Skip to main content
Welcome to
super saver spring
offer ends april 20
save over $140
save over 85%
$0.99
per week for 24 weeks
Welcome to
super saver spring
$0.99
per week
for 24 weeks
// //

Workers with the Pebble Mine project test drill in the Bristol Bay region of Alaska, near the village of Iliamma on July 13, 2007.

Al Grillo/The Associated Press

Northern Dynasty Minerals Ltd. shares fell more than 25 per cent on Tuesday on rising doubts the company can clear regulatory hurdles for its Pebble Mine project in Alaska, and prominent politicians said it would harm the state’s salmon fishing industry.

The U.S. Army Corps of Engineers on Monday gave Northern Dynasty 90 days to explain how it would offset “unavoidable adverse impacts” to more than 3,200 acres of wetlands were the mine to be developed.

Late on Monday, Alaska’s U.S. Senators Dan Sullivan and Lisa Murkowski, both Republicans, came out against the mine, saying it could cause significant damage to the state’s Bristol Bay region popular for fishing and hunting.

Story continues below advertisement

Ms. Murkowski is the powerful chair of the Senate Energy and Natural Resources Committee and her opposition is likely to carry weight across U.S. federal agencies.

Other prominent Republicans, including Donald Trump Jr., son of U.S. President Donald Trump and a keynote speaker on Monday at the Republican National Convention, have opposed the project, saying it would destroy areas where they enjoy fishing and hunting.

Northern Dynasty, in response to the Army Corps, said it plans to “preserve enough land so that multiples of the number of impacted wetland acres are preserved,” but its shares still fell more than 40 per cent on Monday.

The potential cost of such a mitigation plan is unknown and thus concerning, Cantor Fitzgerald analyst Mike Kozak said in research note. “It will be exceptionally challenging to reach a compensation plan ... that will satisfy all parties,” he said.

Cantor Fitzgerald put its price target and stock rating for the company under review, effectively saying it is not immediately clear how much the company is worth.

The Army Corps deadline likely means any final permit decision would come after the Nov. 3 U.S. presidential election. A victory by Democrat Joe Biden would likely to scuttle the entire project, TD Securities analyst Craig Hutchinson said.

Northern Dynasty did not immediately respond to a request for comment.

Story continues below advertisement

Doubts about the project have steadily risen in recent months. Morgan Stanley, once one of the largest Northern Dynasty shareholders, sold most of its holdings two months ago, according to regulatory disclosures.

Be smart with your money. Get the latest investing insights delivered right to your inbox three times a week, with the Globe Investor newsletter. Sign up today.

Your Globe

Build your personal news feed

  1. Follow topics and authors relevant to your reading interests.
  2. Check your Following feed daily, and never miss an article. Access your Following feed from your account menu at the top right corner of every page.

Follow topics related to this article:

View more suggestions in Following Read more about following topics and authors
Report an error
Tickers mentioned in this story
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

If you do not see your comment posted immediately, it is being reviewed by the moderation team and may appear shortly, generally within an hour.

We aim to have all comments reviewed in a timely manner.

Comments that violate our community guidelines will not be posted.

UPDATED: Read our community guidelines here

Discussion loading ...

To view this site properly, enable cookies in your browser. Read our privacy policy to learn more.
How to enable cookies