Restriction on world's biggest undeveloped gold and copper resource in Alaska to be lifted, boosting owner Northern Dynasty Minerals

An Obama-era restriction on the world’s biggest undeveloped gold and copper resource in Alaska will be lifted by President Trump’s administration, a boost for its Canadian owner Northern Dynasty Minerals Ltd (CSE:NDM) (NYSEAMERICAN:NAK).

Under Barack Obama, the US Environmental Protection Agency (EPA) proposed limits on large-scale mining in Alaska’s Bristol Bay watershed in 2014, citing environmental concerns.

But the EPA said in a statement on Tuesday that the proposed restrictions were based on hypothetical scenarios that were different from Northern Dynasty’s submitted permit application, hence the lifting of the ban.

The EPA said, however, that the company will still need to go through the permit application process.

Under Trump, the EPA has reversed scores of environmental rules, with the current US President rejecting climate science views.

Northern Dynasty’s site is near Lake Iliamna in southwestern Alaska between the headwaters of two rivers that drain into Bristol Bay.

US Army Corp of Engineers pointed the way

There were signs the restrictions could be eased in February, when the US Army Corps of Engineers released a draft environmental impact statement pointing out the economic benefits from the project, and noting that the mine plan incorporated ways of mitigating the environmental impact.

In a statement on Tuesday, Northern Dynasty’s President & CEO Ron Thiessen said: “Today’s announcement means the Environmental Impact Statement (EIS) and permitting process for the Pebble Project currently being led by the US Army Corps of Engineers may advance to a final Record of Decision in 2020 without the cloud of uncertainty created by EPA’s unprecedented, pre-emptive regulatory action.“ 

He added: “The Corps expects to finalize the Pebble EIS in early 2020 and issue a final Record of Decision by the middle of next year.”

The Pebble mine is expected to produce 70 million tons of gold, molybdenum and copper ore per year and create a pit 600 meters deep.

Northern Dynasty shares surged to their highest level since March on Tuesday, up over 65%, but gave back some of that strength on Wednesday, down 11.7% at C$1.06.

Story by ProactiveInvestors