Northern Dynasty Minerals Ltd (NYSEMKT:NAK)
Shares of Northern Dynasty Minerals Ltd (NYSEMKT:NAK) rose 17% during the early hours of the Friday trading session following the company’s announcement of jointly filing a motion with Environmental Protection Agency in federal court seeking extension of a stay in the ongoing legal proceedings against the company. The EPA was to take action the previous day under the provisions of Section 404(c) of the Clean Water Act. The parties will now have until May 11 to reach a consensus after the extended stay.
Both parties are likely to strike an agreement on the matter. According to joint motion, the EPA and Northern Dynasty Minerals Ltd (NYSEMKT:NAK) are expected to sign an agreement in the next few weeks that will lead the way to securing the necessary regulatory approvals so as to continue with the process of obtaining the necessary permits and eventually initiating the development of the asset. As at mid-day Friday, the stock had a recorded an 11% gain.
The move to file the joint motion and reach an agreement in relation to the Clean Water Act comes after the announcement by the Alaska Department of Natural Resources that it had awarded the Miscellaneous Land Use Permit to Northern Dynasty approving the execution of the Pebble Project. Although the announcement may have had minimal significance, it was a step in the right direction before talks surrounding federal laws could be concluded.
It appears that the filed joint motion will accommodate the regulatory action regarding the Clean Water Act. Apart from other federal laws, Northern Dynasty Minerals Ltd (NYSEMKT:NAK) will have to settle other disputes with EPA over the National Environmental Policy Act. Tom Collier, the CEO of Pebble Partnership, which is fully owned by Northern Dynasty Minerals said they have reached a consensus that covers all other federal laws.
It is evident that Northern Dynasty Minerals is seeking additional regulatory approvals and permitting. However, Northern Dynasty Minerals Ltd (NYSEMKT:NAK) still has a long and costly road ahead before it can commence mining minerals from the site. The process of permitting alone will cost $150 million and will take up four years to be completed.
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.