Rio Tinto mulls selling stake in Pebble owner Northern Dynasty

Mon Dec 23, 2013 7:12am EST
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LONDON Dec 23 (Reuters) - Global miner Rio Tinto said on Monday it is considering the sale of its stake in Canada's Northern Dynasty, owner of the undeveloped Pebble copper-gold project in Alaska.

Rio, through a subsidiary, owns a 19.1 percent stake in Northern Dynasty, making it the largest single investor.

"Rio Tinto has advised the management of Northern Dynasty Minerals ... that it intends to undertake a strategic review, including a possible divestment, of its shareholding in Northern Dynasty," the miner said.

Northern Dynasty's partner in Pebble, Anglo American , pulled out in September, as part of its plan to cut the cost of future options and halve its $17 billion pipeline of potential mines.

Rio's copper strategy is focused on its interest in four producing mines - Kennecott Utah Copper, Oyu Tolgoi, along with stakes in Escondida and Grasberg - and two development projects, La Granja in Peru and Resolution in Arizona.