Pebble Mine: An Unacceptable Risk No Matter the Message
Posted June 7, 2010 in Saving Wildlife and Wild Places
During a visit to London last week, I delivered to Anglo American another 28,000 petitions of opposition from NRDC members and activists to the proposed Pebble Mine, adding to the 100,000 delivered at the Anglo shareholder meeting on Earth Day, April 22. They were graciously received by Anji Hunter, Anglo’s Group Head of Government and Social Affairs.
At the same time, one of my NRDC colleagues was in New York at the 10th Annual Metals and Mining Conference, listening to Bruce Jenkins talk about Pebble. Mr. Jenkins is Senior Vice President for Corporate Development, Northern Dynasty Minerals, Anglo’s 50% partner in the Pebble project.
Partners they may be, but what we heard was a tale of two messages:
From Anglo’s Anji Hunter, a conviction that there is no project plan, that the mine will not proceed unless it can be developed safely, and that the concerns of the local community matter.
From Northern Dynasty’s Bruce Jenkins, an equally firm conviction that Pebble “represents an ideal address for mine development and operation,” that Northern Dynasty is “fully committed to advancing the project through to operation,” and that, from a political perspective, “we’re not worried” because “Alaska is a mine-friendly state.”
Perhaps most remarkable was Mr. Jenkins’ astonishing assessment that, far from posing a risk to Bristol Bay’s incomparable wild salmon fishery, “the way the project is being designed there will be enhanced habitat quality and fisheries production.” In other words, according to Northern Dynasty, the fishermen needn’t worry, because construction and operation of one of the world’s largest copper and gold mines at the headwaters of the Bristol Bay watershed will actually be good for the salmon fishery!
If you believe that, I have an oil platform in the Gulf of Mexico with a “fail-safe” blow-out preventer that I want to sell you.
Little wonder that the Pebble Partnership’s request that the downstream communities “wait and see” falls on deaf ears. Far from an “ideal address” for a massive mine that will generate over 10 billion tons of waste, the watershed above Bristol Bay is world-renowned as ideal for raising wild salmon -- a complex web of streams, lakes, and subsurface hydrological connections that will inevitably and unavoidably be contaminated by the Pebble project. No amount of hopeful promises or confident assurances from the Pebble Partnership can change that. No amount of mining company science can change the fact that large-scale mining for gold and copper above Bristol Bay poses an unreasonable and unacceptable risk.
The answer is the same no matter the Pebble Partnership’s messaging. This project should be abandoned now.
http://www.savebiogems.org/bristolbay/pebble/
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Comments
Anonymous — Jun 7 2010 09:13 PM
Such Dynasty doublespeak is nothing new. From 2004-2007 I worked as an organizer in opposition to the proposed Pebble Mine. During that time, my coalition partners and I compiled the troubling statements below which seem quite consistent with those outlined in this essay...
Northern Dynasty: In Their Own Words
What are the risks? What would happen if something went wrong? Is the mine a “Done Deal?” Who will pay for the road? Do local communities have any power?
Northern Dynasty has answered these questions and many more in its own reports and publications. Unless noted otherwise, the original source documents cited below are available in their entirety on the website of the Canadian Securities Administrators at http://www.sedar.com
What are the environmental risks?
"Unexpected environmental damage from spills, accidents and severe acts of nature such as earthquakes are risks which may not be fully insurable and if catastrophic could mean the total loss of shareholders’ equity."
Source: Northern Dynasty Minerals. “2004 Annual Report.” U.S. SEC. Washington, DC. 20549 Form 20-F.
June 30, 2004 http://www.sedar.com/DisplayCompanyDocuments.do?lang=EN&issuerNo=00003151.
"Honestly, I don't know if any mine has worked perfectly.”
-Ella Ede, Northern Dynasty Environmental Project Manager
Source: “Residents charge mine owners are digging up trouble,” by Hal Spence, Kenai Peninsula Clarion.
http://www.peninsulaclarion.com/stories/040305/news_0403new003001.shtml Sunday, April 3, 2005
What is Northern Dynasty’s Track Record?
