani, said despite the belief that Pebble is a deposit of rare magnitude and quality, they had taken the decision to withdraw following a thorough assessment of Anglo American’s extensive pipeline of long-dated project options.
“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,” Cutifani said.
“We wish the project well through its forthcoming permitting process and express our thanks to all those who have supported Pebble and who recognise the opportunities and benefits that such an investment may bring to Alaska.”