Northern Dynasty Minerals Ltd (NYSEMKT:NAK)
Northern Dynasty Minerals Ltd (NYSEMKT:NAK), through its subsidiary Pebble Limited Partnership, has reached a settlement with the U.S Environmental Protection Agency (EPA). The agency has given the mining company the green light to continue with its Pebble Project under the Clean Water Act and National Environmental Policy Act.
Northern Dynasty-EPA Settlement
The settlement paves the way for the company to move forth with the building of what could be the world’s largest gold and copper mine in the Alaska’s Bristol Bay. The environmental agency says it will not file a Recommended Determination until a final Environmental Impact Statement for the project is completed by the US Army Corps.
The agreement brings to life a project that was put on ice during the Obama administration over its potential impact on the environment. A legal tussle between the EPA and Northern Dynasty meant the project could not proceed even before the company applied for permits. With the settlement, Pebble Partnership can now apply for a Clean Water Act permit from the U.S Army Corps of Engineers.
“It will be a busy and exciting year for Pebble and Alaska,” confirmed Pebble Partnership CEO Tom Collier. “Not only will we be rolling out a project that is smaller, with demonstrable environmental protections, we will also be announcing a number of new initiatives to ensure our project is more responsive to the priorities and concerns of Alaskans,” said Pebble Partnership CEO Tom Collier.
Big Investors Concerns
The project has been hampered over the years by concerns that toxic residue from mines could find its way into the world’s largest population of sockeye population. Locals have always argued that such an occurrence would significantly affect the $250 million fishing industry affecting and endanger 14,000 jobs.
Reversal of the Obama administration’s ban signals a new beginning for the mining industry that had faced major challenges over environmental concerns. There is optimism that the industry will enjoy better relations with regulators under President, Donald Trump.
Shares of Northern Dynasty Minerals Ltd (NYSEMKT:NAK) have reacted positively to the new settlement even as other investors maintain a cautious approach. Fuelling skepticism among some investors are concerns that the project could struggle to attract big budget investors. Some of the largest mining corporations that have pulled the plug on the project include Mitsubishi, Rio Tinto, and Anglo American.
Northern Dynasty Minerals Ltd (NYSEMKT:NAK) was unchanged in Wednesday trading session having lost $0.03 in market value to close at $1.79 a share.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
About the author: Monica Gray has an undergraduate degree in Accounting and an MBA – earned with Honors. She has six years of experience in the financial markets and has been a securities analyst for the past two years.