The US Army Corps of Engineers (USACE) has ordered Northern Dynasty Minerals (TSX: NDM) to craft a plan that would mitigate environmental impacts of the controversial proposed Pebble copper-gold-molybdenum mine in Alaska.
In a letter dated August 20 to the project鈥檚 developer, Pebble Limited Partnership, the body said that 鈥渕itigation is required for unavoidable adverse impacts to aquatic resources鈥� the project could bring.
The document marks a surprise reversal from the Corps鈥� July decision. The regulator聽cleared at the time the last environmental hurdle聽for the proposed Pebble mine.
The Pebble Partnership, in turn, noted that the USACE鈥檚 fresh request in the permitting process, adding it would submit a plan 鈥渨ithin weeks.鈥�
The US Army Corps of Engineers has told the project鈥檚 developer, Pebble Limited Partnership, that 鈥渕itigation is required for unavoidable adverse impacts to aquatic resources鈥� the mine could bring
Shares of Northern Dynasty plunged 47% on Monday after media reports said the Trump administration plans to block the Pebble mine, despite denials by the company over the weekend.
The stock was down 40% by 4 p.m. EST after falling as much as 56% at the open. Northern Dynasty鈥檚 market capitalization is C$582.58 million.
The approval of the final environmental impact statement (EIS) for the project was supposed to put an end to an almost two-decade-long permitting process.
The mine only needed the federal nod to go ahead. Doubts around what many considered a done-deal, however, surged in early August, with 聽pledging to hear out 鈥渂oth sides of the issue.鈥�
The unexpected statement followed Trump鈥檚 son Donald Jr.聽tweeting he opposed聽the project supported by his father鈥檚 administration.
The Corps鈥� order issued Monday comes on the heels of 聽over the weekend, stating that the Trump administration intended to block the controversial project.
The Vancouver-based miner , saying that the message pushed by the media outlet was 鈥渃learly鈥� an error.
鈥淚t was likely made by a rush to publish rather than doing the necessary diligence to track down the full story,鈥� the company said.
The WSJ, however, had a senior Trump administration official supporting Politico鈥榮 story.
鈥淎ll those reports kind of said the same thing: not enough facts, nowhere near the right mitigation, and the project would result in significant degradation of the environment 鈥β燱e do support mining. But this just didn鈥檛 work,鈥� the .
Pebble mine would be built in the salmon-rich Bristol Bay region, about 200 miles southwest of Anchorage. This has triggered opposition from conservationists and local Indigenous communities, who claim the mine would cause irreparable damage to the environment and the fishery-based economy.
Disproving critics
Northern Dynasty said in early August that it supported calls聽for an independent review of the project鈥檚 EIS to be undertaken by relevant inspectors general of the US Army, the US Defense Department and the USACE.
The measure, which sought to disprove critics of the development, was followed on Monday by an campaign to push for the approval聽of Pebble.
Northern Dynasty said the move targeted 鈥渢he Trump Administration, the Republican Party, its delegates and influencers.
The Pebble Partnership, in turn, noted that the USACE鈥檚 request in the permitting process. It also said it would submit the plan demanded 鈥渨ithin weeks.鈥澛�
The potential cost of the requested mitigation plan is unknown and thus concerning, Cantor Fitzgerald analyst Mike Kozak said in research note. 鈥淚t will be exceptionally challenging to reach a compensation plan 鈥� that will satisfy all parties,鈥� he said.