Northern Dynasty gets Pebble court dates

Northern Dynasty Minerals (TSX: NDM; NYSE-A: NAK) has secured its first detailed court schedule in months for its long-running dispute with US authorities over one of the world’s largest undeveloped copper-gold projects.

In the US District Court for Alaska, the company is challenging the US Environmental Protection Agency’s veto of the Pebble project. Opening briefs from Dynasty are due by Oct. 3 and the federal justice department must file its response by Jan. 2, with the company scheduled to reply by Feb. 27. Northern Dynasty also said Friday it’s continuing to negotiate with the EPA outside of court to reverse the veto.

“If we are able to come to a resolution that removes this unlawful veto, obviating the need for continued litigation, then we can move to terminate the summary judgment process,” Northern Dynasty president and CEO Ron Thiessen said late Thursday in a statement. “This is, undoubtedly, our preferred outcome.”

The court challenge focuses on the EPA’s 2023 decision to exercise its authority through the Clean Water Act to block development at Pebble, citing risks to Bristol Bay’s salmon fisheries. Northern Dynasty argues the action was unlawful and exceeded the agency’s mandate. The company has framed the summary judgment process as a chance for the court to decide the case on the existing record without a full trial.

Stock rises

Shares in Northern Dynasty Minerals gained 5.9% on Friday afternoon to C$1.25 apiece in Toronto, valuing the company at C$682 million. The stock plunged last month from a five-year high of C$3.14 after negotiations waned and company executives sold shares.

The briefing schedule now provides a clear, albeit extended, path for the district court to decide the core legal issues by early 2026. A decision in Northern Dynasty’s favour could revive permitting prospects for Pebble, while an adverse ruling could cement federal opposition and prolong uncertainty for the company and the state of Alaska.

The mine would cost around $10 billion to develop, according to analysts at IHS Markit in February 2022. The site would produce 6.4 billion lb. of copper, 7.4 million oz. of gold, 300 million lb. of molybdenum, 37 million oz. of silver and 200,000 kg of rhenium over 20 years, according to a 2023 preliminary economic assessment.

The company is betting on the Trump administration pushing for the contentious project, CEO Thiessen told The Northern Miner in an interview published in June.

Court saga

Two other related cases remain on hold pending a ruling on the veto. Northern Dynasty alleges in the US Court of Federal Claims that the veto in effect seizes the company’s property rights without compensation. The company is also challenging a separate decision by the US Army Corps of Engineers to deny a key federal permit for Pebble.

Northern Dynasty’s legal history over the Pebble project is a saga stretching back more than a decade. It reflects the project’s collision of mining ambitions, environmental opposition and shifting US administrations.

Early challenges included the pre-emptive move by the US Environmental Protection Agency during the Obama years to restrict development under the Clean Water Act, followed by a pause under President Trump that briefly revived permitting hopes.

The Army Corps of Engineers’ 2020 rejection of a key federal permit triggered a new round of litigation, while the EPA’s 2023 decision to veto the project brought the fight back into federal court in Alaska.