Northern Dynasty announces National Economic Impact Study of Alaska's Pebble
VANCOUVER, May 30, 2013
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
Initial Production Potential
National Economic Construction Phase Subsequent
Benefits (Year 1-5) (Year 5-29) Development Phases
(direct, indirect & 16,175 14,715 16,650
$2.4 - $2.7^2
GDP (annual) $1.6 billion billion $3.7 - $3.9 billion
(annual: federal, $323 million $670 - $772 million $1.2 - $1.25 billion
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 Production Potential
Benefits Construction Phase Subsequent
(Year 1-5) (Year 5-29) Development Phases
(direct, indirect & 4,725 2,890 2,750
GDP (annual) $400 million $1.1 - $1.4 billion $2.1 - $2.4 billion
(annual: state & $27 million $165 - $213 million $351- 396 million
^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 employee wages.
^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
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 Bay fisheries."
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 phase:
(2010) years 5 - 29
Jobs Direct 12,000 seasonal
(equiv. to 2,000 1,220 annual
(equiv. to 9,800 14,715 annual
Average Direct $12,100 (per seasonal $109,500
Wage Total $20,800 (per seasonal $65,300
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
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
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.
For further details on Northern Dynasty please visit the Company's website
atwww.northerndynasty.com or contact Investor services at (604) 684-6365 or
within North America at 1-800-667-2114. Review Canadian public filings
atwww.sedar.com and US public filings atwww.sec.gov.
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