Northern Dynasty Minerals (NDM.TO), a mineral exploration and development company advancing its wholly owned Pebble Project in Alaska, the most significant undeveloped copper and gold resource in the world, announced today a compelling letter was submitted to the Environmental Protection Agency (EPA) by US States.
A first letter was submitted by the State of Alaska, and a second letter signed by a total of 14 US States was submitted protesting against the EPA’s overreach with the revised Proposed Determination of the Pebble Project. Calling it an unprecedented abuse of its authority and warning about implications for the future.
The State of Alaska has submitted a strongly-worded letter to the EPA detailing its deep concerns about the EPA’s actions, for reasons including:
“It diminishes the importance of resource development to Alaska and its people. It also disregards the State’s ability to – and history of – ensuring protection of its own fishery resources through the State’s permitting system…Ensuring Alaska’s ability to develop its resources, was a key concern to the State and Congress during statehood negotiations…In the unlikely event of its validity, exercise of this veto would constitute a regulatory taking, for which compensation, in the billions, is due.”
“If finalized…it would impose a blanket prohibition on all future, similar mining projects over a 309-square-mile area, which is 23 times the size of the proposed project footprint and comprises lands owned by the State of Alaska. This veto sets a dangerous precedent…effectively creating a 404(c) wild card, playable at whim to stop projects. Such a power introduces profound uncertainty into the 404 permitting process and, by extension, the investment climate; and undermines steps taken by Congress and President Biden to lessen our Nation’s mineral dependence on other countries, like China, in pursuit of a renewable energy economy of our own.”
The entirety of the letter can be viewed here.
The 14 States which have signed this letter are Alaska, Arkansas, Idaho, Indiana, Kansas, Kentucky, Louisiana, Montana, Nebraska, South Carolina, Texas, Utah, West Virginia, and Wyoming.
CEO of Northern Dynasty Ronald Thiessen had this to say:
“If the EPA’s revised Proposed Determination is enacted, then no permit application can be submitted, by anyone, to mine in the 309-square mile area which encompasses the Pebble deposit, basically turning the world’s largest deposit of much needed copper, gold, silver, molybdenum and rhenium into yet another de facto park,”
“Alaska doesn’t need another park. It needs full-time jobs, improved living standards for its residents in southwestern Alaska, and tax revenues for the future benefit of its people. And the United States of America desperately needs a domestic supply of its own metal to successfully transition to a green economy. Further, this action by the EPA is in direct opposition to Alaska National Interest Lands Conservation Act (“ANILCA”) and effectively sterilizes Native Village Corporations lands in the area as well. This action by the EPA is bad for Alaska, bad for the region and bad for the country as the Final Pebble Environmental Impact Statement concluded development of Pebble is not a choice between mining or fishing, rather it’s a process which will allow Alaskans to benefit from both the mine and the fishery.”
The drama over one of the world’s largest undeveloped gold and copper project continues. With geopolitical tensions rising, and the economy slowing down, this mine is just too big and important for the US to fail. All parties will have to eventually come to a compromise.
The stock continues to battle at major support. We did indeed break below support on September 26th 2022. However, the good news for the bulls is that the stock managed to reclaim the $0.33 support zone, leading to a false breakdown.
Now the stock continues to battle at this major support zone and remains below the current downtrend line that I have drawn. If Northern Dynasty can confirm a close above this trendline, the probability for a move higher increases. In other words, the interim downtrend would be over.
I would then watch the stock to pop to the $0.39 zone before then testing the major resistance at $0.43. This is the major zone which needs to break for a major uptrend reversal.
As of now, this is a very important zone for technical traders. A zone which could see buyers jump in as the gold price pops over $1700 and copper remains above $3.30.
