Pebble deposit reveals minerals potential

ANCHORAGE - The vast potential of the Pebble deposit is becoming more clear each day.

So far 476 holes have been drilled to determine the copper and gold mining prospects of the Southwest Alaska region, which also features some of the world's top salmon fisheries.

A report by companies pushing the project says the deposit holds close to 72 billion pounds of copper and 94 million ounces of gold.

At today's mineral prices that's worth about $236 billion. But six months ago, the resource would have fetched closer to $500 billion.

The reports numbers do not reflect potential production costs to the remote region; the project could still be deemed uneconomical.

As mining partners - England's Anglo American and Canada's Northern Dynasty Mines Ltd - move forward, Pebble becomes more closely watched by critics.

The potential project has generated concern among commercial fishermen, environmentalists and hunters. Some believe mining could pollute the salmon streams.

But work is at least four years off with permitting two years away, company officials said.

Still, there remains value from the research, a state official said.

"It's giving you an idea of the maximum potential size" of Pebble, said Tom Crafford, a large-mine coordinator for the Alaska Department of Natural Resources.

Before construction starts, the companies still need to determined how much metal could be profitably mined, Crafford said.

Company officials said the recent market conditions won't drive the decision on whether they will build a mine.

Rather, the mine is considered to be a 50-year project and prices covering that period are what matter most.