Northern Dynasty tumbles on DOJ brief backing Pebble veto

[Ben Graham]

Northern Dynasty Minerals (TSX: NDM) (NYSE-A: NAK) tumbled after the Department of Justice filed a court brief in Alaska supporting the US Environmental Protection Agency’s veto of its flagship Pebble project.

In a press release on Wednesday, Northern Dynasty president and chief executive Ron Thiessen said it is “surprising” that despite the executive orders and many statements made by the Trump administration in support of Alaskan development and its critical minerals, the EPA would choose to defend the veto.

“This precedent will be used by future Democratic administrations to reverse all of the progress this administration has made with its pro-energy, pro-mining, pro-development agenda,” he stated.

For more than two decades, the Vancouver-based miner has been looking to develop its Pebble project, touted as one of the world’s largest copper-gold-molybdenum resources. However, the proposed mine has faced stern local opposition and undergone a protracted period of review due to its location within the Bristol Bay watershed, where some of the world’s largest sockeye salmon fisheries reside.

If built, the Pebble mine would be the largest copper, gold and molybdenum extraction site in North America. A 2023 economic study estimated that it would produce 6.4 billion lb. of copper, 7.4 million oz. of gold and 300 million lb. of molybdenum, plus 37 million oz. of silver and 200,000 kg of rhenium, over 20 years.

Summary judgment process

In January 2023, the EPA used its Clean Water Act authority to block the company’s Alaskan subsidiary from storing mine waste in the area, essentially killing the project. In its argument, the Agency said the mine would destroy more than 2,000 acres of wetlands.

In a bid to overturn the EPA’s decision, Northern Dynasty filed for legal action with Alaska’s federal district court in 2024. After failed negotiations with the EPA over a potential settlement, the parties moved to resolve the matter through summary judgment — a legal procedure that allows the court to rule on the merits without a full trial.

The DOJ brief represents the latest step in the summary judgment process. Under current court timelines, it must be filed with the Alaska court by Feb. 17, 2026, followed by final reply briefs from the plaintiffs, which include Northern Dynasty, the state of Alaska and two local groups.

Shares of Northern Dynasty Minerals fell by as much as 45% to a five-month low of C$1.52 on the DOJ brief. By midday, it traded at about C$1.80 apiece with a market capitalization of approximately C$1 billion ($730 million).