Northern Dynasty Minerals Ltd and First Quantum Minerals Ltd announced Friday they have terminated an agreement under which the latter would have become a partner in the former's Pebble copper/gold project in Alaska.
The two companies "have been unable to reach agreement on the option and partnership transaction contemplated in the December 15, 2017 framework agreement between the parties," Northern Dynasty said Friday.
"As such, the framework agreement has been terminated," it said in a statement.
Pebble is large, undeveloped accumulation of copper, gold and molybdenum near Lake Iliamna, southwest of Anchorage.
While the resource, which is confirmed by drilling, is large, the project has been dogged by controversy and opposition from Alaska Native groups in the region because of the proximity of the proposed mine to sensitive salmon streams.
Vancouver, British Columbia-based Northern Dynasty has been engaged in exploration and mine planning for several years, but two prior partners that took a stake in Pebble, Rio Tinto and Anglo American, withdrew.
First Quantum has now joined that list.
Northern Dynasty, the project operator, has filed applications for federal permits to build the mine with the US Army Corps of Engineers and is in the early stages of preparing a Draft Environmental Impact Statement for the project.
The company plans to carry out additional drilling at the site this summer.
It is unclear just what impact First Quantum's withdrawal will have on Northern Dynasty's ongoing work program. The company did not respond Friday to requests for comment.