"Northern Dynasty Has No History of Earnings and No Foreseeable Earnings. Northern Dynasty has a history of 20 years of losses. Northern Dynasty may never be profitable."
Source: Northern Dynasty Minerals. “2004 Annual Report.” U.S. SEC. Washington, DC. 20549 Form 20-F.
June 30, 2004 http://www.sedar.com/DisplayCompanyDocuments.do?lang=EN&issuerNo=00003151.
What if something goes wrong?
"Northern Dynasty’s Management May Not Be Subject to U.S. Legal Process. As Canadian citizens and residents certain of Northern Dynasty’s directors and officers may not subject themselves to U.S. legal proceedings, so that recovery on judgments issued by U.S. courts
may be difficult or impossible."
Source: Northern Dynasty Minerals. “2004 Annual Report.” U.S. SEC. Washington, DC. 20549 Form 20-F.
June 30, 2004 http://www.sedar.com/DisplayCompanyDocuments.do?lang=EN&issuerNo=00003151.
Is Pebble a Done Deal?
"Northern Dynasty may not be able to obtain all necessary licenses and permits that may be required to carry out exploration at our projects. Environmental concerns in general continue to be a significant challenge for Northern Dynasty as they are for all exploration companies. Any
changes in regulations or shift in political attitude are beyond the control of Northern Dynasty and may adversely affect its business."
Source: Northern Dynasty Minerals. “2004 Annual Report.” U.S. SEC. Washington, DC. 20549 Form 20-F.
June 30, 2004 http://www.sedar.com/DisplayCompanyDocuments.do?lang=EN&issuerNo=00003151.
“The Preliminary Assessment assumes specified, long-term prices levels for gold, copper, silver and molybdenum. Prices for these commodities are historically volatile, and Northern Dynasty has no control of or influence on those prices, all of which are determined in
international markets. There can be no assurance that the prices of these commodities will continue at current levels or that they will not decline below the prices assumed in the Preliminary Assessment. Prices for gold, copper, silver, and molybdenum have been below the price ranges assumed in Preliminary Assessment at times during the past ten years, and for extended periods of time. The project will require major financing, probably a combination of debt and equity financing. Interest rates are at historically low levels. There can be no
assurance that debt and/or equity financing will be available on acceptable terms. A significant
increase in costs of capital could materially and adversely affect the value and feasibility of constructing the project. Other general risks include those ordinary to very large construction projects including the general uncertainties inherent in engineering and construction cost, the
need to comply with generally increasing environmental obligations, and accommodation of local and community concerns.”
Source: Northern Dynasty Minerals, Ltd. “Year Ended December 31, 2004: Management’s Discussion and
Analysis.” March 30, 2005 http://www.sedar.com/DisplayCompanyDocuments.do?lang=EN&issuerNo=00003151.
“Cautionary Note to Investors Concerning Estimates of Measured, Indicated and Inferred Resources...‘inferred resources’ have a great amount of uncertainty as to their existence, and economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of economic studies, except for a preliminary assessment. Investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into reserves.”
Source: Northern Dynasty Minerals, Ltd. “Year Ended December 31, 2004: Management’s Discussion and
Analysis.” March 30, 2005 http://www.sedar.com/DisplayCompanyDocuments.do?lang=EN&issuerNo=00003151.
What about the road and port?
“The project requires the development of port facilities, roads and electrical generating and transmission facilities. Although Northern Dynasty believes that the State of Alaska favors the development of these facilities and may be willing to arrange financing for their development,
there can be no assurance that these infrastructure facilities can be developed on a timely and cost-effective basis.”
Source: Northern Dynasty Minerals, Ltd. “Year Ended December 31, 2004: Management’s Discussion and
Analysis.” March 30, 2005 http://www.sedar.com/DisplayCompanyDocuments.do?lang=EN&issuerNo=00003151.
Dianne George — Jun 13 2010 09:46 PM
This portion of the above, kind of says it all: "As Canadian citizens & residents of Northern Dynasty's directors & officers may not subject themselvesto US legal proceedings, so that recovery judgements issued by US courts may be difficult or impossible." Need we say more?