Britain's Financial Times is reporting that Rio Tinto has donated its stake in Alaska's controversial Pebble Mine to two Alaska charities, one run by a local First Nation.

Rio Tinto donates Alaska copper mine stake to charities  (registration/subscription required)

Rio Tinto had a 19 per cent stake in Northern Dynasty, a Vancouver-based mining company whose main asset is the Pebble project in Alaska.

The FT reports that Pebble is one of the world’s largest known undeveloped copper resources. The project is mired in disagreement because of concern over its potential effect on salmon stocks.

The FT report says the US Environmental Protection Agency said that it would investigate whether fisheries in the region could be protected. The EPA investigation stops any award of environmental permits for the mine in the meantime, and could lead to a permanent block on the project by the EPA.

According to the report, Rio Tinto said it would donate its shares in Northern Dynasty – worth about $19 million Canadian – to two charitable foundations in Alaska: the Alaska Community Foundation, which funds educational and vocational training, and the Bristol Bay Native Corporation Education Foundation, which supports educational and cultural programmes in the region.

The Pebble Mine would be near rich salmon rivers which flow into Bristol Bay, Alaska. Opponents of the project fear that the giant mine would irreversibly damage salmon stocks for centuries to come.

Related:

Pension funds pressure Rio Tinto to dump out of controversial Alaska Pebble Mine