Pebble copper/gold project opponent invests in Anglo American

Bob Gillam, the chief opponent of one of North America’s largest copper and gold prospects, manages a fund, which has made substantial investments in one of the project’s joint venture partners, Anglo American.

RENO, NV -

The lengthy battle over the permitting and development of the Pebble mine in Alaska has lead to a new revelation, gleefully being spread by the Truth about Pebble organization.

A recent advertisement takes to task Alaska fund manager Bob Gillam, who the Wall Street Journal reported is spending $3 million a year for anti-Pebble lobbying, polling and advertising. Gilliam is a founder of McKinley Capital Management, which now claims to manage nearly $15.9 billion in assets.

Gilliam owns a large, private lodge on Lake Clark, 30 miles northeast on the Pebble deposit. He has emerged as the major contributor toward organizations opposed to the copper-gold deposit.

In their ad, the Truth about Pebble claims McKinley manages "more than $1 billion and a significant amount of the Permanent Fund," a dedicated Alaska state fund created by oil and mining revenues. "But now he's taken on a second career-fighting mining in Alaska," according to the Truth about Pebble advertisement.

In an article published Saturday, the Anchorage Daily News reported that "As recently as last June, McKinley began purchasing stock in Anglo American, the London-based mining conglomerate that joined the Pebble project as a 50 percent owner last August. Anglo has proposed spending at least $1.4 billion to develop it into a massive mine."

"The shares McKinley purchased in Anglo over the past year on behalf of the state's retirement pension fund are valued at more than $7 million, according to state officials." The News quoted Paul Jenkins, an Anglo American executive based in Anchorage, who said Anglo was aware of McKinley's investment in their company.

A May 7, 2008, SEC filing examined by Mineweb shows that McKinley holds 138,695 shares in Anglo stock worth about $4 million during the first quarter of this year. The News said McKinley's investment for state retirement funds include 119,315 shares of Anglo worth $7.7 million at the end of last month.

Ironically, Gillam is believed to have funded a clean water ballot initiative that would not only apply to the Pebble project, but potentially to existing and future metals mines on all state, federal, university, borough and native land in Alaska. However, proponents of the ballot measure say the initiative would only affect mines which want to expand.

A joint venture between the U.S. subsidiaries of Northern Dynasty Mines and Anglo American is believed to be one of the largest copper and gold deposits in the world. Recent estimates of copper and gold reserves at the project value the minerals at between $345 billion and $500 billion.

Print story Email story