Today's AFR:End of the road for South32’s Ambler plansWashington...

Today's AFR:


End of the road for South32’s Ambler plans


Washington | The Biden administration is set to deny a key road from being built in Alaska that would have opened up a $US7.5 billion copper mine backed by South32.

The US Department of Interior is expected to say in its final report on the road that any version of it would ‘‘significantly and irrevocably’’ hurt the environment and tribal communities, according to a New York Times report.

The 340-kilometre road through the Alaskan wilderness leads to a massive copper deposit owned by Ambler Metals – which is a 50:50 joint venture between BHP’s spin-off South32 and the Toronto-listed explorer Trilogy Metals.

The copper would have been used in batteries for electric vehicles, photovoltaic cells and transmission lines needed for wind, solar and other renewable energies.

Ambler Metals managing director Kaleb Froehlich said he was shocked that the Department of the Interior agency – the Bureau of Land Management – was even considering such a decision.

‘‘We are stunned to hear reports that BLM may deny the Ambler Access Project, which received full federal approval four years ago and would enable safe and responsible domestic production of minerals that are critical for our national security and clean energy technologies,’’ Mr Froehlich said.

‘‘A denial would also undermine the promise made to Alaskans in the Alaska National Interest Lands Conservation Act, which guaranteed a right-of-way for this crucial project,’’ he said.

‘‘We strongly urge BLM to reconsider what would clearly be an unlawful and politically motivated decision that goes well beyond the narrow set of issues the courts agreed to allow the agency to address.’’

The Department of the Interior did not respond to requests for the agency’s final report or to confirm a final decision had been made.

The Trump administration approved a ‘‘right of way permit’’ in 2020 for the road, which was required because it would cut through federal land.

The Trump administration cited the potential for the road to provide access to the significant copper and cobalt deposits.

The latest decision to stop the road in an election year could have serious consequences for the Biden administration which is trying to strike a balance between environmentalists and those who are seeking to increase production and self-reliance in renewable energy.

The road and Ambler’s mine was also expected to create more than 3900 jobs in an area of high unemployment, while generating more than $US300 million in annual wages.

The Alaska Industrial Development and Export Authority, the state’s development bank, filed for federal permits to build the road in 2015 and has subsequently approved about $US45 million toward the implementation of the project.

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The Alaska state government is furious, if you are interested:

https://www.aidea.org/Portals/0/PressReleases/4-16-2024%20AIDEA%20Urges%20Biden%20Administration%20to%20Follow%20Federal%20Law%20for%20Access%20to%20State%20Lands%20and%20Minerals.pdf

I doubt this will influence the S32 share price much - Ambler has long been a distant option.

It is critical for S32's partner in the project, Trilogy Metals, living on S32's cash contribution to the JV. Trilogy -24.9% yesterday.

This isn't the final word on Ambler. Expect plenty posturing and noise. Watching with interest.

Ash