Trillium / Calvert Statement on Anglo American’s Withdrawal from Pebble Mine Project
September 18, 2013 // BOSTON, MA: Anglo American plc (LON: AAL) has announced that it is withdrawing from the proposed Pebble Mine Project in Bristol Bay, Alaska. This action, which casts a cloud of deep uncertainty over the project’s future, follows years of widespread opposition to the proposed open pit mine from Native Alaskans, sport and commercial fishing groups, environmental organizations, and retail grocers, along with other businesses and investors.
Anglo American’s withdrawal is a defining moment in this long running controversy which highlights the unique natural resource that is Bristol Bay. It is the home of the largest wild sockeye salmon fishery in the world, which is sustainably managed and central to the life of the Alaska Natives in the region.
Groups of investors, representing tens of billions of dollars, have expressed deep concern about the proposed mine. In letters to the Environmental Protection Agency in 2011, 2012 and 2013 investors shared their concerns about the Bristol Bay ecosystem, responsible mineral development, sustainable fishery management, Alaska Native culture, and the associated risks.
Trillium, Calvert and other concerned investors believe that this controversy serves as an important example of how environmental, social, government policy and financial risk factors must be addressed in an integrated manner.
We believe Anglo American reached a similar conclusion after its review of the risk/return profile of all projects currently in its pipeline, which led to its decision to withdraw from the project.
Because it is currently unclear whether remaining — or other — mining interests will pursue this large scale mine in any significant way, and because Bristol Bay is a vitally important natural resource, we wish to take this opportunity to, once again, urge the EPA to move forward with its science based review, the 404(c) process, and provide the Bristol Bay region with the protections it needs from large scale mining.
We will be working with fellow investors in the next few weeks to communicate our ongoing concerns to the EPA and other interested parties.
ABOUT TRILLIUM AND CALVERT
Trillium Asset Management LLC is the oldest investment advisor devoted exclusively to sustainable and responsible investing (SRI). With over $1.2 billion in assets under management, Trillium integrates Environmental, Social, and Governance (ESG) factors into the investment process as a way to identify the companies best positioned to deliver strong long-term performance.
Calvert Investments is an investment management company that offers mutual funds and separate accounts to institutional investors, retirement plans, financial intermediaries, and their clients. By combining rigorous analysis with independent thinking, our disciplined approach to money management goes beyond traditional factors in order to manage risk and to identify investment opportunities with greater long-term potential. We offer more than 40 equity, bond, cash, and asset allocation investment strategies, many of which feature integrated corporate sustainability and responsibility research.
Jonas Kron, Trillium Asset Management, (503) 592-0864, email@example.com
Stu Dalheim, Calvert Investments, (301) 961-4762, Stu.Dalheim@Calvert.com
Trillium and Calvert Lead Investors in Voicing Deep Concerns Regarding Pebble Mine
Trillium Asset Management and Calvert Investments Lead Investors in Voicing Deep Concerns Regarding Pebble Mine
Boston, MA // June 24, 2013: Sustainable and responsible investment firms Trillium Asset Management, LLC and Calvert Investments, Inc. are leading a group of 27 investors representing over $35 billion in assets, calling on the Environmental Protection Agency to initiate a Clean Water Act 404(c) review for the proposed Pebble Mine project at the headwaters of Alaska’s Bristol Bay. Under 404(c), the EPA may prohibit or restrict the disposal of mine waste if it determines that it will have an “unacceptable adverse effect” on fishery areas, wildlife, and recreational areas.
The Pebble Mining Project is co-owned by Northern Dynasty Minerals Ltd (NYSE AMEX: NAK) and Anglo American plc (LON: AAL).
“For investors with long-term investment horizons, the value of our portfolios is dependent in part on sustainable global economic growth. We are concerned that our returns could be negatively affected by the potential for negative social and environmental impacts posed by the development of this mine in such a valuable salmon fishery,” said Jonas Kron, Senior Vice President with Trillium.
The EPA’s Draft Impact Assessment on the impacts of the Pebble Mine on the Bristol Bay fishery under routine operation finds that it could result in ninety miles of streams blocked or eliminated and 4,800 acres of wetlands destroyed. Such degradation and destruction of water quality and habitat would have an adverse impact on the commercial, subsistence and sport fishing for salmon in Bristol Bay and the $500 million direct revenue from fish sales. In the event of a leak or spill of mine tailings, the impact would be even worse.
“We believe it is critically important for mining activity to occur only in ecologically and culturally appropriate areas. A Section 404(c) process will help ensure that,” Kron added.
For more information:
Randy Rice, Trillium Asset Management, LLC, (617) 515-6889, firstname.lastname@example.org
The views expressed are those of the authors as of the date referenced and are subject to change at any time based on market or other conditions. These views are not intended to be a forecast of future events or a guarantee of future results. These views may not be relied upon as investment advice. The information provided in this material should not be considered a recommendation to buy or sell any of the securities mentioned. It should not be assumed that investments in such securities have been or will be profitable. To the extent specific securities are mentioned, they have been selected by the authors on an objective basis to illustrate views expressed in the commentary and do not represent all of the securities purchased, sold or recommended for advisory clients. The information contained herein has been prepared from sources believed reliable but is not guaranteed by us as to its timeliness or accuracy, and is not a complete summary or statement of all available data. This piece is for informational purposes and should not be construed as a research report.
New Investor Advisory Raises Questions About Proposed Open Pit Mine in Bristol Bay, Alaska
Earthworks, an environmental nonprofit, has recently published a report that details the growing list of regulatory, legal, engineering, and political challenges facing the Pebble Mine project.
The proposed open pit mine would be located at the headwaters of the Bristol Bay watershed, which produces 50 percent of the world’s commercial supply of wild sockeye salmon.
“Opposition to the Pebble mine project has translated into a barrage of legal, political and regulatory hurdles over the last year,” said Jonas Kron, an analyst with Trillium Asset Management, who reviewed the report. “After scrutinizing the project details, we believe there are significant risks that must be considered,” he added.
In 2011, Trillium organized a group of shareholders representing $170 billion of assets under management to publicly issue a joint statement calling for the Environmental Protection Agency to protect this vitally important national resource.
To read the investment advisory, click here.