Shares of
Northern Dynasty Minerals Ltd. (
TSX: T.NDM,
Stock Forum) wobbled Monday as traders responded to news that The U.S. Environmental Protection Agency will attempt to deploy as rarely used provision in a bid to block the company’s proposed Pebble Mine in Alaska’s salmon-rich Bristol Bay region.
The stock eased 1.2% to 85 cents, leaving a market cap of $80.8 million, based on 95 million shares outstanding. The 52-week range is $2.84 and 67 cents.
The EPA said science has shown that development of this copper-gold-molybdenum mine, which is backed by Northern Dynasty and the Pebble Ltd. Partnership, would be one of the largest open pit copper mines in the world and would threaten one of the world’s most productive salmon fisheries.
The EPA Region 10 said it is seeking public comment on its proposal from July 21 to September 19, 2014, and will hold public meetings in Alaska from August 12 to 15.
According to the EPA, this is how a mine would affect the Bristol Bay watershed
Based on information provided by Northern Dynasty Minerals to investors and the U.S. Securities and Exchange Commission, mining the Pebble deposit is likely to result in:
A mine pit nearly as deep as the Grand Canyon
Mine waste that would fill a major football stadium up to 3,900 times
Massive mine tailings impoundments that would cover approximately 19 square miles and waste rock piles that would cover nearly nine square miles in an area with productive streams, wetlands, lakes and ponds.
A mining operation that would cover an area larger than Manhattan.
Based on scientific analysis, the EPA is proposing to restrict all discharge of dredged or fill materials related to mining the Pebble deposit that would result in any of the following:
Loss of streams.
Loss of wetlands, lakes and ponds.
Streamflow alterations.
According to EPA analyses, losses of the nature and magnitude listed above would be unprecedented for the Clean Water Act Section 404 regulatory program in the Bristol Bay region, as well as the rest of Alaska and perhaps the nation.
The EPA said it has used 404(c) authority sparingly, beginning the process in 30 instances and completing it only 13 times in the 42-year history of the Clean Water Act. EPA use of its authority has typically involved major projects with significant impacts on some of America’s most ecologically valuable waters.
Northern Dynasty issued a statement following the close of trading Friday, saying the EPA announcement is only a proposal at this time. “We note that the agency is seemingly moving away from pre-emptively vetoing the Pebble Project in favor of imposing specific conditions on future development.
“That said, we do not accept that EPA has the statutory authority to impose conditions on development at Pebble, or any development project anywhere in Alaska or the U.S., prior to the submission of a detailed development plan and its thorough review by federal and state agencies, including review under the National Environment Policy Act, the company said.