John Shively, CEOThe Pebble Partnership

United States of America: A Second World Country?

Heritage Foundation 2011

The Pebble PartnershipA Shared Commitment to Sustainable Development

and Social and Community Responsibility.

Northern Dynasty has delineated one of the world's great orebodies, assembling one of the most extensive environmental databases in the history of resource development.

Anglo American US brings a depth of corporate resources and a successful track record of global leadership in modern mining practices.

www.pebblepartnership.com

Slide from J. Lang, 2009

Kennecott (1903-1938)

Copper River

Bristol Bay

Kuskokwim

River

Yukon River

Wulik River

Colville River

Tanana River

Mining & Fishing Co-Exist

Pebble Deposit

PEBBLEEAST

PEBBLEWEST

X

Total In-Situ Resource: 80.6B lbs Copper, 107.4M ounces Gold & 5.6B lbs Molybdenum.

West East

Infrastructure

Region Population

Source: US Census Bureau http://www.census.gov/popest/counties/CO-EST2009-01.html

Copper – Building Block for Green Economy?

• Hybrid car nearly 2X the copper – 42lbs vs. 78lbs• 3MW Wind turbine nearly 5 tons of copper• Solar panels up to 60% copper

Movement or Industry?

“The core talent of a successful environmental activist is not

science and law. It's campaigning instinct.” 

“Psychological warfare is a very underappreciated aspect of

environmental campaigning.”

“New injunctions, new species listings and bad press take a terrible

toll on agency morale. They feel like their careers are being

mocked and destroyed -- and they are.”

“The core talent of a successful environmental activist is not

science and law. It's campaigning instinct.” 

“Psychological warfare is a very underappreciated aspect of

environmental campaigning.”

“New injunctions, new species listings and bad press take a terrible

toll on agency morale. They feel like their careers are being

mocked and destroyed -- and they are.”

From an interview with High Country News, December 21, 2009

Scare Tactics

Despite vast underground stores of raw materials, U.S. one of the last places miners go to start a project.

• 7 year permitting process• Longest wait globally• Australia, 2 years

• Environmental laws = to U.S.

Federal Permitting

Regulatory Costs

Sept. 2010 Fiscal Year

•43 new federal regulations

•$28 billion• $23 billion EPA

and automobile fuel standards

Opposition Through Litigation

Red Dog Mine

• 2006 - $2.1 billion OCS lease purchase• $1 billion investment to pursue project• 2007 - Lawsuit filed by Alaska Wilderness League, Natural

Resource Defense Council• 2007 - Shell cancels exploration program; -$200 million• 2008 - Shell cancels exploration program; -$108 million• 2010 – Exploration work air permits withdrawn by EPA

NGO’s - Opposition Through Litigation

Opposition Through Administrative Action

• Army Corps of Engineers Denies Permit• $600 million invested• 400 direct new jobs• 100+ support jobs

National Petroleum Reserve

EPA revokes permit for hilltop mining project in West Virginia

The U.S. Environmental Protection Agency revoked a permit for one of the nation’s largest mountaintop removal mining projects, saying it would destroy water, wildlife and Appalachian communities West Virginia.

CNN Headline News

Green vs. Green

Reuters as reported by MSNBC.com 1/6/2011

Scope MattersBristol Bay Region

39, 184 sq. miles

State of Virginia42,774 sq. miles

Nushagak River• 12,735 mi2 = Maryland

Kvichak River• 8,017 mi2 = New Jersey

Virginia

Pebble

Glacier Bay National Park

Historic Glacial Coverage

Nevada, Idaho, Washington Alaska

Fraser Institute 2010 – 2011 Mining Survey

Four US states rank last Colorado

Washington California Wisconsin

Alaska

US Offshore Alaska

Fraser InstitutePetroleum Survey 2010

•Six US States/regions rank in the bottom 10

• US Offshore – Pacific• Florida• New York• California• US Offshore – Alaska• Pennsylvania

Alaska

US OffshoreGulf of Mexico

US OffshoreAtlantic

US Offshore Pacific US States - general

Alaska & offshore regions

“What I have found during my first 16 months as director of BLM is that an awful lot of my time is dealing with litigation matters.

Litigation that was filed two, three, four years ago that has yet to be settled.

And so my optimism of being able to move forward and do what I believe to be the right thing based upon the input of the public has been somewhat put on hold.

And that’s an unfortunate situation, but it’s a realistic situation.”

President Obama’s Director of the Bureau of Land Management Bob Abbey

Dec. 2 presentation to RDC:

The World is Out of Balance

Developers

High Risk

Low Rewards

Appeals & Litigation

Equal Burden of ProofBalance the Scale

RESPONSIBLE DEVELOPMENT

DEVELOPERS NGO’S

• Common Sense Standards

• Promote economic and environmental literacy

• Reduce litigation & appeals risks

• Require reporting of all income sources

• Adjust appeals system

• Eliminate tax-exempt status• Loser pays in court •

• 54% prioritize economy over environment• Widest margin in 3 decades

March 2011

Americans say save the economy, not the planet

Economic Conditions

U.S. National Debt

$14.220,574,192,152.96+

2010

Questions?