There was more bad news today for the B.C. company behind the massive Pebble copper project in Alaska.
Last year, the Environmental Protection Agency (EPA) issued what was described as a pre-emptive veto of the Pebble mine that Northern Dynasty Minerals Ltd. (TSX:NDM,NYSE:NAK) hoped to build in Alaska.
The Pebble project is said to be the world's largest undeveloped copper-gold project, and has the support of the Alaskan state government.
Concerns about the mine’s potential impacts on Bristol Bay salmon led the EPA to issue a final determination in January 2023 that would effectively prohibit the mine from being built, as it would restrict the disposal of any construction or mine waste within the watershed.
There’s really no way to build a mine without producing construction or mine waste, so the EPA ruling essentially vetoes the project.
Alaska challenged the EPA ruling by asking the Supreme Court to deem the EPA ruling illegal. Today, the Supreme Court dismissed Alaska's bid. Northern Dynasty’s stock was down 36 per cent today at close of markets.
"While it is a disappointing decision, it is important to note that this is not a comment on the arguments put forward by the state,” John Shively, CEO of Pebble Limited Partnership, a subsidiary of Northern Dynasty, said in a press release.
“We have long stated our belief that the EPA has acted outside of its regulatory authority and that remains our position today. The legal issues raised by the state will now work their way through the federal courts.
“We will also evaluate our legal options in contesting the extraordinary steps the EPA has taken to pre-emptively stop the Pebble Project. Pebble is an important project for Alaska and the nation. It could create jobs for Alaskans, provide an economic catalyst for the state and provide a much-needed source of critical minerals for the long-term safety and security of the United States."
