Northern Dynasty announces National Economic Impact Study of Alaska’s Pebble Project
Pebble will support 15,000 American jobs and contribute more than $2.4
billion annually to US GDP
VANCOUVER, May 30, 2013 /PRNewswire/ – Northern Dynasty Minerals Ltd.
(“Northern Dynasty” or the “Company”) (TSX: NDM; NYSE MKT: NAK)
announces that the Pebble Limited Partnership (the “Pebble Partnership”
or “PLP”) has released a comprehensive study authored by IHS Global
Insight, a leading global source of critical information and insight,
entitled The Economic and Employment Contributions of a Conceptual Pebble Mine to
the Alaska and United States Economies. The IHS report is an independent expert study commissioned by PLP that
details the Pebble Project’s potential economic contributions to the
State of Alaska and the United States.
“This study confirms the national importance of the mineral resources at
Pebble, the development of which has the potential to increase US
copper production by 20% over decades of production, while supplying
America’s manufacturing, construction and clean energy sectors with the
raw materials they require,” said Northern Dynasty President & CEO Ronald Thiessen. “Through significant capital investment, high-wage job creation,
billions of dollars in government revenues and supply and service
contracts, Pebble can benefit generations of Americans and Alaskans.”
Economic benefits in the IHS report are characterized in three stages of
project development: a five-year construction phase, followed by a
25-year initial production phase, and as many as three potential
subsequent 20-year development phases. The IHS report is based on a
conceptual mine plan using an iteration of the ongoing engineering work
undertaken by PLP. This work continues and no final project design has
been selected or approved by the Pebble Partnership at this time.
National economic benefits as defined in the IHS report are outlined in
the table below.
_____________________________________________________________________ | National | | Initial | Potential | | Economic | Construction |Production Phase | Subsequent | | Benefits | (Year 1-5) | (Year 5-29) |Development Phases| | | | | (Year 30+) | |_________________|______________|_________________|__________________| |Jobs | | | | |(direct, indirect| 16,175 | 14,715 | 16,650 | |& induced1) | | | | |_________________|______________|_________________|__________________| | | | $2.4 - $2.72 | $3.7 - $3.9 | |GDP (annual) | $1.6 billion | billion | billion | |_________________|______________|_________________|__________________| |Government | | | | |Revenue | $323 million | $670 - $772 | $1.2 - $1.25 | |(annual: federal,| | million | billion | |state, local) | | | | |_________________|______________|_________________|__________________|
In production, Pebble will be one of Alaska’s largest private sector
employers, supporting an average of nearly 2,900 Alaska jobs, including
915 direct operations jobs. Total direct employment at the proposed
mine over the first 25 years of production will average 1,220 with an
estimated 75% of the workforce to reside full-time in Alaska. At
$109,500 per annum, the projected average annual salary for Pebble mine
workers is expected to be more than double the state average.
Economic benefits for the State of Alaska as defined in the IHS report
are outlined in the table below.
_____________________________________________________________________ | State Economic | | Initial | Potential | |Benefits | Construction |Production Phase | Subsequent | | | (Year 1-5) | (Year 5-29) |Development Phases| | | | | (Year 30+) | |_________________|______________|_________________|__________________| |Jobs | | | | |(direct, indirect| 4,725 | 2,890 | 2,750 | |& induced) | | | | |_________________|______________|_________________|__________________| |GDP (annual) | $400 million | $1.1 - $1.4 | $2.1 - $2.4 | | | | billion | billion | |_________________|______________|_________________|__________________| |Government | | | | |Revenue | $27 million | $165 - $213 |$351- 396 million | |(annual: state & | | million | | |local) | | | | |_________________|______________|_________________|__________________|
(1) Indirect jobs are those supported in sectors providing supplies and
services to the Pebble Project. Induced jobs are those supported in
sectors benefitting from the spending of Pebble direct and indirect
(2) The IHS study forecasts a range of GDP and government revenue impacts
associated with future development of the Pebble Project based on two
different long-term metal commodity price forecasts.
“Pebble can deliver some 3,000 high-wage jobs, more than $1 billion in
annual operating expenses and hundreds of millions of dollars in annual
tax payments to the State of Alaska which is very significant to the
state’s economy,” Thiessen confirmed, noting that Pebble-related economic activity in
Alaska will boost the state’s GDP by more than 3% over 2011 levels. “But for the people and communities of Bristol Bay, Pebble would
literally transform the regional economy – providing jobs and business
opportunities where there are few and increasing the tax base of the
Lake and Peninsula Borough by some 600%.”
In the Bristol Bay region of southwest Alaska in which Pebble is
located, employment opportunities are scarce, the cost of living is
among the highest in the nation, and population is declining as people
move elsewhere to look for work. According to the IHS report, of the
5,394 working-age residents living in the Bristol Bay region, just 63%
worked in 2011 and only 35% were employed throughout the year.
“Mining creates more value per area of land affected than virtually any
other industry,” Thiessen said. “In the case of Pebble, you have a project that will occupy less than
1/20(th) of 1% of the 40,000 square mile area that comprises the Bristol Bay
region, and yet would significantly surpass the economic benefits
generated by the world-class Bristol Bay sockeye salmon fishery.
“Let me be absolutely clear – the Pebble Partnership is designing a
project at Pebble that will fully protect and even potentially enhance
Bristol Bay’s commercial salmon fishery, as well as other subsistence
and sport fisheries that thrive in the region. So the economic benefits
that are projected for Pebble should only enhance the significant
regional employment and economic benefits already provided by Bristol
The Bristol Bay Regional Seafood Development Association recently
released a study authored by the University of Alaska’s Institute of
Social and Economic Research (ISER) entitled The Economic Importance of the Bristol Bay Salmon Industry (April 2013). The table below presents key findings from both the IHS
and ISER studies, and depicts the scale of national economic benefits
that will be generated in the region in future should PLP achieve its
goal of developing and operating a mine at Pebble that co-exists with
the world-class fisheries of Bristol Bay.
