Northern Dynasty shares dive on speculation Trump may block Pebble Mine (updated)

Northern Dynasty Minerals

24/08/2020 16:29

(Adds details on permitting process, ad campaign)
    Aug 24 (Reuters) - Shares of Canadian miner Northern Dynasty
Minerals Ltd  NDM.TO  NAK.N  lost more than a third of their
value on Monday as speculation mounted that U.S. President
Donald Trump will block the company's proposed Pebble Mine in
Alaska out of concern for the state's salmon fishing industry.
    Any rejection or delay by Trump, who is locked in a fierce
re-election battle with former Vice President Joe Biden, who is
opposed to the mine, could significantly halt or even prevent
the copper and gold project from being constructed. 
    Trump's administration last month had moved closer to
approving the mine's permit, reversing a decision from former
President Barack Obama.  urn:newsml:reuters.com:*:nL4N2FC312 urn:newsml:reuters.com:*:nL4N2FP01C
    But a prominent group of Republicans, including Trump's son,
Donald Trump Jr., and Fox News host Tucker Carlson, have
publicly voiced opposition.
    "With the Pebble Mine, there's no way you could clean up the
damage. The fish would be gone forever," said Andrew Sabin, a
metals magnate and conservationist who said he has privately
lobbied Trump against the mine. 
    Vancouver-based Northern Dynasty on Saturday denied a media
report from Politico that said Trump planned to block Pebble,
but similar reports from Bloomberg and the Washington Post added
to the speculation.
    The company on Monday launched an advertising campaign
targeting Trump and his administration officials to coincide
with the first day of the Republican National
Convention. urn:newsml:reuters.com:*:nL1N2FO003
    Rejecting the Pebble Mine after extensive review by federal,
state and local regulators would politicize the permitting
process and slow the U.S. economic recovery, Northern Dynasty
said.
    The White House on Monday referred all requests for comment
to the U.S. Army Corps of Engineers, which could not immediately
be reached for comment. On Friday, the Corps declined to
comment, citing the ongoing review process.
    The specter of prominent Republicans openly opposing a
project that could help create U.S. jobs rankled some.
    "I am confused by Trump's son or the other GOP voices over
the last several weeks expressing doubts about the project,
because I think the important priority of the Trump
administration is job creation and economic growth," said John
Tumazos, an analyst who covers Northern Dynasty at Very
Independent Research.
    U.S. Senator Lisa Murkowski, an Alaska Republican and
powerful chair of the Senate Energy & Natural Resources
Committee, has yet to say whether she supports the mine.
    "Adverse impacts to Alaska's world-class salmon fishery and
to the ecosystem of Bristol Bay are unacceptable," Murkowski
said.
    Tom Collier, who runs the Northern Dynasty unit overseeing
the mine, is set to receive a $12.5 million bonus if the mine
receives necessary permits, according to regulatory filings.

 (Reporting by Jeff Lewis, Yereth Rosen and Ernest Scheyder;
Editing by Andrea Ricci and Richard Chang)
 ((ernest.scheyder@thomsonreuters.com; Twitter: @ErnestScheyder;
+1-713-210-8512; Reuters Messaging:
ernest.scheyder.thomsonreuters.com@reuters.net))