Pebble To Challenge Borough Ordinance In Alaska Superior Court
October 18,
2011, Vancouver, BC - By a narrow 280 - 246 (53 - 47%) margin, voters in Southwest Alaska's Lake & Peninsula Borough have supported
a ballot measure that, if upheld by the courts, would restrict future development that affects more than one square
mile of land within the 31,000 square mile borough.
The Pebble Limited Partnership
(the "Pebble Partnership"
or "PLP") and the State of Alaska view the
initiative sponsored by anti-Pebble
activists as unconstitutional
and unenforceable because it seeks to restrict
development of state-owned resources on state lands through a municipal ordinance,
and will challenge it in Alaska's Superior Court.
"Given the ballot measure's misleading language, in particular its seeming focus on protecting salmon, it's not surprising that it was
supported by a slim majority of Lake & Peninsula
Borough voters," said
Ron Thiessen, President
& CEO of Northern Dynasty
Minerals Ltd. ("Northern
Dynasty") (TSX: NDM) (NYSE Amex: NAK). "Certainly Northern Dynasty and the Pebble Partnership are wholly committed to preserving and even enhancing the fisheries resources of Southwest Alaska. Unfortunately, this initiative would also halt economic
development throughout the
Lake & Peninsula Borough, and represents
yet another misuse of Alaska's democratic processes by paid opponents of the Pebble Project, whose goal is to stop the project before it receives
comprehensive and objective review
by federal and state regulators.
"What's most
important is that the rule of law in Alaska and the
United States is clear and reliable, such that this unconstitutional
attempt by narrow self-interests to restrict economic development in a region the size of South Carolina will
not stand. We believe the
State of Alaska's constitutional
obligation to manage natural resources
on its land for the benefit
of all Alaskans will ultimately be acknowledged
by the courts."
On November 7, 2011, the Alaska
Superior Court will begin proceedings to consider the constitutionality of the Lake & Peninsula
Borough ordinance. In addition to PLP and the State
of Alaska, the initiative is opposed
by a broad spectrum of
Alaska interests, including
a group of four Alaska Native village corporations representing
seven Lake & Peninsula
Borough communities whose private land holdings would be affected by the ordinance. It is also opposed by the Resource Development Council for Alaska, the Alaska State Chamber of Commerce, the Alaska Miners
Association, Council of Alaska Producers, the Alaska Oil and Gas Association, Alaska Industry Support Alliance, among others.
In a previous legal
filing with Alaska's Supreme Court, the State
of Alaska stated that "the
initiative would enact an ordinance that is unenforceable as a matter of law..." and "will inevitably conflict with, and be preempted by, state law." The state's legal brief also
notes: "The Alaska Constitution provides that the state has the policy of encouraging the development of resources by making them available for maximum use
consistent with the public interest."
Thiessen said the Pebble Partnership will continue to invest in the State of Alaska with
the goal of finalizing a Prefeasibility
Study for the Pebble
Project and initiating federal
and state permitting under
the National Environmental Policy Act
(NEPA) in late 2012. He said
PLP's legal challenge of
the borough ordinance will advance in parallel with efforts to design an environmentally
sound and socially responsible project that co-exists with clean water, healthy fisheries and traditional ways of life in Southwest Alaska.
"The Pebble Project has the potential to create substantial economic and social benefits for the people of Southwest
Alaska for decades to come, in a way
that enhances commercial
and subsistence fisheries
and ensures the long-term sustainability of Alaska Native culture," he said. "Pebble simply has too much potential
for the region and the state to allow
special interests to forestall its development
before an optimized mine
plan is proposed for the consideration of federal and
state regulators and the people of Alaska."
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. The
project is located 200 miles southwest of
Anchorage on state land designated through two public land use
planning exercises for mineral
exploration and development. It is
situated 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 rights of
management, operatorship and control in 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 Northern Dynasty
Northern Dynasty Minerals Ltd. is a mineral exploration and development company based in Vancouver, Canada, which
holds indirect interests in 650 square 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 Copper-Gold-Molybdenum Project. The Pebble
Project is an advanced-stage
initiative to develop one of the most
important mineral resources
in the world.
For further details
on Northern Dynasty please visit the Company's website at www.northerndynasty.com or contact Investor
services at (604) 684-6365 or within
North America at 1-800-667-2114. Review
Canadian public filings at
www.sedar.com and US public filings at www.sec.gov.