_____________________________________________________________________ | | Bristol Bay Salmon| Pebble Project | | Economic Benefits | Industry | Initial production | | | (2010) |phase: years 5 - 29 | |____________________________|___________________|____________________| |Jobs |Direct | 12,000 seasonal | | | | | (equiv. to 2,000 | 1,220 annual | | | | annual) | | | |____________________|___________________|____________________| | |Total | 19,800 | | | | | (equiv. to 9,800 | 14,715 annual | | | | annual) | | |_______|____________________|___________________|____________________| |Average|Direct | $12,100 (per| $109,500 | |Annual | | seasonal job)| | |Wage |____________________|___________________|____________________| | |Total | $20,800 (per | $65,300 | | | | seasonal job) | | |_______|____________________|___________________|____________________| |Annual Economic Contribution| $1.5 billion |$2.4 - $2.7 billion | |____________________________|___________________|____________________|
To access a full version of IHS Global Insight’s report The Economic and Employment Contributions of a Conceptual Pebble Mine to
the Alaska and United States Economies, visit www.northerndynastyminerals.com/ndm/NEIStudy.asp.
About the Pebble Project
The Pebble 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 proponent, its partners and the people and culture
of the State of Alaska, but also industries, suppliers and consultants
locally and in the Lower 48 United States of America. The project is
located 200 miles southwest of Anchorage on state land designated for
mineral exploration and development. It is situated in a region of
rolling tundra approximately 1,000 feet above sea-level, 65 miles from
tidewater on Cook Inlet and presents favourable conditions for
successful mine site and infrastructure development.
The Pebble Project consists of the Pebble deposit, surrounding mineral
claims and a stream of financing provided by Northern Dynasty’s project
partner Anglo American US (Pebble) LLC. The Pebble Partnership was
established in July 2007 as a 50:50 partnership between a wholly-owned
affiliate of Northern Dynasty and a wholly-owned subsidiary of Anglo
American plc. Both Northern Dynasty and Anglo American have equal
ownership and direction of the Pebble Partnership.
Under the terms of the Pebble Limited Partnership Agreement, Anglo
American is required to elect to commit $1.5 billion in staged
investments in order to retain its 50% interest in the Pebble Project.
Funds provided by Anglo American are currently being invested in
comprehensive exploration, engineering, environmental and socioeconomic
programs toward the future development of the Pebble Project.
About IHS (www.ihs.com)
IHS (NYSE: IHS) is the leading source of information, insight and
analytics in critical areas that shape today’s business landscape.
Businesses and governments in more than 165 countries around the globe
rely on the comprehensive content, expert independent analysis and
flexible delivery methods of IHS to make high-impact decisions and
develop strategies with speed and confidence. IHS has been in business
since 1959 and became a publicly traded company on the New York Stock
Exchange in 2005. Headquartered in Englewood, Colorado, USA, IHS is
committed to sustainable, profitable growth and employs 6,700 people in
31 countries around the world.
IHS is a registered trademark of IHS Inc. All other company and product
names may be trademarks of their respective owners. Copyright © 2013
IHS Inc. All rights reserved.
About Northern Dynasty Minerals Ltd.
Northern Dynasty is a mineral exploration and development company based
in Vancouver, Canada, which holds indirect interests in over 500 sq.
miles of mineral claims in southwest Alaska, USA. Northern Dynasty’s
principal asset is a 50% interest in the Pebble Partnership, owner of
the Pebble Project. The Pebble Project is an advanced-stage initiative
to develop one of the world’s most important mineral resources.
Ronald W. Thiessen
President & CEO
No regulatory authority accepts responsibility for the adequacy or
accuracy of this release. Northern Dynasty is solely and entirely
responsible for the contents of this news release. No other party,
including any parties which have an interest in the project, are in any
way responsible for the contents hereof.
Forward Looking Information and other Cautionary Factors
This release includes certain statements that may be deemed
“forward-looking statements”. All statements in this release, other
than statements of historical facts, especially those that address
potential mine feasibility, economic effects, estimated resource
quantities, grades and contained metals, are forward-looking statements
because they are generally made on the basis of estimation and
extrapolation from a limited number of drill holes and metallurgical
studies. Although the Company believes the expectations expressed in
its forward-looking statements are based on reasonable assumptions,
such statements should not be in any way construed as guarantees of the
ultimate size, quality or commercial feasibility of the Pebble Project
or of the Company’s future performance. The likelihood of future mining
at the Pebble Project is subject to a large number of risks and will
require achievement of a number of technical, economic and legal
objectives, including obtaining necessary mining and construction
permits, completion of pre-feasibility and final feasibility studies,
preparation of all necessary engineering for an open pit and/or
underground workings and processing facilities as well as receipt of
significant additional financing to fund these objectives as well as
funding mine construction. Such funding may not be available to the
Company on acceptable terms or on any terms at all. The mineralization
at the Pebble Project has not yet been classified as ore and there is
no assurance that it will ever be classified as ore. The need for
compliance with extensive environmental and socio-economic rules and
practices and the requirement for the Company to obtain government
permitting can cause a delay or even abandonment of a mineral project.
The Company is also subject to the specific risks inherent in the
mining business as well as general economic and business conditions.
For more information on the Company, Investors should review the
Company’s annual Form 40-F filing with the United States Securities and
Exchange Commission and its home jurisdiction filings that are
available at www.sedar.com.
SOURCE Northern Dynasty Minerals Ltd.