Rio Tinto could dump its 19.1 per cent stake in a proposed copper and gold mine in Alaska that has been opposed by the local community and several of Rio Tinto's shareholders.
The proposed Pebble Mine is an open pit copper and gold deposit that would be one of the largest copper mines in the world.
However the project has met with fierce opposition, given its location in Alaska's Bristol Bay region - home to a world class wild salmon fishery.
Last week the chief financial officers of New York City and California state, who also oversee pension funds with investments in Rio Tinto, wrote to the mining company's chief executive Sam Walsh, urging him to cut ties with the project due to its risks and environmental and social impacts.
Rio Tinto says it is now undertaking a strategic review of its shareholding in the project's 100 per cent owners, Canada-based Northern Dynasty Minerals.
"As part of its review, Rio Tinto will consider the Pebble Project's fit with the group's strategy of investing in and operating long life and expandable assets," the company said in a statement.
It also said its global copper business was focussed on its four producing projects and two new development projects in Peru and Arizona.
The news caused Northern Dynasty's shares to fall by more than 21 per cent on Canada's share market.
Rio Tinto shares dropped six cents to $66.84.
