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Web posted Sunday, February 6, 2005

Northern Dynasty: Pebble will be a good neighbor

By Margaret Bauman
Alaska Journal of Commerce

An environmental project manager for a proposed large-scale open-pit gold, copper and molybdenum mine reaffirmed to Southwest Alaska business leaders her company's concern for responsible development of the project.

While Pebble Creek is still in its preliminary stages - with 30 consulting firms and laboratories engaged in environmental studies, and no permits applied for - Northern Dynasty Minerals Ltd. is very proactive in sharing information about the project, Ella Ede told participants of the Southwest Alaska Economic Summit in Anchorage on Jan. 27.

"Most companies wait until they file (for permits) before they begin sharing the (environmental) information with the public," Ede said.

Northern Dynasty presented its study plan for environmental studies to Alaska state agencies last July, which rather surprised officials, Ede said.

"We want to be a good neighbor, do responsible mineral development, have an open dialogue with all parties, and optimize local jobs, training and business opportunities," she said. Ede estimated that the construction phase of the mine would result in some 2,000 direct jobs, and the completed mine would create about 1,000 jobs.

Ede, who had served as project manager for the Exxon Valdez oil spill data base, cited herself as an example of the company's commitment to local hire. She is one of seven Alaskans currently employed full-time by the company in Anchorage, she said.

Estimates are that the mine near Lake Iliamna, southwest of Anchorage, would be in operation for three to four decades, she said.

Ronald Thiessen, president and chief operating officer of the Vancouver-based mineral exploration firm, said in late November that ongoing test drilling operations revealed a substantial, new higher-grade gold, copper and molybdenum zone on the east side of the prospect.

Thiessen said in a news release that this discovery has significant implications for the deposit model and mine operations planned.

Ede said Northern Dynasty is committed to using scientific and traditional knowledge to provide for sound environmental design of the project and rigorous project review.

The company's environmental studies will cover a range of fields, from meteorology and air quality to socioeconomic factors, she said.

"Let there be no mistake; this is a large project. It will have a footprint," she said. "Our challenge is to work together to achieve a balanced, sustainable development by minimizing the negative impacts and maximizing the positive impacts."

Other presenters at the forum during the minerals section of the economic summit organized by the Southwest Alaska Municipal Conference included Rick Eckert, spokesman for the Homer Electric Association.

Eckert said the cooperative was about three weeks away from getting a completed study on the costs of a transmission line for power to the proposed mine. Eckert said cooperative members currently pay in excess of 50 cents per kilowatt hour for electricity and that if an agreement were reached to provide power for Pebble mine, "the price will come down for everyone."

The cost of the $90,000 study is being shared by Homer Electric and Northern Dynasty, he said.

Officials with Homer Electric Association and Northern Dynasty announced Jan. 11 an agreement to jointly assess the technical, economic and environmental feasibility of a phased development approach to ensure the timely delivery of electrical power to construct and operate the mine.

Results of the joint review will contribute to the feasibility study of the Pebble project, which is targeted for completion later this year, officials said.

Homer Electric is one of six prime electric cooperatives, or utilities, that service the Alaska Railbelt transmission grid. The grid includes Anchorage, Fairbanks, the Matanuska-Susitna Borough and the Kenai Peninsula. The grid provides about 75 percent of the state's population with more than 85 percent of the state's electrical power.

The power development plan being reviewed for the Pebble project is in two stages. Stage one would connect the mine to the Railbelt electrical grid, via either 210 miles of overland transmission line, or alternatively, 45 miles of submarine cable across Cook Inlet, followed by about 70 miles of overland transmission line to the Pebble project.

En route, area villages and other consumers could also be connected to the new extension, officials said.

During 2005, Homer Electric and Northern Dynasty plan to expand their discussions with local communities to determine the best approach for optimizing the supply of power to Pebble and its neighbors, officials said. It is anticipated that Homer Electric would position itself to provide about 100 megawatts of power to start-up operations for the project.

Web resources: Northern Dynasty - www.northerndynasty.com, Homer Electric Association - www.homerelectric.com.

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