After an initial drop of over 20%, shares of Northern Dynasty Minerals (NYSEMKT:NAK) were down 12% as of 12:30 p.m. EST today. The fortune of the Canadian mining company hinges on its Alaska Pebble Mine project. Some investors are betting the final election outcome won't be friendly toward the federal permitting of the project.
The Pebble Mine project is the world's largest undeveloped copper, gold, molybdenum, and silver resource, according to the company. President Trump has previously signaled his support of the project.
The president signed an executive order on Sept. 30 declaring a national emergency in the mining industry, saying it was "particularly concerning" that the United States imports 80% of its rare-earth elements directly from China.
After the executive order, the U.S. government announced it would direct the U.S. International Development Finance Corporation, a federally funded lender and investor created under President Trump, to invest $25 million in a U.K.-based miner to help it develop a nickel and cobalt mine in Brazil.
Both metals are crucial for electric vehicle, cellphone, and battery production. Northern Dynasty hailed that as "the first tangible step the U.S. government has taken" to address the supply of crucial minerals and metals.
With the votes from yesterday's election still being counted, the race is going down to the wire. Investors in Northern Dynasty seem to believe a Joe Biden presidency won't be as accommodating toward supporting the Pebble Mine project, or securing a crucial supply of metals.