Benzinga - by Stjepan Kalinic, Benzinga Staff Writer.
The U.S. Supreme Court has shut down Alaska’s ambition for the Pebble mine due to pollution concerns.
What Happened: The largest North American copper, gold, and molybdenum extraction site has faced nearly two decades of opposition.
Northern Dynasty Minerals (TSX:NDM, NYSE:NAK) argued that the proposed mine could provide employment opportunities for thousands of Alaskans. The Vancouver, Canada-based company insisted that the mine would yield substantial resources over a 20-year lifespan, including:
- 6.4 billion pounds of copper
- 7.4 million ounces of gold
- 300 million pounds of molybdenum
- 37 million ounces of silver and
- 200,000 kilograms of rhenium.
Last January, the Environmental Protection Agency (EPA) rejected the company’s proposal in solidarity with Alaskan tribes who remain concerned about the project’s impact on the pristine watershed.
Why It Matters: The decision is seen as a win for environmental groups.
Alaskan lawmakers supporting the project filed a motion in July urging the Supreme Court to overturn the EPA’s veto, arguing that it had the authority to hear the case before lower courts.
“Alaska tried to persuade the court that this is the rare kind of dispute that the justices should hear as a trial court, without having it go through lower courts first,” CNN's Supreme Court analyst and University of Texas professor Stephen Vladeck said.
“Although there's no explanation accompanying today's denial, it stands to reason that a majority of the justices disagreed and were willing to let the case go through ordinary litigation in the lower courts first,” he added.
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What’s Next: Northern Dynasty’s stock plummeted 34% following the news. The company also expressed disappointment in the Supreme Court’s decision, and believes that the EPA exceeded its regulatory authority.
It is considering legal options to challenge the decision.
Alaska Governor Mike Dunleavy pledged to continue fighting for the Pebble project, emphasizing its potential importance for copper and critical minerals in an era of fast-tracking renewable energy development.
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