Rio Tinto dumped ‘unviable’ mine onto charities: J Cap

Rio Tinto dumped ‘unviable’ mine onto charities: J Cap
Hedge fund research firm J Capital Research has alleged Rio Tinto dumped its stake in Canadian miner Northern Dynasty Minerals onto two Alaskan charities, knowing the company’s Pebble Mine in Alaska would never be economically viable.Rio backed out eight years after its initial investment, resulting in a $US131 million impairment for the giant, gifting it…

Hedge fund evaluation firm J Capital Learn has alleged Rio Tinto dumped its stake in Canadian miner Northern Dynasty Minerals onto two Alaskan charities, shining the firm’s Pebble Mine in Alaska would never be economically viable.

Rio backed out eight years after its preliminary funding, leading to a $US131 million impairment for the wide, gifting it on the premise that the donation would give locals a exclaim. The Pebble deposit is without doubt among the supreme gold and copper reserves on this planet. On the opposite hand, excessive costs and quite a lot of real battles contain kept it from being mined.

Workers with the Pebble Mine venture take a look at drill within the Bristol Bay region of Alaska, in 2007. AP

“We predict about that the deposit can’t be mined profitably and that mining majors Anglo American and Rio Tinto know that,” J Cap co-founder and managing partner Tim Murray wrote in a evaluation document concentrating on Northern Dynasty launched on Thursday.

Rio dumped its stake in Northern Dynasty in April 2014, passing on its 18.1 million shares, price $18.7 million, equally between the Alaska Neighborhood Foundation and the Bristol Bay Native Company Education Foundation, following strategic overview.

Around that point, the mine changed into going through an investigation from the US Environmental Security Agency over whether or now not fisheries would possibly per chance per chance well even be safe.

Hedge fund evaluation firm J Capital Learn has alleged Rio Tinto dumped its stake in Canadian miner Northern Dynasty Minerals onto two Alaskan charities, shining the firm’s Pebble Mine in Alaska would never be economically viable.

Rio backed out eight years after its preliminary funding, leading to a $US131 million impairment for the wide, gifting it on the premise that the donation would give locals a exclaim. The Pebble deposit is without doubt among the supreme gold and copper reserves on this planet. On the opposite hand, excessive costs and quite a lot of real battles contain kept it from being mined.

Workers with the Pebble Mine venture take a look at drill within the Bristol Bay region of Alaska, in 2007. AP

“We predict about that the deposit can’t be mined profitably and that mining majors Anglo American and Rio Tinto know that,” J Cap co-founder and managing partner Tim Murray wrote in a evaluation document concentrating on Northern Dynasty launched on Thursday.

Rio dumped its stake in Northern Dynasty in April 2014, passing on its 18.1 million shares, price $18.7 million, equally between the Alaska Neighborhood Foundation and the Bristol Bay Native Company Education Foundation, following strategic overview.

Around that point, the mine changed into going through an investigation from the US Environmental Security Agency over whether or now not fisheries would possibly per chance per chance well even be safe.

“We are ensuring that Alaskans will contain a inform in Pebble's future constructing and that any financial serve supports Alaska's capability to entice funding that creates jobs,” Rio's then copper chief govt, Jean-Sebastien Jacques, changed into quoted announcing.

Rio Tinto changed into contacted for comment nonetheless did not reply earlier than e-newsletter.

Rio Tinto recent chief govt and conventional copper chief govt, Jean-Sebastien Jacques. Bloomberg

Bristol Bay sold its stake two months later for finish to $US6.5 million, or roughly US71.4¢ a fraction, effectively below the $C10 a fraction Rio Tinto had paid in 2006. The Alaska Neighborhood Foundation now now not stays a shareholder.

“Of us clearly don’t factor in within the mine,” talked about J Cap's Mr Murray. J Cap alleges Northern Dynasty has crafted a money-dropping mining conception to kind executive approvals because bonuses are contingent on “lobbying success” as adversarial to production.

Rio's exit came correct seven months after Anglo American withdrew from the Pebble copper venture after pouring $US500 million into the mine.

By 2014, Rio had amassed a 19.1 per cent stake.

In 2019, a conventional senior manager at Rio Tinto, Richard Borden, made a chain of submissions to the US Army Corps of Engineers that had been highly necessary of Pebble's financial viability.

Commercial

Mr Borden's diagnosis, conducted for mine opponent the Natural Resources Defence Council, came up with very a lot bigger capital and post-closure costs than the firm had forecast, relating to the 2011 preliminary evaluation of the venture performed by Northern Dynasty.

Northern Dynasty has claimed poverty to dodge a feasibility ogle, which would display financial viability.

— J Capital Learn co-founder & managing partner Tim Murray

Pebble CEO Tom Collier would dispute Mr Borden's claims, announcing he relied on assumptions from years ago.

“Yet Pebble itself in 2018 relied on its 2011 boom to argue that the mine is economically viable,” J Cap states.

“Northern Dynasty has no motive to care that the brand new conception is irrational: we judge this can also lose money, toddle away traders with a stranded asset, and be cancelled anyway if Joe Biden is elected,” Mr Murray talked about.

The presidential candidate pledged that if he is elected he’ll cease the Pebble deposit turning into a mine on environmental grounds attributable to its proximity to Bristol Bay, which offers half of of the sphere’s wild sockeye salmon.

“Northern Dynasty has claimed poverty to dodge a feasibility ogle, which would display financial viability,” talked about Mr Murray.

Subsequent

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