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Anglo American withdraws from Pebble copper project

Anglo American’s shares rose as the miner said its US subsidiary Anglo American Pebble is withdrawing from the Pebble copper project in Alaska.

The company’s stake in the project will be sold to its joint venture partner Northern Dynasty.

Anglo said it expects to record an impairment charge of $0.3bn at December 31st 2013 on a post-tax basis.

‘Despite our belief that Pebble is a deposit of rare magnitude and quality, we have taken the decision to withdraw following a thorough assessment of Anglo American’s extensive pipeline of long-dated project options,’ said Mark Cutifani, Chief Executive of Anglo American.

‘Our focus has been to prioritise capital to projects with the highest value and lowest risks within our portfolio, and reduce the capital required to sustain such projects during the pre-approval phases of development as part of a more effective, value-driven capital allocation model.’

Shares climbed 0.99% to 1,584p at 11:05 on Monday.

RD

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