What happened
Shares of Canadian miner Northern Dynasty Minerals (NAK -1.04%) advanced 20% earlier today and remained up 16% as of 2 p.m. EDT. Shares have jumped almost 80% since last week, after sinking more than 60% prior to that in August.
So what
The share price turbulence is related to the company's Pebble Mine project in Alaska and the politics that have become involved. The Pebble Limited Partnership is the U.S.-based subsidiary that owns the potentially lucrative mine. The partnership put out a statement on Aug. 22, 2020, denying a Politico report saying the Trump administration was planning to block the mine project. The report sent Northern Dynasty shares tanking almost 40% at the time.
Image source: Getty Images.
Now what
The proposed mine, which is known to contain deposits of copper, gold, and other minerals, is in an environmentally sensitive location, as it drains into Bristol Bay, which houses a productive wild salmon fishery. Reports of potential administration opposition to the project were stoked when the president's son, Donald Trump Jr., tweeted, "The headwaters of Bristol Bay and the surrounding fishery are too unique and fragile to take any chances with." Trump Jr. is an avid fisherman.
Today, Northern Dynasty reiterated a report the Pebble Limited Partnership made last week. It says the Washington Examiner has confirmed that the U.S. Army Corps of Engineers' letter to the company on Aug. 20, 2020, continues to be the "guiding policy" on the project. The company said it has been working on wetlands mitigation concerns expressed in that letter. It clarified that a separate statement from the Army Public Affairs office that implied the project would not move forward was incorrect, as it's not the official "operating document."
