Northern Dynasty (NYSE:NAK) shares surged 30% on Monday following President Donald Trump's emergency order to boost domestic critical minerals production. Investors piled in on speculation that the order could revive the company's flagship Pebble Project.
Trump's executive order, signed last Thursday, invokes the Defense Production Act to accelerate mineral development, deemed essential for defense, technology, and infrastructure. The order also calls for expediting permitting processes, removing regulatory barriers, and financing domestic mining projects.
The Pebble Project, located 200 miles southwest of Anchorage, is one of the world's largest undeveloped copper-gold deposits, with estimated reserves of 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—a critical mineral used in military jet engines.
"The Pebble deposit is spectacular, with significant copper, gold, and silver credits. Every geologist would love to find a deposit like Pebble, but its location in a sensitive area raises concerns. Alaska is renowned for its fisheries, especially its valuable salmon resources in that region, "Gregory Beischer, CEO of Alaska Energy Metals (OTCQB:AKEMF), told Benzinga last year.
The Biden administration halted the project in January 2023, as the Environmental Protection Agency prohibited storing mine waste in the Bristol Bay watershed, citing environmental risks. Northern Dynasty has challenged the ruling, arguing that the veto violates various federal statutes regarding Alaska's statehood rights.
Beischer, a former president of the Alaska Miner's Association, believes that developing the mine while following environmental protection procedures is possible.
"As a mining engineer, I believe a mine could be developed without harming the fishery, but the resistance was strong," he noted. Yet, with Trump's latest order prioritizing mineral development, speculation is growing that the project could see renewed interest from regulators.
Beyond Northern Dynasty, other mining companies with operations in Alaska have benefited from the Trump administration's push for domestic resource development. Graphite One (OTCQX:GPHOF), which is developing a graphite project in Alaska, saw its shares climb 5.5% as it positions itself as a key supplier for the growing battery industry. U.S. GoldMining (NASDAQ:USGO), advancing the Whistler gold and copper project, is gaining traction as investors anticipate a more favorable permitting environment.
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