LONDON: Mining giant Anglo American said yesterday it was pulling out of a copper mine project in Alaska and would pay a $300m “impairment charge” to its US partner.
Anglo American launched the Pebble Mine project in 2007 with US miner Northern Dynasty Minerals, which will now take over its partner’s 50-percent stake, Anglo said, indicating the move was part of efforts to boost profitability.
“Despite our belief that Pebble is a deposit of rare magnitude and quality, we have taken the decision to withdraw following a thorough assessment of Anglo American’s extensive pipeline of long-dated project options,” said Anglo chief executive Mark Cutifani.
“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.”
AFP
