Rio Tinto will gift its 19.1% shareholding in Northern Dynasty Minerals, owner of the Pebble project, to two local Alaskan charitable foundations. The decision follows the strategic review announced last year of Rio Tinto’s interest in Northern Dynasty which concluded the Pebble project does not fit with Rio Tinto’s strategy. The shares in Northern Dynasty will be divided equally between the Alaska Community Foundation to fund educational and vocational training and the Bristol Bay Native Corp Education Foundation, which supports educational and cultural programs in the region.

Rio Tinto Copper chief executive Jean-Sebastien Jacques said “Rio Tinto has long and historic ties to Alaska and we continue to see Alaska as an attractive location for potential future investment. 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.”

The project is an initiative of the Pebble Partnership to responsibly develop a globally significant copper, gold and molybdenum deposit in southwest Alaska into a modern, long-life mine, which will benefit not only the owner, but the people, culture and industries of the State of Alaska, as well as suppliers, consultants and industries in the Lower 48 USA.

A 2013 study authored by IHS Global Insight, entitled The Economic and Employment Contributions of a Conceptual Pebble Mine to the Alaska and United States Economies found Pebble has the potential to support 15,000 American jobs and contribute more than $2.5 billion annually to US GDP over decades of production.

The Pebble project is located 320 km southwest of Anchorage on state land designated for mineral exploration and development. It is situated in a region of rolling tundra approximately 300 m above sea-level, 105 km from tidewater on Cook Inlet and presents favourable conditions for successful mine site and infrastructure development.