DOJ brief backs Pebble veto; Northern Dynasty shares slump
Shares in Northern Dynasty Minerals slumped nearly 40% on the TSX and NYSE American on Wednesday after the US Department of Justice (DOJ) filed a court brief in Alaska supporting the Environmental Protection Agency’s (EPA’s) veto of the company’s flagship Pebble project.
The DOJ lodged its brief in Alaska Federal Court on Tuesday, backing the EPA’s prior determination to restrict development of the proposed copper/gold/molybdenum project.
Northern Dynasty and its wholly owned US subsidiary, Pebble Limited Partnership, are seeking summary judgment in their legal challenge against the EPA’s veto of the Pebble mine project.
“We find it surprising that despite the executive orders and the many statements made by the administration related to Alaskan development, pro-energy, pro-critical metals, pro-defense and military support, removing roadblocks to permitting, on the need for copper, etc., this EPA would choose to defend the unlawful Obama-Biden veto,” said Northern Dynasty president and CEO Ron Thiessen.
“This precedent will be used by future Democratic administrations to reverse all of the progress this administration has made with its pro-energy, pro-mining, pro-development agenda.”
The EPA’s veto, originally issued under Section 404(c) of the Clean Water Act, effectively blocks the disposal of mine waste in certain waters within the Bristol Bay watershed area, preventing the project from advancing through the federal permitting process.
Thiessen said the company is reviewing the DOJ’s filing with its legal advisers.
